CAPITAL ONE FINANCIAL CORP (COF) Stock Fundamental Analysis
NYSE:COF - New York Stock Exchange, Inc. - US14040H1059 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to COF. COF was compared to 53 industry peers in the Consumer Finance industry. COF has a bad profitability rating. Also its financial health evaluation is rather negative. COF has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
COF had positive earnings in the past year.
COF had a positive operating cash flow in the past year.
Each year in the past 5 years COF has been profitable.
Of the past 5 years COF 4 years had a positive operating cash flow.
1.2 Ratios
COF has a Return On Assets (0.84%) which is in line with its industry peers.
COF's Return On Equity of 6.46% is in line compared to the rest of the industry. COF outperforms 44.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.84% | ||
| ROE | 6.46% | ||
| ROIC | N/A |
ROA(3y)1.14%
ROA(5y)1.35%
ROE(3y)9.53%
ROE(5y)10.43%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 10.57%, COF is in the better half of the industry, outperforming 61.54% of the companies in the same industry.
In the last couple of years the Profit Margin of COF has declined.
COF does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 10.57% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-33.88%
PM growth 5Y-8.95%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
COF does not have a ROIC to compare to the WACC, probably because it is not profitable.
COF has more shares outstanding than it did 1 year ago.
COF has less shares outstanding than it did 5 years ago.
COF has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of COF is 2.27, which is a good value as it means it would take COF, 2.27 years of fcf income to pay off all of its debts.
COF's Debt to FCF ratio of 2.27 is fine compared to the rest of the industry. COF outperforms 76.92% of its industry peers.
COF has a Debt/Equity ratio of 0.78. This is a neutral value indicating COF is somewhat dependend on debt financing.
COF has a better Debt to Equity ratio (0.78) than 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.21%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.42% over the past year.
The Earnings Per Share has been growing slightly by 4.14% on average over the past years.
Looking at the last year, COF shows a small growth in Revenue. The Revenue has grown by 6.32% in the last year.
The Revenue has been growing slightly by 6.47% on average over the past years.
EPS 1Y (TTM)11.42%
EPS 3Y-19.6%
EPS 5Y4.14%
EPS Q2Q%37.95%
Revenue 1Y (TTM)6.32%
Revenue growth 3Y8.72%
Revenue growth 5Y6.47%
Sales Q2Q%7.2%
3.2 Future
COF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.97% yearly.
The Revenue is expected to grow by 2.92% on average over the next years.
EPS Next Y14.03%
EPS Next 2Y15.06%
EPS Next 3Y13.84%
EPS Next 5Y4.97%
Revenue Next Year5.24%
Revenue Next 2Y5.04%
Revenue Next 3Y2.75%
Revenue Next 5Y2.92%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.62, which indicates a correct valuation of COF.
COF's Price/Earnings ratio is in line with the industry average.
COF's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.28.
The Price/Forward Earnings ratio is 12.82, which indicates a correct valuation of COF.
Compared to the rest of the industry, the Price/Forward Earnings ratio of COF is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 91.29, COF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.62 | ||
| Fwd PE | 12.82 |
4.2 Price Multiples
69.23% of the companies in the same industry are more expensive than COF, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.58 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
COF's earnings are expected to grow with 13.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.04
PEG (5Y)3.53
EPS Next 2Y15.06%
EPS Next 3Y13.84%
5. Dividend
5.1 Amount
COF has a Yearly Dividend Yield of 1.19%. Purely for dividend investing, there may be better candidates out there.
COF's Dividend Yield is comparable with the industry average which is at 4.23.
Compared to an average S&P500 Dividend Yield of 2.27, COF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
5.2 History
The dividend of COF is nicely growing with an annual growth rate of 6.94%!
COF has been paying a dividend for at least 10 years, so it has a reliable track record.
COF has decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.94%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
COF pays out 28.58% of its income as dividend. This is a sustainable payout ratio.
COF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP28.58%
EPS Next 2Y15.06%
EPS Next 3Y13.84%
CAPITAL ONE FINANCIAL CORP
NYSE:COF (1/29/2025, 8:15:10 PM)
After market: 203.91 0 (0%)203.91
+0.79 (+0.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners89.84%
Inst Owner Change0.36%
Ins Owners1.15%
Ins Owner Change-1.4%
Market Cap77.79B
Analysts70.77
Price Target217.17 (6.5%)
Short Float %4.36%
Short Ratio5.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.19% |
Yearly Dividend3.04
Dividend Growth(5Y)6.94%
DP28.58%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.6%
Min EPS beat(2)-5.56%
Max EPS beat(2)18.76%
EPS beat(4)1
Avg EPS beat(4)-1.63%
Min EPS beat(4)-15.88%
Max EPS beat(4)18.76%
EPS beat(8)3
Avg EPS beat(8)-4%
EPS beat(12)5
Avg EPS beat(12)-4.13%
EPS beat(16)9
Avg EPS beat(16)11.85%
Revenue beat(2)1
Avg Revenue beat(2)-0.56%
Min Revenue beat(2)-1.66%
Max Revenue beat(2)0.54%
Revenue beat(4)1
Avg Revenue beat(4)-0.5%
Min Revenue beat(4)-1.66%
Max Revenue beat(4)0.54%
Revenue beat(8)2
Avg Revenue beat(8)-0.88%
Revenue beat(12)5
Avg Revenue beat(12)-0.42%
Revenue beat(16)9
Avg Revenue beat(16)0.43%
PT rev (1m)4.93%
PT rev (3m)17.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.85%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.96%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)1.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.62 | ||
| Fwd PE | 12.82 | ||
| P/S | 2.02 | ||
| P/FCF | 3.58 | ||
| P/OCF | 3.41 | ||
| P/B | 1.24 | ||
| P/tB | 1.65 | ||
| EV/EBITDA | N/A |
EPS(TTM)13.95
EY6.84%
EPS(NY)15.91
Fwd EY7.8%
FCF(TTM)56.89
FCFY27.9%
OCF(TTM)59.79
OCFY29.32%
SpS100.73
BVpS164.94
TBVpS123.81
PEG (NY)1.04
PEG (5Y)3.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.84% | ||
| ROE | 6.46% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 10.57% | ||
| GM | N/A | ||
| FCFM | 56.47% |
ROA(3y)1.14%
ROA(5y)1.35%
ROE(3y)9.53%
ROE(5y)10.43%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-33.88%
PM growth 5Y-8.95%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 2.27 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 34.43% | ||
| Cap/Sales | 2.89% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 534.27% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC13.21%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.42%
EPS 3Y-19.6%
EPS 5Y4.14%
EPS Q2Q%37.95%
EPS Next Y14.03%
EPS Next 2Y15.06%
EPS Next 3Y13.84%
EPS Next 5Y4.97%
Revenue 1Y (TTM)6.32%
Revenue growth 3Y8.72%
Revenue growth 5Y6.47%
Sales Q2Q%7.2%
Revenue Next Year5.24%
Revenue Next 2Y5.04%
Revenue Next 3Y2.75%
Revenue Next 5Y2.92%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y5.14%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5.45%
OCF growth 3YN/A
OCF growth 5YN/A