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. Both the profitability and financial health of COF have multiple concerns. 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.
In the past 5 years COF has always been profitable.
Each year in the past 5 years COF had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.91%, COF is doing worse than 64.15% of the companies in the same industry.
COF's Return On Equity of 7.31% is on the low side compared to the rest of the industry. COF is outperformed by 60.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.91% | ||
| ROE | 7.31% | ||
| 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
COF has a Profit Margin of 11.36%. This is comparable to the rest of the industry: COF outperforms 52.83% of its industry peers.
COF's Profit Margin has declined in the last couple of years.
The Operating Margin and Gross Margin are not available for COF so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 11.36% | ||
| 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.
The number of shares outstanding for COF has been increased compared to 1 year ago.
Compared to 5 years ago, COF has less shares outstanding
Compared to 1 year ago, COF has an improved debt to assets ratio.
2.2 Solvency
COF has a debt to FCF ratio of 2.69. This is a good value and a sign of high solvency as COF would need 2.69 years to pay back of all of its debts.
COF has a better Debt to FCF ratio (2.69) than 73.58% of its industry peers.
A Debt/Equity ratio of 0.75 indicates that COF is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.75, COF is in the better half of the industry, outperforming 66.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 2.69 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.45%
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.
Measured over the past 5 years, COF shows a small growth in Earnings Per Share. The EPS has been growing by 4.14% on average per year.
The Revenue has been growing slightly by 6.32% in the past year.
COF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.47% yearly.
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.
COF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.60% yearly.
EPS Next Y13.9%
EPS Next 2Y15.19%
EPS Next 3Y13.63%
EPS Next 5Y4.97%
Revenue Next Year5.44%
Revenue Next 2Y5.23%
Revenue Next 3Y5.3%
Revenue Next 5Y4.6%
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
A Price/Earnings ratio of 11.67 indicates a reasonable valuation of COF.
COF's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.29. COF is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.24, the valuation of COF can be described as reasonable.
COF's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.08. COF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 10.24 |
4.2 Price Multiples
COF's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. COF is cheaper than 67.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.68 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
COF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as COF's earnings are expected to grow with 13.63% in the coming years.
PEG (NY)0.84
PEG (5Y)2.82
EPS Next 2Y15.19%
EPS Next 3Y13.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.47%, COF has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.85, COF has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.57, COF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
5.2 History
On average, the dividend of COF grows each year by 6.36%, which is quite nice.
COF has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of COF decreased in the last 3 years.
Dividend Growth(5Y)6.36%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
COF pays out 26.10% of its income as dividend. This is a sustainable payout ratio.
The dividend of COF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP26.1%
EPS Next 2Y15.19%
EPS Next 3Y13.63%
162.77
+2.71 (+1.69%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners93.42%
Inst Owner Change0.02%
Ins Owners1.15%
Ins Owner Change0.79%
Market Cap62.33B
Analysts80
Price Target218.14 (34.02%)
Short Float %5.86%
Short Ratio5.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
Yearly Dividend3.05
Dividend Growth(5Y)6.36%
DP26.1%
Div Incr Years0
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)13.66%
Min EPS beat(2)8.56%
Max EPS beat(2)18.76%
EPS beat(4)2
Avg EPS beat(4)4.48%
Min EPS beat(4)-5.56%
Max EPS beat(4)18.76%
EPS beat(8)4
Avg EPS beat(8)0.49%
EPS beat(12)5
Avg EPS beat(12)-3.51%
EPS beat(16)9
Avg EPS beat(16)7.07%
Revenue beat(2)1
Avg Revenue beat(2)-0.33%
Min Revenue beat(2)-1.2%
Max Revenue beat(2)0.54%
Revenue beat(4)1
Avg Revenue beat(4)-0.67%
Min Revenue beat(4)-1.66%
Max Revenue beat(4)0.54%
Revenue beat(8)2
Avg Revenue beat(8)-0.89%
Revenue beat(12)4
Avg Revenue beat(12)-0.63%
Revenue beat(16)8
Avg Revenue beat(16)0.09%
PT rev (1m)-3.06%
PT rev (3m)13.5%
EPS NQ rev (1m)3.19%
EPS NQ rev (3m)-2.54%
EPS NY rev (1m)-0.34%
EPS NY rev (3m)-0.14%
Revenue NQ rev (1m)-0.29%
Revenue NQ rev (3m)0.62%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-1.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 10.24 | ||
| P/S | 1.59 | ||
| P/FCF | 3.68 | ||
| P/OCF | 3.43 | ||
| P/B | 1.03 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | N/A |
EPS(TTM)13.95
EY8.57%
EPS(NY)15.89
Fwd EY9.76%
FCF(TTM)44.27
FCFY27.2%
OCF(TTM)47.42
OCFY29.13%
SpS102.13
BVpS158.72
TBVpS117.89
PEG (NY)0.84
PEG (5Y)2.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.91% | ||
| ROE | 7.31% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 11.36% | ||
| GM | N/A | ||
| FCFM | 43.35% |
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 | 0.75 | ||
| Debt/FCF | 2.69 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 37.19% | ||
| Cap/Sales | 3.08% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 381.44% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC15.45%
ROIC/WACCN/A
Cap/Depr(3y)32.03%
Cap/Depr(5y)27.28%
Cap/Sales(3y)2.81%
Cap/Sales(5y)2.64%
Profit Quality(3y)330.76%
Profit Quality(5y)352.51%
High Growth Momentum
Growth
EPS 1Y (TTM)11.42%
EPS 3Y-19.6%
EPS 5Y4.14%
EPS Q2Q%37.95%
EPS Next Y13.9%
EPS Next 2Y15.19%
EPS Next 3Y13.63%
EPS Next 5Y4.97%
Revenue 1Y (TTM)6.32%
Revenue growth 3Y8.72%
Revenue growth 5Y6.47%
Sales Q2Q%7.2%
Revenue Next Year5.44%
Revenue Next 2Y5.23%
Revenue Next 3Y5.3%
Revenue Next 5Y4.6%
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 1Y-13.56%
FCF growth 3Y13.45%
FCF growth 5Y1.48%
OCF growth 1Y-11.74%
OCF growth 3Y13.84%
OCF growth 5Y1.76%