CAPITAL ONE FINANCIAL CORP (COF) Stock Fundamental Analysis
NYSE:COF - New York Stock Exchange, Inc. - US14040H1059 - Common Stock - Currency: USD
Overall COF gets a fundamental rating of 3 out of 10. We evaluated COF against 53 industry peers in the Consumer Finance industry. COF may be in some trouble as it scores bad on both profitability and health. COF is not valued too expensively and it also shows a decent 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.
COF had positive earnings in each of the past 5 years.
Of the past 5 years COF 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.84%, COF is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
COF has a Return On Equity (6.46%) which is comparable to the rest of the industry.
| 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 line with its industry, outperforming 59.62% of the companies in the same industry.
In the last couple of years the Profit Margin of COF has declined.
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) | 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.
The number of shares outstanding for COF has been increased compared to 1 year ago.
COF has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, COF has an improved debt to assets ratio.
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.
Looking at the Debt to FCF ratio, with a value of 2.27, COF is in the better half of the industry, outperforming 78.85% of the companies in the same industry.
COF has a Debt/Equity ratio of 0.78. This is a neutral value indicating COF is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.78, COF is doing good in the industry, outperforming 65.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.78 | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.18%
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
Based on estimates for the next years, COF will show a small growth in Earnings Per Share. The EPS will grow by 4.97% on average per year.
COF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.92% yearly.
EPS Next Y14.28%
EPS Next 2Y15.18%
EPS Next 3Y13.84%
EPS Next 5Y4.97%
Revenue Next Year5.28%
Revenue Next 2Y5.18%
Revenue Next 3Y5.53%
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 13.25, which indicates a correct valuation of COF.
Based on the Price/Earnings ratio, COF is valued a bit more expensive than 61.54% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.41. COF is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.60, which indicates a very decent valuation of COF.
COF's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.12, COF is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.25 | ||
| Fwd PE | 11.6 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of COF indicates a somewhat cheap valuation: COF is cheaper than 65.38% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.25 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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)0.93
PEG (5Y)3.2
EPS Next 2Y15.18%
EPS Next 3Y13.84%
5. Dividend
5.1 Amount
COF has a Yearly Dividend Yield of 1.22%.
COF's Dividend Yield is comparable with the industry average which is at 4.12.
Compared to an average S&P500 Dividend Yield of 2.30, COF's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
5.2 History
On average, the dividend of COF grows each year by 6.94%, which is quite nice.
COF has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of COF decreased in the last 3 years.
Dividend Growth(5Y)6.94%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
28.58% of the earnings are spent on dividend by COF. This is a low number and sustainable payout ratio.
The dividend of COF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP28.58%
EPS Next 2Y15.18%
EPS Next 3Y13.84%
184.9
-11.28 (-5.75%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners93.42%
Inst Owner Change1.65%
Ins Owners1.15%
Ins Owner Change-0.75%
Market Cap70.48B
Analysts74.62
Price Target222.39 (20.28%)
Short Float %5.3%
Short Ratio6.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.22% |
Yearly Dividend3.04
Dividend Growth(5Y)6.94%
DP28.58%
Div Incr Years0
Div Non Decr Years2
Ex-Date
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)2.4%
PT rev (3m)23.91%
EPS NQ rev (1m)0.51%
EPS NQ rev (3m)0.51%
EPS NY rev (1m)0.22%
EPS NY rev (3m)0.67%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.25 | ||
| Fwd PE | 11.6 | ||
| P/S | 1.83 | ||
| P/FCF | 3.25 | ||
| P/OCF | 3.09 | ||
| P/B | 1.12 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | N/A |
EPS(TTM)13.95
EY7.54%
EPS(NY)15.94
Fwd EY8.62%
FCF(TTM)56.93
FCFY30.79%
OCF(TTM)59.84
OCFY32.36%
SpS100.81
BVpS165.07
TBVpS123.9
PEG (NY)0.93
PEG (5Y)3.2
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
WACC13.18%
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 Y14.28%
EPS Next 2Y15.18%
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 Year5.28%
Revenue Next 2Y5.18%
Revenue Next 3Y5.53%
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