CAPITAL ONE FINANCIAL CORP (COF)
US14040H1059 - Common Stock
We assign a fundamental rating of 3 out of 10 to COF. COF was compared to 51 industry peers in the Consumer Finance industry. COF may be in some trouble as it scores bad on both profitability and health. COF has a valuation in line with the averages, but it does not seem to be growing.
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.
In the past 5 years COF always reported a positive cash flow from operatings.
1.2 Ratios
COF has a Return On Assets (1.02%) which is comparable to the rest of the industry.
With a Return On Equity value of 8.47%, COF perfoms like the industry average, outperforming 49.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.02% | ||
| ROE | 8.47% | ||
| ROIC | N/A |
ROA(3y)1.76%
ROA(5y)1.43%
ROE(3y)13.63%
ROE(5y)10.76%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
COF has a better Profit Margin (13.13%) than 60.78% of its industry peers.
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) | 13.13% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y14.37%
PM growth 5Y-9.34%
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.
Compared to 1 year ago, COF has less shares outstanding
Compared to 5 years ago, COF has less shares outstanding
The debt/assets ratio for COF has been reduced compared to a year ago.
2.2 Solvency
COF has a debt to FCF ratio of 2.57. This is a good value and a sign of high solvency as COF would need 2.57 years to pay back of all of its debts.
The Debt to FCF ratio of COF (2.57) is better than 76.47% of its industry peers.
COF has a Debt/Equity ratio of 0.87. This is a neutral value indicating COF is somewhat dependend on debt financing.
COF has a better Debt to Equity ratio (0.87) than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 2.57 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.73%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
COF shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.09%.
Measured over the past 5 years, COF shows a small growth in Earnings Per Share. The EPS has been growing by 3.31% on average per year.
Looking at the last year, COF shows a small growth in Revenue. The Revenue has grown by 6.59% in the last year.
COF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.55% yearly.
EPS 1Y (TTM)-6.09%
EPS 3Y34.9%
EPS 5Y3.31%
EPS Q2Q%38.96%
Revenue 1Y (TTM)6.59%
Revenue growth 3Y8.85%
Revenue growth 5Y5.55%
Sales Q2Q%5.6%
3.2 Future
The Earnings Per Share is expected to grow by 6.72% on average over the next years.
Based on estimates for the next years, COF will show a small growth in Revenue. The Revenue will grow by 3.71% on average per year.
EPS Next Y10.32%
EPS Next 2Y13.67%
EPS Next 3Y13.56%
EPS Next 5Y6.72%
Revenue Next Year4.78%
Revenue Next 2Y4.7%
Revenue Next 3Y4.71%
Revenue Next 5Y3.71%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.96, the valuation of COF can be described as very reasonable.
COF's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of COF to the average of the S&P500 Index (28.42), we can say COF is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.26, the valuation of COF can be described as reasonable.
COF's Price/Forward Earnings ratio is in line with the industry average.
COF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.02.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.96 | ||
| Fwd PE | 8.26 |
4.2 Price Multiples
COF's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. COF is cheaper than 68.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.6 | ||
| 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 13.56% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.97
PEG (5Y)3.01
EPS Next 2Y13.67%
EPS Next 3Y13.56%
5. Dividend
5.1 Amount
COF has a Yearly Dividend Yield of 1.78%. Purely for dividend investing, there may be better candidates out there.
COF's Dividend Yield is comparable with the industry average which is at 4.42.
COF's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
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 recently.
Dividend Growth(5Y)6.94%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
COF pays out 23.70% 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.
DP23.7%
EPS Next 2Y13.67%
EPS Next 3Y13.56%
CAPITAL ONE FINANCIAL CORP
NYSE:COF (6/14/2024, 7:04:00 PM)
After market: 133.7 0 (0%)133.7
-1.39 (-1.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap51.06B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.96 | ||
| Fwd PE | 8.26 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.97
PEG (5Y)3.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.02% | ||
| ROE | 8.47% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 13.13% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-6.09%
EPS 3Y34.9%
EPS 5Y
EPS Q2Q%
EPS Next Y10.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.59%
Revenue growth 3Y8.85%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y