CAPITAL ONE FINANCIAL CORP (COF)
US14040H1059 - Common Stock
We assign a fundamental rating of 4 out of 10 to COF. COF was compared to 52 industry peers in the Consumer Finance industry. Both the profitability and financial health of COF have multiple concerns. COF has a decent growth rate and is not valued too expensively.
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.
COF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
COF has a Return On Assets (1.02%) which is comparable to the rest of the industry.
COF has a Return On Equity of 8.47%. This is comparable to the rest of the industry: COF outperforms 48.08% of its industry peers.
| 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 Profit Margin of 13.13%. This is in the better half of the industry: COF outperforms 61.54% of its industry peers.
COF's Profit Margin has declined in the last couple of years.
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.
COF has less shares outstanding than it did 1 year ago.
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
The Debt to FCF ratio of COF is 2.57, which is a good value as it means it would take COF, 2.57 years of fcf income to pay off all of its debts.
COF has a Debt to FCF ratio of 2.57. This is in the better half of the industry: COF outperforms 75.00% 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.
With a decent Debt to Equity ratio value of 0.87, COF is doing good in the industry, outperforming 63.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.87 | ||
| Debt/FCF | 2.57 | ||
| 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
COF shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.48%.
The Earnings Per Share has been growing slightly by 3.31% on average over the past years.
COF shows a small growth in Revenue. In the last year, the Revenue has grown by 5.65%.
Measured over the past years, COF shows a small growth in Revenue. The Revenue has been growing by 5.55% on average per year.
EPS 1Y (TTM)1.48%
EPS 3Y34.9%
EPS 5Y3.31%
EPS Q2Q%-10.8%
Revenue 1Y (TTM)5.65%
Revenue growth 3Y8.85%
Revenue growth 5Y5.55%
Sales Q2Q%5.48%
3.2 Future
The Earnings Per Share is expected to grow by 6.72% on average over the next years.
The Revenue is expected to grow by 3.71% on average over the next years.
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.
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
COF is valuated reasonably with a Price/Earnings ratio of 11.45.
Compared to the rest of the industry, the Price/Earnings ratio of COF is on the same level as its industry peers.
COF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.41.
A Price/Forward Earnings ratio of 9.23 indicates a reasonable 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.
COF is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.45 | ||
| Fwd PE | 9.23 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, COF is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.91 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
COF's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as COF's earnings are expected to grow with 13.56% in the coming years.
PEG (NY)1.11
PEG (5Y)3.46
EPS Next 2Y13.67%
EPS Next 3Y13.56%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.64%, COF has a reasonable but not impressive dividend return.
COF's Dividend Yield is comparable with the industry average which is at 4.28.
Compared to the average S&P500 Dividend Yield of 2.30, COF is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
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.
COF has decreased its dividend recently.
Dividend Growth(5Y)6.94%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
23.70% of the earnings are spent on dividend by COF. This is a low number and 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 (7/26/2024, 7:23:06 PM)
After market: 149.36 0 (0%)149.36
+1.27 (+0.86%)
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 Cap57.04B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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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 | 11.45 | ||
| Fwd PE | 9.23 | ||
| 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)1.11
PEG (5Y)3.46
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)1.48%
EPS 3Y34.9%
EPS 5Y
EPS Q2Q%
EPS Next Y10.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.65%
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