CAPITAL ONE FINANCIAL CORP (COF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:COF - US14040H1059 - Common Stock
249.2 USD
-6.48 (-2.53%)
249.86 USD
+0.66 (+0.26%)
We assign a fundamental rating of 5 out of 10 to COF. COF was compared to 55 industry peers in the Consumer Finance industry. While COF seems to be doing ok healthwise, there are quite some concerns on its profitability. COF is not overvalued while it is showing excellent growth. This is an interesting combination. COF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
COF had positive earnings in the past year.
In the past year COF had a positive cash flow from operations.
COF had positive earnings in each of the past 5 years.
Each year in the past 5 years COF had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.17%, COF is not doing good in the industry: 74.55% of the companies in the same industry are doing better.
The Return On Equity of COF (0.96%) is worse than 76.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.17% | ||
| ROE | 0.96% | ||
| 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
With a Profit Margin value of 2.28%, COF is not doing good in the industry: 72.73% of the companies in the same industry are doing better.
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) | 2.28% | ||
| 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.
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 2.44, which is a good value as it means it would take COF, 2.44 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of COF (2.44) is better than 81.82% of its industry peers.
COF has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of COF (0.45) is better than 76.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.44 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC11.95%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
COF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.83%, which is quite impressive.
COF shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.14% yearly.
Looking at the last year, COF shows a very strong growth in Revenue. The Revenue has grown by 25.02%.
COF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.47% yearly.
EPS 1Y (TTM)41.83%
EPS 3Y-19.6%
EPS 5Y4.14%
EPS Q2Q%31.93%
Revenue 1Y (TTM)25.02%
Revenue growth 3Y8.72%
Revenue growth 5Y6.47%
Sales Q2Q%53.38%
3.2 Future
Based on estimates for the next years, COF will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.88% on average per year.
The Revenue is expected to grow by 11.94% on average over the next years. This is quite good.
EPS Next Y43.42%
EPS Next 2Y22.85%
EPS Next 3Y22.32%
EPS Next 5Y10.88%
Revenue Next Year36.32%
Revenue Next 2Y27.03%
Revenue Next 3Y19.34%
Revenue Next 5Y11.94%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.41 indicates a correct valuation of COF.
Compared to the rest of the industry, the Price/Earnings ratio of COF is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.19. COF is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 11.84, the valuation of COF can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as COF.
The average S&P500 Price/Forward Earnings ratio is at 23.88. COF is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 11.84 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, COF is valued a bit cheaper than the industry average as 61.82% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.6 | ||
| 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.
A more expensive valuation may be justified as COF's earnings are expected to grow with 22.32% in the coming years.
PEG (NY)0.31
PEG (5Y)3.24
EPS Next 2Y22.85%
EPS Next 3Y22.32%
5. Dividend
5.1 Amount
COF has a Yearly Dividend Yield of 6.54%, which is a nice return.
COF's Dividend Yield is rather good when compared to the industry average which is at 2.93. COF pays more dividend than 81.82% of the companies in the same industry.
COF's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.54% |
5.2 History
The dividend of COF is nicely growing with an annual growth rate of 6.34%!
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)6.34%
Div Incr Years0
Div Non Decr Years2
5.3 Sustainability
COF pays out 135.04% of its income as dividend. This is not a sustainable payout ratio.
COF's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP135.04%
EPS Next 2Y22.85%
EPS Next 3Y22.32%
249.2
-6.48 (-2.53%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners87.59%
Inst Owner Change0%
Ins Owners0.74%
Ins Owner Change-2.22%
Market Cap158.42B
Revenue(TTM)48.04B
Net Income(TTM)1.09B
Analysts81.43
Price Target269.68 (8.22%)
Short Float %1.52%
Short Ratio2.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.54% |
Yearly Dividend3.05
Dividend Growth(5Y)6.34%
DP135.04%
Div Incr Years0
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)40.46%
Min EPS beat(2)34.94%
Max EPS beat(2)45.98%
EPS beat(4)4
Avg EPS beat(4)24.58%
Min EPS beat(4)8.56%
Max EPS beat(4)45.98%
EPS beat(8)5
Avg EPS beat(8)11.47%
EPS beat(12)7
Avg EPS beat(12)5.53%
EPS beat(16)9
Avg EPS beat(16)3.05%
Revenue beat(2)1
Avg Revenue beat(2)-0.86%
Min Revenue beat(2)-2.6%
Max Revenue beat(2)0.88%
Revenue beat(4)1
Avg Revenue beat(4)-1.1%
Min Revenue beat(4)-2.6%
Max Revenue beat(4)0.88%
Revenue beat(8)2
Avg Revenue beat(8)-0.8%
Revenue beat(12)3
Avg Revenue beat(12)-0.96%
Revenue beat(16)6
Avg Revenue beat(16)-0.59%
PT rev (1m)1.63%
PT rev (3m)4.02%
EPS NQ rev (1m)0.44%
EPS NQ rev (3m)7.42%
EPS NY rev (1m)0.1%
EPS NY rev (3m)13.55%
Revenue NQ rev (1m)-0.17%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 11.84 | ||
| P/S | 3.3 | ||
| P/FCF | 7.6 | ||
| P/OCF | 7.09 | ||
| P/B | 1.39 | ||
| P/tB | 2.33 | ||
| EV/EBITDA | N/A |
EPS(TTM)18.58
EY7.46%
EPS(NY)21.05
Fwd EY8.45%
FCF(TTM)32.79
FCFY13.16%
OCF(TTM)35.13
OCFY14.1%
SpS75.57
BVpS179.03
TBVpS106.82
PEG (NY)0.31
PEG (5Y)3.24
Graham Number273.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.17% | ||
| ROE | 0.96% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 2.28% | ||
| GM | N/A | ||
| FCFM | 43.39% |
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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 2.44 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 33.34% | ||
| Cap/Sales | 3.1% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 1907.14% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC11.95%
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)41.83%
EPS 3Y-19.6%
EPS 5Y4.14%
EPS Q2Q%31.93%
EPS Next Y43.42%
EPS Next 2Y22.85%
EPS Next 3Y22.32%
EPS Next 5Y10.88%
Revenue 1Y (TTM)25.02%
Revenue growth 3Y8.72%
Revenue growth 5Y6.47%
Sales Q2Q%53.38%
Revenue Next Year36.32%
Revenue Next 2Y27.03%
Revenue Next 3Y19.34%
Revenue Next 5Y11.94%
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 1Y0.98%
FCF growth 3Y13.45%
FCF growth 5Y1.48%
OCF growth 1Y3.25%
OCF growth 3Y13.84%
OCF growth 5Y1.76%
CAPITAL ONE FINANCIAL CORP / COF FAQ
What is the ChartMill fundamental rating of CAPITAL ONE FINANCIAL CORP (COF) stock?
ChartMill assigns a fundamental rating of 5 / 10 to COF.
Can you provide the valuation status for CAPITAL ONE FINANCIAL CORP?
ChartMill assigns a valuation rating of 6 / 10 to CAPITAL ONE FINANCIAL CORP (COF). This can be considered as Fairly Valued.
Can you provide the profitability details for CAPITAL ONE FINANCIAL CORP?
CAPITAL ONE FINANCIAL CORP (COF) has a profitability rating of 2 / 10.
What is the financial health of CAPITAL ONE FINANCIAL CORP (COF) stock?
The financial health rating of CAPITAL ONE FINANCIAL CORP (COF) is 4 / 10.
How sustainable is the dividend of CAPITAL ONE FINANCIAL CORP (COF) stock?
The dividend rating of CAPITAL ONE FINANCIAL CORP (COF) is 7 / 10 and the dividend payout ratio is 135.04%.