CAPITAL ONE FINANCIAL CORP (COF)

US14040H1059 - Common Stock

137.1  +1.96 (+1.45%)

After market: 137.1 0 (0%)

Fundamental Rating

3

Overall COF gets a fundamental rating of 3 out of 10. We evaluated COF against 51 industry peers in the Consumer Finance industry. COF may be in some trouble as it scores bad on both profitability and health. COF is valued correctly, but it does not seem to be growing.



3

1. Profitability

1.1 Basic Checks

In the past year COF was profitable.
In the past year COF had a positive cash flow from operations.
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

With a Return On Assets value of 1.02%, COF perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
COF has a Return On Equity of 8.47%. This is comparable to the rest of the industry: COF outperforms 49.02% of its industry peers.
Industry RankSector 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.
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 RankSector 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

3

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
COF has a better debt/assets ratio than last year.

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 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.
The Debt to Equity ratio of COF (0.87) is better than 64.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.87
Debt/FCF 2.57
Altman-Z N/A
ROIC/WACCN/A
WACC13.74%

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A

3

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.
The Revenue has been growing slightly by 6.59% in the past year.
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)-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

Based on estimates for the next years, COF will show a small growth in Earnings Per Share. The EPS will grow by 6.72% on average per year.
The Revenue is expected to grow by 3.71% on average over the next years.
EPS Next Y9.72%
EPS Next 2Y13.91%
EPS Next 3Y14%
EPS Next 5Y6.72%
Revenue Next Year4.6%
Revenue Next 2Y4.6%
Revenue Next 3Y4.65%
Revenue Next 5Y3.71%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.

5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 10.22, the valuation of COF can be described as reasonable.
The rest of the industry has a similar Price/Earnings ratio as COF.
When comparing the Price/Earnings ratio of COF to the average of the S&P500 Index (28.40), we can say COF is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.44, the valuation of COF can be described as reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as COF.
COF is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.03, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 10.22
Fwd PE 8.44

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, COF is valued a bit cheaper than 68.63% of the companies in the same industry.
Industry RankSector Rank
P/FCF 2.67
EV/EBITDA N/A

4.3 Compensation for Growth

The 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 14.00% in the coming years.
PEG (NY)1.05
PEG (5Y)3.09
EPS Next 2Y13.91%
EPS Next 3Y14%

4

5. Dividend

5.1 Amount

COF has a Yearly Dividend Yield of 1.76%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.29, COF has a dividend in line with its industry peers.
COF's Dividend Yield is slightly below the S&P500 average, which is at 2.37.
Industry RankSector Rank
Dividend Yield 1.76%

5.2 History

The dividend of COF is nicely growing with an annual growth rate of 6.94%!
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

23.70% 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.
DP23.7%
EPS Next 2Y13.91%
EPS Next 3Y14%

CAPITAL ONE FINANCIAL CORP

NYSE:COF (6/12/2024, 5:30:00 PM)

After market: 137.1 0 (0%)

137.1

+1.96 (+1.45%)

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 Cap52.36B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 1.76%
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(16)
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Revenue 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 RankSector Rank
PE 10.22
Fwd PE 8.44
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)1.05
PEG (5Y)3.09
Profitability
Industry RankSector 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 RankSector 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 Y9.72%
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