CAPITAL ONE FINANCIAL CORP (COF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:COF - US14040H1059 - Common Stock
230.56 USD
-0.12 (-0.05%)
230.59 USD
+0.03 (+0.01%)
Taking everything into account, COF scores 5 out of 10 in our fundamental rating. COF was compared to 55 industry peers in the Consumer Finance industry. The financial health of COF is average, but there are quite some concerns on its profitability. COF is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! Finally COF also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year COF was profitable.
COF had a positive operating cash flow in the past year.
In the past 5 years COF has always been profitable.
COF had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
COF's Return On Assets of 0.17% is on the low side compared to the rest of the industry. COF is outperformed by 72.73% of its industry peers.
The Return On Equity of COF (0.96%) is worse than 74.55% 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: 70.91% 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.
The number of shares outstanding for COF has been reduced compared to 5 years ago.
COF has a better debt/assets ratio than last year.
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.
COF has a Debt to FCF ratio of 2.44. This is amongst the best in the industry. COF outperforms 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
WACC13.92%
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 impressive 41.83% over the past year.
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.
COF is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.94% yearly.
EPS Next Y43.28%
EPS Next 2Y22.86%
EPS Next 3Y22.28%
EPS Next 5Y10.88%
Revenue Next Year36.39%
Revenue Next 2Y27.03%
Revenue Next 3Y19.44%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.41 indicates a correct valuation of COF.
The rest of the industry has a similar Price/Earnings ratio as COF.
COF is valuated cheaply when we compare the Price/Earnings ratio to 26.49, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.95, the valuation of COF can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as COF.
When comparing the Price/Forward Earnings ratio of COF to the average of the S&P500 Index (23.69), we can say COF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.41 | ||
| Fwd PE | 10.95 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, COF is valued a bit cheaper than 61.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.03 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
COF's 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 22.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.29
PEG (5Y)3
EPS Next 2Y22.86%
EPS Next 3Y22.28%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.50%, COF is a good candidate for dividend investing.
COF's Dividend Yield is rather good when compared to the industry average which is at 5.09. COF pays more dividend than 87.27% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, COF pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.5% |
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 2Y22.86%
EPS Next 3Y22.28%
230.56
-0.12 (-0.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners87.59%
Inst Owner Change-17.91%
Ins Owners0.74%
Ins Owner Change-2.22%
Market Cap146.57B
Revenue(TTM)48.04B
Net Income(TTM)1.09B
Analysts81.43
Price Target265.36 (15.09%)
Short Float %1.44%
Short Ratio2.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.5% |
Yearly Dividend3.05
Dividend Growth(5Y)6.34%
DP135.04%
Div Incr Years0
Div Non Decr Years2
Ex-Date
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)0.09%
PT rev (3m)3.13%
EPS NQ rev (1m)-0.13%
EPS NQ rev (3m)8.81%
EPS NY rev (1m)0%
EPS NY rev (3m)13.58%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)1.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.41 | ||
| Fwd PE | 10.95 | ||
| P/S | 3.05 | ||
| P/FCF | 7.03 | ||
| P/OCF | 6.56 | ||
| P/B | 1.29 | ||
| P/tB | 2.16 | ||
| EV/EBITDA | N/A |
EPS(TTM)18.58
EY8.06%
EPS(NY)21.06
Fwd EY9.13%
FCF(TTM)32.79
FCFY14.22%
OCF(TTM)35.13
OCFY15.24%
SpS75.57
BVpS179.03
TBVpS106.82
PEG (NY)0.29
PEG (5Y)3
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
WACC13.92%
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 Y43.28%
EPS Next 2Y22.86%
EPS Next 3Y22.28%
EPS Next 5Y10.88%
Revenue 1Y (TTM)25.02%
Revenue growth 3Y8.72%
Revenue growth 5Y6.47%
Sales Q2Q%53.38%
Revenue Next Year36.39%
Revenue Next 2Y27.03%
Revenue Next 3Y19.44%
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.
What is the valuation status of CAPITAL ONE FINANCIAL CORP (COF) stock?
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 earnings growth outlook for CAPITAL ONE FINANCIAL CORP?
The Earnings per Share (EPS) of CAPITAL ONE FINANCIAL CORP (COF) is expected to grow by 43.28% in the next year.
Can you provide the dividend sustainability for COF stock?
The dividend rating of CAPITAL ONE FINANCIAL CORP (COF) is 7 / 10 and the dividend payout ratio is 135.04%.