CAPITAL ONE FINANCIAL CORP (COF)
US14040H1059 - Common Stock
Overall COF gets a fundamental rating of 4 out of 10. We evaluated COF against 51 industry peers in the Consumer Finance industry. COF scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. COF is valued correctly, but it does not seem to be growing.
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
COF has a Return On Assets (0.96%) which is in line with its industry peers.
The Return On Equity of COF (7.89%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.96% | ||
| ROE | 7.89% | ||
| 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
With a Profit Margin value of 12.46%, COF perfoms like the industry average, outperforming 56.86% of the companies in the same industry.
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) | 12.46% | ||
| 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.
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 2.54, which is a good value as it means it would take COF, 2.54 years of fcf income to pay off all of its debts.
COF has a Debt to FCF ratio of 2.54. This is amongst the best in the industry. COF outperforms 80.39% of its industry peers.
A Debt/Equity ratio of 0.86 indicates that COF is somewhat dependend on debt financing.
COF has a Debt to Equity ratio of 0.86. This is in the better half of the industry: COF outperforms 68.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.86 | ||
| Debt/FCF | 2.54 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.94%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for COF have decreased strongly by -28.86% in the last year.
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.
COF shows a small growth in Revenue. In the last year, the Revenue has grown by 7.41%.
The Revenue has been growing slightly by 5.55% on average over the past years.
EPS 1Y (TTM)-28.86%
EPS 3Y34.9%
EPS 5Y3.31%
EPS growth Q2Q-20.57%
Revenue 1Y (TTM)7.41%
Revenue growth 3Y8.85%
Revenue growth 5Y5.55%
Revenue growth Q2Q5.15%
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 3.44% on average over the next years.
EPS Next Y11.79%
EPS Next 2Y15.3%
EPS Next 3Y14.47%
EPS Next 5Y6.72%
Revenue Next Year4.15%
Revenue Next 2Y4.1%
Revenue Next 3Y4.09%
Revenue Next 5Y3.44%
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
The Price/Earnings ratio is 11.76, which indicates a very decent 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.
When comparing the Price/Earnings ratio of COF to the average of the S&P500 Index (24.95), we can say COF is valued rather cheaply.
COF is valuated reasonably with a Price/Forward Earnings ratio of 10.52.
COF's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.40, COF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 10.52 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.87 | ||
| 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.
A more expensive valuation may be justified as COF's earnings are expected to grow with 14.47% in the coming years.
PEG (NY)1
PEG (5Y)3.56
EPS Next 2Y15.3%
EPS Next 3Y14.47%
5. Dividend
5.1 Amount
COF has a Yearly Dividend Yield of 1.69%.
COF's Dividend Yield is comparable with the industry average which is at 4.32.
COF's Dividend Yield is slightly below the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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
25.29% 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.
DP25.29%
EPS Next 2Y15.3%
EPS Next 3Y14.47%
CAPITAL ONE FINANCIAL CORP
NYSE:COF (4/22/2024, 7:04:00 PM)
After market: 146.96 -0.29 (-0.2%)147.25
+4.34 (+3.04%)
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 Cap56.26B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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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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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 10.52 | ||
| 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
PEG (5Y)3.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.96% | ||
| ROE | 7.89% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 12.46% | ||
| 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 | 0.86 | ||
| 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)
Growth
EPS 1Y (TTM)-28.86%
EPS 3Y34.9%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.79%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.41%
Revenue growth 3Y8.85%
Revenue growth 5Y
Revenue growth 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