LSE:0HT4

Stock Analysis Report

Executive Summary

Capital One Financial Corporation operates as the bank holding company for the Capital One Bank (USA), National Association; and Capital One, National Association, which provides various financial products and services in the United States, the United Kingdom, and Canada.

Rewards

Trading at 43.9% below its fair value

Earnings are forecast to grow 3.5% per year

Pays a reliable dividend of 1.63%

Risk Analysis

No risks detected for 0HT4 from our risk checks.


Snowflake Analysis

Undervalued average dividend payer.


Similar Companies

Share Price & News

How has Capital One Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0HT4 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-9.6%

0HT4

0.4%

GB Consumer Finance

-0.5%

GB Market


1 Year Return

18.9%

0HT4

-37.3%

GB Consumer Finance

6.0%

GB Market

Return vs Industry: 0HT4 exceeded the UK Consumer Finance industry which returned -37.3% over the past year.

Return vs Market: 0HT4 exceeded the UK Market which returned 6% over the past year.


Shareholder returns

0HT4IndustryMarket
7 Day-9.6%0.4%-0.5%
30 Day-7.3%0.3%-1.8%
90 Day-1.6%8.5%2.4%
1 Year20.9%18.9%-34.2%-37.3%11.5%6.0%
3 Yearn/a-53.7%-66.8%18.2%3.5%
5 Yearn/a-53.8%-69.0%34.3%3.5%

Price Volatility Vs. Market

How volatile is Capital One Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Capital One Financial undervalued compared to its fair value and its price relative to the market?

43.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0HT4 ($96.54) is trading below our estimate of fair value ($172.04)

Significantly Below Fair Value: 0HT4 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0HT4 is good value based on its PE Ratio (8.9x) compared to the Consumer Finance industry average (12.4x).

PE vs Market: 0HT4 is good value based on its PE Ratio (8.9x) compared to the UK market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: 0HT4 is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: 0HT4 is good value based on its PB Ratio (0.8x) compared to the GB Consumer Finance industry average (1.6x).


Next Steps

Future Growth

How is Capital One Financial forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

3.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0HT4's forecast earnings growth (3.5% per year) is above the savings rate (0.5%).

Earnings vs Market: 0HT4's earnings (3.5% per year) are forecast to grow slower than the UK market (13.1% per year).

High Growth Earnings: 0HT4's earnings are forecast to grow, but not significantly.

Revenue vs Market: 0HT4's revenue (14% per year) is forecast to grow faster than the UK market (3.8% per year).

High Growth Revenue: 0HT4's revenue (14% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0HT4's Return on Equity is forecast to be low in 3 years time (9.7%).


Next Steps

Past Performance

How has Capital One Financial performed over the past 5 years?

5.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0HT4 has high quality earnings.

Growing Profit Margin: 0HT4's current net profit margins (23.2%) are lower than last year (25.7%).


Past Earnings Growth Analysis

Earnings Trend: 0HT4's earnings have grown by 5.7% per year over the past 5 years.

Accelerating Growth: 0HT4's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 0HT4 had negative earnings growth (-9.5%) over the past year, making it difficult to compare to the Consumer Finance industry average (9.2%).


Return on Equity

High ROE: 0HT4's Return on Equity (9.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Capital One Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 0HT4 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0HT4's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

Asset Level: 0HT4's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 0HT4 has a sufficient allowance for bad loans.

Low Risk Liabilities: 0HT4 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 0HT4 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0HT4 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 0HT4 has an appropriate level of bad loans.


Next Steps

Dividend

What is Capital One Financial's current dividend yield, its reliability and sustainability?

1.63%

Current Dividend Yield


Dividend Yield vs Market

company1.6%marketbottom25%1.8%markettop25%5.0%industryaverage5.4%forecastin3Years1.7%

Current dividend yield vs market & industry

Notable Dividend: 0HT4's dividend (1.63%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: 0HT4's dividend (1.63%) is low compared to the top 25% of dividend payers in the UK market (5.03%).


Stability and Growth of Payments

Stable Dividend: 0HT4's dividends per share have been stable in the past 10 years.

Growing Dividend: 0HT4's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (14.4%), 0HT4's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0HT4's dividends in 3 years are forecast to be thoroughly covered by earnings (12.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

10.7yrs

Average management tenure


CEO

Rich Fairbank (68yo)

25.6yrs

Tenure

US$17,333,796

Compensation

Mr. Richard D. Fairbank, also known as Rich, is the Founder of Capital One Bank and serves as its Chairman and Chief Executive Officer. Mr. Fairbank founded Capital One Financial Corporation in 1988 and ha ...


Leadership Team

NamePositionTenureCompensationOwnership
Richard Fairbank
Founder25.6yrsUS$17.33m0.75% $336.0m
Richard Blackley
Chief Financial Officer3.8yrsUS$5.68m0.0052% $2.3m
Sanjiv Yajnik
President of Financial Services10.7yrsUS$6.25m0.017% $7.4m
Frank LaPrade
Chief Enterprise Services Officer & Chief of Staff to the CEO0yrsUS$6.09m0.013% $5.7m
John Finneran
Senior Advisor & Corporate Secretary25.4yrsUS$6.32m0.015% $6.8m
Robert Alexander
Chief Information Officer12.8yrsno data0.018% $8.0m
Jeff Norris
SVP, Global Finance0yrsno datano data
Matthew Cooper
General Counsel2yrsno data0.0048% $2.2m
Tatiana Stead
Director of Corporate Communications0yrsno datano data
Jory Berson
Chief Human Resources Officer10.7yrsno data0.0087% $3.9m

10.7yrs

Average Tenure

53yo

Average Age

Experienced Management: 0HT4's management team is seasoned and experienced (10.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Fairbank
Founder25.6yrsUS$17.33m0.75% $336.0m
Bradford Warner
Independent Director11.8yrsUS$350.07k0.000030% $13.5k
Pierre Leroy
Independent Director14.4yrsUS$305.07kno data
Catherine West
Independent Director7yrsUS$320.07kno data
Peter Raskind
Independent Director8.1yrsUS$350.07k0.00044% $197.6k
Mayo Shattuck
Independent Director16.3yrsUS$335.07k0.00035% $157.2k
Ann Hackett
Lead Director12.8yrsUS$405.07k0.0045% $2.0m
Cornells Adrianus Joseph Leenaars
Director1.1yrsno datano data
Peter Killalea
Independent Director4yrsUS$315.07kno data
Aparna Chennapragada
Independent Director1.9yrsUS$302.63kno data

10.0yrs

Average Tenure

64yo

Average Age

Experienced Board: 0HT4's board of directors are considered experienced (10 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Capital One Financial Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Capital One Financial Corporation
  • Ticker: 0HT4
  • Exchange: LSE
  • Founded: 1988
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$44.908b
  • Shares outstanding: 457.12m
  • Website: https://www.capitalone.com

Number of Employees


Location

  • Capital One Financial Corporation
  • 1680 Capital One Drive
  • McLean
  • Virginia
  • 22102
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
COFNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 1994
CFXDB (Deutsche Boerse AG)YesCommon StockDEEURNov 1994
COF *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNNov 1994
0HT4LSE (London Stock Exchange)YesCommon StockGBUSDNov 1994
COF.PRPNYSE (New York Stock Exchange)DEP SHS 1/40THUSUSDAug 2012
COF.PRFNYSE (New York Stock Exchange)DP SHS RP PFD FUSUSDAug 2015
COF.PRGNYSE (New York Stock Exchange)DEP SHS PFD GUSUSDJul 2016
COF.PRHNYSE (New York Stock Exchange)DEP SHS PFD HUSUSDNov 2016
CAON34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REP 0.5 COM USD0.01BRBRLMay 2019
COF.PRINYSE (New York Stock Exchange)DP SHS PFD IUSUSDSep 2019
COF.PRJNYSE (New York Stock Exchange)4.80% DP PFD JUSUSDJan 2020

Biography

Capital One Financial Corporation operates as the bank holding company for the Capital One Bank (USA), National Association; and Capital One, National Association, which provides various financial products and services in the United States, the United Kingdom, and Canada. It operates through three segments: Credit Card, Consumer Banking, and Commercial Banking. The company offers non-interest-bearing and interest-bearing deposits, such as checking accounts, money market deposit accounts, negotiable order of withdrawals, savings deposits, and time deposits. It also provides credit card loans; auto, home, and retail banking loans; and commercial and multifamily real estate, commercial and industrial, and small-ticket commercial real estate loans. In addition, the company offers credit and debit card products; online direct banking services; and treasury management and depository services. It serves consumers, small businesses, and commercial clients through the Internet and mobile banking, as well as through Cafés, ATMs, and branches located in New York, Louisiana, Texas, Maryland, Virginia, New Jersey, and the District of Columbia. Capital One Financial Corporation was founded in 1988 and is headquartered in McLean, Virginia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 23:46
End of Day Share Price2020/02/18 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.