NYSE:COF

Stock Analysis Report

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Executive Summary

Capital One Financial Corporation operates as the financial services 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.


Snowflake Analysis

Flawless balance sheet with moderate growth potential.


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: COF has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.1%

COF

5.3%

US Consumer Finance

2.5%

US Market


1 Year Return

-25.0%

COF

-24.0%

US Consumer Finance

16.3%

US Market

Return vs Industry: COF underperformed the US Consumer Finance industry which returned -24% over the past year.

Return vs Market: COF underperformed the US Market which returned 16.3% over the past year.


Shareholder returns

COFIndustryMarket
7 Day3.1%5.3%2.5%
30 Day12.7%9.9%5.3%
90 Day5.7%16.3%16.3%
1 Year-23.8%-25.0%-22.3%-24.0%18.8%16.3%
3 Year-16.4%-20.6%7.9%2.3%45.0%35.7%
5 Year-11.1%-19.1%9.6%0.7%75.8%56.8%

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

Valuation

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

0.59x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: COF ($65.75) is trading above our estimate of fair value ($14.8)

Significantly Below Fair Value: COF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: COF is unprofitable, so we can't compare its PE Ratio to the US Consumer Finance industry average.

PE vs Market: COF is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate COF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: COF is good value based on its PB Ratio (0.6x) compared to the US Consumer Finance industry average (1.2x).


Next Steps

Future Growth

How is Capital One Financial forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

128.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COF is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: COF is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: COF's is expected to become profitable in the next 3 years.

Revenue vs Market: COF's revenue (7.4% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: COF's revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: COF's Return on Equity is forecast to be low in 3 years time (7.2%).


Next Steps

Past Performance

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

-0.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: COF is currently unprofitable.

Growing Profit Margin: COF is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: COF is unprofitable, and losses have increased over the past 5 years at a rate of 0.5% per year.

Accelerating Growth: Unable to compare COF's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: COF is unprofitable, making it difficult to compare its past year earnings growth to the Consumer Finance industry (-38.6%).


Return on Equity

High ROE: COF has a negative Return on Equity (0.45%), as it is currently unprofitable.


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


Financial Institutions Analysis

Asset Level: COF's Assets to Equity ratio (7.5x) is low.

Allowance for Bad Loans: COF has a sufficient allowance for bad loans (1741%).

Low Risk Liabilities: 83% of COF's liabilities are made up of primarily low risk sources of funding.

Loan Level: COF has an appropriate level of Loans to Assets ratio (56%).

Low Risk Deposits: COF's Loans to Deposits ratio (77%) is appropriate.

Level of Bad Loans: COF has an appropriate level of bad loans (0.4%).


Next Steps

Dividend

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

0.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: COF's dividend (0.61%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: COF's dividend (0.61%) is low compared to the top 25% of dividend payers in the US market (4.36%).


Stability and Growth of Payments

Stable Dividend: COF is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: COF is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: COF is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of COF's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

8.9yrs

Average management tenure


CEO

Rich Fairbank (69 yo)

26.08yrs

Tenure

US$7,705,792

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
Founder26.08yrsUS$7.71m0.77%
$ 230.6m
Richard Blackley
Chief Financial Officer4.25yrsUS$5.52m0.0035%
$ 1.0m
Sanjiv Yajnik
President of Financial Services11.17yrsUS$6.02m0.018%
$ 5.5m
Frank LaPrade
Chief Enterprise Services Officer & Chief of Staff to the CEOno dataUS$5.79m0.014%
$ 4.3m
Michael Wassmer
President of U.S. Card3.75yrsUS$5.62m0.015%
$ 4.5m
Robert Alexander
Chief Information Officer13.25yrsno data0.019%
$ 5.7m
Jeff Norris
SVP, Global Financeno datano datano data
Matthew Cooper
General Counsel2.5yrsno data0.0022%
$ 648.5k
Tatiana Stead
Director of Corporate Communicationsno datano datano data
Jory Berson
Chief Human Resources Officer11.17yrsno data0.010%
$ 3.0m
Michael Slocum
President of Commercial Banking & Northeast Market President8.92yrsno data0.0075%
$ 2.3m
Sheldon Hall
Chief Risk Officer2yrsno data0.014%
$ 4.2m

8.9yrs

Average Tenure

52.5yo

Average Age

Experienced Management: COF's management team is seasoned and experienced (8.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Richard Fairbank
Founder26.08yrsUS$7.71m0.77%
$ 230.6m
Bradford Warner
Independent Director12.33yrsUS$367.58k0.000030%
$ 9.0k
Pierre Leroy
Independent Director14.92yrsUS$322.58kno data
Catherine West
Independent Director7.5yrsUS$327.58kno data
Peter Raskind
Independent Director8.58yrsUS$360.08k0.00044%
$ 132.1k
Mayo Shattuck
Independent Director16.83yrsUS$345.08k0.00035%
$ 105.1k
Ann Hackett
Independent Lead Director13.33yrsUS$415.08k0.0045%
$ 1.4m
Cornells Adrianus Joseph Leenaars
Independent Director1.58yrsUS$422.61kno data
François Locoh-Donou
Independent Director1.42yrsUS$307.63kno data
Eileen Serra
Independent Director0.50yrno datano data
Peter Killalea
Independent Director4.5yrsUS$325.08kno data
Aparna Chennapragada
Independent Director2.42yrsUS$315.08kno data

8.0yrs

Average Tenure

64.5yo

Average Age

Experienced Board: COF's board of directors are considered experienced (8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: COF insiders have only sold shares 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: COF
  • Exchange: NYSE
  • Founded: 1988
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$30.024b
  • Shares outstanding: 456.64m
  • 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.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
A1Z1TPDB (Deutsche Boerse AG)PERP SUB GLBL -EDEUSDJun 2017
CAON34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REP 1 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 financial services holding company for the Capital One Bank (USA), National Association; and Capital One, National Association, which provides various fina ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/08 23:45
End of Day Share Price2020/08/07 00:00
Earnings2020/06/30
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.