Capital One Financial Corporation
Capital One Financial Corporation Fundamental Analysis
Capital One Financial Corporation (COF-PN) shows weak financial fundamentals with a PE ratio of 37.06, profit margin of 4.29%, and ROE of 2.86%. The company generates $74.7B in annual revenue with strong year-over-year growth of 28.39%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 66.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze COF-PN's fundamental strength across five key dimensions:
Efficiency Score
WeakCOF-PN struggles to generate sufficient returns from assets.
Valuation Score
ModerateCOF-PN shows balanced valuation metrics.
Growth Score
ModerateCOF-PN shows steady but slowing expansion.
Financial Health Score
ExcellentCOF-PN maintains a strong and stable balance sheet.
Profitability Score
ModerateCOF-PN maintains healthy but balanced margins.
Key Financial Metrics
Is COF-PN Expensive or Cheap?
P/E Ratio
COF-PN trades at 37.06 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, COF-PN's PEG of -0.49 indicates potential undervaluation.
Price to Book
The market values Capital One Financial Corporation at 1.06 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.64 times EBITDA. This is generally considered low.
How Well Does COF-PN Make Money?
Net Profit Margin
For every $100 in sales, Capital One Financial Corporation keeps $4.29 as profit after all expenses.
Operating Margin
Core operations generate 4.33 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.86 in profit for every $100 of shareholder equity.
ROA
Capital One Financial Corporation generates $0.47 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Capital One Financial Corporation generates strong operating cash flow of $27.56B, reflecting robust business health.
Free Cash Flow
Capital One Financial Corporation generates strong free cash flow of $27.56B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $44.53 in free cash annually.
FCF Yield
COF-PN converts 23.36% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
37.06
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.49
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.06
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.46
vs 25 benchmark
Current Ratio
Current assets to current liabilities
17.22
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.005
vs 25 benchmark
ROCE
Return on capital employed
0.005
vs 25 benchmark
How COF-PN Stacks Against Its Sector Peers
| Metric | COF-PN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 37.06 | 19.02 | Worse (Expensive) |
| ROE | 2.86% | 815.00% | Weak |
| Net Margin | 4.29% | 1816.00% | Weak |
| Debt/Equity | 0.46 | 0.98 | Strong (Low Leverage) |
| Current Ratio | 17.22 | 670.62 | Strong Liquidity |
| ROA | 0.47% | -24633.00% (disorted) | Weak |
COF-PN outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Capital One Financial Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
85.30%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-23.47%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
40.54%
Industry Style: Value, Dividend, Cyclical
High Growth