COF  Capital One Financial Corporat...

Exchange

NYSE

Sector

Finance

Industry

Major Banks

Market Cap.

39.25B

Vuru Grade

62.47/100

Current Price

$81.38
+0.79 (+0.98%)

Growth Price

$259.08
Undervalued by 218.36%

Stability Price

$111.34
Undervalued by 36.82%

Company Metrics

  • P/E 12.35
  • P/S 2.06
  • P/B 0.81
  • EPS 6.59
  • Cash ROIC 1.00%
  • Cash Ratio -
  • Dividend 1.60 / 2.01 %
  • Avg. Vol. 3.06M
  • Shares 482.31M
  • Market Cap. 39.25B

Company Description

Capital One Financial Corporation operates as the bank holding company for the Capital One Bank (USA), National Association and Capital One, National Association, which provide various financial products and services in the United States, Canada, and the United Kingdom. The company offers various non-interest bearing and interest-bearing deposits, including demand deposits, money market deposits, ... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Capital One, Groupe Arnault back e-commerce fraud preventer Riskified
Reuters - 22 hours ago
NEW YORK Riskified, an e-commerce fraud prevention startup, has raised $33 million in new funding from investors including Capital One Financial Corp and Groupe Arnault, which controls French luxury goods conglomerate LVMH, it said on Tuesday.
Capital One makes another $100000 donation to accelerator Lighthouse Labs
Richmond.com - Jun 16, 2017
Financial services giant Capital One Financial Corp. announced last week that it has given $100,000 to Lighthouse Labs. It is the fourth year that Capital One, the Richmond region's largest private employer, has provided financial support for the ...
Capital One Financial Corp. (COF) Analysts See $1.92 EPS
Weekly Register - Jun 26, 2017
Investors sentiment increased to 0.89 in Q4 2016. Its up 0.30, from 0.59 in 2016Q3. It is positive, as 45 investors sold Capital One Financial Corp. shares while 301 reduced holdings. 104 funds opened positions while 204 raised stakes. 425.02 million ...
Peak Asset Management LLC Invests $485000 in Capital One Financial Corporation ... - Newburgh Gazette
Analyst's Predictions on Capital One Financial Corp. (COF), Antero Resources ...
StockNewsJournal - Jun 15, 2017
Capital One Financial Corporation (NYSE:COF), at its latest closing price of $80.09, it has a price-to-book ratio of 0.81, compared to an industry average at 4.77.
As Capital One Financial Corp. (COF) Stock Declined, Shareholder Matrix Asset ... - BZ Weekly
Capital One Financial Corp (COF) Shareholder Sound Shore Management INC ... - WeeklyHub
Active Runner in Focus: Capital One Financial Corp (COF)
Concord Register - 17 hours ago
Shares of Capital One Financial Corp (COF) have seen the needle move 1.94% or 1.56 in the most recent session. The NYSE listed company saw a recent bid of $82.15 on 742640 volume.
Pre-Market Technical Recap on Credit Services Stocks -- Navient, Capital One ...
PR Newswire (press release) - Jun 5, 2017
For today, DailyStockTracker.com highlights for review these four stocks: Navient Corp. (NASDAQ: NAVI), Capital One Financial Corp. (NYSE: COF), Discover Financial Services (NYSE: DFS), and Mastercard Inc. (NYSE: MA). These Credit Services ...
These Greater Washington CEOs are some of the country's highest rated
Washington Business Journal - Jun 21, 2017
Eight D.C.-area CEOs are regarded as some of the best in the U.S. by their employees, according to data released Tuesday by Glassdoor.
Professional Advisory Services Has Cut Capital One Financial (COF) Position ...
Wolcott Daily - 44 minutes ago
Capital One Financial now has $39.83 billion valuation. The stock increased 0.97% or $0.78 during the last trading session, reaching $81.38.
Capturing Volatility in Capital One Financial Corp. (NYSE:COF)
Stock Traders Daily - Jun 2, 2017
In an effort to identify opportunity in Capital One Financial Corp. (NYSE:COF), a stock that has been uniquely volatile over the past handful of trading sessions, Stock Traders Daily has produced an organic price based report defining opportunities in ...
Capital One Financial Corporation (COF) Stake Maintained by Central Securities ...
The Cerbat Gem - Jun 24, 2017
Capital One Financial Corporation logo Central Securities Corp continued to hold its position in Capital One Financial Corporation (NYSE:COF) during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission ...
Sound Shore Management INC Trimmed Holding in Capital One Financial Corp (COF ... - Weekly Register
Capital One Financial Corp (COF) Stock Price Declined While Sound Shore ... - WeeklyHub
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for COF to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate COF's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$81.38 Current Price

$259.08 Growth Price (DCF)

Undervalued by 218.36%


Growth Rate Assumed by Market: -500.00%


Future Free Cash Flow Growth Rate: 2.1%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$111.34 Stability Price (EPV)

Undervalued by 36.82%


Discount Rate: 15.0%

$74.26 Book Price

Overvalued by 8.75%


Poor Cash Return on Invested Capital over the past 5 years

COF has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

COF has only created $1.00 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow -7.32B 2.91B 1.12B 9.60B 11.08B
divided by
Invested Capital 312.92B 297.05B 308.85B 334.05B 357.03B
Cash ROIC -2.34% 0.98% 0.36% 2.87% 3.10%

Poor Return on Equity over the past 5 years

COF has shown an inability to deliver strong results for shareholders. This could be due to poor management, COF operating in a highly competitive industry, or having a weak business in general.

COF has only generated $8.99 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 3.52B 4.16B 4.43B 4.05B 3.75B
divided by
Stockholders' Equity 40.50B 41.74B 45.05B 47.28B 47.51B
Return on Equity 8.68% 9.96% 9.83% 8.57% 7.89%

Excellent Business Performance over the past 10 years

COF has been able to maintain profitability in good times and bad. This could mean COF has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

COF has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 13.01B 3.48B 2.57B 7.80B 7.46B -7.32B 2.91B 1.12B 9.60B 11.08B

Weak Balance Sheet

COF's financial position is not ideal. The key is to check whether COF is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash - - - - - - - - - -
Current Assets - - - - - - - - - -
Total Assets 150.59B 165.91B 169.65B 197.50B 206.02B 312.92B 297.05B 308.85B 334.05B 357.03B
Current Liabilities - - - - - - - - - -
Total Liabilities 126.30B 139.30B 143.06B 170.96B 176.35B 272.42B 255.30B 263.80B 286.76B 309.52B
Stockholder' Equity 24.29B 26.61B 26.59B 26.54B 29.67B 40.50B 41.74B 45.05B 47.28B 47.51B
Current Ratio - - - - - - - - - -
TL-to-TA 0.84 0.84 0.84 0.87 0.86 0.87 0.86 0.85 0.86 0.87

Consistent Reinvestment of Profits over the past 10 years

COF has consistently retained profits. This may put COF in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, COF can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 11.27B 10.62B 10.73B 10.41B 13.46B 16.85B 20.40B 23.97B 27.05B 29.77B
Retained Earnings Growth - -5.74% 1.00% -3.00% 29.37% 25.19% 21.07% 17.49% 12.81% 10.06%

Growing Competitive Advantage over the past 10 years

COF has a growing competitive advantage. This could be due to strong branding, the ability to keep costs low, or some other characteristic that is hard to replicate. Look at its future prospects to determine sustainability and whether the economic moat will continue to strengthen.

$14.04 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 1.57B -46.00M 883.78M 2.74B 3.15B 3.52B 4.16B 4.43B 4.05B 3.75B
divided by
Revenue 14.58B 13.89B 12.98B 16.17B 16.28B 21.40B 22.38B 22.29B 23.41B 25.50B
Net Profit Margin 10.77% -0.33% 6.81% 16.96% 19.33% 16.44% 18.58% 19.87% 17.30% 14.71%

Weak Pricing Power over the past 10 years

COF is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that COF has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $- of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit - - - - - - - - - -
divided by
Revenue 14.58B 13.89B 12.98B 16.17B 16.28B 21.40B 22.38B 22.29B 23.41B 25.50B
Gross Margin - - - - - - - - - -

Low Capital Intensity over the past 10 years

COF has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that COF may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

17.06% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure - - 231.62M 340.00M - 560.00M 818.00M 502.00M 532.00M 779.00M
divided by
Net Income 1.57B -46.00M 883.78M 2.74B 3.15B 3.52B 4.16B 4.43B 4.05B 3.75B
Capital Expenditure Ratio - - 26.21% 12.40% - 15.92% 19.67% 11.34% 13.14% 20.77%

Very Strong Dividend History over the past 10 years

COF has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests COF is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid 42.06M 568.26M 318.84M 91.00M 91.00M 126.00M 608.00M 746.00M 974.00M 1.03B
divided by
Shares Outstanding 395.55M 377.67M 431.42M 456.00M 459.00M 561.00M 587.60M 563.10M 548.00M 509.80M
Dividend Paid Per Share 0.11 1.50 0.74 0.20 0.20 0.22 1.03 1.32 1.78 2.01
Price at Year End 43.21 29.58 37.85 42.24 42.25 57.10 75.82 83.31 73.21 87.24
Dividend Yield 0.25% 5.09% 1.95% 0.47% 0.47% 0.39% 1.36% 1.59% 2.43% 2.31%

History of Stock Buybacks over the past 10 years

COF has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 395.55M 377.67M 431.42M 456.00M 459.00M 561.00M 587.60M 563.10M 548.00M 509.80M
Stock Bought Back - 4.74% -12.46% -5.39% -0.65% -18.18% -4.53% 4.35% 2.76% 7.49%
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