Last Updated: 15 Sep 2024
Executive Summary
Capital One Financial Corporation (COF) is a leading financial institution with a market capitalization of $53.07 billion. The company has a strong track record of profitability and growth, supported by its diversified business model and focus on customer service. COF's stock price has been under pressure in recent months due to concerns about the economic outlook and rising interest rates, but the company remains well-positioned for long-term growth.
Company Overview
Capital One Financial Corporation is an American bank holding company specializing in credit cards, auto loans, banking, and savings accounts. The company was founded in 1994 and is headquartered in McLean, Virginia. COF has operations primarily in the United States, with a presence in Canada and the United Kingdom.
Fundamental Analysis
COF's financial performance has been solid in recent years. The company reported revenue of $26.05 billion in the trailing twelve months (TTM), up 1.2% year-over-year. Net income was $4.4 billion, down 6.3% year-over-year. COF's earnings per share (EPS) were $10.63, down 6.1% year-over-year.
COF's profitability metrics are strong. The company's profit margin is 16.8%, and its operating margin is 12.0%. COF's return on assets (ROA) is 0.92%, and its return on equity (ROE) is 7.77%.
COF's balance sheet is also strong. The company has $349.6 billion in total assets and $246.7 billion in total liabilities. COF's debt-to-equity ratio is 0.74, which is below the industry average.
Technical Analysis
COF's stock price has been trading in a range between $135 and $145 since early July 2023. The stock recently broke below its 50-day moving average, which is a technical indicator that suggests a bearish trend. However, COF's 200-day moving average is still rising, which suggests that the long-term trend is still bullish.
Short Term Outlook
COF's stock price is likely to remain under pressure in the short term due to concerns about the economic outlook and rising interest rates. However, the company's strong fundamentals and technical support should provide a floor for the stock price.
Long Term Outlook
COF is well-positioned for long-term growth. The company has a strong brand, a diversified business model, and a solid financial foundation. COF is also benefiting from the rising interest rate environment, which is boosting its net interest margin.
Analyst Recommendations
Analysts are generally bullish on COF. The consensus analyst rating is "buy," and the average analyst target price is $158.43.
