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COF Capital One Financial Corporation - Fundamental Analysis

NEUTRAL
COF Stock | Fundamental Analysis & Investment Insights
NYSE Financial Services Credit Services
Current Price
$247.93
Analyst Target
$268.95
+8.5% Upside
52W High
$249.74
52W Low
$143.22

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AI Analysis

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Confidence Score
72%
Analysis Accuracy
The Advanced Deterministic Scorecard shows a weak Piotroski F-Score of 4/9, indicating borderline financial health, while the Altman Z-Score is astronomically high at 219152624844.8, suggesting no distress risk. Despite strong recent earnings growth and revenue momentum, the stock trades at a steep valuation with a P/E of 84.62, far above sector averages, and weak profitability metrics like ROE of 1.62% and ROA of 0.25% raise concerns. Insider selling activity is substantial, but analyst consensus remains constructive with a 'buy' rating and a target price implying 8.5% upside.

Key Strengths

Exceptionally high Altman Z-Score indicates virtually no bankruptcy risk
Strong year-over-year revenue growth of 67.90% and recent earnings acceleration
Impressive quarterly earnings surprise streak, averaging +31.87% over the last four quarters
Analyst target price of $268.95 suggests 8.5% upside from current levels
Operating margin of 38.72% reflects strong cost control and pricing power

Key Risks

Low Piotroski F-Score of 4/9 signals weak financial health and potential instability
Extremely high P/E ratio of 84.62 vs. sector average of 22.78 indicates significant overvaluation
Very low ROE (1.62%) and ROA (0.25%) suggest poor capital efficiency for a financial firm
High payout ratio of 82.19% threatens dividend sustainability
Insiders have sold $67.08M in shares over the past six months with zero buys
AI Fair Value Estimate
Based on comprehensive analysis
$106.03
-57.2% below current price

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Profitability, Growth & Financial Health

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Sector Comparison & Peer Analysis

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