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Why Fundamental Investors Might Love Capital One Financial Corporation (NYSE:COF)

Simply Wall St

Capital One Financial Corporation (NYSE:COF) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of COF, it is a well-regarded dividend-paying company that has been a rockstar for income investors, currently trading at an attractive share price. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Capital One Financial here.

Established dividend payer and good value

COF’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. Investors have the opportunity to buy into the stock to reap capital gains, if COF’s projected earnings trajectory does follow analyst consensus growth, which determines my intrinsic value of the company. Also, relative to the rest of its peers with similar levels of earnings, COF’s share price is trading below the group’s average. This further reaffirms that COF is potentially undervalued.

NYSE:COF Intrinsic value, March 7th 2019

Income investors would also be happy to know that COF is a great dividend company, with a current yield standing at 1.9%. COF has also been regularly increasing its dividend payments to shareholders over the past decade.

NYSE:COF Historical Dividend Yield, March 7th 2019

Next Steps:

For Capital One Financial, there are three relevant aspects you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for COF’s future growth? Take a look at our free research report of analyst consensus for COF’s outlook.
  2. Historical Performance: What has COF’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of COF? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.