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Capital One Financial (NYSE:COF) Piotroski F-Score

: 6 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Capital One Financial has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Capital One Financial's Piotroski F-Score or its related term are showing as below:

COF' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 6   Max: 8
Current: 6

During the past 13 years, the highest Piotroski F-Score of Capital One Financial was 8. The lowest was 4. And the median was 6.


Capital One Financial Piotroski F-Score Historical Data

The historical data trend for Capital One Financial's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Capital One Financial Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 7.00 5.00 5.00 5.00 -

Capital One Financial Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.00 5.00 6.00 6.00 -

Competitive Comparison

For the Credit Services subindustry, Capital One Financial's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Capital One Financial Piotroski F-Score Distribution

For the Credit Services industry and Financial Services sector, Capital One Financial's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Capital One Financial's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep23) TTM:Last Year (Sep22) TTM:
Net Income was 1232 + 960 + 1431 + 1790 = $5,413 Mil.
Cash Flow from Operations was 8157 + 2992 + 3354 + 7129 = $21,632 Mil.
Revenue was 9040 + 8903 + 9012 + 9366 = $36,321 Mil.
Average Total Assets from the begining of this year (Sep22)
to the end of this year (Sep23) was
(444232 + 455249 + 471660 + 467800 + 471435) / 5 = $462075.2 Mil.
Total Assets at the begining of this year (Sep22) was $444,232 Mil.
Long-Term Debt & Capital Lease Obligation was $48,725 Mil.
Total Assets was $471,435 Mil.
Total Liabilities was $417,767 Mil.
Net Income was 2425 + 2403 + 2031 + 1694 = $8,553 Mil.

Revenue was 8118 + 8173 + 8232 + 8805 = $33,328 Mil.
Average Total Assets from the begining of last year (Sep21)
to the end of last year (Sep22) was
(425377 + 432381 + 434195 + 440288 + 444232) / 5 = $435294.6 Mil.
Total Assets at the begining of last year (Sep21) was $425,377 Mil.
Long-Term Debt & Capital Lease Obligation was $46,579 Mil.
Total Assets was $444,232 Mil.
Total Liabilities was $393,371 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Capital One Financial's current Net Income (TTM) was 5,413. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Capital One Financial's current Cash Flow from Operations (TTM) was 21,632. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep22)
=5413/444232
=0.01218507

ROA (Last Year)=Net Income/Total Assets (Sep21)
=8553/425377
=0.02010687

Capital One Financial's return on assets of this year was 0.01218507. Capital One Financial's return on assets of last year was 0.02010687. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Capital One Financial's current Net Income (TTM) was 5,413. Capital One Financial's current Cash Flow from Operations (TTM) was 21,632. ==> 21,632 > 5,413 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep22 to Sep23
=48725/462075.2
=0.1054482

Gearing (Last Year: Sep22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep21 to Sep22
=46579/435294.6
=0.10700569

Capital One Financial's gearing of this year was 0.1054482. Capital One Financial's gearing of last year was 0.10700569. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.

Current Ratio (This Year: Sep23)=Total Assets/Total Liabilities
=471435/417767
=1.12846395

Current Ratio (Last Year: Sep22)=Total Assets/Total Liabilities
=444232/393371
=1.12929525

Capital One Financial's current ratio of this year was 1.12846395. Capital One Financial's current ratio of last year was 1.12929525. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Capital One Financial's number of shares in issue this year was 383.3. Capital One Financial's number of shares in issue last year was 384.6. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.

Net Margin (This Year: TTM)=Net Income/Revenue
=5413/36321
=0.14903224

Net Margin (Last Year: TTM)=Net Income/Revenue
=8553/33328
=0.25663106

Capital One Financial's net margin of this year was 0.14903224. Capital One Financial's net margin of last year was 0.25663106. ==> Last year's net margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep22)
=36321/444232
=0.08176133

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep21)
=33328/425377
=0.07834932

Capital One Financial's asset turnover of this year was 0.08176133. Capital One Financial's asset turnover of last year was 0.07834932. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+0+1+0+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Capital One Financial has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Capital One Financial  (NYSE:COF) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Capital One Financial Piotroski F-Score Related Terms

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Capital One Financial (NYSE:COF) Business Description

Address
1680 Capital One Drive, McLean, VA, USA, 22102
Capital One is a diversified financial services holding company headquartered in McLean, Virginia. Originally a spinoff of Signet Financial's credit card division in 1994, the company is now primarily involved in credit card lending, auto loans, and commercial lending.
Executives
Laprade,iii Frank G. officer: Chief Enterprise Srvcs Officer 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Robert M. Alexander officer: Chief Information Officer 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Ann F Hackett director
Richard D Fairbank director, officer: Chairman, CEO and President 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Kara West officer: Chief Audit Officer 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Kevin S. Borgmann officer: Chief Risk Officer 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Mark Daniel Mouadeb officer: President, U.S. Card 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Neal Blinde officer: EC, Commercial Banking 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Timothy P Golden officer: Controller 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Michael Zamsky officer: Chief Consumer Credit Officer 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Ravi Raghu officer: Pres, Software, Intl & Sm Bus 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Sheldon Hall officer: Chief Risk Officer 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Kaitlin Haggerty officer: Chief Human Resources Officer 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102
Peter E Raskind director NATIONAL CITY CORP, 1900 EAST NINTH STREET, CLEVELAND OH 44114-3484
Matthew W Cooper officer: General Counsel 1680 CAPITAL ONE DRIVE, MCLEAN VA 22102