Capital Stock Story

COF -  USA Stock  

USD 114.10  0.29  0.25%

Capital One Earnings Before Interest Taxes and Depreciation Amortization EBITDA are projected to increase significantly based on the last few years of reporting. The past year's Earnings Before Interest Taxes and Depreciation Amortization EBITDA were at 7.71 Billion. The current year Earnings before Tax is expected to grow to about 5.2 B, whereas Average Assets are forecasted to decline to about 441 B. While many traders today are more concerned about the preservation of capital over market returns, Capital One Financial could be one exception. What exactly are Capital One shareholders getting in February? In this post, I will also go over some essential variables affecting Capital One's products, and show how it may impact Capital One Financial outlook for active traders this year.
Published over three months ago
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Is Capital One (NYSE:COF) undervalued?
The firm shows a Beta (market volatility) of 1.6869, which signifies a somewhat significant risk relative to the market. Let's try to break down what Capital's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Capital One will likely underperform. Although it is extremely important to respect Capital One Financial historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy towards foreseeing future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Capital One Financial technical indicators, you can presently evaluate if the expected return of 0.0184% will be sustainable into the future. Capital One Financial right now shows a risk of 1.79%. Please confirm Capital One Financial downside variance, daily balance of power, and the relationship between the maximum drawdown and skewness to decide if Capital One Financial will be following its price patterns.

And What about dividends?

A dividend is the distribution of a portion of Capital One earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Capital One dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Capital one year expected dividend income is about $0.03 per share.
The current year Dividend Yield is expected to grow to 0.0153, whereas Preferred Dividends Income Statement Impact is forecasted to decline to about 346.2 M.
Last ReportedProjected for 2022
Preferred Dividends Income Statement Impact425 M346.2 M
Payment of Dividends and Other Cash Distributions-1.4 B-1.5 B
Dividend Yield 0.014  0.0153 
Dividends per Basic Common Share 2.00  1.76 
Investing in stocks that pay dividends, such as stock of Capital One Financial, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in Capital One must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Capital One. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Capital One's Liquidity

Capital One financial leverage refers to using borrowed capital as a funding source to finance Capital One Financial ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Capital One financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Capital One's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Capital One, but it might be worth checking our own buy vs. sell analysis

What did Capital One file with SEC?

The SEC filings are financial statements or other formal documents of Capital One Financial that are regularly submitted to the U.S. Securities and Exchange Commission (SEC). Public companies, certain insiders, and broker-dealers are required to make SEC filings and fintech professionals rely on these filings for information about companies they are evaluating for investment purposes. Please note, most SEC filings are available online through the SEC's EDGAR database.
Please check here for more information.
Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Capital shareholders may or may not be submitted as SEC does not always require it.
10th of May 2022
Financial Statements and Exhibits. Other Events
11th of February 2022
Unclassified Corporate Event
Please note, although all public domestic companies are required to submit their filings via EDGAR, not all public companies are available through our service. Also, keep in mind that the actual annual reports to Capital shareholders may or may not be submitted as SEC does not always require it.

A Deeper look at Capital

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Capital One has an asset utilization ratio of 9.5 percent. This indicates that the company is making $0.095 for each dollar of assets. An increasing asset utilization means that Capital One Financial is more efficient with each dollar of assets it utilizes for everyday operations.
 2019 2020 2021 2022 (projected)
PPandE Turnover7.887.286.566.49
Calculated Tax Rate19.5115.1717.4526.32

Will Capital One growth be trustworthy after the surge?

The variance is down to 4.13 as of today. Capital One Financial exhibits very low volatility with skewness of -0.96 and kurtosis of 1.77. However, we advise investors to further study Capital One Financial technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Capital One's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Capital One's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Capital One Implied Volatility

Capital One's implied volatility exposes the market's sentiment of Capital One Financial stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Capital One's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Capital One stock will not fluctuate a lot when Capital One's options are near their expiration.

The Bottom Line

Although other companies within the credit services industry are still a little expensive, even after the recent corrections, Capital One may offer a potential longer-term growth to shareholders. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither purchase nor exit any shares of Capital One at this time. The Capital One Financial risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Capital One.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Capital One Financial. Please refer to our Terms of Use for any information regarding our disclosure principles.

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