Aureus
AExcellent

Capital One Financial Corporati(COF)

A

Financial data as of Dec 31, 2025Improving · Financials

FCF Margin47.5%Free Cash Flow / Revenue
Cash Conversion—Operating CF / Net Income
Free Cash Flow$26.1B
Revenue$53.4B
Net Cash$7.0BCash exceeds debt
Debt / FCF2.0xManageable debt load
Current Ratio0.00Tight short-term liquidity
YoY FCF Growth+200.0%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (47.5%, 2.0x; 0.1x sector-adjusted)
→
-0.5Current ratio below 1.0 (0.00) (reduced — strong FCF covers short-term obligations)
→
+1Strong YoY FCF growth (200.0% YoY)
→
+1Net cash position with strong FCF margin
→
+1Very low debt-to-FCF ratio (2.0x; 0.1x sector-adjusted)
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (47.5%)
  • Net cash position ($7.0B)
  • Very low debt relative to cash flow (2.0x)
  • Strong YoY FCF growth (+200.0%)
  • Strong revenue growth (51.1% YoY)

Concerns

  • Current ratio below 1.0 — tight short-term liquidity
Cash conversion ratio unavailable or not meaningful

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin47.5%
Net Margin4.6%
Operating CF Margin51.9%
CapEx Ratio3.0%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash$7.0BCash exceeds debt
Debt / FCF2.0xManageable debt load
Current Ratio0.00Tight liquidity
Debt / Equity0.44Low leverage

Quarterly FCF Trend

+200.0% YoYImproving (+200.0%)

Free cash flow per quarter

Sector Comparison — Financials

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameCapital One Financial Corporati
SectorFinancials
Free Cash Flow$26.1B
Revenue$53.4B
Net Income$2.5B
Operating Cash Flow$27.7B
Capital Expenditure$1.6B
FCF Margin47.5%
Cash Conversion Rate—
Net Margin4.6%
Total Debt$50.4B
Total Cash$57.4B
Net Cash$7.0B
Current Ratio0.00
Debt / Equity0.44
Debt / FCF2.0x
YoY FCF Growth+200.0%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance

Related Research

All research →
Sector Report4 min read

Financials: 22 A-Grades With Five Banks Broken

The sector median is 19.5%, but the money center banks are all failing. The gap between payments and traditional banking keeps widening.

May 4, 2026
CMEVMACOF+16
Sector Report4 min read

Financials: 16 A-Grades With Five Banks Failing

Payments and exchanges print cash. Big banks bleed it. The split is getting worse.

Apr 3, 2026
CMEVMACOF+12
Sector Report4 min read

Financials: Twelve A-Grades Propped Up by Payments

The sector looks healthy on paper. But strip out the payment networks and exchanges, and the numbers tell a different story.

Feb 13, 2026
CMEVMACOF+12