COFNEUTRAL

Gross Margin

57.8%

Higher than 34% of Financial Services sector peers

Updated 23h ago

Sector Performance

34th percentile

COF

57.8%

Sector Median

76.6%

Sector Avg

73.8%

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Deep Analysis

Capital One's gross margin of 57.8% represents the percentage of revenue left after subtracting the direct costs of providing its financial services, such as interest expenses and loan loss provisions.

This figure sits well below the sector median of 77.5% and places the company at the 31st percentile among Financial Services peers. Over the last eight quarters the metric has been perfectly stable, with year-over-year and quarter-over-quarter changes both recorded as +0.0%. The combination of a below-median gross margin and a flat trend implies neither an emerging risk nor a clear upside opportunity—the metric is simply holding at a level that is lower than most competitors without deteriorating. This stable but below-average performance does not contradict the overall NEUTRAL verdict, as it reflects a consistent but unremarkable profitability profile typical of Capital One's business model.

Frequently Asked Questions

What does the Gross Margin tell investors about COF?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does COF's Gross Margin compare to its sector?

COF's Gross Margin of 57.8% compares to a Financial Services sector median of 76.6%, placing it in the 34th percentile.

Who are COF's closest peers by Gross Margin?

The closest Financial Services peers by Gross Margin include: SPGI (70.4%), COIN (69.7%), SLM (68.5%), JPM (64.3%), HDB (58.4%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.