COFNEUTRAL

Return on Equity (ROE)

3.3%

Higher than 3% of Financial Services sector peers

Updated 126h ago

Sector Performance

3th percentile

COF

3.3%

Sector Median

12.9%

Sector Avg

17.5%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity; at 3.3%, COF earns only about 3.3 cents per dollar of equity.

This places COF well below its Financial Services sector peers, where the median ROE is 13.4%, and the company sits at the 2nd percentile — meaning 98% of peers deliver higher returns. There are no trend data available: the year-over-year change, quarter-over-quarter change, and last-eight-quarter trend are all reported as N/A, and only the current 3.3% figure is provided. Without any directional trend, the extremely low single-period ROE signals that the company’s profitability is weak compared to industry counterparts, presenting above-average risk for investors seeking efficient use of capital. This metric contradicts a bullish stance but, because a neutral overall verdict allows for both strengths and weaknesses in other areas, the poor ROE alone does not overturn the neutral rating — it simply underscores that equity returns are currently subpar.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about COF?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does COF's Return on Equity (ROE) compare to its sector?

COF's Return on Equity (ROE) of 3.3% compares to a Financial Services sector median of 12.9%, placing it in the 3th percentile.

Who are COF's closest peers by Return on Equity (ROE)?

The closest Financial Services peers by Return on Equity (ROE) include: AFL (12.4%), ARES (12.3%), BLK (11.9%), RF (11.9%), HSBC (11.6%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.