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-0.000395123052607774 -0.000282230751862627 0.00121359223300973 0.00355610747347028 0.00276586136825474 -0.00129826145856847 -0.000112892300744987 0.00143937683449986
Stock impact report

Capital One's Acquisition Of Discover Won't Save It From Declining ROE & ROA [Seeking Alpha]

Capital One Financial Corporation (COF) 
Last capital one financial corporation earnings: 4/23 04:05 pm Check Earnings Report
Company Research Source: Seeking Alpha
COF's ROE and ROA have steadily declined since 2021, further deteriorating post-Discover acquisition, now well below cost of equity. Despite strong capital ratios, profitability and efficiency metrics have worsened, with net income at a five-year low and efficiency ratio rising to 57.08%. Risks from economic shocks, trade wars, and integration uncertainty overshadow potential long-term synergies from the Discover deal. John M. Chase/iStock Unreleased via Getty Images Investing Thesis Capital One Financial Corporation's ( COF ) return on equity (“ROE”) and return on assets (“ROA”) have been materially and steadily declining every year since FY2021, when they were 21.45% and 2.80%, respectively. They were respectively at 8.14% and 0.92% by This article was written by Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article my Show less Read more
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