StockStory Cites Falling Earnings and Book Value at Capital One

StockStory said it is avoiding Capital One, citing declines in per-share earnings and book value. The shares gained 11% over six months, trailing the S&P 500’s 21.1% return, according to the publisher.

The analysis said Capital One’s earnings per share fell 4.4% annually over five years, while revenue grew 16.3%. It also pointed to tangible book value per share, which dropped from $99 to $89.71 over two years, an annual decline of 4.8%.

StockStory said Capital One averaged a 9.2% return on equity over five years, below the sector average of around 10%. It called the stock’s 8.9-times forward earnings valuation “optically cheap,” but argued that weak fundamentals posed downside risk.

The publisher said the company’s business quality fell short of its standards. Capital One was trading at $197.72 when the article was published. As of 16:11 UTC on Sept. 30, shares were at $194.19, down 1.16% since the previous close.