Switch to:

GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 0.44
DFS's Cash to Debt is ranked lower than
62% of the 256 Companies
in the Global Credit Services industry.

( Industry Median: 6.06 vs. DFS: 0.44 )
Ranked among companies with meaningful Cash to Debt only.
DFS' s 10-Year Cash to Debt Range
Min: 0.04  Med: 0.41 Max: N/A
Current: 0.44
Equity to Asset 0.13
DFS's Equity to Asset is ranked lower than
85% of the 183 Companies
in the Global Credit Services industry.

( Industry Median: 0.37 vs. DFS: 0.13 )
Ranked among companies with meaningful Equity to Asset only.
DFS' s 10-Year Equity to Asset Range
Min: 0.1  Med: 0.14 Max: 0.2
Current: 0.13
0.1
0.2
Interest Coverage 3.26
DFS's Interest Coverage is ranked lower than
69% of the 181 Companies
in the Global Credit Services industry.

( Industry Median: 16.15 vs. DFS: 3.26 )
Ranked among companies with meaningful Interest Coverage only.
DFS' s 10-Year Interest Coverage Range
Min: 0.8  Med: 1.69 Max: 3.44
Current: 3.26
0.8
3.44
F-Score: 4
WACC vs ROIC
8.53%
9.04%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 40.91
DFS's Operating margin (%) is ranked higher than
75% of the 269 Companies
in the Global Credit Services industry.

( Industry Median: 20.53 vs. DFS: 40.91 )
Ranked among companies with meaningful Operating margin (%) only.
DFS' s 10-Year Operating margin (%) Range
Min: 19.06  Med: 32.20 Max: 49.7
Current: 40.91
19.06
49.7
Net-margin (%) 26.05
DFS's Net-margin (%) is ranked higher than
65% of the 271 Companies
in the Global Credit Services industry.

( Industry Median: 17.41 vs. DFS: 26.05 )
Ranked among companies with meaningful Net-margin (%) only.
DFS' s 10-Year Net-margin (%) Range
Min: 11.49  Med: 24.35 Max: 55.91
Current: 26.05
11.49
55.91
ROE (%) 19.37
DFS's ROE (%) is ranked higher than
75% of the 267 Companies
in the Global Credit Services industry.

( Industry Median: 8.63 vs. DFS: 19.37 )
Ranked among companies with meaningful ROE (%) only.
DFS' s 10-Year ROE (%) Range
Min: 8.97  Med: 16.82 Max: 29.96
Current: 19.37
8.97
29.96
ROA (%) 2.71
DFS's ROA (%) is ranked lower than
52% of the 280 Companies
in the Global Credit Services industry.

( Industry Median: 2.98 vs. DFS: 2.71 )
Ranked among companies with meaningful ROA (%) only.
DFS' s 10-Year ROA (%) Range
Min: 1.43  Med: 2.86 Max: 3.84
Current: 2.71
1.43
3.84
Revenue Growth (3Y)(%) 12.10
DFS's Revenue Growth (3Y)(%) is ranked higher than
63% of the 201 Companies
in the Global Credit Services industry.

( Industry Median: 5.50 vs. DFS: 12.10 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
DFS' s 10-Year Revenue Growth (3Y)(%) Range
Min: 0  Med: 7.00 Max: 14.3
Current: 12.1
0
14.3
EBITDA Growth (3Y)(%) 8.30
DFS's EBITDA Growth (3Y)(%) is ranked higher than
64% of the 171 Companies
in the Global Credit Services industry.

( Industry Median: -3.30 vs. DFS: 8.30 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
DFS' s 10-Year EBITDA Growth (3Y)(%) Range
Min: 0  Med: 8.30 Max: 49.6
Current: 8.3
0
49.6
EPS Growth (3Y)(%) 6.50
DFS's EPS Growth (3Y)(%) is ranked higher than
52% of the 175 Companies
in the Global Credit Services industry.

( Industry Median: 4.60 vs. DFS: 6.50 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
DFS' s 10-Year EPS Growth (3Y)(%) Range
Min: 0  Med: 8.00 Max: 59.6
Current: 6.5
0
59.6
» DFS's 10-Y Financials

Financials


Revenue & Net Income
Equity & Asset
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q3 2014

DFS Guru Trades in Q3 2014

Paul Tudor Jones 5,100 sh (New)
George Soros 365,000 sh (New)
John Burbank 7,361 sh (New)
Jeremy Grantham 140,100 sh (+48.88%)
PRIMECAP Management 999,100 sh (+1.32%)
James Barrow 4,826,828 sh (+1.26%)
Pioneer Investments 2,940,089 sh (unchged)
Ronald Muhlenkamp 44,485 sh (unchged)
David Dreman 4,841 sh (-0.47%)
John Keeley 115,055 sh (-0.98%)
Columbia Wanger 505,000 sh (-23.48%)
» More
Q4 2014

DFS Guru Trades in Q4 2014

First Eagle Investment 1,189,993 sh (New)
Louis Moore Bacon 510,000 sh (New)
Jim Simons 28,100 sh (New)
John Burbank 196,331 sh (+2567.18%)
Ronald Muhlenkamp 144,070 sh (+223.86%)
Paul Tudor Jones 9,543 sh (+87.12%)
PRIMECAP Management 1,339,100 sh (+34.03%)
James Barrow 4,839,253 sh (+0.26%)
George Soros Sold Out
John Keeley 114,535 sh (-0.45%)
David Dreman 4,790 sh (-1.05%)
Pioneer Investments 2,818,050 sh (-4.15%)
Jeremy Grantham 117,500 sh (-16.13%)
Columbia Wanger 409,000 sh (-19.01%)
» More
Q1 2015

DFS Guru Trades in Q1 2015

Joel Greenblatt 6,604 sh (New)
NWQ Managers 2,270,889 sh (New)
Jim Simons 142,700 sh (+407.83%)
Paul Tudor Jones 21,732 sh (+127.73%)
David Dreman 9,711 sh (+102.73%)
PRIMECAP Management 2,072,800 sh (+54.79%)
Ronald Muhlenkamp 212,145 sh (+47.25%)
Pioneer Investments 3,423,650 sh (+21.49%)
Louis Moore Bacon 600,000 sh (+17.65%)
Jeremy Grantham 125,000 sh (+6.38%)
James Barrow 4,858,626 sh (+0.40%)
Columbia Wanger Sold Out
First Eagle Investment Sold Out
John Burbank Sold Out
John Keeley 106,975 sh (-6.60%)
» More
Q2 2015

DFS Guru Trades in Q2 2015

Chuck Royce 13,900 sh (New)
Joel Greenblatt 17,121 sh (+159.25%)
Jim Simons 352,400 sh (+146.95%)
David Dreman 11,856 sh (+22.09%)
PRIMECAP Management 2,123,800 sh (+2.46%)
James Barrow 4,924,079 sh (+1.35%)
Ronald Muhlenkamp 212,400 sh (+0.12%)
Paul Tudor Jones Sold Out
NWQ Managers 2,070,757 sh (-8.81%)
John Keeley 96,045 sh (-10.22%)
Jeremy Grantham 101,000 sh (-19.20%)
Pioneer Investments 1,678,913 sh (-50.96%)
Louis Moore Bacon 90,000 sh (-85.00%)
» More
» Details

Insider Trades

Latest Guru Trades with DFS

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

No Entry found in the selected group of Gurus. You can
  • 1. Modify your Personalized List of Gurus, or
  • 2. Click on Premium Premium Tools above to check out all the Gurus, or
  • 3. Click on Premium Plus Premium Plus above for the stocks picks of all the institutional investment advisors (>4000)
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Preferred stocks of Discover Financial Services

SymbolPriceYieldDescription
DFSPRB25.826.29Deposit Shs Repr 1/40th Non-Cum Perp Pfd Shs Series -B-

Top Ranked Articles about Discover Financial Services

NWQ's First-Quarter Buys and Adds Affect Portfolio
Sometimes NWQ Managers (Trades, Portfolio)’ investment decisions fly under the radar, but they shouldn’t. NWQ’s approach has generated consistently high returns on a long-term basis. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 10.79
DFS's P/E(ttm) is ranked higher than
61% of the 214 Companies
in the Global Credit Services industry.

( Industry Median: 14.70 vs. DFS: 10.79 )
Ranked among companies with meaningful P/E(ttm) only.
DFS' s 10-Year P/E(ttm) Range
Min: 2.5  Med: 10.23 Max: 20.69
Current: 10.79
2.5
20.69
Forward P/E 9.07
DFS's Forward P/E is ranked higher than
63% of the 70 Companies
in the Global Credit Services industry.

( Industry Median: 11.04 vs. DFS: 9.07 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 11.10
DFS's PE(NRI) is ranked higher than
63% of the 215 Companies
in the Global Credit Services industry.

( Industry Median: 14.90 vs. DFS: 11.10 )
Ranked among companies with meaningful PE(NRI) only.
DFS' s 10-Year PE(NRI) Range
Min: 2.55  Med: 9.01 Max: 16.92
Current: 11.1
2.55
16.92
P/B 2.15
DFS's P/B is ranked lower than
77% of the 220 Companies
in the Global Credit Services industry.

( Industry Median: 1.04 vs. DFS: 2.15 )
Ranked among companies with meaningful P/B only.
DFS' s 10-Year P/B Range
Min: 0.4  Med: 1.76 Max: 2.82
Current: 2.15
0.4
2.82
P/S 2.74
DFS's P/S is ranked higher than
55% of the 262 Companies
in the Global Credit Services industry.

( Industry Median: 3.31 vs. DFS: 2.74 )
Ranked among companies with meaningful P/S only.
DFS' s 10-Year P/S Range
Min: 0.4  Med: 2.02 Max: 3.62
Current: 2.74
0.4
3.62
PFCF 6.61
DFS's PFCF is ranked higher than
58% of the 69 Companies
in the Global Credit Services industry.

( Industry Median: 8.29 vs. DFS: 6.61 )
Ranked among companies with meaningful PFCF only.
DFS' s 10-Year PFCF Range
Min: 0.59  Med: 3.95 Max: 11.29
Current: 6.61
0.59
11.29
POCF 6.36
DFS's POCF is ranked higher than
59% of the 87 Companies
in the Global Credit Services industry.

( Industry Median: 7.73 vs. DFS: 6.36 )
Ranked among companies with meaningful POCF only.
DFS' s 10-Year POCF Range
Min: 0.57  Med: 3.77 Max: 10.5
Current: 6.36
0.57
10.5
EV-to-EBIT 10.57
DFS's EV-to-EBIT is ranked higher than
69% of the 210 Companies
in the Global Credit Services industry.

( Industry Median: 19.08 vs. DFS: 10.57 )
Ranked among companies with meaningful EV-to-EBIT only.
DFS' s 10-Year EV-to-EBIT Range
Min: -2.7  Med: 8.90 Max: 18.4
Current: 10.57
-2.7
18.4
PEG 0.50
DFS's PEG is ranked higher than
65% of the 62 Companies
in the Global Credit Services industry.

( Industry Median: 0.73 vs. DFS: 0.50 )
Ranked among companies with meaningful PEG only.
DFS' s 10-Year PEG Range
Min: 0.36  Med: 0.47 Max: 1
Current: 0.5
0.36
1
Shiller P/E 12.71
DFS's Shiller P/E is ranked lower than
51% of the 92 Companies
in the Global Credit Services industry.

( Industry Median: 12.94 vs. DFS: 12.71 )
Ranked among companies with meaningful Shiller P/E only.
DFS' s 10-Year Shiller P/E Range
Min: 10.34  Med: 15.50 Max: 17.29
Current: 12.71
10.34
17.29

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.99
DFS's Dividend Yield is ranked lower than
59% of the 243 Companies
in the Global Credit Services industry.

( Industry Median: 2.42 vs. DFS: 1.99 )
Ranked among companies with meaningful Dividend Yield only.
DFS' s 10-Year Dividend Yield Range
Min: 0.32  Med: 0.97 Max: 4.85
Current: 1.99
0.32
4.85
Dividend Payout 0.21
DFS's Dividend Payout is ranked higher than
63% of the 136 Companies
in the Global Credit Services industry.

( Industry Median: 0.26 vs. DFS: 0.21 )
Ranked among companies with meaningful Dividend Payout only.
DFS' s 10-Year Dividend Payout Range
Min: 0.02  Med: 0.10 Max: 0.35
Current: 0.21
0.02
0.35
Dividend growth (3y) 66.30
DFS's Dividend growth (3y) is ranked higher than
93% of the 75 Companies
in the Global Credit Services industry.

( Industry Median: 10.10 vs. DFS: 66.30 )
Ranked among companies with meaningful Dividend growth (3y) only.
DFS' s 10-Year Dividend growth (3y) Range
Min: 0  Med: -5.90 Max: 95.7
Current: 66.3
0
95.7
Yield on cost (5-Year) 22.57
DFS's Yield on cost (5-Year) is ranked higher than
97% of the 245 Companies
in the Global Credit Services industry.

( Industry Median: 3.48 vs. DFS: 22.57 )
Ranked among companies with meaningful Yield on cost (5-Year) only.
DFS' s 10-Year Yield on cost (5-Year) Range
Min: 3.59  Med: 10.89 Max: 54.45
Current: 22.57
3.59
54.45
Share Buyback Rate 5.20
DFS's Share Buyback Rate is ranked higher than
91% of the 135 Companies
in the Global Credit Services industry.

( Industry Median: -4.80 vs. DFS: 5.20 )
Ranked among companies with meaningful Share Buyback Rate only.
DFS' s 10-Year Share Buyback Rate Range
Min: 0  Med: 3.00 Max: -901.3
Current: 5.2

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 2.20
DFS's Price/Tangible Book is ranked lower than
74% of the 214 Companies
in the Global Credit Services industry.

( Industry Median: 1.11 vs. DFS: 2.20 )
Ranked among companies with meaningful Price/Tangible Book only.
DFS' s 10-Year Price/Tangible Book Range
Min: 0.5  Med: 1.84 Max: 2.9
Current: 2.2
0.5
2.9
Price/Projected FCF 0.48
DFS's Price/Projected FCF is ranked higher than
67% of the 76 Companies
in the Global Credit Services industry.

( Industry Median: 0.76 vs. DFS: 0.48 )
Ranked among companies with meaningful Price/Projected FCF only.
DFS' s 10-Year Price/Projected FCF Range
Min: 0.34  Med: 0.53 Max: 0.68
Current: 0.48
0.34
0.68
Price/Median PS Value 1.35
DFS's Price/Median PS Value is ranked lower than
71% of the 232 Companies
in the Global Credit Services industry.

( Industry Median: 1.00 vs. DFS: 1.35 )
Ranked among companies with meaningful Price/Median PS Value only.
DFS' s 10-Year Price/Median PS Value Range
Min: 0.23  Med: 1.00 Max: 1.78
Current: 1.35
0.23
1.78
Price/Peter Lynch Fair Value 0.60
DFS's Price/Peter Lynch Fair Value is ranked higher than
57% of the 30 Companies
in the Global Credit Services industry.

( Industry Median: 0.64 vs. DFS: 0.60 )
Ranked among companies with meaningful Price/Peter Lynch Fair Value only.
DFS' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.41  Med: 0.49 Max: 0.95
Current: 0.6
0.41
0.95
Price/Graham Number 0.97
DFS's Price/Graham Number is ranked lower than
61% of the 137 Companies
in the Global Credit Services industry.

( Industry Median: 0.83 vs. DFS: 0.97 )
Ranked among companies with meaningful Price/Graham Number only.
DFS' s 10-Year Price/Graham Number Range
Min: 0.25  Med: 0.81 Max: 1.24
Current: 0.97
0.25
1.24
Earnings Yield (Greenblatt) (%) 9.48
DFS's Earnings Yield (Greenblatt) (%) is ranked higher than
75% of the 263 Companies
in the Global Credit Services industry.

( Industry Median: 4.00 vs. DFS: 9.48 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
DFS' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 5.4  Med: 10.20 Max: 4619.3
Current: 9.48
5.4
4619.3
Forward Rate of Return (Yacktman) (%) 30.13
DFS's Forward Rate of Return (Yacktman) (%) is ranked higher than
86% of the 80 Companies
in the Global Credit Services industry.

( Industry Median: -0.10 vs. DFS: 30.13 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
DFS' s 10-Year Forward Rate of Return (Yacktman) (%) Range
Min: 29  Med: 36.60 Max: 41.1
Current: 30.13
29
41.1

Analyst Estimate

Dec15 Dec16 Dec17
Revenue(Mil) 8,862 9,163 9,174
EPS($) 5.27 5.71 6.10
EPS without NRI($) 5.27 5.71 6.10

Business Description

Industry: Credit Services » Credit Services
Compare:V, MA, TCAP, COF, RDCRL » details
Traded in other countries:DC7.Germany,
Discover Financial Services was incorporated in Delaware in 1960. The Company is a direct banking and payment services company. The Company offers credit card loans, private student loans, personal loans, home equity loans and deposit products. It operates the Discover Network, credit card payments network; the PULSE Network, automated teller machine, debit and electronic funds transfer network; and Diners Club International, global payments network. Its business segments are Direct Banking, formerly referred to as U.S. Card, and Payment Services, formerly referred to as Third-Party Payments. Direct Banking segment includes Discover card-branded credit cards issued to individuals and small businesses on the Discover Network and other consumer products and services, including personal loans, student loans, prepaid cards and other consumer lending and deposit products offered through its Discover Bank subsidiary. Payment Services segment includes PULSE, its ATM, debit and electronic funds transfer network; Diners Club, global payments network; and its third-party issuing business, which includes credit, debit and prepaid cards issued on the Discover Network by third parties. The PULSE Network is one of the nation's main ATM/debit networks. PULSE links cardholders of more than 6,000 financial institutions with ATMs and point-of-sale terminals located throughout the United States. Its Diners Club business maintains an acceptance network in over 185 countries and territories through its relationships with 80 licensees, which are generally financial institutions. In order to attract and retain customers and merchants, the Company continues to develop new products, features, and benefits and market them through a variety of channels, including mail, phone and online. Targeted offers might include balance transfers, fee products and reinforcement of its Cashback Bonus rewards program. The Company maintains a full-service, in-house direct marketing department charged with delivering integrated communications to foster customer engagement with its products and services in addition to supervising external agencies. Processing services cover four functional areas: card personalization/embossing, print/mail, remittance processing and document processing. As a credit card issuer, it competes for accounts and utilization with cards issued by other financial institutions including American Express, Bank of America, Capital One, JPMorgan Chase and Citigroup. Its operations are subject to regulation, supervision and examination under U.S. federal, state and foreign laws and regulations.
» More Articles for DFS

Headlines

Articles On GuruFocus.com
10 Most Undervalued Companies for the Enterprising Investor – August 2015 Aug 17 2015 
The 8 Best Stocks for Value Investors This Week - 8/8/15 Aug 09 2015 
Cue Financial Group sold out American Express in Q2 2015 Jul 29 2015 
Value Trap at World Acceptance (WRLD) Jul 27 2015 
main portfolio Jul 03 2015 
Five Stocks With Low P/E Gurus Are Buying (Part II) Jun 29 2015 
new Jun 26 2015 
current Jun 22 2015 
current Jun 22 2015 
John Burbank Sells Banking Stakes in First Quarter Jun 10 2015 

More From Other Websites
Why Does Visa Stock Continue to Trade at a Premium? Sep 03 2015
What New Developments Can You Expect from the Fed? Aug 27 2015
Discover Recognized for Innovative Business Technology by CIO Magazine Aug 27 2015
Business events scheduled for Tuesday Aug 24 2015
Business events scheduled for Tuesday Aug 24 2015
Discover Financial tops AmEx in customer satisfaction survey Aug 23 2015
Discover Financial's Capital Activities Impress, Card Sales Fall Aug 21 2015
Discover Financial Enters into Strategic Agreement with Elo Aug 21 2015
Why Discover Is America's New Favorite Credit Card Company Aug 20 2015
Brazil's Elo credit card in deal to use Discover global network Aug 20 2015
Discover Announces Strategic Network Service Agreement with Brazilian Domestic Card Network, Elo Aug 20 2015
Discover unseats Amex as consumers' favorite credit card; J.D. Power Aug 20 2015
Discover Awarded the Highest Honor in J.D. Power 2015 Credit Card Satisfaction StudySM Aug 20 2015
DISCOVER FINANCIAL SERVICES Files SEC form 8-K, Regulation FD Disclosure, Financial Statements and... Aug 17 2015
Levin Capital Made A Big Investment In These Stocks In Q2 Aug 14 2015
DISCOVER FINANCIAL SERVICES Files SEC form 8-K, Creation of a Direct Financial Obligation or an... Aug 13 2015
Discover to Bring Samsung Pay to Cardmembers Aug 13 2015
FIDO Alliance Announces 62 Authentication Products Are Now FIDO(R) Certified Aug 12 2015

Personalized Checklist

Checklist has been moved to "Checklist" tab.

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK