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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 0.35
DFS's Cash to Debt is ranked higher than
78% of the 173 Companies
in the Global Credit Services industry.

( Industry Median: 0.21 vs. DFS: 0.35 )
DFS' s 10-Year Cash to Debt Range
Min: 0.04   Max: No Debt
Current: 0.35

Equity to Asset 0.14
DFS's Equity to Asset is ranked higher than
59% of the 177 Companies
in the Global Credit Services industry.

( Industry Median: 0.25 vs. DFS: 0.14 )
DFS' s 10-Year Equity to Asset Range
Min: 0.1   Max: 0.2
Current: 0.14

0.1
0.2
Interest Coverage 3.44
DFS's Interest Coverage is ranked higher than
69% of the 144 Companies
in the Global Credit Services industry.

( Industry Median: 4.04 vs. DFS: 3.44 )
DFS' s 10-Year Interest Coverage Range
Min: 0.68   Max: 3.44
Current: 3.44

0.68
3.44
F-Score: 6
Z-Score: 0.76
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 : 8/10

vs
industry
vs
history
Operating margin (%) 46.48
DFS's Operating margin (%) is ranked higher than
88% of the 180 Companies
in the Global Credit Services industry.

( Industry Median: 22.45 vs. DFS: 46.48 )
DFS' s 10-Year Operating margin (%) Range
Min: 18.71   Max: 49.69
Current: 46.48

18.71
49.69
Net-margin (%) 29.42
DFS's Net-margin (%) is ranked higher than
88% of the 180 Companies
in the Global Credit Services industry.

( Industry Median: 14.31 vs. DFS: 29.42 )
DFS' s 10-Year Net-margin (%) Range
Min: 11.49   Max: 55.91
Current: 29.42

11.49
55.91
ROE (%) 22.87
DFS's ROE (%) is ranked higher than
88% of the 181 Companies
in the Global Credit Services industry.

( Industry Median: 11.85 vs. DFS: 22.87 )
DFS' s 10-Year ROE (%) Range
Min: 10.27   Max: 30.3
Current: 22.87

10.27
30.3
ROA (%) 3.20
DFS's ROA (%) is ranked higher than
76% of the 183 Companies
in the Global Credit Services industry.

( Industry Median: 3.12 vs. DFS: 3.20 )
DFS' s 10-Year ROA (%) Range
Min: 1.43   Max: 3.84
Current: 3.2

1.43
3.84
ROC (Joel Greenblatt) (%) 605.87
DFS's ROC (Joel Greenblatt) (%) is ranked higher than
92% of the 177 Companies
in the Global Credit Services industry.

( Industry Median: 22.22 vs. DFS: 605.87 )
DFS' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 22.52   Max: 743.92
Current: 605.87

22.52
743.92
Revenue Growth (3Y)(%) 11.70
DFS's Revenue Growth (3Y)(%) is ranked higher than
82% of the 149 Companies
in the Global Credit Services industry.

( Industry Median: 7.80 vs. DFS: 11.70 )
DFS' s 10-Year Revenue Growth (3Y)(%) Range
Min: 0   Max: 14.3
Current: 11.7

0
14.3
EBITDA Growth (3Y)(%) 49.60
DFS's EBITDA Growth (3Y)(%) is ranked higher than
98% of the 130 Companies
in the Global Credit Services industry.

( Industry Median: 10.40 vs. DFS: 49.60 )
DFS' s 10-Year EBITDA Growth (3Y)(%) Range
Min: 0   Max: 49.6
Current: 49.6

0
49.6
EPS Growth (3Y)(%) 59.60
DFS's EPS Growth (3Y)(%) is ranked higher than
97% of the 122 Companies
in the Global Credit Services industry.

( Industry Median: 17.30 vs. DFS: 59.60 )
DFS' s 10-Year EPS Growth (3Y)(%) Range
Min: 0   Max: 59.6
Current: 59.6

0
59.6
» DFS's 10-Y Financials

Financials


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

» Details

Guru Trades

Q4 2013

DFS Guru Trades in Q4 2013

Andreas Halvorsen 1,264,600 sh (New)
David Dreman 4,073 sh (New)
Paul Tudor Jones 14,603 sh (New)
Louis Moore Bacon 1,754,329 sh (+94.93%)
Ronald Muhlenkamp 45,170 sh (+28.6%)
James Barrow 4,240,954 sh (+11.11%)
John Keeley 181,740 sh (+5.5%)
Columbia Wanger 872,000 sh (unchged)
Pioneer Investments 2,912,036 sh (-12.76%)
Jeremy Grantham 128,300 sh (-54.14%)
Jim Simons 518,600 sh (-58.14%)
Steven Cohen 71,415 sh (-89.23%)
» More
Q1 2014

DFS Guru Trades in Q1 2014

PRIMECAP Management 518,500 sh (New)
Caxton Associates 43,000 sh (New)
George Soros 175,000 sh (New)
James Barrow 4,606,099 sh (+8.61%)
Pioneer Investments 3,057,563 sh (+5%)
Louis Moore Bacon 1,834,329 sh (+4.56%)
Paul Tudor Jones Sold Out
Andreas Halvorsen Sold Out
Jim Simons Sold Out
David Dreman 4,045 sh (-0.69%)
John Keeley 179,145 sh (-1.43%)
Ronald Muhlenkamp 43,930 sh (-2.75%)
Columbia Wanger 779,000 sh (-10.67%)
Jeremy Grantham 103,400 sh (-19.41%)
Steven Cohen 5,321 sh (-92.55%)
» More
Q2 2014

DFS Guru Trades in Q2 2014

PRIMECAP Management 986,100 sh (+90.18%)
David Dreman 4,864 sh (+20.25%)
James Barrow 4,766,729 sh (+3.49%)
Ronald Muhlenkamp 44,485 sh (+1.26%)
Louis Moore Bacon Sold Out
George Soros Sold Out
Caxton Associates Sold Out
Pioneer Investments 2,918,407 sh (-4.55%)
Jeremy Grantham 94,100 sh (-8.99%)
Columbia Wanger 660,000 sh (-15.28%)
John Keeley 116,195 sh (-35.14%)
» More
Q3 2014

DFS Guru Trades in Q3 2014

John Burbank 7,361 sh (New)
Paul Tudor Jones 5,100 sh (New)
George Soros 365,000 sh (New)
Jeremy Grantham 140,100 sh (+48.88%)
PRIMECAP Management 999,100 sh (+1.32%)
James Barrow 4,826,828 sh (+1.26%)
Ronald Muhlenkamp 44,485 sh (unchged)
David Dreman 4,841 sh (-0.47%)
John Keeley 115,055 sh (-0.98%)
Pioneer Investments 2,646,489 sh (-9.32%)
Columbia Wanger 505,000 sh (-23.48%)
» 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%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
George Soros 2014-09-30 New Buy0.18%$59.15 - $65.59 $ 65.094%365000
John Burbank 2014-09-30 New Buy0.01%$59.15 - $65.59 $ 65.094%7361
George Soros 2014-06-30 Sold Out 0.1%$55.15 - $62.44 $ 65.0912%0
John Keeley 2014-06-30 Reduce -35.14%0.06%$55.15 - $62.44 $ 65.0912%116195
PRIMECAP Management 2014-06-30 Add 90.18%0.03%$55.15 - $62.44 $ 65.0912%986100
David Dreman 2014-06-30 Add 20.25%$55.15 - $62.44 $ 65.0912%4864
Andreas Halvorsen 2014-03-31 Sold Out 0.33%$52.21 - $59.41 $ 65.0916%0
George Soros 2014-03-31 New Buy0.1%$52.21 - $59.41 $ 65.0916%175000
PRIMECAP Management 2014-03-31 New Buy0.03%$52.21 - $59.41 $ 65.0916%518500
Andreas Halvorsen 2013-12-31 New Buy0.33%$48.74 - $55.07 $ 65.0924%1264600
Ronald Muhlenkamp 2013-12-31 Add 28.6%0.1%$48.74 - $55.07 $ 65.0924%45170
David Dreman 2013-12-31 New Buy0.02%$48.74 - $55.07 $ 65.0924%4073
Premium More recent guru trades are included for Premium Members only!!
Premium More recent guru trades are included for USA Subscribe Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Preferred stocks of Discover Financial Services

SymbolPriceYieldDescription
DFSPRB0.006.45Deposit Shs Repr 1/40th Non-Cum Perp Pfd Shs Series -B-

Ratios

vs
industry
vs
history
P/E(ttm) 12.40
DFS's P/E(ttm) is ranked higher than
78% of the 197 Companies
in the Global Credit Services industry.

( Industry Median: 17.30 vs. DFS: 12.40 )
DFS' s 10-Year P/E(ttm) Range
Min: 2.5   Max: 20.69
Current: 12.4

2.5
20.69
P/B 2.76
DFS's P/B is ranked higher than
60% of the 197 Companies
in the Global Credit Services industry.

( Industry Median: 1.91 vs. DFS: 2.76 )
DFS' s 10-Year P/B Range
Min: 0.4   Max: 2.8
Current: 2.76

0.4
2.8
P/S 3.56
DFS's P/S is ranked higher than
64% of the 197 Companies
in the Global Credit Services industry.

( Industry Median: 2.66 vs. DFS: 3.56 )
DFS' s 10-Year P/S Range
Min: 0.51   Max: 3.61
Current: 3.56

0.51
3.61
PFCF 8.36
DFS's PFCF is ranked higher than
86% of the 197 Companies
in the Global Credit Services industry.

( Industry Median: 9999.00 vs. DFS: 8.36 )
DFS' s 10-Year PFCF Range
Min: 0.59   Max: 11.29
Current: 8.36

0.59
11.29
EV-to-EBIT 10.98
DFS's EV-to-EBIT is ranked higher than
88% of the 197 Companies
in the Global Credit Services industry.

( Industry Median: 20.38 vs. DFS: 10.98 )
DFS' s 10-Year EV-to-EBIT Range
Min: -2   Max: 18.4
Current: 10.98

-2
18.4
PEG 0.46
DFS's PEG is ranked higher than
96% of the 197 Companies
in the Global Credit Services industry.

( Industry Median: 9999.00 vs. DFS: 0.46 )
DFS' s 10-Year PEG Range
Min: 0.33   Max: 0.57
Current: 0.46

0.33
0.57
Shiller P/E 17.14
DFS's Shiller P/E is ranked higher than
83% of the 197 Companies
in the Global Credit Services industry.

( Industry Median: 27.65 vs. DFS: 17.14 )
DFS' s 10-Year Shiller P/E Range
Min: 10.34   Max: 17.38
Current: 17.14

10.34
17.38

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.41
DFS's Dividend Yield is ranked lower than
66% of the 117 Companies
in the Global Credit Services industry.

( Industry Median: 2.15 vs. DFS: 1.41 )
DFS' s 10-Year Dividend Yield Range
Min: 0.32   Max: 4.85
Current: 1.41

0.32
4.85
Dividend Payout 0.17
DFS's Dividend Payout is ranked higher than
90% of the 197 Companies
in the Global Credit Services industry.

( Industry Median: 1.52 vs. DFS: 0.17 )
DFS' s 10-Year Dividend Payout Range
Min: 0.02   Max: 0.35
Current: 0.17

0.02
0.35
Dividend growth (3y) 95.70
DFS's Dividend growth (3y) is ranked higher than
99% of the 82 Companies
in the Global Credit Services industry.

( Industry Median: 12.00 vs. DFS: 95.70 )
DFS' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 95.7
Current: 95.7

0
95.7
Yield on cost (5-Year) 15.67
DFS's Yield on cost (5-Year) is ranked higher than
92% of the 120 Companies
in the Global Credit Services industry.

( Industry Median: 3.42 vs. DFS: 15.67 )
DFS' s 10-Year Yield on cost (5-Year) Range
Min: 3.58   Max: 54.28
Current: 15.67

3.58
54.28
Share Buyback Rate 3.90
DFS's Share Buyback Rate is ranked higher than
92% of the 131 Companies
in the Global Credit Services industry.

( Industry Median: -0.70 vs. DFS: 3.90 )
DFS' s 10-Year Share Buyback Rate Range
Min: 0   Max: -901.3
Current: 3.9

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 2.89
DFS's Price/Tangible Book is ranked higher than
64% of the 197 Companies
in the Global Credit Services industry.

( Industry Median: 2.37 vs. DFS: 2.89 )
DFS' s 10-Year Price/Tangible Book Range
Min: 0.5   Max: 2.86
Current: 2.89

0.5
2.86
Price/DCF (Projected) 0.67
DFS's Price/DCF (Projected) is ranked higher than
87% of the 197 Companies
in the Global Credit Services industry.

( Industry Median: 2.70 vs. DFS: 0.67 )
DFS' s 10-Year Price/DCF (Projected) Range
Min: 0.33   Max: 0.66
Current: 0.67

0.33
0.66
Price/Median PS Value 1.90
DFS's Price/Median PS Value is ranked higher than
60% of the 197 Companies
in the Global Credit Services industry.

( Industry Median: 1.24 vs. DFS: 1.90 )
DFS' s 10-Year Price/Median PS Value Range
Min: 0.31   Max: 1.88
Current: 1.9

0.31
1.88
Price/Peter Lynch Fair Value 0.49
DFS's Price/Peter Lynch Fair Value is ranked higher than
97% of the 197 Companies
in the Global Credit Services industry.

( Industry Median: 9999.00 vs. DFS: 0.49 )
DFS' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.36   Max: 0.53
Current: 0.49

0.36
0.53
Price/Graham Number 1.19
DFS's Price/Graham Number is ranked higher than
74% of the 197 Companies
in the Global Credit Services industry.

( Industry Median: 1.32 vs. DFS: 1.19 )
DFS' s 10-Year Price/Graham Number Range
Min: 0.25   Max: 1.18
Current: 1.19

0.25
1.18
Earnings Yield (Greenblatt) 9.10
DFS's Earnings Yield (Greenblatt) is ranked higher than
87% of the 181 Companies
in the Global Credit Services industry.

( Industry Median: 5.40 vs. DFS: 9.10 )
DFS' s 10-Year Earnings Yield (Greenblatt) Range
Min: 5.4   Max: 2171.9
Current: 9.1

5.4
2171.9
Forward Rate of Return (Yacktman) 36.83
DFS's Forward Rate of Return (Yacktman) is ranked higher than
90% of the 115 Companies
in the Global Credit Services industry.

( Industry Median: 13.13 vs. DFS: 36.83 )
DFS' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 35.4   Max: 44.7
Current: 36.83

35.4
44.7

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

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Xoom! Aug 20 2013 


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