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 0.51
DFS's Cash to Debt is ranked higher than
61% of the 347 Companies
in the Global Credit Services industry.

( Industry Median: 0.70 vs. DFS: 0.51 )
DFS' s 10-Year Cash to Debt Range
Min: 0.04   Max: N/A
Current: 0.51

Equity to Asset 0.13
DFS's Equity to Asset is ranked lower than
52% of the 278 Companies
in the Global Credit Services industry.

( Industry Median: 0.32 vs. DFS: 0.13 )
DFS' s 10-Year Equity to Asset Range
Min: 0.1   Max: 0.2
Current: 0.13

0.1
0.2
Interest Coverage 3.26
DFS's Interest Coverage is ranked higher than
54% of the 235 Companies
in the Global Credit Services industry.

( Industry Median: 9.60 vs. DFS: 3.26 )
DFS' s 10-Year Interest Coverage Range
Min: 0.8   Max: 3.44
Current: 3.26

0.8
3.44
F-Score: 4
Z-Score: 0.70
WACC vs ROIC
8.12%
9.39%
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 (%) 41.77
DFS's Operating margin (%) is ranked higher than
84% of the 366 Companies
in the Global Credit Services industry.

( Industry Median: 20.61 vs. DFS: 41.77 )
DFS' s 10-Year Operating margin (%) Range
Min: 19.06   Max: 49.7
Current: 41.77

19.06
49.7
Net-margin (%) 26.58
DFS's Net-margin (%) is ranked higher than
79% of the 367 Companies
in the Global Credit Services industry.

( Industry Median: 16.32 vs. DFS: 26.58 )
DFS' s 10-Year Net-margin (%) Range
Min: 11.49   Max: 55.91
Current: 26.58

11.49
55.91
ROE (%) 20.32
DFS's ROE (%) is ranked higher than
85% of the 356 Companies
in the Global Credit Services industry.

( Industry Median: 11.27 vs. DFS: 20.32 )
DFS' s 10-Year ROE (%) Range
Min: 10.27   Max: 30.3
Current: 20.32

10.27
30.3
ROA (%) 2.80
DFS's ROA (%) is ranked higher than
67% of the 374 Companies
in the Global Credit Services industry.

( Industry Median: 3.05 vs. DFS: 2.80 )
DFS' s 10-Year ROA (%) Range
Min: 1.43   Max: 3.84
Current: 2.8

1.43
3.84
ROC (Joel Greenblatt) (%) 535.61
DFS's ROC (Joel Greenblatt) (%) is ranked higher than
91% of the 364 Companies
in the Global Credit Services industry.

( Industry Median: 17.98 vs. DFS: 535.61 )
DFS' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 29.01   Max: 744.07
Current: 535.61

29.01
744.07
Revenue Growth (3Y)(%) 12.10
DFS's Revenue Growth (3Y)(%) is ranked higher than
79% of the 291 Companies
in the Global Credit Services industry.

( Industry Median: 4.30 vs. DFS: 12.10 )
DFS' s 10-Year Revenue Growth (3Y)(%) Range
Min: 0   Max: 14.3
Current: 12.1

0
14.3
EBITDA Growth (3Y)(%) 8.30
DFS's EBITDA Growth (3Y)(%) is ranked higher than
78% of the 242 Companies
in the Global Credit Services industry.

( Industry Median: -1.40 vs. DFS: 8.30 )
DFS' s 10-Year EBITDA Growth (3Y)(%) Range
Min: 0   Max: 49.6
Current: 8.3

0
49.6
EPS Growth (3Y)(%) 6.50
DFS's EPS Growth (3Y)(%) is ranked higher than
71% of the 240 Companies
in the Global Credit Services industry.

( Industry Median: 8.50 vs. DFS: 6.50 )
DFS' s 10-Year EPS Growth (3Y)(%) Range
Min: 0   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

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

George Soros 365,000 sh (New)
Paul Tudor Jones 5,100 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%)
Ronald Muhlenkamp 44,485 sh (unchged)
Pioneer Investments 2,940,089 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

Jim Simons 28,100 sh (New)
Louis Moore Bacon 510,000 sh (New)
First Eagle Investment 1,189,993 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%)
First Eagle Investment Sold Out
John Burbank Sold Out
Columbia Wanger Sold Out
John Keeley 106,975 sh (-6.60%)
» 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
DFSPRB26.176.33Deposit Shs Repr 1/40th Non-Cum Perp Pfd Shs Series -B-

Ratios

vs
industry
vs
history
P/E(ttm) 12.20
DFS's P/E(ttm) is ranked higher than
83% of the 440 Companies
in the Global Credit Services industry.

( Industry Median: 25.80 vs. DFS: 12.20 )
DFS' s 10-Year P/E(ttm) Range
Min: 2.5   Max: 20.69
Current: 12.2

2.5
20.69
Forward P/E 10.38
DFS's Forward P/E is ranked higher than
92% of the 440 Companies
in the Global Credit Services industry.

( Industry Median: 0.00 vs. DFS: 10.38 )
N/A
PE(NRI) 12.20
DFS's PE(NRI) is ranked higher than
84% of the 440 Companies
in the Global Credit Services industry.

( Industry Median: 26.00 vs. DFS: 12.20 )
DFS' s 10-Year PE(NRI) Range
Min: 2.55   Max: 16.92
Current: 12.2

2.55
16.92
P/B 2.50
DFS's P/B is ranked higher than
59% of the 440 Companies
in the Global Credit Services industry.

( Industry Median: 2.00 vs. DFS: 2.50 )
DFS' s 10-Year P/B Range
Min: 0.4   Max: 2.84
Current: 2.5

0.4
2.84
P/S 3.17
DFS's P/S is ranked higher than
67% of the 440 Companies
in the Global Credit Services industry.

( Industry Median: 4.12 vs. DFS: 3.17 )
DFS' s 10-Year P/S Range
Min: 0.4   Max: 3.62
Current: 3.17

0.4
3.62
PFCF 7.50
DFS's PFCF is ranked higher than
91% of the 440 Companies
in the Global Credit Services industry.

( Industry Median: 0.00 vs. DFS: 7.50 )
DFS' s 10-Year PFCF Range
Min: 0.59   Max: 11.29
Current: 7.5

0.59
11.29
POCF 7.22
DFS's POCF is ranked higher than
88% of the 440 Companies
in the Global Credit Services industry.

( Industry Median: 0.00 vs. DFS: 7.22 )
DFS' s 10-Year POCF Range
Min: 0.57   Max: 10.5
Current: 7.22

0.57
10.5
EV-to-EBIT 10.67
DFS's EV-to-EBIT is ranked higher than
92% of the 440 Companies
in the Global Credit Services industry.

( Industry Median: 34.13 vs. DFS: 10.67 )
DFS' s 10-Year EV-to-EBIT Range
Min: -2.7   Max: 18.4
Current: 10.67

-2.7
18.4
PEG 0.55
DFS's PEG is ranked higher than
95% of the 440 Companies
in the Global Credit Services industry.

( Industry Median: 0.00 vs. DFS: 0.55 )
DFS' s 10-Year PEG Range
Min: 0.36   Max: 0.94
Current: 0.55

0.36
0.94
Shiller P/E 14.66
DFS's Shiller P/E is ranked higher than
89% of the 440 Companies
in the Global Credit Services industry.

( Industry Median: 0.00 vs. DFS: 14.66 )
DFS' s 10-Year Shiller P/E Range
Min: 10.34   Max: 17.24
Current: 14.66

10.34
17.24

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.68
DFS's Dividend Yield is ranked lower than
57% of the 233 Companies
in the Global Credit Services industry.

( Industry Median: 2.02 vs. DFS: 1.68 )
DFS' s 10-Year Dividend Yield Range
Min: 0.32   Max: 4.85
Current: 1.68

0.32
4.85
Dividend Payout 0.20
DFS's Dividend Payout is ranked higher than
90% of the 440 Companies
in the Global Credit Services industry.

( Industry Median: 0.00 vs. DFS: 0.20 )
DFS' s 10-Year Dividend Payout Range
Min: 0.02   Max: 0.35
Current: 0.2

0.02
0.35
Dividend growth (3y) 66.30
DFS's Dividend growth (3y) is ranked higher than
97% of the 139 Companies
in the Global Credit Services industry.

( Industry Median: 17.60 vs. DFS: 66.30 )
DFS' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 95.7
Current: 66.3

0
95.7
Yield on cost (5-Year) 19.09
DFS's Yield on cost (5-Year) is ranked higher than
95% of the 236 Companies
in the Global Credit Services industry.

( Industry Median: 2.77 vs. DFS: 19.09 )
DFS' s 10-Year Yield on cost (5-Year) Range
Min: 3.59   Max: 54.45
Current: 19.09

3.59
54.45
Share Buyback Rate 5.20
DFS's Share Buyback Rate is ranked higher than
90% of the 204 Companies
in the Global Credit Services industry.

( Industry Median: -1.70 vs. DFS: 5.20 )
DFS' s 10-Year Share Buyback Rate Range
Min: 0   Max: -901.3
Current: 5.2

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 2.61
DFS's Price/Tangible Book is ranked higher than
59% of the 440 Companies
in the Global Credit Services industry.

( Industry Median: 2.60 vs. DFS: 2.61 )
DFS' s 10-Year Price/Tangible Book Range
Min: 0.5   Max: 2.85
Current: 2.61

0.5
2.85
Price/DCF (Projected) 0.58
DFS's Price/DCF (Projected) is ranked higher than
93% of the 440 Companies
in the Global Credit Services industry.

( Industry Median: 0.00 vs. DFS: 0.58 )
DFS' s 10-Year Price/DCF (Projected) Range
Min: 0.32   Max: 0.68
Current: 0.58

0.32
0.68
Price/Median PS Value 1.62
DFS's Price/Median PS Value is ranked higher than
57% of the 440 Companies
in the Global Credit Services industry.

( Industry Median: 1.30 vs. DFS: 1.62 )
DFS' s 10-Year Price/Median PS Value Range
Min: 0.23   Max: 1.82
Current: 1.62

0.23
1.82
Price/Peter Lynch Fair Value 0.52
DFS's Price/Peter Lynch Fair Value is ranked higher than
98% of the 440 Companies
in the Global Credit Services industry.

( Industry Median: 0.00 vs. DFS: 0.52 )
DFS' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.41   Max: 0.89
Current: 0.52

0.41
0.89
Price/Graham Number 1.13
DFS's Price/Graham Number is ranked higher than
78% of the 440 Companies
in the Global Credit Services industry.

( Industry Median: 5.00 vs. DFS: 1.13 )
DFS' s 10-Year Price/Graham Number Range
Min: 0.25   Max: 1.26
Current: 1.13

0.25
1.26
Earnings Yield (Greenblatt) 9.40
DFS's Earnings Yield (Greenblatt) is ranked higher than
90% of the 356 Companies
in the Global Credit Services industry.

( Industry Median: 4.00 vs. DFS: 9.40 )
DFS' s 10-Year Earnings Yield (Greenblatt) Range
Min: 5.4   Max: 4619.3
Current: 9.4

5.4
4619.3
Forward Rate of Return (Yacktman) 34.45
DFS's Forward Rate of Return (Yacktman) is ranked higher than
95% of the 156 Companies
in the Global Credit Services industry.

( Industry Median: 8.75 vs. DFS: 34.45 )
DFS' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 31.2   Max: 41.1
Current: 34.45

31.2
41.1

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
Weekly CFO Sells Highlight: IAC/InterActiveCorp, Discover Financial Services, and American Airlines May 10 2015 
Mastercard Reaches 52-Week High Due To Upbeat Q1 Results May 02 2015 
Visa Q2 Earnings Preview Apr 28 2015 
American Express: A Bargain at Current Prices? Apr 29 2015 
Pacific Crest's Channel Checks Indicate Solid Outlook for Baidu Apr 20 2015 
Analyzing Andreas Halvorsen's Top Tech Holding: Baidu Mar 18 2015 
ADS: Earnings Keep Growing, But the Price Remains Range-Bound Feb 25 2015 
Eveillard's Top 5 New Buys During Q4 Feb 10 2015 
FIDO Alliance Announces New Leadership Team for 2015 Jan 28 2015 
Discover Financial Services: Look Beyond The Earnings Report to Discover An Opportunity! Jan 25 2015 

More From Other Websites
FIDO Alliance Unveils Certification Testing Program for 1.0 Specification and Introduces 31 FIDO... May 21 2015
Goldman Sachs asks shareholders to 'like' tech push in San Francisco May 20 2015
Diners Club International and ABank Announce New Card-Issuing Agreement in Turkey May 20 2015
Discover Financial Services to Present at Deutsche Bank Global Financial Services Investor... May 19 2015
Discover Financial Services to Present at Deutsche Bank Global Financial Services Investor... May 19 2015
Discover is Highest-Rated Credit Card Issuer in Data Website’s First Credit Card Satisfaction... May 19 2015
DISCOVER FINANCIAL SERVICES Files SEC form 8-K, Regulation FD Disclosure, Financial Statements and... May 15 2015
American Express's Main Competition May 14 2015
Encore Capital Q1 Earnings in Line, Shares Decline - Analyst Blog May 11 2015
Business events scheduled for Tuesday May 11 2015
Business events scheduled for Tuesday May 11 2015
Insider Selling in Financials Jumps as Market Volatility Rules the Week May 09 2015
Discover Financial Services to Present at Sanford C. Bernstein Strategic Decisions Conference May 08 2015
Discover Financial Services to Present at Sanford C. Bernstein Strategic Decisions Conference May 08 2015
Discover Financial Services to Present at Barclays Americas Select Franchise Conference May 07 2015
Discover Financial Services to Present at Barclays Americas Select Franchise Conference May 07 2015
Discover Financial Services to Present at Barclays Americas Select Franchise Conference May 07 2015
American Express & Discover Financial: A Tale of Two Underperformers May 06 2015
Cornèr Bank Ltd. Announces Plan to Acquire Diners Club Italia and Dinit from Discover Financial... May 06 2015
Cornèr Bank Ltd. Announces Plan to Acquire Diners Club Italia and Dinit from Discover Financial... May 06 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