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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 0.44
DFSPRB's Cash to Debt is ranked lower than
62% of the 255 Companies
in the Global Credit Services industry.

( Industry Median: 8.67 vs. DFSPRB: 0.44 )
Ranked among companies with meaningful Cash to Debt only.
DFSPRB' s 10-Year Cash to Debt Range
Min: 0.04  Med: 0.41 Max: N/A
Current: 0.44
Equity to Asset 0.13
DFSPRB's Equity to Asset is ranked lower than
85% of the 182 Companies
in the Global Credit Services industry.

( Industry Median: 0.37 vs. DFSPRB: 0.13 )
Ranked among companies with meaningful Equity to Asset only.
DFSPRB' 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
DFSPRB's Interest Coverage is ranked lower than
68% of the 180 Companies
in the Global Credit Services industry.

( Industry Median: 14.04 vs. DFSPRB: 3.26 )
Ranked among companies with meaningful Interest Coverage only.
DFSPRB' 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
8.50%
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
DFSPRB's Operating margin (%) is ranked higher than
75% of the 269 Companies
in the Global Credit Services industry.

( Industry Median: 20.53 vs. DFSPRB: 40.91 )
Ranked among companies with meaningful Operating margin (%) only.
DFSPRB' 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
DFSPRB's Net-margin (%) is ranked higher than
66% of the 271 Companies
in the Global Credit Services industry.

( Industry Median: 16.58 vs. DFSPRB: 26.05 )
Ranked among companies with meaningful Net-margin (%) only.
DFSPRB' 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
DFSPRB's ROE (%) is ranked higher than
75% of the 267 Companies
in the Global Credit Services industry.

( Industry Median: 8.38 vs. DFSPRB: 19.37 )
Ranked among companies with meaningful ROE (%) only.
DFSPRB' s 10-Year ROE (%) Range
Min: 8.97  Med: 16.82 Max: 29.96
Current: 19.37
8.97
29.96
ROA (%) 2.71
DFSPRB's ROA (%) is ranked lower than
52% of the 280 Companies
in the Global Credit Services industry.

( Industry Median: 2.96 vs. DFSPRB: 2.71 )
Ranked among companies with meaningful ROA (%) only.
DFSPRB' 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
DFSPRB's Revenue Growth (3Y)(%) is ranked higher than
64% of the 201 Companies
in the Global Credit Services industry.

( Industry Median: 4.50 vs. DFSPRB: 12.10 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
DFSPRB' 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
DFSPRB's EBITDA Growth (3Y)(%) is ranked higher than
63% of the 169 Companies
in the Global Credit Services industry.

( Industry Median: -3.00 vs. DFSPRB: 8.30 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
DFSPRB' 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
DFSPRB's EPS Growth (3Y)(%) is ranked higher than
52% of the 175 Companies
in the Global Credit Services industry.

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

Financials


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

» Details

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Preferred stocks of Discover Financial Services

SymbolPriceYieldDescription
DFSPRB25.656.34Deposit Shs Repr 1/40th Non-Cum Perp Pfd Shs Series -B-

Ratios

vs
industry
vs
history
P/E(ttm) 11.20
DFSPRB's P/E(ttm) is ranked higher than
62% of the 211 Companies
in the Global Credit Services industry.

( Industry Median: 14.50 vs. DFSPRB: 11.20 )
Ranked among companies with meaningful P/E(ttm) only.
DFSPRB' s 10-Year P/E(ttm) Range
Min: 2.5  Med: 10.22 Max: 20.69
Current: 11.2
2.5
20.69
Forward P/E 9.72
DFSPRB's Forward P/E is ranked higher than
59% of the 71 Companies
in the Global Credit Services industry.

( Industry Median: 11.22 vs. DFSPRB: 9.72 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 11.20
DFSPRB's PE(NRI) is ranked higher than
63% of the 212 Companies
in the Global Credit Services industry.

( Industry Median: 15.00 vs. DFSPRB: 11.20 )
Ranked among companies with meaningful PE(NRI) only.
DFSPRB' s 10-Year PE(NRI) Range
Min: 2.55  Med: 9.01 Max: 16.92
Current: 11.2
2.55
16.92
P/B 2.22
DFSPRB's P/B is ranked lower than
77% of the 226 Companies
in the Global Credit Services industry.

( Industry Median: 1.03 vs. DFSPRB: 2.22 )
Ranked among companies with meaningful P/B only.
DFSPRB' s 10-Year P/B Range
Min: 0.4  Med: 1.76 Max: 2.82
Current: 2.22
0.4
2.82
P/S 2.85
DFSPRB's P/S is ranked higher than
56% of the 263 Companies
in the Global Credit Services industry.

( Industry Median: 3.31 vs. DFSPRB: 2.85 )
Ranked among companies with meaningful P/S only.
DFSPRB' s 10-Year P/S Range
Min: 0.4  Med: 2.01 Max: 3.62
Current: 2.85
0.4
3.62
PFCF 6.88
DFSPRB's PFCF is ranked higher than
61% of the 69 Companies
in the Global Credit Services industry.

( Industry Median: 8.95 vs. DFSPRB: 6.88 )
Ranked among companies with meaningful PFCF only.
DFSPRB' s 10-Year PFCF Range
Min: 0.59  Med: 3.92 Max: 11.29
Current: 6.88
0.59
11.29
POCF 6.58
DFSPRB's POCF is ranked higher than
61% of the 88 Companies
in the Global Credit Services industry.

( Industry Median: 8.39 vs. DFSPRB: 6.58 )
Ranked among companies with meaningful POCF only.
DFSPRB' s 10-Year POCF Range
Min: 0.57  Med: 3.74 Max: 10.5
Current: 6.58
0.57
10.5
EV-to-EBIT 10.78
DFSPRB's EV-to-EBIT is ranked higher than
71% of the 208 Companies
in the Global Credit Services industry.

( Industry Median: 18.77 vs. DFSPRB: 10.78 )
Ranked among companies with meaningful EV-to-EBIT only.
DFSPRB' s 10-Year EV-to-EBIT Range
Min: -2.7  Med: 8.90 Max: 18.4
Current: 10.78
-2.7
18.4
PEG 0.51
DFSPRB's PEG is ranked higher than
62% of the 61 Companies
in the Global Credit Services industry.

( Industry Median: 0.75 vs. DFSPRB: 0.51 )
Ranked among companies with meaningful PEG only.
DFSPRB' s 10-Year PEG Range
Min: 0.36  Med: 0.47 Max: 1
Current: 0.51
0.36
1
Shiller P/E 13.16
DFSPRB's Shiller P/E is ranked lower than
51% of the 91 Companies
in the Global Credit Services industry.

( Industry Median: 12.89 vs. DFSPRB: 13.16 )
Ranked among companies with meaningful Shiller P/E only.
DFSPRB' s 10-Year Shiller P/E Range
Min: 10.34  Med: 15.51 Max: 17.29
Current: 13.16
10.34
17.29

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 6.34
DFSPRB's Dividend Yield is ranked lower than
56% of the 250 Companies
in the Global Credit Services industry.

( Industry Median: 2.16 vs. DFSPRB: 6.34 )
Ranked among companies with meaningful Dividend Yield only.
DFSPRB' s 10-Year Dividend Yield Range
Min: 0.32  Med: 0.97 Max: 6.42
Current: 6.34
0.32
6.42
Dividend growth (3y) 66.30
DFSPRB's Dividend growth (3y) is ranked higher than
93% of the 74 Companies
in the Global Credit Services industry.

( Industry Median: 10.10 vs. DFSPRB: 66.30 )
Ranked among companies with meaningful Dividend growth (3y) only.
DFSPRB' 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) 71.51
DFSPRB's Yield on cost (5-Year) is ranked higher than
96% of the 251 Companies
in the Global Credit Services industry.

( Industry Median: 3.23 vs. DFSPRB: 71.51 )
Ranked among companies with meaningful Yield on cost (5-Year) only.
DFSPRB' s 10-Year Yield on cost (5-Year) Range
Min: 3.59  Med: 10.89 Max: 72.08
Current: 71.51
3.59
72.08
Share Buyback Rate 5.20
DFSPRB's Share Buyback Rate is ranked higher than
91% of the 135 Companies
in the Global Credit Services industry.

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

Valuation & Return

vs
industry
vs
history
Earnings Yield (Greenblatt) (%) 9.30
DFSPRB's Earnings Yield (Greenblatt) (%) is ranked higher than
77% of the 263 Companies
in the Global Credit Services industry.

( Industry Median: 3.80 vs. DFSPRB: 9.30 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
DFSPRB' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 5.4  Med: 10.20 Max: 4619.3
Current: 9.3
5.4
4619.3
Forward Rate of Return (Yacktman) (%) 30.06
DFSPRB's Forward Rate of Return (Yacktman) (%) is ranked higher than
86% of the 80 Companies
in the Global Credit Services industry.

( Industry Median: -0.14 vs. DFSPRB: 30.06 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
DFSPRB' s 10-Year Forward Rate of Return (Yacktman) (%) Range
Min: 29  Med: 36.60 Max: 41.1
Current: 30.06
29
41.1

Business Description

Industry: Credit Services » Credit Services
Compare: » 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.

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