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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

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industry
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history
Cash to Debt 0.32
DFSPRB's Cash to Debt is ranked higher than
81% of the 125 Companies
in the Global Credit Services industry.

( Industry Median: 0.12 vs. DFSPRB: 0.32 )
DFSPRB' s 10-Year Cash to Debt Range
Min: 0.04   Max: No Debt
Current: 0.32

Equity to Asset 0.14
DFSPRB's Equity to Asset is ranked higher than
56% of the 134 Companies
in the Global Credit Services industry.

( Industry Median: 0.21 vs. DFSPRB: 0.14 )
DFSPRB' s 10-Year Equity to Asset Range
Min: 0.1   Max: 0.2
Current: 0.14

0.1
0.2
Interest Coverage 3.44
DFSPRB's Interest Coverage is ranked higher than
73% of the 103 Companies
in the Global Credit Services industry.

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

0.8
3.44
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

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industry
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Operating margin (%) 47.96
DFSPRB's Operating margin (%) is ranked higher than
85% of the 130 Companies
in the Global Credit Services industry.

( Industry Median: 25.65 vs. DFSPRB: 47.96 )
DFSPRB' s 10-Year Operating margin (%) Range
Min: 19.06   Max: 49.7
Current: 47.96

19.06
49.7
Net-margin (%) 30.03
DFSPRB's Net-margin (%) is ranked higher than
82% of the 136 Companies
in the Global Credit Services industry.

( Industry Median: 16.33 vs. DFSPRB: 30.03 )
DFSPRB' s 10-Year Net-margin (%) Range
Min: 11.49   Max: 55.91
Current: 30.03

11.49
55.91
ROE (%) 22.85
DFSPRB's ROE (%) is ranked higher than
91% of the 137 Companies
in the Global Credit Services industry.

( Industry Median: 13.17 vs. DFSPRB: 22.85 )
DFSPRB' s 10-Year ROE (%) Range
Min: 10.51   Max: 27.02
Current: 22.85

10.51
27.02
ROA (%) 3.11
DFSPRB's ROA (%) is ranked higher than
73% of the 138 Companies
in the Global Credit Services industry.

( Industry Median: 2.80 vs. DFSPRB: 3.11 )
DFSPRB' s 10-Year ROA (%) Range
Min: 1.26   Max: 3.7
Current: 3.11

1.26
3.7
ROC (Joel Greenblatt) (%) 603.06
DFSPRB's ROC (Joel Greenblatt) (%) is ranked higher than
87% of the 129 Companies
in the Global Credit Services industry.

( Industry Median: 33.33 vs. DFSPRB: 603.06 )
DFSPRB' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 22.39   Max: 726.92
Current: 603.06

22.39
726.92
» 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
DFSPRB0.006.39Deposit Shs Repr 1/40th Non-Cum Perp Pfd Shs Series -B-

Ratios

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Dividend & Buy Back

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industry
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Dividend Yield 6.39
DFSPRB's Dividend Yield is ranked lower than
69% of the 100 Companies
in the Global Credit Services industry.

( Industry Median: 2.21 vs. DFSPRB: 6.39 )
DFSPRB' s 10-Year Dividend Yield Range
Min: 0   Max: 0
Current: 6.39

Yield on cost (5-Year) 6.36
DFSPRB's Yield on cost (5-Year) is ranked higher than
96% of the 99 Companies
in the Global Credit Services industry.

( Industry Median: 3.40 vs. DFSPRB: 6.36 )
DFSPRB' s 10-Year Yield on cost (5-Year) Range
Min: 0   Max: 0
Current: 6.36

Valuation & Return

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Business Description

Industry: Credit Services » Credit Services
Compare: » details
Traded in other countries:DC7.Germany
Discover Financial Services is incorporated in Delaware. The Company is a direct banking and payment services company. The Company offers credit cards, personal and student 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 6,100 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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