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Discover Financial ServicesNYSE:DFS Stock Report

Market Cap US$50.3b
Share Price
n/a
US$195.38
n/aintrinsic discount
1Y60.5%
7D-1.2%
1D
Portfolio Value
​
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Discover Financial Services

NYSE:DFS Stock Report

Market Cap: US$50.3b

This company has been acquired

The company may no longer be operating, as it has been acquired. Find out why through their latest events.

Discover Financial Services (DFS) Stock Overview

Through its subsidiaries, provides digital banking products and services, and payment services in the United States. More details

DFS fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance6/6
Financial Health5/6
Dividends4/6

Rewards

Trading at 33.2% below our estimate of its fair value

Revenue is forecast to grow 9.1% per year

Earnings grew by 80.2% over the past year

Risk Analysis

Earnings are forecast to decline by an average of 3.5% per year for the next 3 years


DFS Community Fair Values

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Analyst Price Targets

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Discover Financial Services Competitors

Price History & Performance

Summary of share price highs, lows and changes for Discover Financial Services
Historical stock prices
Current Share PriceUS$200.05
52 Week HighUS$207.42
52 Week LowUS$119.95
Beta1.15
1 Month Change25.32%
3 Month Change1.92%
1 Year Change60.54%
3 Year Change85.04%
5 Year Change394.32%
Change since IPO595.83%

Recent News & Updates

Seeking Alpha • May 19

The Capital One And Discover Merger Remains A Completely Overlooked Opportunity

Summary The Capital One Financial Corporation-Discover Financial Services merger creates a consumer credit powerhouse with unmatched scale, reach, and efficiency, positioning it for outsized shareholder returns. The combined company benefits from cost synergies, expanded data, and cross-selling opportunities, driving both margin growth and revenue upside. Capital One's acquisition of Discover's network reduces regulatory risk and offers flexibility against potential credit card legislation, unlike Visa and Mastercard. Despite cyclical risks in consumer credit, the new entity trades at a discount and offers a compelling entry point, making COF and DFS a strong buy. Read the full article on Seeking Alpha

Recent updates

Seeking Alpha • May 19

The Capital One And Discover Merger Remains A Completely Overlooked Opportunity

Summary The Capital One Financial Corporation-Discover Financial Services merger creates a consumer credit powerhouse with unmatched scale, reach, and efficiency, positioning it for outsized shareholder returns. The combined company benefits from cost synergies, expanded data, and cross-selling opportunities, driving both margin growth and revenue upside. Capital One's acquisition of Discover's network reduces regulatory risk and offers flexibility against potential credit card legislation, unlike Visa and Mastercard. Despite cyclical risks in consumer credit, the new entity trades at a discount and offers a compelling entry point, making COF and DFS a strong buy. Read the full article on Seeking Alpha
Seeking Alpha • Jan 20

Discover Financial: A Company With Too Many Balls In The Air

Summary Discover Financial's new CEO is navigating acquisition talks with Capital One amidst regulatory probes, making the stock a 'Sell'. Capital One's $35.3 billion all-stock acquisition aims to challenge Visa and Mastercard's duopoly in payment processing. The merger could either integrate Discover into Capital One or leave Discover shareholders with the existing business. Despite regulatory support, competing with Visa and Mastercard's entrenched market dominance poses significant challenges for Capital One. Read the full article on Seeking Alpha
Seeking Alpha • Jan 08

Discover Financial: Strong Fundamentals And Strategic Outlook

Summary Discover Financial Services shows strong financial performance with a 41% increase in net income and a 42% rise in EPS, driven by higher interest margins. The planned merger with Capital One will create the largest U.S. credit card issuer, enhancing synergies and operational efficiencies and boosting the credit card and payment business. While the P/E ratio of 12.5 suggests a reasonable valuation with potential upside, cautious investors may wait as the stock’s P/B ratio of 2.8 indicates it is historically fully valued. Read the full article on Seeking Alpha
Seeking Alpha • Oct 25

Discover Financial Services: Well-Positioned If The Acquisition Fails

Summary Discover Financial Services is a strong investment with a P/E of ~10, robust credit metrics, and a 2% dividend, even if the Capital One acquisition fails. The company's 3Q24 results show nearly $1 billion in net income, improved NIM, and manageable charge-offs despite a slight increase in delinquency rates. Discover's CET1 ratio of 12.7% and halted share repurchases provide a solid capital position, with the potential for increased shareholder returns if the acquisition fails. The main risk is potential antitrust issues blocking the acquisition, but Discover remains a valuable investment with substantial future shareholder returns. Read the full article on Seeking Alpha
Seeking Alpha • Sep 24

Good Value Despite Discover's Stalled Merger

Summary Discover Financial Services enjoys consistent growth, and a healthy balance sheet despite a merger that may not go through. Declining credit losses and the exit of the student loan portfolio are expected to improve DFS's risk profile and financial performance. Continued growth, combined with the effects of a return to buybacks, should increase EPS over time and allow for attractive returns at today's price. Read the full article on Seeking Alpha
Seeking Alpha • Mar 05

Capital One Makes A Brilliant Step Forward With Discover

Summary Capital One plans to acquire Discover Financial in a $35 billion all-stock deal, creating the largest credit card company in the US. The acquisition presents opportunities for synergies, with total synergy opportunities estimated at $2.6 billion. COF will gain access to DFS's payment network, allowing it to compete with Mastercard and Visa, but integration and building up Discover may be costly and challenging. Read the full article on Seeking Alpha
Seeking Alpha • Feb 05

Discover Financial Services: High-Yielding Digital Bank And Payment Network

Summary Discover Financial Services operates one of the world’s four major payment networks, putting it in an exclusive (and profitable) club. The company has increased its dividend for 13 consecutive years. While the 10-year dividend growth rate is 13.8%, there’s been a recent acceleration, with the most recent divided raise coming in at 16.7%. Along with this double-digit dividend growth, the stock offers a market-beating 2.6% yield. You don’t often see a yield this high paired with a dividend growth rate this high. Read the full article on Seeking Alpha
Seeking Alpha • Jan 26

Discover Financial Services: Down But Far From Out

Summary The Discover Financial Services Q4 earnings miss caused a significant drop in stock value, with shares falling nearly 11% in less than 24 hours. The company's emphasis on younger, lower credit customers is a major factor in its current predicament. Despite the challenges, Discover has strengths such as being the fourth largest credit card network in the U.S. and having a strong digital banking segment. Read the full article on Seeking Alpha

Shareholder Returns

DFSUS Consumer FinanceUS Market
7D-1.2%-0.4%1.1%
1Y60.5%7.8%28.7%

Return vs Industry: DFS exceeded the US Consumer Finance industry which returned 28.1% over the past year.

Return vs Market: DFS exceeded the US Market which returned 11.9% over the past year.

Price Volatility

Is DFS's price volatile compared to industry and market?
DFS volatility
DFS Average Weekly Movement8.8%
Consumer Finance Industry Average Movement6.6%
Market Average Movement7.2%
10% most volatile stocks in US Market16.5%
10% least volatile stocks in US Market3.1%

Stable Share Price: DFS has not had significant price volatility in the past 3 months compared to the US market.

Volatility Over Time: DFS's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
196021,000J. Shepherdwww.discover.com

Discover Financial Services, through its subsidiaries, provides digital banking products and services, and payment services in the United States. It operates in two segments, Digital Banking and Payment Services. The Digital Banking segment offers Discover-branded credit cards to individuals; personal loans, home loans, and deposit products; and direct-to-consumer deposit products comprising savings accounts, certificates of deposit, money market accounts, IRA certificates of deposit, IRA savings accounts and checking accounts, and sweep accounts.

Discover Financial Services Fundamentals Summary

How do Discover Financial Services's earnings and revenue compare to its market cap?
DFS fundamental statistics
Market capUS$50.34b
Earnings (TTM)US$4.70b
Revenue (TTM)US$13.34b
10.7x
P/E Ratio
3.8x
P/S Ratio

Is DFS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
DFS income statement (TTM)
RevenueUS$13.34b
Cost of RevenueUS$752.00m
Gross ProfitUS$12.59b
Other ExpensesUS$7.89b
EarningsUS$4.70b

Last Reported Earnings

Mar 31, 2025

Next Earnings Date

n/a

Earnings per share (EPS)18.68
Gross Margin94.36%
Net Profit Margin35.24%
Debt/Equity Ratio76.7%

How did DFS perform over the long term?

See historical performance and comparison

Dividends

1.4%
Current Dividend Yield
15%
Payout Ratio

Does DFS pay a reliable dividends?

See DFS dividend history and benchmarks
When do you need to buy DFS by to receive an upcoming dividend?
Discover Financial Services dividend dates
Ex Dividend DateMay 23 2025
Dividend Pay DateJun 06 2025
Days until Ex dividend367 days
Days until Dividend pay date353 days

Does DFS pay a reliable dividends?

See DFS dividend history and benchmarks

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/05/19 09:57
End of Day Share Price 2025/05/16 00:00
Earnings2025/03/31
Annual Earnings2024/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Discover Financial Services is covered by 26 analysts. 14 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Stephen BiggarArgus Research Company
Kevin St. PierreBernstein
James FotheringhamBMO Capital Markets Equity Research