Discover Financial Services
Discover Financial Services, through its subsidiaries, operates as a direct banking and payment services company in the United States. The last earnings update was 58 days ago. More info.
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DFS Share Price and Events
7 Day Returns
1 Year Returns
DFS Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Discover Financial Services (DFS) | 1.2% | 7.9% | 16.2% | 5.2% | 36.5% | 38.9% |
| US Consumer Finance | 2.6% | 4.1% | 12.6% | 2.4% | 45.4% | 29.6% |
| US Market | 0.2% | 2.1% | 8.5% | 6.3% | 37.9% | 45.7% |
1 Year Return vs Industry and Market
- DFS outperformed the Consumer Finance industry which returned 2.4% over the past year.
- DFS underperformed the Market in United States of America which returned 6.3% over the past year.
DFS Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Discover Financial Services
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Discover Financial Services.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | Excess Returns Model | |
| Stable EPS |
Weighted future Return on Equity estimates from 15 analysts.
= Stable Book Value * Return on Equity = $39.17 * 25.1% |
$9.84 |
| Book Value of Equity per Share | Weighted future Book Value estimates from 12 analysts. | $39.17 |
| Discount Rate (Cost of Equity) | See below | 9.8% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Consumer Finance Unlevered Beta | Simply Wall St/ S&P Global | 0.69 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.686 (1 + (1- 21%) (108.19%)) |
1.182 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.18 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.182 * 5.96%) |
9.78% |
Discounted Cash Flow Calculation for NYSE:DFS using Excess Returns Model Model
The calculations below outline how an intrinsic value for Discover Financial Services is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
Note the calculations below are per share.
See our documentation to learn about this calculation.
| Calculation | Result | |
|---|---|---|
| Excess Returns |
= (Stable Return on equity – Cost of equity) (Book Value of
Equity per share)
= (25.1% – 9.78%) * $39.17) |
$6.01 |
| Terminal Value of Excess Returns |
= Excess Returns / (Cost of Equity -
Expected Growth Rate)
= $6.01 / (9.78% - 2.73%) |
$85.36 |
| Value of Equity |
= Book Value per share + Terminal Value of
Excess Returns
= $39.17 + $85.36 |
$124.54 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $124.54 |
| Current discount | Discount to share price of
$77.15
= -1 x ($77.15 - $124.54) / $124.54 |
38.1% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Discover Financial Services's share price is below the future cash flow value, and at a moderate discount (> 20%).
- Discover Financial Services's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Discover Financial Services's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Discover Financial Services's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $7.82 |
| NYSE:DFS Share Price ** | NYSE (2019-04-18) in USD | $77.15 |
| United States of America Consumer Finance Industry PE Ratio | Median Figure of 29 Publicly-Listed Consumer Finance Companies | 9.87x |
| United States of America Market PE Ratio | Median Figure of 3,081 Publicly-Listed Companies | 18.15x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Discover Financial Services.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:DFS Share Price ÷ EPS (both in USD) = 77.15 ÷ 7.82 |
9.87x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Discover Financial Services is good value based on earnings compared to the US Consumer Finance industry average.
- Discover Financial Services is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Discover Financial Services's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 9.87x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts |
1.8%per year |
| United States of America Consumer Finance Industry PEG Ratio | Median Figure of 23 Publicly-Listed Consumer Finance Companies | 0.64x |
| United States of America Market PEG Ratio | Median Figure of 2,109 Publicly-Listed Companies | 1.57x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 9.87x ÷ 1.8% |
5.64x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Discover Financial Services is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Discover Financial Services's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $31.88 |
| NYSE:DFS Share Price * | NYSE (2019-04-18) in USD | $77.15 |
| United States of America Consumer Finance Industry PB Ratio | Median Figure of 40 Publicly-Listed Consumer Finance Companies | 1.54x |
| United States of America Market PB Ratio | Median Figure of 5,178 Publicly-Listed Companies | 1.91x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:DFS Share Price ÷ Book Value per Share (both in USD) = 77.15 ÷ 31.88 |
2.42x |
* Primary Listing of Discover Financial Services.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Discover Financial Services is overvalued based on assets compared to the US Consumer Finance industry average.
Value checks
We assess Discover Financial Services's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Consumer Finance industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Consumer Finance industry average (and greater than 0)? (1 check) Discover Financial Services has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
DFS Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Discover Financial Services's earnings growth is positive but not above the low risk savings rate of 2.7%.
Growth vs Market Checks
- Discover Financial Services's earnings growth is positive but not above the United States of America market average.
- Discover Financial Services's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:DFS Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 20 Analysts | 1.8% |
| NYSE:DFS Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 20 Analysts | 16.8% |
| United States of America Consumer Finance Industry Earnings Growth Rate | Market Cap Weighted Average | 4.5% |
| United States of America Consumer Finance Industry Revenue Growth Rate | Market Cap Weighted Average | 12.6% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.3% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 20 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 12,763 | 2,797 | 5 | |
| 2020-12-31 | 12,042 | 2,805 | 20 | |
| 2019-12-31 | 11,411 | 2,764 | 19 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 7,674 | 5,191 | 2,689 |
| 2018-09-30 | 7,602 | 6,054 | 2,367 |
| 2018-06-30 | 7,471 | 6,000 | 2,257 |
| 2018-03-31 | 7,389 | 5,433 | 2,126 |
| 2017-12-31 | 7,318 | 5,208 | 2,031 |
| 2017-09-30 | 7,163 | 4,876 | 2,222 |
| 2017-06-30 | 7,168 | 4,641 | 2,258 |
| 2017-03-31 | 7,193 | 4,280 | 2,328 |
| 2016-12-31 | 7,240 | 4,425 | 2,339 |
| 2016-09-30 | 7,181 | 4,177 | 2,277 |
| 2016-06-30 | 7,181 | 4,007 | 2,251 |
| 2016-03-31 | 7,246 | 3,949 | 2,235 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 20 Analyst Estimates (S&P Global) | See Below |
All data from Discover Financial Services Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 10.26 | 10.41 | 10.15 | 4.00 |
| 2020-12-31 | 9.47 | 9.77 | 9.25 | 21.00 |
| 2019-12-31 | 8.60 | 8.80 | 8.48 | 21.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | 7.82 |
| 2018-09-30 | 6.75 |
| 2018-06-30 | 6.29 |
| 2018-03-31 | 5.80 |
| 2017-12-31 | 5.43 |
| 2017-09-30 | 5.82 |
| 2017-06-30 | 5.80 |
| 2017-03-31 | 5.86 |
| 2016-12-31 | 5.78 |
| 2016-09-30 | 5.50 |
| 2016-06-30 | 5.34 |
| 2016-03-31 | 5.21 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Discover Financial Services is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
Future performance checks
We assess Discover Financial Services's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Discover Financial Services has a total score of 2/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
DFS Past Performance
How has Discover Financial Services performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Discover Financial Services's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
- Discover Financial Services's 1-year earnings growth exceeds its 5-year average (32.4% vs -0.3%)
- Discover Financial Services's earnings growth has not exceeded the US Consumer Finance industry average in the past year (32.4% vs 32.4%).
Earnings and Revenue History
All data from Discover Financial Services Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 7,674.00 | 2,689.00 | 3,258.00 | |
| 2018-09-30 | 7,602.00 | 2,367.00 | 3,237.00 | |
| 2018-06-30 | 7,471.00 | 2,257.00 | 3,181.00 | |
| 2018-03-31 | 7,389.00 | 2,126.00 | 3,110.00 | |
| 2017-12-31 | 7,318.00 | 2,031.00 | 3,042.00 | |
| 2017-09-30 | 7,163.00 | 2,222.00 | 2,906.00 | |
| 2017-06-30 | 7,168.00 | 2,258.00 | 2,849.00 | |
| 2017-03-31 | 7,193.00 | 2,328.00 | 2,822.00 | |
| 2016-12-31 | 7,240.00 | 2,339.00 | 2,810.00 | |
| 2016-09-30 | 7,181.00 | 2,277.00 | 2,830.00 | |
| 2016-06-30 | 7,181.00 | 2,251.00 | 2,814.00 | |
| 2016-03-31 | 7,246.00 | 2,235.00 | 2,804.00 | |
| 2015-12-31 | 7,227.00 | 2,246.00 | 2,777.00 | |
| 2015-09-30 | 7,263.00 | 2,150.00 | 2,736.00 | |
| 2015-06-30 | 7,239.00 | 2,181.00 | 2,683.00 | |
| 2015-03-31 | 7,182.00 | 2,225.00 | 2,585.00 | |
| 2014-12-31 | 7,034.00 | 2,270.00 | 2,519.00 | |
| 2014-09-30 | 7,225.00 | 2,466.00 | 2,453.00 | |
| 2014-06-30 | 7,124.00 | 2,415.00 | 2,401.00 | |
| 2014-03-31 | 7,114.00 | 2,373.00 | 2,389.00 | |
| 2013-12-31 | 7,139.00 | 2,414.00 | 2,373.00 | |
| 2013-09-30 | 6,352.00 | 2,047.00 | 2,344.00 | |
| 2013-06-30 | 6,490.00 | 2,099.00 | 2,336.00 | |
| 2013-03-31 | 6,291.00 | 2,031.00 | 2,246.00 | |
| 2012-12-31 | 6,180.00 | 2,016.00 | 2,160.00 | |
| 2012-11-30 | 6,804.00 | 2,318.00 | 2,159.00 | |
| 2012-08-31 | 6,637.72 | 2,283.89 | 2,060.30 | |
| 2012-05-31 | 6,489.09 | 2,304.86 | 1,997.48 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Whilst Discover Financial Services has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
- Discover Financial Services used its assets less efficiently than the US Consumer Finance industry average last year based on Return on Assets.
- Unable to establish if Discover Financial Services improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
Past performance checks
We assess Discover Financial Services's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Consumer Finance industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Discover Financial Services has a total score of 1/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
DFS Health
How is Discover Financial Services's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Discover Financial Services's finances.
The net worth of a company is the difference between its assets and liabilities.
- Discover Financial Services is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Discover Financial Services's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 3.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Discover Financial Services Company Filings, last reported 3 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 11,130.00 | 27,230.00 | 13,312.00 |
| 2018-09-30 | 11,016.00 | 26,999.00 | 16,036.00 |
| 2018-06-30 | 10,889.00 | 26,252.00 | 15,300.00 |
| 2018-03-31 | 10,871.00 | 26,245.00 | 17,021.00 |
| 2017-12-31 | 10,892.00 | 26,329.00 | 13,312.00 |
| 2017-09-30 | 11,187.00 | 26,747.00 | 13,252.00 |
| 2017-06-30 | 11,259.00 | 26,451.00 | 12,955.00 |
| 2017-03-31 | 11,265.00 | 26,832.00 | 15,178.00 |
| 2016-12-31 | 11,323.00 | 25,537.00 | 11,921.00 |
| 2016-09-30 | 11,347.00 | 26,896.00 | 12,124.00 |
| 2016-06-30 | 11,397.00 | 24,769.00 | 10,676.00 |
| 2016-03-31 | 11,316.00 | 24,830.00 | 12,193.00 |
| 2015-12-31 | 11,275.00 | 24,688.00 | 9,594.00 |
| 2015-09-30 | 11,303.00 | 23,869.00 | 10,296.00 |
| 2015-06-30 | 11,263.00 | 24,277.00 | 10,633.00 |
| 2015-03-31 | 11,211.00 | 23,145.00 | 11,871.00 |
| 2014-12-31 | 11,134.00 | 22,680.00 | 7,327.00 |
| 2014-09-30 | 11,301.00 | 21,067.00 | 7,444.00 |
| 2014-06-30 | 11,381.00 | 20,193.00 | 6,939.00 |
| 2014-03-31 | 11,021.00 | 20,314.00 | 8,804.00 |
| 2013-12-31 | 10,809.00 | 20,621.00 | 6,633.00 |
| 2013-09-30 | 10,602.00 | 18,801.00 | 5,702.00 |
| 2013-06-30 | 10,448.00 | 18,308.00 | 5,841.00 |
| 2013-03-31 | 10,299.00 | 19,523.00 | 8,175.00 |
| 2012-12-31 | 9,873.00 | 17,996.00 | 2,695.00 |
| 2012-11-30 | 9,778.00 | 20,018.00 | 4,058.00 |
| 2012-08-31 | 9,145.91 | 19,501.03 | 6,373.82 |
| 2012-05-31 | 8,898.86 | 19,024.85 | 5,197.54 |
- Discover Financial Services's level of debt (244.7%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (190.7% vs 244.7% today).
- Debt is not well covered by operating cash flow (19.1%, less than 20% of total debt).
- Unable to confirm if the interest payments on Discover Financial Services's debt are well covered by earnings due to lack of past financial data.
Financial health checks
We assess Discover Financial Services's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Discover Financial Services has a total score of 2/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
DFS Dividends
What is Discover Financial Services's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Discover Financial Services
shares you are expected to receive
$41
in your first year as a dividend.
Dividend Amount
- Discover Financial Services's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
- Discover Financial Services's dividend is below the markets top 25% of dividend payers in United States of America (3.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 20 Analyst Estimates (S&P Global) | See Below |
| United States of America Consumer Finance Industry Average Dividend Yield | Market Cap Weighted Average of 14 Stocks | 1.8% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2009 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-12-31 | 1.88 | 4.00 |
| 2020-12-31 | 1.80 | 17.00 |
| 2019-12-31 | 1.65 | 17.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-01-22 | 1.600 | 2.249 |
| 2018-10-18 | 1.600 | 2.433 |
| 2018-07-19 | 1.600 | 2.101 |
| 2018-04-20 | 1.400 | 1.911 |
| 2018-01-18 | 1.400 | 1.855 |
| 2017-10-19 | 1.400 | 1.970 |
| 2017-07-25 | 1.400 | 2.281 |
| 2017-04-20 | 1.200 | 1.964 |
| 2017-01-19 | 1.200 | 1.739 |
| 2016-10-13 | 1.200 | 1.842 |
| 2016-07-14 | 1.200 | 2.089 |
| 2016-01-14 | 1.120 | 2.181 |
| 2015-10-15 | 1.120 | 2.040 |
| 2015-07-16 | 1.120 | 2.066 |
| 2015-04-17 | 1.120 | 1.908 |
| 2015-01-16 | 0.960 | 1.645 |
| 2014-10-16 | 0.960 | 1.500 |
| 2014-07-16 | 0.960 | 1.530 |
| 2014-04-16 | 0.960 | 1.619 |
| 2014-01-23 | 0.800 | 1.415 |
| 2013-10-16 | 0.800 | 1.507 |
| 2013-07-17 | 0.800 | 1.593 |
| 2013-03-14 | 0.800 | 1.735 |
| 2012-12-20 | 0.560 | 1.422 |
| 2012-09-20 | 0.400 | 0.996 |
| 2012-06-14 | 0.400 | 1.107 |
| 2012-03-13 | 0.400 | 1.219 |
| 2011-12-15 | 0.400 | 1.467 |
| 2011-09-14 | 0.240 | 1.000 |
| 2011-06-15 | 0.240 | 0.971 |
| 2011-03-22 | 0.240 | 0.998 |
| 2010-12-16 | 0.080 | 0.391 |
| 2010-09-15 | 0.080 | 0.452 |
| 2010-06-16 | 0.080 | 0.541 |
| 2010-03-16 | 0.080 | 0.547 |
| 2009-09-17 | 0.080 | 0.541 |
| 2009-06-18 | 0.080 | 0.679 |
| 2009-04-20 | 0.080 | 0.890 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Discover Financial Services's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are well covered by earnings (5.2x coverage).
- Dividends after 3 years are expected to be well covered by earnings (5.5x coverage).
Income/ dividend checks
We assess Discover Financial Services's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Discover Financial Services afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Discover Financial Services has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
DFS Management
CEO
| COMPENSATION | $5,664,102 |
| AGE | 53 |
| TENURE AS CEO | 0.5 years |
CEO Bio
Mr. Roger Crosby Hochschild serves as the President and Chief Executive Officer for Discover Financial Services Since 1st October, 2018 and serves as Director, Chief Executive Officer and President at Discover Bank. Mr. Hochschild also serves as its Board of Directors Since 1st August, 2018. He had been the President and Chief Operating Officer of Discover Financial Services from March 2004 to 1st October, 2018. Mr. Hochschild has served as President and Chief Operating Officer at Discover Bank and also served as its Executive Vice President and Chief Marketing Officer from 1998 to 2001 at Discover Bank. He served as the Chief Administrative Officer, Executive Vice President and Chief Strategic officer of Morgan Stanley from March 2001 to January 2004. Mr. Hochschild also served as an Executive Vice President and Chief Marketing Officer of DFS from November 1998 to February 2001. He served as Senior Executive of MBNA America Bank from 1994 to 1998 and served as its Senior Executive Vice President. Mr. Hochschild serves as Independent Director at Principal Financial Group, Inc. since March 18, 2015. He serves as Director at The Student Loan Corporation since December 31, 2010. Mr. Hochschild holds a Bachelor's Degree in Economics from Georgetown University and an M.B.A. from the Amos Tuck School at Dartmouth College.
CEO Compensation
- Roger's compensation has been consistent with company performance over the past year.
- Roger's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Discover Financial Services management team in years:
- The average tenure for the Discover Financial Services management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Roger Hochschild
CEO, President & Director
$6M
53
0.5 yrs
R. Graf
Executive VP & CFO
$4M
54
8 yrs
Carlos Minetti
Executive VP & President of Consumer Banking
$4M
55
5.2 yrs
Diane Offereins
Executive VP & President of Payment Services
$4M
60
9 yrs
Julie Loeger
Executive VP & President of US Cards
$3M
54
3.3 yrs
Edward McGrogan
Chief Accounting Officer
6.3 yrs
Glenn Schneider
56
4.3 yrs
Andy Eichfeld
Executive VP
48
0.6 yrs
Craig Streem
Vice President of Investor Relations
68
Leslie Sutton
Vice President of Corporate Communications
6.2 yrs
Board of Directors Tenure
Average tenure and age of the Discover Financial Services board of directors in years:
- The average tenure for the Discover Financial Services board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors
Larry Weinbach
Independent Chairman
$355K
78
0.3 yrs
Roger Hochschild
CEO, President & Director
$6M
53
0.7 yrs
Greg Case
Director
$265K
55
11.8 yrs
Michael Moskow
Director
$270K
80
11.6 yrs
Cyndi Glassman
Independent Director
$270K
70
10.2 yrs
Mary Bush
Independent Director
$265K
70
11.8 yrs
Jeff Aronin
Director
$250K
50
11.8 yrs
Tom Maheras
Director
$260K
55
10.6 yrs
Peer Thierer
Director
$250K
58
6 yrs
Candace Duncan
Independent Director
$263K
65
4.9 yrs
Who owns this company?
Recent Insider Trading
- More shares have been bought than sold by Discover Financial Services insiders in the past 3 months.
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 06. Feb 19 | Sell | Glenn Schneider | Individual | 05. Feb 19 | 05. Feb 19 | -8,000 | $69.18 | $-553,440 | ||
| 06. Feb 19 | Sell | Kathryn Corley | Individual | 04. Feb 19 | 04. Feb 19 | -4,762 | $68.39 | $-325,673 | ||
| 29. Jan 19 | Buy | Roger Hochschild | Individual | 28. Jan 19 | 28. Jan 19 | 30,000 | $67.04 | $2,000,227 | ||
| 14. Nov 18 | Sell | Cynthia Glassman | Individual | 09. Nov 18 | 09. Nov 18 | -2,000 | $71.23 | $-142,460 | ||
| 08. Nov 18 | Sell | Cynthia Glassman | Individual | 06. Nov 18 | 06. Nov 18 | -2,000 | $69.50 | $-139,000 | ||
| 02. Nov 18 | Sell | Edward McGrogan | Individual | 01. Nov 18 | 01. Nov 18 | -850 | $70.00 | $-59,500 | ||
| 16. May 18 | Sell | Mary Bush | Individual | 15. May 18 | 15. May 18 | -4,674 | $76.17 | $-356,019 | ||
| 10. May 18 | Sell | Michael Moskow | Individual | 09. May 18 | 09. May 18 | -2,324 | $74.02 | $-172,022 | ||
Management checks
We assess Discover Financial Services's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Discover Financial Services has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
DFS News
Simply Wall St News
Do You Like Discover Financial Services (NYSE:DFS) At This P/E Ratio?
To keep it practical, we'll show how Discover Financial Services's (NYSE:DFS) P/E ratio could help you assess the value on offer. … Discover Financial Services has a P/E ratio of 9.49, based on the last twelve months. … How Do I Calculate Discover Financial Services's Price To Earnings Ratio
Simply Wall St - – Full articleWhy I Like Discover Financial Services (NYSE:DFS)
Attractive stocks have exceptional fundamentals. … In the case of Discover Financial Services (NYSE:DFS), there's. … that has been a rockstar for income investors, currently trading at an attractive share price
Simply Wall St - – Full articleDiscover Financial Services (NYSE:DFS): What Does The Future Look Like?
As Discover Financial Services (NYSE:DFS) announced its earnings release on 31 December 2018, … analyst consensus outlook appear cautiously optimistic, … the past 5-year average growth rate of -0.3%.
Simply Wall St - – Full articleCan You Imagine How Discover Financial Services's Shareholders Feel About The 53% Share Price Increase?
That's what has happened with the Discover Financial Services (NYSE:DFS) share price. … One flawed but reasonable way to assess how sentiment around a company has changed, is to compare the earnings per share (EPS) with the share price. … Discover Financial Services was able to grow its EPS at 15% per year over three years, sending the share price higher.
Simply Wall St - – Full articleDiscover Financial Services (NYSE:DFS) Is Trading At A 29.99% Discount
DFS operates in the consumer finance sector, which has characteristics that make it unique to other industries. … Understanding these differences is crucial when it comes to putting a value on the financial stock. … These lenders, for example, must hold certain levels of capital in order to maintain a safe cash cushion.
Simply Wall St - – Full articleAt US$62.49, Is Discover Financial Services (NYSE:DFS) Worth Looking At Closely?
Let's talk about the popular Discover Financial Services (NYSE:DFS). … As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Let’s take a look at Discover Financial Services’s outlook and value based on the most recent financial data to see if the opportunity still exists.
Simply Wall St - – Full articleHave Insiders Been Selling Discover Financial Services (NYSE:DFS) Shares?
So before you buy or sell Discover Financial Services (NYSE:DFS), you may well want to know whether insiders have been buying or selling. … Discover Financial Services Insider Transactions Over The Last Year. … In total, Discover Financial Services insiders sold more than they bought over the last year.
Simply Wall St - – Full articleIs Discover Financial Services's (NYSE:DFS) High P/E Ratio A Problem For Investors?
To keep it practical, we'll show how Discover Financial Services's (NYSE:DFS) P/E ratio could help you assess the value on offer. … Based on the last twelve months, Discover Financial Services's P/E ratio is 10.37. … How Do You Calculate Discover Financial Services's P/E Ratio
Simply Wall St - – Full articleHow Does Discover Financial Services (NYSE:DFS) Fare As A Dividend Stock?
Historically, Discover Financial Services (NYSE:DFS) has been paying a dividend to shareholders. … Let's take a look at Discover Financial Services in more detail. … View our latest analysis for Discover Financial Services
Simply Wall St - – Full articleDiscover Financial Services (NYSE:DFS): What You Have To Know Before Buying For The Upcoming Dividend
On the 06 September 2018, Discover Financial Services (NYSE:DFS) will be paying shareholders an upcoming dividend amount of US$0.40 per share. … Below, I will explain how holding Discover Financial Services can impact your portfolio income stream, by analysing the stock's most recent financial data and dividend attributes. … Check out our latest analysis for Discover Financial Services?
Simply Wall St - – Full articleDFS Company Info
Description
Discover Financial Services, through its subsidiaries, operates as a direct banking and payment services company in the United States. The Direct Banking segment offers Discover-branded credit cards to individuals; and other consumer products and services, including private student loans, personal loans, home equity loans, and other consumer lending, as well as deposit products, such as certificates of deposit, money market accounts, savings accounts, checking accounts, and individual retirement arrangement certificates of deposit. The Payment Services segment operates the PULSE network, an automated teller machine, debit, and electronic funds transfer network; Diners Club International, a payments network that issues Diners Club branded charge cards and provides card acceptance services; and Discover Network that processes transactions for Discover-branded credit and debit cards, as well as provides payment transaction processing and settlement services. The company was incorporated in 1960 and is based in Riverwoods, Illinois.
Details
| Name: | Discover Financial Services |
| DFS | |
| Exchange: | NYSE |
| Founded: | 1960 |
| $25,169,225,053 | |
| 326,237,525 | |
| Website: | http://www.discover.com |
| Address: |
Discover Financial Services 2500 Lake Cook Road, Riverwoods, Illinois, 60015, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | DFS | Common Stock | New York Stock Exchange | US | USD | 14. Jun 2007 | |
| DB | DC7 | Common Stock | Deutsche Boerse AG | DE | EUR | 14. Jun 2007 | |
| LSE | 0IBC | Common Stock | London Stock Exchange | GB | USD | 14. Jun 2007 | |
| BMV | DFS * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 14. Jun 2007 |
Number of employees
Current staff
Industry
| Consumer Finance | |
| Diversified Financials |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/19 23:59 |
| End of day share price update: | 2019/04/18 00:00 |
| Last estimates confirmation: | 2019/04/17 |
| Last earnings filing: | 2019/02/20 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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 here.
