Discover Financial Services
Market Cap
US$25.6b
Last Updated
2019/10/21 23:56 UTC
Data Sources
Company Financials +
Executive Summary
Discover Financial Services, through its subsidiaries, operates as a direct banking and payment services company in the United States.
Snowflake
Fundamentals
Established dividend payer and fair value.
Similar Companies
Share Price & News
How has Discover Financial Services's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
3.5%
DFS
1.7%
US Consumer Finance
0.07%
US Market
1 Year Return
8.2%
DFS
9.9%
US Consumer Finance
8.9%
US Market
Return vs Industry: DFS exceeded the US Consumer Finance industry which returned 9.9% over the past year.
Return vs Market: DFS exceeded the US Market which returned 8.9% over the past year.
Shareholder returns
| DFS | Industry | Market | |
|---|---|---|---|
| 7 Day | 3.5% | 1.7% | 0.07% |
| 30 Day | -3.0% | -1.2% | -0.3% |
| 90 Day | -4.8% | -7.2% | -1.6% |
| 1 Year | 10.6%8.2% | 11.8%9.9% | 11.3%8.9% |
| 3 Year | 51.7%42.6% | 55.7%48.2% | 46.3%36.8% |
| 5 Year | 43.0%29.2% | 38.4%28.3% | 62.1%44.3% |
Price Volatility Vs. Market
How volatile is Discover Financial Services's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
Here's Why I Think Discover Financial Services (NYSE:DFS) Is An Interesting Stock3 weeks ago | Simply Wall St
Why Discover Financial Services (NYSE:DFS) Is A Top Dividend Stock1 month ago | Simply Wall St
At US$84.78, Is It Time To Put Discover Financial Services (NYSE:DFS) On Your Watch List?Valuation
Is Discover Financial Services undervalued compared to its fair value and its price relative to the market?
40.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DFS ($80.44) is trading below our estimate of fair value ($134.44)
Significantly Below Fair Value: DFS is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: DFS is poor value based on its PE Ratio (9.4x) compared to the Consumer Finance industry average (8.5x).
PE vs Market: DFS is good value based on its PE Ratio (9.4x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: DFS is poor value based on its PEG Ratio (12.7x)
Price to Book Ratio
PB vs Industry: DFS is overvalued based on its PB Ratio (2.4x) compared to the US Consumer Finance industry average (1.2x).
Next Steps
Future Growth
How is Discover Financial Services forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?
0.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DFS's forecast earnings growth (0.7% per year) is below the savings rate (2.7%).
Earnings vs Market: DFS's earnings (0.7% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: DFS's earnings are forecast to grow, but not significantly.
Revenue vs Market: DFS's revenue (6.4% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: DFS's revenue (6.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: DFS's Return on Equity is forecast to be high in 3 years time (24.8%)
Next Steps
Past Performance
How has Discover Financial Services performed over the past 5 years?
2.4%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: DFS's earnings have grown by 2.4% per year over the past 5 years.
Accelerating Growth: DFS's earnings growth over the past year (25.5%) exceeds its 5-year average (2.4% per year).
Earnings vs Industry: DFS earnings growth over the past year (25.5%) underperformed the Consumer Finance industry 25.5%.
Return on Equity
High ROE: Whilst DFS's Return on Equity (25.11%) is high, this metric is skewed due to their high level of debt.
Return on Assets
ROA vs Industry: DFS's Return on Assets is below or equal to the Consumer Finance industry average last year.
Return on Capital Employed
ROCE Improving: Insufficient data to calculate DFS's Return on Capital Employed to determine if it has improved over the past 3 years.
Next Steps
Financial Health
How is Discover Financial Services's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: DFS has a low level of unsold assets or inventory.
Debt Coverage by Assets: DFS's debt is covered by short term assets (assets are 3.957380x debt).
Financial Institutions Analysis
Asset Level: DFS's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if DFS has a sufficient allowance for bad loans.
Low Risk Liabilities: DFS reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if DFS has an acceptable proportion of non-loan assets held.
Low Risk Deposits: DFS has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if DFS has an appropriate level of bad loans.
Next Steps
Dividend
What is Discover Financial Services's current dividend yield, its reliability and sustainability?
2.19%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: DFS's dividend (2.19%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: DFS's dividend (2.19%) is low compared to the top 25% of dividend payers in the US market (3.68%).
Stable Dividend: DFS's dividends per share have been stable in the past 10 years.
Growing Dividend: DFS's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (18.7%), DFS's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: DFS's dividends in 3 years are forecast to be well covered by earnings (18.7% payout ratio).
Next Steps
Management
What is the CEO of Discover Financial Services's salary, the management and board of directors tenure and is there insider trading?
3.8yrs
Average management tenure
CEO
Roger Hochschild (54yo)
1yrs
Tenure
US$5,664,102
Compensation
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 Disc ...
CEO Compensation Analysis
Compensation vs. Market: Roger has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.
Compensation vs Earnings: Roger's compensation has been consistent with company performance over the past year.
Management Age and Tenure
3.8yrs
Average Tenure
55yo
Average Age
Experienced Management: DFS's management team is considered experienced (3.8 years average tenure).
Board Age and Tenure
10.9yrs
Average Tenure
62.5yo
Average Age
Experienced Board: DFS's board of directors are seasoned and experienced ( 10.9 years average tenure).
Insider Trading
Insider Buying: DFS insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 993 |
| Max Price | US$83.27 |
| Entity | Individual |
| Role | Senior Key Executive Executive VP & President of Payment Services |
| Shares | 20,000 |
| Max Price | US$91.76 |
| Entity | Individual |
| Role | Senior Key Executive Executive Advisor |
| Shares | 4,776 |
| Max Price | US$92.44 |
| Entity | Individual |
| Role | Chief Accounting Officer Chief Accounting Officer |
| Shares | 1,894 |
| Max Price | US$92.35 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 496 |
| Max Price | US$77.53 |
| Entity | Individual |
| Shares | 4,762 |
| Max Price | US$68.39 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 1,985 |
| Max Price | US$81.53 |
| Entity | Individual |
| Role | Senior Key Executive Executive VP & President of US Cards |
| Shares | 8,000 |
| Max Price | US$81.12 |
| Entity | Individual |
| Shares | 7,146 |
| Max Price | US$81.37 |
| Entity | Individual |
| Role | Senior Key Executive Executive Advisor |
| Shares | 30,741 |
| Max Price | US$81.92 |
| Entity | Individual |
| Role | Chief Accounting Officer Chief Accounting Officer |
| Shares | 2,450 |
| Max Price | US$81.60 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 5,550.84 |
| Max Price | US$81.73 |
| Entity | Individual |
| Role | Chief Information Officer Executive VP & Chief Information Officer |
| Shares | 8,000 |
| Max Price | US$69.18 |
| Entity | Individual |
| Role | Chief Executive Officer CEO, President & Director |
| Shares | 30,000 |
| Max Price | US$67.04 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 2,000 |
| Max Price | US$71.23 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 2,000 |
| Max Price | US$69.50 |
| Entity | Individual |
| Role | Chief Accounting Officer Chief Accounting Officer |
| Shares | 850 |
| Max Price | US$70.00 |
Ownership Breakdown
Management Team
Craig Streem (69yo)
Vice President of Investor Relations
- Tenure: 0yrs
Roger Hochschild (54yo)
CEO, President & Director
- Tenure: 1yrs
- Compensation: US$5.66m
R. Graf (55yo)
Executive Advisor
- Tenure: 0.08yrs
- Compensation: US$3.77m
Edward McGrogan
Chief Accounting Officer
- Tenure: 6.8yrs
Carlos Minetti (56yo)
Executive VP & President of Consumer Banking
- Tenure: 5.7yrs
- Compensation: US$3.72m
Diane Offereins (61yo)
Executive VP & President of Payment Services
- Tenure: 9.5yrs
- Compensation: US$3.89m
Glenn Schneider (57yo)
Executive VP & Chief Information Officer
- Tenure: 4.8yrs
Julie Loeger (55yo)
Executive VP & President of US Cards
- Tenure: 3.8yrs
- Compensation: US$3.47m
John Greene (53yo)
Executive VP & CFO
- Tenure: 0.08yrs
Andy Eichfeld (49yo)
Executive VP
- Tenure: 1.1yrs
Board Members
Larry Weinbach (79yo)
Independent Chairman
- Tenure: 0.8yrs
- Compensation: US$354.94k
Mary Bush (71yo)
Independent Director
- Tenure: 12.3yrs
- Compensation: US$264.94k
Roger Hochschild (54yo)
CEO, President & Director
- Tenure: 1yrs
- Compensation: US$5.66m
Jeff Aronin (51yo)
Independent Director
- Tenure: 12.3yrs
- Compensation: US$249.94k
Peer Thierer (59yo)
Independent Director
- Tenure: 6.5yrs
- Compensation: US$249.94k
Tom Maheras (56yo)
Independent Director
- Tenure: 11.1yrs
- Compensation: US$259.94k
Greg Case (56yo)
Independent Director
- Tenure: 12.3yrs
- Compensation: US$265.00k
Michael Moskow (81yo)
Independent Director
- Tenure: 12.1yrs
- Compensation: US$269.94k
Cyndi Glassman (71yo)
Independent Director
- Tenure: 10.7yrs
- Compensation: US$269.94k
Candace Duncan (66yo)
Independent Director
- Tenure: 5.4yrs
- Compensation: US$263.27k
Company Information
Discover Financial Services's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Discover Financial Services
- Ticker: DFS
- Exchange: NYSE
- Founded: 1986
- Industry: Consumer Finance
- Sector: Diversified Financials
- Market Cap: US$25.599b
- Shares outstanding: 318.24m
- Website: https://www.discover.com
Number of Employees
Location
- Discover Financial Services
- 2500 Lake Cook Road
- Riverwoods
- Illinois
- 60015
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| DFS | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jun 2007 |
| DC7 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jun 2007 |
| 0IBC | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jun 2007 |
| DFS * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jun 2007 |
Biography
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 ind ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/21 23:56 |
| End of Day Share Price | 2019/10/21 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.