DFS:NYE-Discover Financial Services (USD)

COMMON STOCK | Credit Services | NYE

Last Closing Price

USD 92.27

Change

0.00 (0.00)%

Market Cap

USD 28.33B

Volume

2.98M

Average Target Price

USD 87.29 (-5.40%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

Discover Financial Services, through its subsidiaries, operates as a direct banking and payment services company in the United States. It operates in two segments, Direct Banking and Payment Services. 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 founded in 1985 and is based in Riverwoods, Illinois. Address: 2500 Lake Cook Road, Riverwoods, IL, United States, 60015

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2021-01-23 )

Largest Industry Peers for Credit Services

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
V Visa Inc

N/A

USD445.33B 41.33 30.09
MA Mastercard Incorporated

N/A

USD327.98B 49.38 36.10
AXP American Express Company

N/A

USD101.57B 31.05 N/A
COF Capital One Financial Corporat..

N/A

USD48.18B 50.99 N/A
COF-PG Capital One Financial Corporat..

N/A

USD44.52B 12.72 N/A
COF-PH Capital One Financial Corporat..

N/A

USD42.85B 12.79 N/A
COF-PF Capital One Financial Corporat..

N/A

USD41.28B 12.11 N/A
SYF Synchrony Financial

N/A

USD21.82B 16.78 N/A
IX ORIX Corporation

N/A

USD20.49B 7.80 N/A
ALLY Ally Financial Inc

N/A

USD15.18B 13.99 N/A

ETFs Containing DFS

Symbol Name Weight Mer Price(Change) Market Cap
CVY Invesco Zacks Multi-Asset.. 0.00 % 0.97 %

N/A

USD0.12B
FBU:CA CI First Asset U.S. Buyba.. 0.00 % 0.60 %

N/A

USD0.01B
SPHB Invesco S&P 500 High Beta.. 0.00 % 0.25 %

N/A

USD0.54B
SPYB SPDR S&P 500 Buyback ETF 0.00 % 0.35 %

N/A

USD0.02B
RUBY:CA RBC U.S. Banks Yield Inde.. 0.00 % 0.29 %

N/A

USD0.01B

Market Performance

  Market Performance vs.
Industry/Classification (Credit Services)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain 1.92% 44% F 44% F
Dividend Return N/A N/A N/A N/A N/A
Total Return 1.92% 44% F 43% F
Trailing 12 Months  
Capital Gain 20.95% 85% B 76% C
Dividend Return 2.31% 42% F 46% F
Total Return 23.25% 82% B- 77% C+
Trailing 5 Years  
Capital Gain 93.89% 52% F 72% C-
Dividend Return 15.55% 58% F 46% F
Total Return 109.43% 52% F 73% C
Average Annual (5 Year Horizon)  
Capital Gain 3.46% 59% F 63% D
Dividend Return 2.16% 67% D+ 55% F
Total Return 5.62% 59% F 60% D-
Risk Return Profile  
Volatility (Standard Deviation) 23.68% 56% F 33% F
Risk Adjusted Return 23.75% 50% F 44% F
Market Capitalization 28.33B 82% B- 91% A-
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Credit Services)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 25.66 21% F 32% F
Price/Book Ratio 3.33 20% F 29% F
Price / Cash Flow Ratio N/A N/A N/A N/A N/A
EV/EBITDA N/A N/A N/A N/A N/A
Management Effectiveness  
Return on Equity 10.03% 58% F 68% D+
Return on Invested Capital -0.78% 14% F 21% F
Return on Assets 1.01% 44% F 35% F
Debt to Equity Ratio 195.16% 44% F 16% F
Technical Ratios  
Short Ratio 2.77 37% F 38% F
Short Percent 2.19% 52% F 67% D+
Beta 1.80 17% F 17% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

What to not like:
Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.

Higly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector