0.72%
16.89%
36.41%
40.62%
91.89%
74.93%
169.51%
AI Spotlight on DFS
Company Description
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; private student loans, personal loans, home loans, and other consumer lending; 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.
The Payment Services segment operates the PULSE, an automated teller machine, debit, and electronic funds transfer network; and Diners Club International, a payments network that issues Diners Club branded charge cards and/or provides card acceptance services, as well as offers payment transaction processing and settlement services.The company was incorporated in 1960 and is based in Riverwoods, Illinois.
Market Data
| Last Price | 202.48 |
| Change Percentage | 0.72% |
| Open | 201.56 |
| Previous Close | 201.03 |
| Market Cap ( Millions) | 50822 |
| Volume | 1327779 |
| Year High | 205.76 |
| Year Low | 104.08 |
| M A 50 | 179.92 |
| M A 200 | 145.97 |
Financial Ratios
| FCF Yield | 13.96% |
| Dividend Yield | 1.38% |
| ROE | 20.30% |
| Debt / Equity | 105.31% |
| Net Debt / EBIDTA | 278.66% |
| Price To Book | 2.94 |
| Price Earnings Ratio | 15.93 |
| Price To FCF | 7.17 |
| Price To sales | 2.42 |
| EV / EBITDA | 21.95 |
News
- Jan -24 - Q4 Beat Shows That Discover Financial Is Still A Winner
- Jan -24 - 2025 Assessment of the Buy Now Pay Later (BNPL) Industry: Discover Key Trends Driving Market Growth and Uncover the Strategies of Leading Players
- Jan -23 - Discover's Card Charge-Offs Improve and Delinquencies Show Stability
- Jan -23 - Discover Financial's Q4 Earnings Beat on Strong Net Interest Margin
- Jan -23 - Discover Financial Services (DFS) Q4 2024 Earnings Call Transcript
- Jan -23 - Here's What Key Metrics Tell Us About Discover (DFS) Q4 Earnings
- Jan -22 - Discover (DFS) Q4 Earnings and Revenues Surpass Estimates
- Jan -22 - Discover's Revenue Surges, Loans Dip 6%
- Jan -22 - Discover Financial fourth-quarter profit jumps on lower loan loss provisions
- Jan -22 - Discover Financial Services Reports Fourth Quarter 2024 Net Income of $1.3 Billion or $5.11 Per Diluted Share and Full Year Net Income of $4.5 Billion or $17.72 Per Diluted Share
- Jan -22 - Capital One Posts Q4 Earnings Beat, Analysts Weigh In On Discover Acquisition
- Jan -21 - Are These Finance Titans a Buy Heading Into Earnings? AXP, DFS
- Jan -17 - Should You Buy or Hold Discover Financial Stock Before Q4 Earnings?
- Jan -16 - Unlocking Q4 Potential of Discover (DFS): Exploring Wall Street Estimates for Key Metrics
- Jan -13 - Adjuvant Libtayo® (cemiplimab) Significantly Improves Disease-Free Survival (DFS) After Surgery in High-Risk Cutaneous Squamous Cell Carcinoma (CSCC) in Phase 3 Trial
- Jan -08 - Will Discover (DFS) Beat Estimates Again in Its Next Earnings Report?
- Jan -08 - Discover Financial: Strong Fundamentals And Strategic Outlook
- Dec -26 - Discover Financial Services Announces Fourth Quarter 2024 Earnings Release on January 22, 2025, and Conference Call on January 23, 2025
- Dec -24 - Capital One - Discover Merger A Done Deal?
- Dec -21 - Our Top 10 Dividend Growth Stocks - December 2024
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Digital Banking
Expected Growth : 10.15 %
What the company do ?
Digital Banking from Discover Financial Services allows users to manage their accounts, pay bills, and transfer funds online or through the mobile app, 24/7.
Why we expect these perspectives ?
Discover Financial Services' 10.15% growth in Digital Banking is driven by increasing adoption of online and mobile banking, enhanced user experience, expanded digital payment capabilities, and strategic partnerships. Additionally, investments in AI-powered chatbots, personalized marketing, and robust cybersecurity measures have contributed to the segment's growth.
Segment n°2 -> Payment Services
Expected Growth : 10.38 %
What the company do ?
Discover Financial Services' Payment Services enable secure, convenient, and innovative payment solutions for merchants, acquirers, and consumers worldwide.
Why we expect these perspectives ?
Discover Financial Services' 10.38% growth in Payment Services is driven by increasing adoption of digital payments, expansion of merchant acceptance, and strategic partnerships. Additionally, growth in e-commerce, mobile payments, and contactless transactions contribute to the segment's growth. Furthermore, Discover's investments in technology and innovation, such as tokenization and blockchain, enhance the payment experience, driving further adoption.
Discover Financial Services Products
| Product Range | What is it ? |
|---|---|
| Credit Cards | Discover offers a range of credit cards with cashback rewards, travel benefits, and 0% intro APR promotions. |
| Banking | Discover offers online banking services, including checking and savings accounts, CDs, and IRA CDs. |
| Personal Loans | Discover offers unsecured personal loans with fixed rates and fixed monthly payments. |
| Student Loans | Discover offers private student loans to help students pay for college expenses. |
| Home Loans | Discover offers mortgage loans, including fixed-rate and adjustable-rate mortgages. |
| Home Equity Loans | Discover offers home equity loans and lines of credit to help homeowners tap into their home's equity. |
Discover Financial Services's Porter Forces
Threat Of Substitutes
Discover Financial Services operates in a highly competitive industry, and customers have various alternatives for payment methods. However, the company's strong brand recognition and rewards programs help to mitigate the threat of substitutes.
Bargaining Power Of Customers
Discover Financial Services has a large customer base, and customers have significant bargaining power due to the availability of alternative payment methods. The company must continually innovate and offer competitive rewards programs to retain customers.
Bargaining Power Of Suppliers
Discover Financial Services has a diversified supplier base, and suppliers have limited bargaining power. The company's strong financial position and established relationships with suppliers also reduce the bargaining power of suppliers.
Threat Of New Entrants
The financial services industry has significant barriers to entry, including regulatory hurdles and high capital requirements. While new fintech companies are emerging, Discover Financial Services' established brand and scale of operations make it difficult for new entrants to compete.
Intensity Of Rivalry
The financial services industry is highly competitive, with many established players competing for market share. Discover Financial Services faces intense competition from other major credit card companies, banks, and fintech companies, which drives innovation and pricing pressure.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 58.99% |
| Debt Cost | 5.25% |
| Equity Weight | 41.01% |
| Equity Cost | 11.08% |
| WACC | 7.64% |
| Leverage | 143.86% |
Discover Financial Services : Quality Control
Discover Financial Services passed 5 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| SYF | Synchrony Financial, together with its subsidiaries, operates as a consumer financial services company in the United States. It provides credit products, such as credit cards, commercial credit products, and consumer … |
| COF | Capital One Financial Corporation operates as the financial services holding company for the Capital One Bank (USA), National Association; and Capital One, National Association, which provides various financial products and … |
| V | Visa Inc. operates as a payments technology company worldwide. The company facilitates digital payments among consumers, merchants, financial institutions, businesses, strategic partners, and government entities. It operates VisaNet, a transaction … |
| AXP | American Express Company, together with its subsidiaries, provides charge and credit payment card products, and travel-related services worldwide. The company operates through three segments: Global Consumer Services Group, Global Commercial … |
| PYPL | PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Synchrony
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Capital One
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Discover
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4
Amex
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Visa
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6
