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DFS
Discover Financial Services
$200.05
-0.43
(-0.21%)
| Exchange: | |
| Market Cap: | 50.343B |
| Shares Outstanding: | 477.236M |
About The Company
| Sector: | Financial Services | |||||
| Industry: | Financial – Credit Services | |||||
| CEO: | J. Michael Shepherd | |||||
| Full Time Employees: | 21000 | |||||
| Address: |
| |||||
| Website: | https://www.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; 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.
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Revenue Segmentation
EPS
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Earnings Call
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Key takeaways
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Login — it's freeIncome Statement
| Year | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | 13,337,000 | 9,842,000 | 20,020,000 |
| Gross Profit | 13,337,000 | 9,842,000 | 17,910,000 |
| EBITDA | 6,279,000 | 0 | 0 |
| Operating Income | 7,607,000 | 5,114,000 | 17,676,000 |
| Net Income | 4,374,000 | 2,940,000 | 4,535,000 |
(* All numbers are in thousands)
Balance Sheet
| Year | 2022 | 2023 | 2024 |
|---|---|---|---|
| Total Assets | 131,851,000 | 151,713,000 | 147,640,000 |
| Total Liabilities | 117,956,000 | 137,478,000 | 129,714,000 |
| Total Stockholders Equity | 13,895,000 | 14,235,000 | 17,926,000 |
| Total Debt | 20,108,000 | 21,331,000 | 16,253,000 |
| Cash and Cash Equivalents | 8,856,000 | 11,685,000 | 8,474,000 |
(* All numbers are in thousands)
Cash Flow Statement
| Year | 2022 | 2023 | 2024 |
|---|---|---|---|
| Operating Cash Flow | 7,140,000 | 8,563,000 | 8,425,000 |
| Capital Expenditure | -236,000 | -303,000 | -268,000 |
| Free Cash Flow | 6,904,000 | 8,260,000 | 8,157,000 |
| Net Income | 4,392,000 | 2,921,000 | 4,535,000 |
| Net Change in Cash | -2,435,000 | 2,831,000 | -3,229,000 |
(* All numbers are in thousands)
Analyst Estimates
| Fiscal Year | 2027 | Full Access | Full Access | Full Access | Full Access |
|---|---|---|---|---|---|
| Estimated Revenue (Low) | 18,761,027.636 | Full Access | Full Access | Full Access | Full Access |
| Estimated Revenue (High) | 18,843,759.208 | Full Access | Full Access | Full Access | Full Access |
| Estimated Revenue (Avg) | 18,802,393.422 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (Low) | 4,124,261.395 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (High) | 4,142,448.386 | Full Access | Full Access | Full Access | Full Access |
| Estimated Ebitda (Avg) | 4,133,354.890 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (Low) | 4,257,007.706 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (High) | 4,781,723.209 | Full Access | Full Access | Full Access | Full Access |
| Estimated Net Income (Avg) | 4,520,548.290 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (Low) | 4,435,915.159 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (High) | 4,455,476.467 | Full Access | Full Access | Full Access | Full Access |
| Estimated SGA Expense (Avg) | 4,445,695.813 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (Avg) | 17.880 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (High) | 19.050 | Full Access | Full Access | Full Access | Full Access |
| Estimated EPS (Low) | 16.960 | Full Access | Full Access | Full Access | Full Access |
| Number of Analysts (Estimated Revenue) | 7 | Full Access | Full Access | Full Access | Full Access |
| Number of Analysts (Estimated EPS) | 5 | Full Access | Full Access | Full Access | Full Access |
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Current Key Metrics
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Login — it's freeForward P/E Ratios
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Login — it's freeSWOT Analysis
Strengths (preview)
- Strong Historical Performance and Growth: DFS has demonstrated robust long-term stock performance with a 65.18% return over the past year and an impressive 301.38% over five years, significantly outperforming many peers in the Financial - Credit Services industry (44.58% 1-year return, 149.57% 5-year return). This reflects strong market confidence and operational success.
- Solid Financial Metrics: The company reported a revenue of $20.02 billion and net income of $4.54 billion for FY 2024, showcasing substantial growth from $9.84 billion and $2.94 billion in FY 2023, respectively. A high free cash flow yield of 16.79% and consistent free cash flow generation ($8.16 billion in FY 2024) indicate strong cash generation capabilities.
- High Profit Margins: DFS maintains a gross profit margin of 87.77% and a net profit margin of 24.45% for TTM, reflecting efficient cost management and profitability in its digital banking and payment services segments.
- Stable Dividend Yield: With a dividend yield of 1.40% and a last dividend of $2.80, DFS offers a reliable income stream for investors, supported by a consistent history of dividend payments.
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At what price to buy it? -
Intrinsic Value Calculator
Based on current fundamentals and analyst forecasts, MARKETSnap estimates DFS intrinsic value between $270.54 – $478.18 per share. This depends on revenue growth, margins, and discount rate.
This is an automatic estimate. The most reliable way to know fair value for your own assumptions is to run the calculator below.
Common questions about DFS valuation
Is Discover Financial Services (DFS) overvalued or undervalued right now?
MARKETSnap estimates intrinsic value for Discover Financial Services (DFS) using its proprietary valuation methodology, which incorporates discounted cash flow (DCF) analysis together with long-term earnings and fundamentals assumptions. By comparing intrinsic value to the current market price, long-term investors can see whether the stock screens as potentially overvalued, fairly valued, or undervalued today.
Is DFS a buy, hold, or sell for long-term investors?
MARKETSnap does not give one-word “buy” or “sell” calls. Instead, it shows whether DFS trades at a premium or discount to its estimated intrinsic value, how sensitive that value is to growth and margin assumptions, and how the stock fits into a diversified, long-term portfolio so investors can make their own buy, hold, or sell decision.
What is DFS’s P/E ratio?
You can see DFS’s trailing P/E (TTM) and forward P/E estimates in the Current Key Metrics and Forward P/E Ratios sections above. The P/E ratio compares the current share price to earnings per share and helps investors gauge valuation relative to earnings.
How is intrinsic value calculated for DFS?
MARKETSnap uses its own valuation framework—not a generic spreadsheet DCF alone. Future cash flows and earnings are projected, discounted, and combined with MARKETSnap’s methodology so intrinsic value reflects fundamentals and long-term assumptions. You can run your own inputs and see the result using the Intrinsic Value Calculator above.
Is DFS a good long-term investment?
Whether DFS fits a long-term portfolio depends on your assumptions about growth, margins, and risk. MARKETSnap provides the metrics, intrinsic value calculator, and SWOT context so you can form your own view rather than rely on a single buy/sell rating.
DFS
1-day price chart preview. Log in for 1W through 5Y ranges and period tabs.
-0.21
Trading Metrics:
| Open: | 200.55 | Previous Close: | 200.48 | |
| Day Low: | 198.7 | Day High: | 203.02 | |
| Year Low: | 119.95 | Year High: | 207.42 | |
| Price Avg 50: | 172.2 | Price Avg 200: | 167.08 | |
| Volume: | 31.268M | Average Volume: | 2.908M |
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Login — it's freeDFS full analysis
Welcome to MARKETSNAP’s SWOT analysis for Discover Financial Services, also known by its ticker DFS. If you’re a long-term investor looking to build wealth, you’ve come to the right place. Today, we’re diving deep into what makes Discover tick, breaking down its strengths, weaknesses, opportunities, and threats, while keeping an eye on what could drive this stock in the years ahead. Let’s get started with a quick overview of who they are and what’s been happening with them lately, before…
