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Discover Financial Services

DB:DC7
Snowflake Description

Established dividend payer and good value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DC7
DB
$12B
Market Cap
  1. Home
  2. DE
  3. Diversified Financials
Company description

Discover Financial Services, through its subsidiaries, operates as a direct banking and payment services company in the United States. The last earnings update was 34 days ago. More info.


Add to Portfolio Compare Print
  • Discover Financial Services has significant price volatility in the past 3 months.
DC7 Share Price and Events
7 Day Returns
13.8%
DB:DC7
7.3%
Europe Consumer Finance
9.9%
DE Market
1 Year Returns
-47.2%
DB:DC7
-49.3%
Europe Consumer Finance
-17.5%
DE Market
DC7 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Discover Financial Services (DC7) 13.8% -40.9% -54.2% -47.2% -45.6% -34.3%
Europe Consumer Finance 7.3% -35.4% -41.1% -49.3% -65.1% -64%
DE Market 9.9% -16.6% -24.8% -17.5% -24.5% -28.1%
1 Year Return vs Industry and Market
  • DC7 outperformed the Consumer Finance industry which returned -49.3% over the past year.
  • DC7 underperformed the Market in Germany which returned -17.5% over the past year.
Price Volatility
DC7
Industry
5yr Volatility vs Market

DC7 Value

 Is Discover Financial Services undervalued based on future cash flows and its price relative to the stock market?

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Discover Financial Services.

DB:DC7 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 12 analysts.
= Stable Book Value * Return on Equity
= $39.03 * 24.1%
$9.41
Book Value of Equity per Share Weighted future Book Value estimates from 9 analysts. $39.03
Discount Rate (Cost of Equity) See below 7.3%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:DC7
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Consumer Finance Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.587 (1 + (1- 21%) (221.8%))
1.412
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.41
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.412 * 5.44%)
7.29%

Discounted Cash Flow Calculation for DB:DC7 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.

DB:DC7 Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (24.1% – 7.29%) * $39.03)
$6.56
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $6.56 / (7.29% - -0.39%)
$85.44
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $39.03 + $85.44
$124.47
DB:DC7 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:DC7 represents 0.97001x of NYSE:DFS
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.97001x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 124.47 x 0.97001
€120.74
Value per share (EUR) From above. €120.74
Current discount Discount to share price of €34.60
= -1 x (€34.60 - €120.74) / €120.74
71.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Discover Financial Services is available for.
Intrinsic value
>50%
Share price is €34.6 vs Future cash flow value of €120.74
Current Discount Checks
For Discover Financial Services to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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, and 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?
Raw Data
DB:DC7 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $9.09
NYSE:DFS Share Price ** NYSE (2020-03-31) in USD $35.67
Europe Consumer Finance Industry PE Ratio Median Figure of 27 Publicly-Listed Consumer Finance Companies 5.31x
Germany Market PE Ratio Median Figure of 399 Publicly-Listed Companies 16.31x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Discover Financial Services.

DB:DC7 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:DFS Share Price ÷ EPS (both in USD)

= 35.67 ÷ 9.09

3.93x

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 Europe Consumer Finance industry average.
  • Discover Financial Services is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Discover Financial Services's expected growth come at a high price?
Raw Data
DB:DC7 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 3.93x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
-6.4%per year
Europe Consumer Finance Industry PEG Ratio Median Figure of 19 Publicly-Listed Consumer Finance Companies 0.41x
Germany Market PEG Ratio Median Figure of 255 Publicly-Listed Companies 1.18x

*Line of best fit is calculated by linear regression .

DB:DC7 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 3.93x ÷ -6.4%

-0.61x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Discover Financial Services earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Discover Financial Services's assets?
Raw Data
DB:DC7 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $36.42
NYSE:DFS Share Price * NYSE (2020-03-31) in USD $35.67
Europe Consumer Finance Industry PB Ratio Median Figure of 42 Publicly-Listed Consumer Finance Companies 0.67x
Germany Market PB Ratio Median Figure of 571 Publicly-Listed Companies 1.43x
DB:DC7 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:DFS Share Price ÷ Book Value per Share (both in USD)

= 35.67 ÷ 36.42

0.98x

* 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 Europe Consumer Finance industry average.
X
Value checks
We assess Discover Financial Services's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Finance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Finance industry average (and greater than 0)? (1 check)
  5. Discover Financial Services has a total score of 4/6, 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.

DC7 Future Performance

 How is Discover Financial Services expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

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!
Annual Growth Rate
-6.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Discover Financial Services expected to grow at an attractive rate?
  • Discover Financial Services's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Discover Financial Services's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.
  • Discover Financial Services's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:DC7 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:DC7 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts -6.4%
DB:DC7 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 14.6%
Europe Consumer Finance Industry Earnings Growth Rate Market Cap Weighted Average 12.9%
Europe Consumer Finance Industry Revenue Growth Rate Market Cap Weighted Average 9.6%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.4%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.1%

*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
Raw Data
DB:DC7 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:DC7 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 12,767 2,565 3
2021-12-31 12,150 2,534 18
2020-12-31 11,733 2,575 19
2020-03-31
DB:DC7 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 8,228 6,196 2,908
2019-09-30 8,127 5,493 2,884
2019-06-30 8,008 6,280 2,834
2019-03-31 7,804 6,288 2,748
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

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Discover Financial Services's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Discover Financial Services's revenue is expected to grow by 14.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:DC7 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 19 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.

DB:DC7 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 9.85 9.85 9.85 1.00
2021-12-31 8.73 10.28 3.90 18.00
2020-12-31 8.16 9.53 1.36 17.00
2020-03-31
DB:DC7 Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 9.09
2019-09-30 8.87
2019-06-30 8.55
2019-03-31 8.15
2018-12-31 7.82
2018-09-30 6.75
2018-06-30 6.30
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

*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%).
X
Future performance checks
We assess Discover Financial Services's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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.

DC7 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
Below we compare Discover Financial Services's growth in the last year to its industry (Consumer Finance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Discover Financial Services's year on year earnings growth rate has been positive over the past 5 years.
  • Discover Financial Services's 1-year earnings growth exceeds its 5-year average (8.1% vs 5.2%)
  • Discover Financial Services's earnings growth has not exceeded the Europe Consumer Finance industry average in the past year (8.1% vs 17.9%).
Earnings and Revenue History
Discover Financial Services's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Discover Financial Services Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:DC7 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 8,228.00 2,908.00 3,481.00
2019-09-30 8,127.00 2,884.00 3,419.00
2019-06-30 8,008.00 2,834.00 3,353.00
2019-03-31 7,804.00 2,748.00 3,302.00
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

*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 Europe 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.
X
Past performance checks
We assess Discover Financial Services's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Finance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Discover Financial Services has a total score of 2/6, 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.

DC7 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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Discover Financial Services's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3.9x 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.
Raw Data

All data from Discover Financial Services Company Filings, last reported 3 months ago.

DB:DC7 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 11,859.00 25,708.00 6,924.00
2019-09-30 11,717.00 24,458.00 6,079.00
2019-06-30 11,493.00 25,167.00 10,317.00
2019-03-31 11,259.00 26,282.00 15,175.00
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 23,144.00 11,871.00
2014-12-31 11,134.00 22,679.00 7,327.00
2014-09-30 11,301.00 21,066.00 7,444.00
2014-06-30 11,381.00 20,192.00 6,939.00
2014-03-31 11,021.00 20,313.00 8,804.00
2013-12-31 10,809.00 20,620.00 6,633.00
2013-09-30 10,602.00 18,799.00 5,702.00
2013-06-30 10,448.00 18,308.00 5,841.00
  • Discover Financial Services's level of debt (216.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (203.7% vs 216.3% today).
  • Debt is well covered by operating cash flow (24.2%, greater 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.
X
Financial health checks
We assess Discover Financial Services's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Discover Financial Services has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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.

DC7 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
Dividend payments
4.93%
Current annual income from Discover Financial Services dividends. Estimated to be 5.17% next year.
If you bought €2,000 of Discover Financial Services shares you are expected to receive €99 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Discover Financial Services's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.68%).
  • Discover Financial Services's dividend is below the markets top 25% of dividend payers in Germany (4.97%).
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.
Raw Data
DB:DC7 Annualized Past and Future Dividends
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 19 Analyst Estimates (S&P Global) See Below
Europe Consumer Finance Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 6.9%
Germany Market Average Dividend Yield Market Cap Weighted Average of 323 Stocks 3.8%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:DC7 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 1.93 4.00
2021-12-31 1.89 16.00
2020-12-31 1.78 17.00
2020-03-31
DB:DC7 Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-01-21 1.760 3.200
2019-10-17 1.760 2.107
2019-07-18 1.760 2.152
2019-04-18 1.600 2.038
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

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 (5.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5x coverage).
X
Income/ dividend checks
We assess Discover Financial Services's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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.

DC7 Management

 What is the CEO of Discover Financial Services's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Roger Hochschild
COMPENSATION $9,250,436
AGE 54
TENURE AS CEO 1.4 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 Chief Executive Officer and President at Discover Bank and has been its Director since August 2018. 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 and Principal Life Insurance Company. 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 increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Roger's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Discover Financial Services management team in years:

2.8
Average Tenure
54
Average Age
  • The tenure for the Discover Financial Services management team is about average.
Management Team

Roger Hochschild

TITLE
CEO, President & Director
COMPENSATION
$9M
AGE
54
TENURE
1.4 yrs

John Greene

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
53
TENURE
0.4 yrs

Wanji Walcott

TITLE
Executive VP
COMPENSATION
$10M
AGE
48
TENURE
0.7 yrs

Diane Offereins

TITLE
Executive VP & President of Payment Services
COMPENSATION
$4M
AGE
61
TENURE
9.8 yrs

Julie Loeger

TITLE
Executive VP & President of US Cards
COMPENSATION
$4M
AGE
55
TENURE
4.3 yrs

Edward McGrogan

TITLE
Chief Accounting Officer
TENURE
7.3 yrs

Amir Arooni

TITLE
Executive VP & Chief Information Officer
AGE
54

Andy Eichfeld

TITLE
Executive VP and Chief HR & Administrative Officer
AGE
49
TENURE
1.4 yrs

Craig Streem

TITLE
Vice President of Investor Relations
AGE
69

Leslie Sutton

TITLE
Vice President of Corporate Communications
TENURE
7 yrs
Board of Directors Tenure

Average tenure and age of the Discover Financial Services board of directors in years:

11.2
Average Tenure
62.5
Average Age
  • 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

TITLE
Independent Chairman
COMPENSATION
$505K
AGE
79
TENURE
1.2 yrs

Roger Hochschild

TITLE
CEO, President & Director
COMPENSATION
$9M
AGE
54
TENURE
1.6 yrs

Greg Case

TITLE
Independent Director
COMPENSATION
$280K
AGE
56
TENURE
12.7 yrs

Michael Moskow

TITLE
Independent Director
COMPENSATION
$285K
AGE
81
TENURE
12.4 yrs

Cyndi Glassman

TITLE
Independent Director
COMPENSATION
$285K
AGE
71
TENURE
11 yrs

Mary Bush

TITLE
Independent Director
COMPENSATION
$280K
AGE
71
TENURE
12.7 yrs

Jeff Aronin

TITLE
Independent Director
COMPENSATION
$265K
AGE
51
TENURE
12.7 yrs

Tom Maheras

TITLE
Independent Director
COMPENSATION
$275K
AGE
56
TENURE
11.4 yrs

Peer Thierer

TITLE
Independent Director
COMPENSATION
$265K
AGE
59
TENURE
6.8 yrs

Candace Duncan

TITLE
Independent Director
COMPENSATION
$280K
AGE
66
TENURE
5.8 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Discover Financial Services individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
28. Jan 20 Buy Carlos Minetti Individual 27. Jan 20 27. Jan 20 3,000 €66.91 €200,722
28. Jan 20 Sell Glenn Schneider Individual 27. Jan 20 27. Jan 20 -15,000 €67.34 €-1,010,100
27. Jan 20 Buy John Greene Individual 27. Jan 20 27. Jan 20 3,377 €67.00 €226,254
27. Jan 20 Buy Wanjiku Walcott Individual 27. Jan 20 27. Jan 20 3,400 €67.10 €228,148
27. Jan 20 Buy Roger Hochschild Individual 27. Jan 20 27. Jan 20 15,000 €67.26 €1,008,866
07. Aug 19 Sell Mary Bush Individual 06. Aug 19 06. Aug 19 -993 €74.38 €-73,856
29. Jul 19 Sell Diane Offereins Individual 26. Jul 19 26. Jul 19 -20,000 €82.52 €-1,650,395
26. Jul 19 Sell R. Graf Individual 25. Jul 19 25. Jul 19 -4,776 €82.84 €-395,666
26. Jul 19 Sell Edward McGrogan Individual 25. Jul 19 25. Jul 19 -1,894 €82.76 €-156,755
17. May 19 Sell Mary Bush Individual 15. May 19 15. May 19 -496 €69.20 €-34,325
07. May 19 Sell Michael Moskow Individual 03. May 19 03. May 19 -1,985 €72.84 €-144,585
02. May 19 Sell Daniel Capozzi Individual 30. Apr 19 30. Apr 19 -7,146 €72.62 €-518,962
02. May 19 Sell Julie Loeger Individual 30. Apr 19 30. Apr 19 -8,000 €72.40 €-579,197
01. May 19 Sell Cynthia Glassman Individual 29. Apr 19 29. Apr 19 -5,551 €73.18 €-406,216
01. May 19 Sell R. Graf Individual 29. Apr 19 29. Apr 19 -30,741 €73.35 €-2,254,888
01. May 19 Sell Edward McGrogan Individual 29. Apr 19 29. Apr 19 -2,450 €73.06 €-179,008
X
Management checks
We assess Discover Financial Services's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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.

DC7 News

Simply Wall St News

DC7 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 1986 and is based in Riverwoods, Illinois.

Details
Name: Discover Financial Services
DC7
Exchange: DB
Founded: 1986
$10,547,274,749
308,337,638
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
BRSE DC7 Common Stock Berne Stock Exchange CH CHF 14. Jun 2007
BMV DFS * Common Stock Bolsa Mexicana de Valores MX MXN 14. Jun 2007
BOVESPA D1FS34 BDR EACH 2 REPR 1 SHS UNSPON Bolsa de Valores de Sao Paulo BR BRL 27. Jan 2020
Number of employees
Current staff
Staff numbers
17,200
Discover Financial Services employees.
Industry
Consumer Finance
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/31 22:09
End of day share price update: 2020/03/31 00:00
Last estimates confirmation: 2020/03/30
Last earnings filing: 2020/02/26
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


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.