Discover Financial Services (DFS): Price and Financial Metrics

DFS POWR Grades

• DFS scores best on the Sentiment dimension, with a Sentiment rank ahead of 67.91% of US stocks.
• DFS's strongest trending metric is Growth; it's been moving down over the last 179 days.
• DFS ranks lowest in Growth; there it ranks in the 39th percentile.

DFS Stock Summary

• DFS's one year PEG ratio, measuring expected growth in earnings next year relative to current common stock price is 1.53 -- higher than just 7.53% of US-listed equities with positive expected earnings growth.
• Over the past twelve months, DFS has reported earnings growth of 398.28%, putting it ahead of 94.61% of US stocks in our set.
• As for revenue growth, note that DFS's revenue has grown 99.34% over the past 12 months; that beats the revenue growth of 91.83% of US companies in our set.
• Stocks that are quantitatively similar to DFS, based on their financial statements, market capitalization, and price volatility, are SLF, NTRS, DB, CCEP, and ALL.
• Visit DFS's SEC page to see the company's official filings. To visit the company's web site, go to www.discover.com.

DFS Valuation Summary

• In comparison to the median Financial Services stock, DFS's price/earnings ratio is 27.27% lower, now standing at 8.
• DFS's price/sales ratio has moved up 0.3 over the prior 173 months.
• Over the past 173 months, DFS's price/earnings ratio has gone down 4.7.

Below are key valuation metrics over time for DFS.

DFS Growth Metrics

Its 4 year net cashflow from operations growth rate is now at 40.31%.
• Its 5 year revenue growth rate is now at 1.5%.
• Its year over year cash and equivalents growth rate is now at 84.41%.

DFS's revenue has moved up $6,100,000,000 over the prior 15 months.

The table below shows DFS's growth in key financial areas (numbers in millions of US dollars).

Date	Revenue	Operating Cash Flow	Net Income to Common Stock
2021-12-31	11,869	6,019	5,351
2021-09-30	11,489	6,310	5,084
2021-06-30	10,861	5,985	4,780
2021-03-31	8,033	6,024	2,723
2020-12-31	5,954	6,196	1,104
2020-09-30	5,769	6,027	1,009

DFS's Quality Factors

The “Quality” component of the POWR Ratings focuses on 31 different factors of a companies fundamentals and operational strength. Here are some key insights as we drill into the specifics of these quality attributes.

• DFS has a Quality Grade of C, ranking ahead of 62.91% of graded US stocks.
• DFS's asset turnover comes in at 0.103 -- ranking 47th of 430 Banking stocks.
• MRLN, FNMA, and SFST are the stocks whose asset turnover ratios are most correlated with DFS.

The table below shows DFS's key quality metrics over time.