Discover Financial Services (DFS) Files 10-K for the Fiscal Year Ended on December 31, 2017
- By insider
Discover Financial Services (DFS) files its latest 10-K with SEC for the fiscal year ended on December 31, 2017. Discover Financial Services is engaged in direct consumer banking business. It mainly provides banking services such as accepting deposits, offering credit card, residential mortgage, loans and other banking facilities to its customers. Discover Financial Services has a market cap of $28.14 billion; its shares were traded at around $78.59 with a P/E ratio of 14.56 and P/S ratio of 3.12. The dividend yield of Discover Financial Services stocks is 1.66%. Discover Financial Services had annual average EBITDA growth of 13.80% over the past ten years. GuruFocus rated Discover Financial Services the business predictability rank of 4.5-star.
Warning! GuruFocus has detected 5 Warning Signs with DFS. Click here to check it out.
The intrinsic value of DFS
For the last quarter Discover Financial Services reported a revenue of $2.6 billion, compared with the revenue of $2.4 billion during the same period a year ago. For the latest fiscal year the company reported a revenue of $9.9 billion, an increase of 8.8% from last year. For the last five years Discover Financial Services had an average revenue growth rate of 4.7% a year.
The reported diluted earnings per share was $5.42 for the year, a decline of 6.1% from the previous year. Over the last five years Discover Financial Services had an EPS growth rate of 4.3% a year. The Discover Financial Services had a decent operating margin of 35.74%, compared with the operating margin of 40.18% a year before. The 10-year historical median operating margin of Discover Financial Services is 40.76%. The profitability rank of the company is 7 (out of 10).
At the end of the fiscal year, Discover Financial Services has the cash and cash equivalents of $15 billion, compared with $11.9 billion in the previous year. The long term debt was $26.3 billion, compared with $25.4 billion in the previous year. The interest coverage to the debt is 2.1, which is not a favorable level. Discover Financial Services has a financial strength rank of 4 (out of 10).
At the current stock price of $78.59, Discover Financial Services is traded at 24.3% premium to its historical median P/S valuation band of $63.21. The P/S ratio of the stock is 3.12, while the historical median P/S ratio is 2.51. The intrinsic value of the stock is $104.33 a share, according to GuruFocus DCF Calculator. The stock gained 13.09% during the past 12 months.
CEO Recent Trades:
Chairman & CEO David W Nelms sold 30,000 shares of DFS stock on 02/01/2018 at the average price of $79.65. The price of the stock has decreased by 1.33% since.
CFO Recent Trades:
EVP & CFO R. Mark Graf sold 22,444 shares of DFS stock on 02/02/2018 at the average price of $79.84. The price of the stock has decreased by 1.57% since.
Directors and Officers Recent Trades:
Director, Senior Officer Michele Marrandino, bought 20,000 shares of DFS stock on 02/02/2018 at the average price of $0.29.
Director, Senior Officer Michele Marrandino, bought 27,000 shares of DFS stock on 02/01/2018 at the average price of $0.29.
EVP, Pres. - Payment Services Diane E Offereins sold 15,000 shares of DFS stock on 02/01/2018 at the average price of $80.19. The price of the stock has decreased by 2% since.
EVP, Pres. - Consumer Banking Carlos Minetti sold 8,000 shares of DFS stock on 02/01/2018 at the average price of $79.51. The price of the stock has decreased by 1.16% since.
President & COO Roger C Hochschild sold 15,258 shares of DFS stock on 02/01/2018 at the average price of $80.28. The price of the stock has decreased by 2.11% since.
For the complete 20-year historical financial data of DFS, click here.
This article first appeared on GuruFocus.
Warning! GuruFocus has detected 5 Warning Signs with DFS. Click here to check it out.
The intrinsic value of DFS
