Added to YB: 2023-04-02
Pitch date: 2023-04-02
DFS [bullish]
Discover Financial Services
+112.01%
current return
Author Info
No bio for this author
Company Info
As of May 18, 2025, Discover Financial Services was acquired by Capital One Financial Corporation. Discover Financial Services, through its subsidiaries, provides digital banking products and services, and payment services in the United States.
Market Cap
$50.3B
Pitch Price
$94.36
Price Target
N/A
Dividend
N/A
EV/EBITDA
N/A
P/E
10.70
EV/Sales
N/A
Sector
Consumer Finance
Category
value
Discover Financial Services (DFS)
DFS: US secondary card network taking credit risk itself; 9.1% NIM, short-term loans (no duration risk), 20-30% ROE, 7% decade growth. Slashed shares 50% since 2010. Now sub-6x earnings (17% yield) after dip below $100 on bank contagion. Buyback supercharges returns; 20%+ annualized upside. Risk: recession-driven loan losses.
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