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Is Discover Financial Services(NYSE: DFS), a large market cap stock a smart buy?

With a market cap of has a large market cap size. Discover Financial Services (NYSE: DFS) has been on the stock market since its IPO date on the 6/14/2007. Discover Financial Services is in the Credit Services industry and Financial sector. Average volume for Discover Financial Services, is 3134.16, and so far today it has a volume of 2306088. Performance year to date since the 6/14/2007 is 7.45%.

To help you determine whether Discover Financial Services is undervalued the following values will help you decide. P/E is 10.98 and forward P/E is 9.38. PEG perhaps more useful shows that Discover Financial Services has a value for PEG of 1.44. P/S ratio is 2.9 and the P/B ratio is 2.21. The P/Cash and P/Free cash flow is 1.94 and 6.22 respectively.

At the current price Discover Financial Services is trading at, 56.07 (-1.60% today), Discover Financial Services has a dividend yield of 1.97%, and this is covered by a payout ratio of 21.50%. Earnings per share (EPS) is 5.19, and this is looking to grow in the next year to 6.75% after growing 4.60% this past year. EPS growth quarter over quarter is 5.40%, and 8.00% for sales growth quarter over quarter.

The number of shares outstanding is 412.37, and the number of shares float is 408.42. The senior management bring insider ownership to 1.10%, and institutional ownership is at 88.50%. The float short is 1.48%, with the short ratio at a value of 1.93. Management has seen a return on assets of 2.60%, and also a return on investment of 10.90%.

The ability for Discover Financial Services, to deal with debt, means it current ratio is *TBA, and quick ratio is *TBA. Long term debt/equity is 2.3 and total debt/equity is 0. In terms of margins, Discover Financial Services has a gross margin of *TBA, with its operating margin at 64.90%, and Discover Financial Services has a profit margin of 27.60%.

The 52 week high is -4.36%, with 31.47% being its 52 week low. The 20 day simple moving average is 2.06% and the 200 day simple moving average is 6.65%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.


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Peter Clarke

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