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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 2608.15, and so far today it has a volume of 2377600. Performance year to date since the 6/14/2007 is 7.44%.

To help you determine whether Discover Financial Services is undervalued the following values will help you decide. P/E is 10.63 and forward P/E is 9.3. PEG perhaps more useful shows that Discover Financial Services has a value for PEG of 1.28. P/S ratio is 2.82 and the P/B ratio is 2.14. The P/Cash and P/Free cash flow is 1.99 and 6.05 respectively.

At the current price Discover Financial Services is trading at, 56.67 (-0.75% today), Discover Financial Services has a dividend yield of 2.12%, and this is covered by a payout ratio of 21.40%. Earnings per share (EPS) is 5.33, and this is looking to grow in the next year to 6.61% after growing 4.60% this past year. EPS growth quarter over quarter is 10.50%, and 7.30% for sales growth quarter over quarter.

The number of shares outstanding is 410, and the number of shares float is 399.9. The senior management bring insider ownership to 1.00%, and institutional ownership is at 88.90%. The float short is 1.47%, with the short ratio at a value of 2.26. 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 2.28 and total debt/equity is 2.28. In terms of margins, Discover Financial Services has a gross margin of *TBA, with its operating margin at 63.90%, and Discover Financial Services has a profit margin of 27.30%.

The 52 week high is -6.00%, with 33.59% being its 52 week low. The 20 day simple moving average is -1.89% and the 200 day simple moving average is 6.75%.

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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Tony Dabbs

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