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DFS Discover Financial Services

Discover Financial Servicesis a digital banking and payment services company with one of the most trusted brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company issues the Discover card, America's cash rewards pioneer, and offers private student loans, personal loans, home loans, checking and savings accounts and certificates of deposit through its banking business. It operates the Discover Global Network comprised of Discover Network, with millions of merchant and cash access locations; PULSE, one of the nation's leading ATM/debit networks; and Diners Club International, a global payments network with acceptance around the world.

Company profile

Ticker
DFS
Exchange
CEO
Roger Hochschild
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
DFS Corporate Services LLC • DFS GSD Corp. • DFS International Inc. • DFS Services LLC • Diners Club International Ltd. • Diners Club Services Private Limited • Diners Club Taiwan Ltd. • Discover Financial Services (Canada), Inc. • Discover Financial Services (Hong Kong) Limited • Discover Financial Services (UK) Limited ...
IRS number
362517428

DFS stock data

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Calendar

28 Jul 21
19 Oct 21
31 Dec 21
Quarter (USD)
Jun 21 Mar 21 Dec 20 Sep 20
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD)
Dec 20 Dec 19 Dec 18 Dec 17
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from company earnings reports.

Cash burn rate (estimated) Burn method: Change in cash Burn method: Operating income/loss Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 16.37B 16.37B 16.37B 16.37B 16.37B 16.37B
Cash burn (monthly) 1.44B (positive/no burn) (positive/no burn) (positive/no burn) (positive/no burn) (positive/no burn)
Cash used (since last report) 5.24B n/a n/a n/a n/a n/a
Cash remaining 11.13B n/a n/a n/a n/a n/a
Runway (months of cash) 7.8 n/a n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
30 Aug 21 Eazor Joseph F Common Stock Other Dispose J No No 0 4,721 0 9,836
6 Aug 21 Hochschild Roger C Non-Recourse Loan (call option - obligation to sell) Common Stock Dispose E No No 36.39 74,410 2.71M 0
6 Aug 21 Wanjiku Juanita Walcott Common Stock Gift Dispose G No No 0 1,320 0 58,977
5 Aug 21 Wanjiku Juanita Walcott Common Stock Gift Dispose G No No 0 680 0 60,297
4 Aug 21 Wanjiku Juanita Walcott Common Stock Sell Dispose S No No 127 15,000 1.91M 60,977
4 Aug 21 Shifra Kolsky Common Stock Sell Dispose S No No 127.1088 800 101.69K 3,610

Data for the last complete 13F reporting period. To see the most recent changes to ownership, click the ownership history button above.

85.3% owned by funds/institutions
13F holders
Current Prev Q Change
Total holders 906 877 +3.3%
Opened positions 119 117 +1.7%
Closed positions 90 84 +7.1%
Increased positions 284 306 -7.2%
Reduced positions 322 292 +10.3%
13F shares
Current Prev Q Change
Total value 30.18B 24.48B +23.3%
Total shares 255.32M 257.99M -1.0%
Total puts 2.31M 2.73M -15.3%
Total calls 2.17M 2.54M -14.5%
Total put/call ratio 1.1 1.1 -1.0%
Largest owners
Shares Value Change
Vanguard 36.21M $4.28B +1.8%
Capital International Investors 20.61M $2.44B +22.7%
BLK Blackrock 20.52M $2.43B +1.0%
FMR 17.03M $2.01B +1.1%
STT State Street 13.47M $1.59B -0.1%
Capital World Investors 9.6M $1.14B +10.4%
MCQEF Macquarie 7.32M $865.71M +2.7%
Geode Capital Management 5.22M $616M +1.8%
JPM JPMorgan Chase & Co. 4.81M $569.23M +101.0%
Nuveen Asset Management 4.73M $559.73M -25.4%
Largest transactions
Shares Bought/sold Change
Capital International Investors 20.61M +3.82M +22.7%
JPM JPMorgan Chase & Co. 4.81M +2.42M +101.0%
WDR Waddell & Reed Financial 0 -1.65M EXIT
Nuveen Asset Management 4.73M -1.61M -25.4%
Capital Research Global Investors 606.83K -1.16M -65.6%
Acadian Asset Management 1.08M +1.06M +4970.3%
Alua Capital Management 200K -1.04M -83.9%
Eminence Capital 0 -960.81K EXIT
Capital World Investors 9.6M +902.54K +10.4%
Voya Investment Management 819.22K +695.96K +564.6%

Financial report summary

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Competition
Goldman SachsStar
Risks
  • The COVID-19 pandemic has and is expected to continue to have a material adverse effect on our business, results of operations and financial condition.
  • Economic conditions could have a material adverse effect on our business, results of operations and financial condition.
  • Financial regulatory developments have and will continue to significantly impact the environment for the financial services industry, which could adversely impact our business, results of operations and financial condition.
  • We face competition in the credit card market from other consumer financial services providers and we may not be able to compete effectively, which could result in fewer customers, lower account balances and could materially adversely affect our financial condition, cash flows and results of operations.
  • We incur considerable cost in competing with other consumer financial services providers and many of our competitors have greater financial resources than we do, which may place us at a competitive disadvantage and negatively affect our financial results.
  • We face competition from other operators of payment networks and alternative payment providers and we may not be able to compete effectively, which could result in reduced transaction volume, limited merchant acceptance of our cards, limited issuance of cards on our networks by third parties and materially reduced earnings from our payment services business.
  • If we are unsuccessful in maintaining our international network business and achieving meaningful global card acceptance, we may be unable to grow our international network business.
  • The success of our student loan strategy depends upon our ability to manage the risks of our student loan portfolio and the student lending environment. If we fail to do so, we may be unable to sustain and grow our student loan portfolio.
  • Acquisitions or strategic investments that we pursue may not be successful and could disrupt our business, harm our financial condition or reduce our earnings.
  • Our business depends on our ability to manage our credit risk and failing to manage this risk successfully may result in high delinquency and charge-off rates, which would materially adversely affect our business, profitability and financial condition.
  • Adverse market conditions or an inability to effectively manage our liquidity risk could negatively impact our ability to meet our liquidity and funding needs, which could materially adversely impact our business, results of operations and overall financial condition.
  • An inability to accept or maintain deposits in the future could materially adversely affect our liquidity position and our ability to fund our business.
  • If we are unable to securitize our credit card receivables, it may have a material adverse effect on our liquidity, cost of funds and overall financial condition.
  • The occurrence of events that result in the early amortization of our existing credit card securitization transactions or an inability to delay the accumulation of principal collections for our existing credit card securitization transactions would materially adversely affect our liquidity.
  • A downgrade in the credit ratings of our or our subsidiaries’ securities could have a materially adversely effect on our liquidity, results of operations and financial condition.
  • We may not be successful in managing the investments in our liquidity investment portfolio and investment performance may deteriorate due to market fluctuations, which would adversely affect our business and financial condition.
  • Changes in the level of interest rates could materially adversely affect our earnings.
  • Our risk management framework and models for managing risks may not be effective in mitigating our risk of loss.
  • If the security of our systems, or those of third parties, containing information about us, our customers or third parties with which we do business is compromised, our business could be disrupted and we may be subject to significant financial exposure, liability and damage to our reputation.
  • If we cannot remain organizationally effective, we will be unable to address the opportunities and challenges presented by our strategy and the increasingly dynamic and competitive economic and regulatory environment.
  • We may be unable to increase or sustain Discover credit card usage, which could impair growth in, or lead to diminishing, average balances and total revenue.
  • Our transaction volume is concentrated among large merchants and a reduction in the number of large merchants that accept cards on the Discover Network or PULSE network or the rates they pay could materially adversely affect our business, financial condition, results of operations and cash flows.
  • Our business, financial condition and results of operations may be adversely affected by merchants’ increasing focus on the fees charged by credit card and debit card networks.
  • Political, economic or other instability in a country or geographic region, or other unforeseen or catastrophic events, could adversely affect our international business activities and reduce our revenue.
  • Fraudulent activity associated with our products or our networks could cause our brands to suffer reputational damage, the use of our products to decrease and our fraud losses to be materially adversely affected.
  • The financial services and payment services industries are rapidly evolving and we may be unsuccessful in introducing new products or services on a large scale in response to these changes.
  • We rely on third parties to deliver services. If we face difficulties managing our relationships with third-party service providers, our revenue or results of operations could be materially adversely affected.
  • We rely on technology to deliver services. If key technology platforms become obsolete, or if we experience disruptions, including difficulties in our ability to process transactions, our revenue or results of operations could be materially adversely affected.
  • Our success is dependent, in part, upon our executive officers and other key employees. If we are unable to recruit, retain and motivate key officers and employees to drive our business, our business could be materially adversely affected.
  • Merchant defaults may adversely affect our business, financial condition, cash flows and results of operations.
  • Damage to our reputation could damage our business.
  • We may be unsuccessful in promoting and protecting our brands or protecting our other intellectual property, or third parties may allege that we are infringing their intellectual property rights.
  • Laws, regulations and supervisory guidance and practices, or the application thereof, may adversely affect our business, financial condition and results of operations.
  • Current and proposed laws and regulations addressing consumer privacy and data use and security could affect the competitiveness of our products and increase our costs.
  • Litigation and regulatory actions could subject us to significant fines, penalties and/or requirements resulting in increased expenses, oversight and reputation risk.
  • We may be limited in our ability to pay dividends on and repurchase our stock.
  • We are a holding company and depend on payments from our subsidiaries.
Management Discussion
  • The discussion below provides a summary of our results of operations and information about our loan receivables as of and for the year ended December 31, 2020, compared to the year ended December 31, 2019. Refer to our annual report on Form 10-K for the year ended December 31, 2019, for discussion of our results of operations and loan receivables information as of and for the year ended December 31, 2019, compared to the year ended December 31, 2018.
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