Discover Financial Services [NYSE:DFS]: Analyst Rating and Earnings
Stock market traders frequently keep their eyes on what Wall Street experts as it relates to a potential investment. For Discover Financial Services [DFS], the most recent analyst consensus recommendation available since its latest financial results for the quarter ending in December. On average, stock market experts give DFS an Outperform rating. Its stock price has been found in the range of 54.36 to 80.36. This is compared to its latest closing price of $75.81.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Discover Financial Services [DFS] is sitting at 2.10. This is compared to 1 month ago, when its average rating was 2.05.
For the quarter ending in Dec-18 Discover Financial Services [DFS] generated $2.81 billion in sales. That’s 0.05% lower than the average estimate of $2.81 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Keep your eyes peeled for the soon-to-be-published financial results of this company, which are expected to be made public on Thu 25 Apr (In 8 Days).
Fundamental Analysis of Discover Financial Services [DFS]
Now let’s turn to look at profitability: with a current Operating Margin for Discover Financial Services [DFS] sitting at +28.64, this company’s Net Margin is now 24.70%. These measurements indicate that Discover Financial Services [DFS] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 9.74, and its Return on Invested Capital has reached 12.90%. Its Return on Equity is 24.70, and its Return on Assets is 2.59. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates DFS financial performance.
Turning to investigate this organization’s capital structure, Discover Financial Services [DFS] has generated a Total Debt to Total Equity ratio of 244.64. Similarly, its Total Debt to Total Capital is 70.98, while its Total Debt to Total Assets stands at 24.76. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 196.05, and its Long-Term Debt to Total Capital is 54.01. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 9.56. The Enterprise Value to Sales for this firm is now 2.84, and its Total Debt to Enterprise Value stands at 0.83. Discover Financial Services [DFS] has a Price to Book Ratio of 1.85, a Price to Cash Flow Ratio of 3.92 and P/E Ratio of 9.86. These metrics all suggest that Discover Financial Services is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Discover Financial Services [DFS] earns $773,916 for each employee under its payroll. Similarly, this company’s Total Asset Turnover is 0.12.
Discover Financial Services [DFS] has 332.00M shares outstanding, amounting to a total market cap of $25.55B. Its stock price has been found in the range of 54.36 to 80.36. At its current price, it has moved by -4.24% from its 52-week high, and it has moved 41.56% from its 52-week low.
This stock’s Beta value is currently 1.59, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 70.37. This RSI suggests that Discover Financial Services is currently Overbought.
Conclusion: Is Discover Financial Services [DFS] a Reliable Buy?
Shares of Discover Financial Services [DFS], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.