1 / 2

Discover Financial Services (DFS): Industry & Business Stock Drivers

Discover Financial Services (DFS): Industry & Business Stock Drivers. 3Q 2009 to 3Q 2011. Earning Drivers Paper to electronic payments Growths in credit spending Expansion in personal and student loans Business

todd-perkins
Download Presentation

Discover Financial Services (DFS): Industry & Business Stock Drivers

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Discover Financial Services (DFS): Industry & Business Stock Drivers 3Q 2009 to 3Q 2011 • Earning Drivers • Paper to electronic payments • Growths in credit spending • Expansion in personal and student loans • Business • 1. 15 billion market cap company purely focused on direct banking & payment service • 2. Leveraging discover card brand in attracting more quality customers • 3. Attractive customer base • Average Age: 44; Average Household Income: $108,000 • 75% are married, have attended college OR have a house • 4. 10% limited direct exposure to Europe

  2. Valuation & Technical • Low Valuation • Trailing P/B of 1.74x; Trailing ROE of 29.9%; PEG of 0.71 • American Express: P/B of 3.05x and ROE of 27.48% • Attractive Technical • Just broke out of a price consolidation phase • Outperformed AMEX Financial, MasterCard, VISA and S&P 500 Index over the past three years • Initial target price of around $35: upside of 30%

More Related