Discover is taking two huge risks with its America-centric business model. First, most of the economic growth in the foreseeable future will take place outside the USA. Second, I think Discover’s business creates heavy exposure to instability in the American economy.Read more
Although it is generating more cash, Discover reported a free cash flow of $1.494 billion on September 30, 2017. That was up from $1.271 billion in September 2016 and $1.116 billion in September 2015.
More importantly, cash from operations has grown dramatically at Discover. The company reported $4.876 billion in September 2017, up from $4.177 billion in September 2016. It also managed to make a lot of money from financing $4.276 billion in September 2017.Read more