ADS:NYE-Alliance Data Systems Corporation (USD)

COMMON STOCK | Credit Services | NYE

Last Closing Price

USD 47.50

Change

+0.45 (+0.96)%

Market Cap

USD 2.24B

Volume

0.77M

Average Target Price

USD 54.07 (+13.83%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

Alliance Data Systems Corporation provides data-driven marketing and loyalty solutions in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, and others. It operates through two segments, LoyaltyOne and Card Services. The LoyaltyOne segment offers AIR MILES reward program; short term loyalty program; and loyalty services, which include loyalty consulting, customer analytics, creative services, and mobile solutions. The Card Services segment provides receivable financing services comprising underwriting and risk management; processing services, such as new account processing, bill processing, remittance processing, and customer care; and marketing services to private label and co-brand retail credit card programs. The company captures and analyzes data created during each customer interaction, leveraging the insight derived from that data to enable clients to identify and acquire new customers and to enhance customer loyalty. It serves clients across various end-markets, including financial services, specialty retail, grocery and drugstore chains, petroleum retail, home furnishing and hardware, beauty and jewelry, hospitality and travel, and telecommunications. Alliance Data Systems Corporation was founded in 1996 and is headquartered in Columbus, Ohio.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2020-09-17 )

Largest Industry Peers for Credit Services

Symbol Name Price(Change) Market Cap Price / Earning Ratio EV/EBITDA
V Visa Inc

+0.14 (+0.07%)

USD450.35B 38.32 28.86
MA Mastercard Incorporated

-2.42 (-0.71%)

USD342.21B 45.73 34.69
AXP American Express Company

-1.32 (-1.25%)

USD85.33B 21.40 N/A
COF-PG Capital One Financial Corporat..

-0.19 (-0.73%)

USD44.07B 1.98 N/A
COF-PH Capital One Financial Corporat..

-0.16 (-0.61%)

USD42.49B 2.18 N/A
COF-PF Capital One Financial Corporat..

+0.03 (+0.12%)

USD41.64B 2.17 N/A
COF Capital One Financial Corporat..

-0.19 (-0.25%)

USD34.78B 12.17 N/A
DFS Discover Financial Services

+0.32 (+0.54%)

USD17.58B 17.27 N/A
IX ORIX Corporation

+0.36 (+0.54%)

USD17.29B 6.10 N/A
SYF Synchrony Financial

+0.05 (+0.18%)

USD16.11B 7.77 N/A

ETFs Containing ADS

Symbol Name Weight Mer Price(Change) Market Cap
FTEK:LSE Invesco Markets plc - Inv.. 0.00 % 0.49 %

-0.40 (-1.11%)

USD0.06B
CEM2:F iShares US Equity Buyback.. 0.00 % 0.55 %

-0.04 (-0.71%)

USD5.50M
CEM2:XETRA iShares US Equity Buyback.. 0.00 % 0.55 %

-0.03 (-0.55%)

USD5.50M
BACK:LSE iShares US Equity Buyback.. 0.00 % 0.55 %

+0.01 (+0.08%)

USD9.21M
DWSH AdvisorShares Dorsey Wrig.. 0.00 % 3.07 %

+0.08 (+0.46%)

USD0.11B
MOM AGFiQ U.S. Market Neutral.. 0.00 % 2.32 %

-0.14 (-0.46%)

USD5.81M
SPYB SPDR S&P 500 Buyback ETF 0.00 % 0.35 %

N/A

USD0.02B
JPED JPMorgan Event Driven ETF 0.00 % 0.85 %

N/A

USD0.03B
CHEP AGFiQ U.S. Market Neutral.. 0.00 % 1.61 %

+0.14 (+0.96%)

USD0.73M

Market Performance

  Market Performance vs.
Industry/Classification (Credit Services)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -57.66% 22% F 6% F
Dividend Return 0.94% 17% F 33% F
Total Return -56.73% 22% F 6% F
Trailing 12 Months  
Capital Gain -63.72% 22% F 5% F
Dividend Return 1.28% 21% F 28% F
Total Return -62.43% 22% F 5% F
Trailing 5 Years  
Capital Gain -81.13% 10% F 6% F
Dividend Return 3.36% 6% F 11% F
Total Return -77.77% 10% F 5% F
Average Annual (5 Year Horizon)  
Capital Gain -20.11% N/A N/A N/A N/A
Dividend Return 0.95% N/A N/A N/A N/A
Total Return -19.16% N/A N/A N/A N/A
Risk Return Profile  
Volatility (Standard Deviation) 28.06% N/A N/A N/A N/A
Risk Adjusted Return -68.27% N/A N/A N/A N/A
Market Capitalization 2.24B 57% F 67% D+
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Credit Services)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 6.84 47% F 84% B
Price/Book Ratio 1.87 27% F 39% F
Price / Cash Flow Ratio 1.84 39% F 73% C
EV/EBITDA 5.10 44% F 83% B
Management Effectiveness  
Return on Equity 18.06% 83% B 86% B
Return on Invested Capital 11.95% 73% C 77% C+
Return on Assets 1.63% 51% F 42% F
Debt to Equity Ratio 267.78% 34% F 10% F
Technical Ratios  
Short Ratio 1.92 74% C 53% F
Short Percent 3.92% 32% F 54% F
Beta 2.52 8% F 6% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (USD)

Quarterly Financials (USD)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters then its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What to not like:
Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Higly leveraged

The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector

Low Dividend Growth

This stock has shown below median dividend growth in the previous 5 years compared to its sector.