ADS:NYE-Alliance Data Systems Corporation (USD)

COMMON STOCK | Credit Services | NYE

Last Closing Price

USD 105.26

Change

+0.22 (+0.21)%

Market Cap

USD 5.22B

Volume

0.47M

Average Target Price

USD 99.79 (-5.20%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

Alliance Data Systems Corporation provides data-driven marketing, loyalty, and payment solutions in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, and internationally. 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, as well as receivables funding services, including comenity card, private label and co-brand credit card programs, and installment lending; processing services, such as new account processing, bill processing, remittance processing, and customer care; marketing services; and digital offerings, including Bread digital payments platform and enhanced digital suite. 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: 2021-04-22 )

Largest Industry Peers for Credit Services

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

+0.12 (+0.05%)

USD501.49B 46.96 33.98
MA Mastercard Incorporated

+0.03 (+0.01%)

USD379.73B 60.01 44.23
AXP American Express Company

-0.02 (-0.01%)

USD118.28B 39.05 N/A
COF Capital One Financial Corporat..

+0.09 (+0.07%)

USD60.56B 25.59 N/A
COF-PG Capital One Financial Corporat..

-0.01 (-0.04%)

USD43.47B 4.95 N/A
COF-PH Capital One Financial Corporat..

-0.02 (-0.08%)

USD42.00B 5.00 N/A
COF-PF Capital One Financial Corporat..

N/A

USD41.28B 12.11 N/A
DFS Discover Financial Services

+1.10 (+1.12%)

USD30.03B 27.26 N/A
SYF Synchrony Financial

-0.30 (-0.75%)

USD23.23B 17.60 N/A
IX ORIX Corporation

-2.35 (-2.86%)

USD19.76B 10.94 N/A

ETFs Containing ADS

Symbol Name Weight Mer Price(Change) Market Cap
EZM WisdomTree U.S. MidCap Ea.. 0.00 % 0.38 %

-0.33 (-0.63%)

USD0.66B
MOM AGFiQ U.S. Market Neutral.. 0.00 % 2.58 %

N/A

USD4.73M
SPYB SPDR S&P 500 Buyback ETF 0.00 % 0.35 %

N/A

USD0.02B
VUSE Vident Core U.S. Equity F.. 0.00 % 0.48 %

-0.10 (-0.24%)

USD0.39B
JPED JPMorgan Event Driven ETF 0.00 % 0.85 %

N/A

USD0.03B
PSC Principal U.S. Small-Cap .. 0.00 % 0.38 %

-0.29 (-0.65%)

USD1.13B
BACK:LSE iShares US Equity Buyback.. 0.00 % 0.55 %

N/A

USD4.53M
FTEK:LSE Invesco KBW NASDAQ Fintec.. 0.00 % 0.49 %

+0.56 (+1.18%)

USD0.10B
OPEN:LSE iShares Thomson Reuters I.. 0.00 % 0.25 %

+0.03 (+0.43%)

USD0.02B
OPEN:XETRA iShares Thomson Reuters I.. 0.00 % 0.25 %

+0.04 (+0.69%)

USD0.02B

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 42.05% 94% A 93% A
Dividend Return 0.28% 12% F 17% F
Total Return 42.33% 94% A 93% A
Trailing 12 Months  
Capital Gain 160.61% 82% B- 89% B+
Dividend Return 2.08% 25% F 28% F
Total Return 162.69% 82% B- 89% B+
Trailing 5 Years  
Capital Gain -48.90% 10% F 9% F
Dividend Return N/A N/A N/A N/A N/A
Total Return -48.90% 10% F 7% F
Average Annual (5 Year Horizon)  
Capital Gain -17.58% 17% F 5% F
Dividend Return 1.12% 35% F 26% F
Total Return -16.46% 14% F 4% F
Risk Return Profile  
Volatility (Standard Deviation) 50.51% 17% F 14% F
Risk Adjusted Return -32.58% 17% F 9% F
Market Capitalization 5.22B 62% D- 74% C
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 87%-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 23.54 24% F 36% F
Price/Book Ratio 3.59 20% F 30% F
Price / Cash Flow Ratio 2.77 41% F 72% C-
EV/EBITDA 35.18 17% F 15% F
Management Effectiveness  
Return on Equity 18.97% 81% B- 86% B
Return on Invested Capital 8.35% 75% C 70% C-
Return on Assets 1.39% 53% F 40% F
Debt to Equity Ratio 253.63% 29% F 12% F
Technical Ratios  
Short Ratio 3.71 20% F 19% F
Short Percent 8.15% 14% F 36% F
Beta 2.66 8% F 5% 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.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than 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:
Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

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.

Highly 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.

Overpriced on free cash flow basis

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

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.