Alliance Data Systems Corporation (ADS) Company Bio
Alliance Data Systems provides marketing and loyalty solutions in the United States and internationally. The company operates through three segments: LoyaltyOne, Epsilon, and Private Label Services and Credit. The company was founded in 1996 and is based in Plano, Texas.
ADS Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Alliance Data Systems Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Alliance Data Systems Corp ranked in the 75th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. The most interesting components of our discounted cash flow analysis for Alliance Data Systems Corp ended up being:
As a business, ADS is generating more cash flow than 75.41% of positive cash flow stocks in the Financial Services.
18% of the company's capital comes from equity, which is greater than only 7.97% of stocks in our cash flow based forecasting set.
The business' balance sheet reveals debt to be 82% of the company's capital (with equity being the remaining amount). Approximately 91.99% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
For other companies in the Financial Services that have a similar discounted cashflow valuation profile (and ensuing price forecasts) as ADS, try CUII, ECPG, UIHC, MMAC, and WRLD.
Alliance Data Systems Corporation (ADS) Q2 2020 Earnings Conference Call July 23, 2020, 08:30 AM ET Company Participants Vicky Nakhla - AdvisIRy Partners Ralph Andretta - President & CEO Tim King - EVP & CFO Conference Call Participants Sanjay Sakhrani - KBW Andrew Bauch - Wolfe Research Bob Napoli -...
COLUMBUS, Ohio , July 23, 2020 /PRNewswire/ -- Alliance Data Systems Corporation (NYSE: ADS ), a leading provider of data-driven marketing, loyalty and payment solutions, provided an update on its Card Services segment. The following tables present the Company's net charge-offs and delinquency rate for the periods indicated. For the month ended June 30, 2020 For the three months ended June 30, 2020 (dollars in thousands) Average receivables $ 15,609,248 $ 16,116,346 Year over year change in average receivables (9)% (4)% Net charge-offs $ 96,000 $ 304,602 Net charge-offs as a percentage of average receivables (1) 7.4% 7.6%
On the call today, we have Ralph Andretta, President and Chief Executive Officer of Alliance Data; and Tim King, Executive Vice President and Chief Financial Officer of Alliance Data. Before we begin, I would like to remind you that some of the comments made on today's call and some of the responses to your questions may contain forward-looking statements.