Of note is the ratio of Alliance Data Systems Corp's sales and general administrative expense to its total operating expenses; merely 3.98% of US stocks have a lower such ratio.
Equity multiplier, or assets relative to shareholders' equity, comes in at 16.55 for Alliance Data Systems Corp; that's greater than it is for 97.74% of US stocks.
Alliance Data Systems Corp's shareholder yield -- a measure of how much capital is returned to stockholders via dividends and buybacks -- is 176.76%, greater than the shareholder yield of 97.74% of stocks in our set.
Stocks with similar financial metrics, market capitalization, and price volatility to Alliance Data Systems Corp are CBL, WES, GLOP, UTL, and VNOM.
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:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Alliance Data Systems Corp. To summarize, we found that Alliance Data Systems Corp ranked in the 77th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 361% on a DCF basis. 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 72.74% of positive cash flow stocks in the Financial Services.
18% of the company's capital comes from equity, which is greater than only 7.93% of stocks in our cash flow based forecasting set.
The business' balance sheet suggests that 82% of the company's capital is sourced from debt; this is greater than 92.03% of the free cash flow producing stocks we're observing.
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 MMAC, EV, ACGL, IVZ, and OXSQ.
COLUMBUS, Ohio, May 20, 2020 /PRNewswire/ -- Alliance Data Systems Corporation (NYSE: ADS), a leading provider of data-driven marketing, loyalty and payment solutions, today announced that Tim King, executive vice president and chief financial officer, will participate in a fireside chat…