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:
Below please find a table outlining a discounted cash flow forecast for ADS, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that Alliance Data Systems Corp ranked in the 71th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 159%. As for the metrics that stood out in our discounted cash flow analysis of Alliance Data Systems Corp, consider:
The company has produced more trailing twelve month cash flow than 72.44% of its sector Financial Services.
31% of the company's capital comes from equity, which is greater than only 8.68% of stocks in our cash flow based forecasting set.
The business' balance sheet reveals debt to be 69% of the company's capital (with equity being the remaining amount). Approximately 91.28% 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 PFX, PSEC, SAMG, TREE, and MKL.
Alliance Data Systems Corporation (NYSE: ADS) today announced its Card Services business, a provider of market-leading payment products and digital solutions, including Bread® and Comenity-branded financial services, has signed a multi-year renewal agreement to continue providing private label credit card services for Arhaus®, a Cleveland-headquartered, family-owned and operated home furnishings retailer with more than 70 locations nationwide.
Alliance Data Systems Corporation (NYSE: ADS), a leading provider of data-driven marketing, loyalty and payment solutions, will host a conference call on Thursday, January 28, 2021, at 8:30 a.m. ET to discuss the Company's fourth-quarter and full-year 2020 results. Hosting the call will be Ralph Andretta, President and Chief Executive Officer, as well as Timothy King, Executive Vice President and Chief Financial Officer.