Of note is the ratio of Alliance Data Systems Corp's sales and general administrative expense to its total operating expenses; merely 3.93% 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 97.72% 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 161.27%, greater than the shareholder yield of 97.51% of stocks in our set.
Stocks that are quantitatively similar to ADS, based on their financial statements, market capitalization, and price volatility, are CBL, WES, GLOP, ENBL, and UTL.
ADS's SEC filings can be seen here. And to visit Alliance Data Systems Corp's official web site, go to www.alliancedata.com.
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 75th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. In terms of the factors that were most noteworthy in this DCF analysis for ADS, they are:
As a business, ADS is generating more cash flow than 73.17% of positive cash flow stocks in the Financial Services.
21% of the company's capital comes from equity, which is greater than just 8.6% of stocks in our cash flow based forecasting set.
The business' balance sheet suggests that 79% of the company's capital is sourced from debt; this is greater than 91.36% of the free cash flow producing stocks we're observing.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of Alliance Data Systems Corp? See UIHC, DGICA, ACGL, GHL, and IVZ.
This article is part of a series that provides an ongoing analysis of the changes made to Allan Mecham’s 13F stock portfolio on a quarterly basis. It is based on Mecham’s regulatory 13F Form filed on 05/15/2020. Please visit our Tracking Allan Mecham’s Arlington Value Capital Portfolio article for an...
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.