Loading...

Alliance Data Systems

DB:LID
Snowflake Description

Undervalued with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LID
DB
$9B
Market Cap
  1. Home
  2. DE
  3. Software
Company description

Alliance Data Systems Corporation provides data-driven marketing and loyalty solutions worldwide. The last earnings update was 51 days ago. More info.


Add to Portfolio Compare Print
LID Share Price and Events
7 Day Returns
-7.7%
DB:LID
8.9%
DE IT
2.5%
DE Market
1 Year Returns
-14.8%
DB:LID
7.8%
DE IT
-6.7%
DE Market
LID Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Alliance Data Systems (LID) -7.7% -3.9% -3.1% -14.8% -19.6% -17.5%
DE IT 8.9% 12.7% -3.8% 7.8% 152.7% 231.2%
DE Market 2.5% 3.3% 9.2% -6.7% 9% 13.5%
1 Year Return vs Industry and Market
  • LID underperformed the IT industry which returned 7.8% over the past year.
  • LID underperformed the Market in Germany which returned -6.7% over the past year.
Price Volatility
LID
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Alliance Data Systems undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Alliance Data Systems to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Alliance Data Systems.

DB:LID Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 21 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.1%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:LID
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
IT Unlevered Beta Simply Wall St/ S&P Global 1.06
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.06 (1 + (1- 21%) (288.72%))
2.659
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (2 * 5.96%)
12.15%

Discounted Cash Flow Calculation for DB:LID using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Alliance Data Systems is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:LID DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 12.15%)
2019 2,186.23 Analyst x4 1,949.41
2020 2,774.50 Analyst x2 2,205.98
2021 2,877.00 Analyst x1 2,039.70
2022 2,952.07 Est @ 2.61% 1,866.21
2023 3,008.01 Est @ 1.89% 1,695.59
2024 3,049.96 Est @ 1.39% 1,533.01
2025 3,081.83 Est @ 1.04% 1,381.23
2026 3,106.47 Est @ 0.8% 1,241.47
2027 3,125.99 Est @ 0.63% 1,113.94
2028 3,141.87 Est @ 0.51% 998.33
Present value of next 10 years cash flows $16,024.87
DB:LID DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $3,141.87 × (1 + 0.23%) ÷ (12.15% – 0.23%)
$26,418.09
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $26,418.09 ÷ (1 + 12.15%)10
$8,394.33
DB:LID Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $16,024.87 + $8,394.33
$24,419.20
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $24,419.20 / 53.00
$460.76
DB:LID Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:LID represents 0.88549x of NYSE:ADS
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.88549x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 460.76 x 0.88549
€408.00
Value per share (EUR) From above. €408.00
Current discount Discount to share price of €143.98
= -1 x (€143.98 - €408.00) / €408.00
64.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Alliance Data Systems is available for.
Intrinsic value
>50%
Share price is €143.98 vs Future cash flow value of €408
Current Discount Checks
For Alliance Data Systems to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Alliance Data Systems's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Alliance Data Systems's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Alliance Data Systems's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Alliance Data Systems's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:LID PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $17.54
NYSE:ADS Share Price ** NYSE (2019-04-18) in USD $162.6
Germany IT Industry PE Ratio Median Figure of 20 Publicly-Listed IT Companies 25.76x
Germany Market PE Ratio Median Figure of 421 Publicly-Listed Companies 19.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Alliance Data Systems.

DB:LID PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:ADS Share Price ÷ EPS (both in USD)

= 162.6 ÷ 17.54

9.27x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Alliance Data Systems is good value based on earnings compared to the DE IT industry average.
  • Alliance Data Systems is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Alliance Data Systems's expected growth come at a high price?
Raw Data
DB:LID PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.27x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts
6.5%per year
Germany IT Industry PEG Ratio Median Figure of 14 Publicly-Listed IT Companies 1.57x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

DB:LID PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.27x ÷ 6.5%

1.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Alliance Data Systems is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Alliance Data Systems's assets?
Raw Data
DB:LID PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $43.67
NYSE:ADS Share Price * NYSE (2019-04-18) in USD $162.6
Germany IT Industry PB Ratio Median Figure of 24 Publicly-Listed IT Companies 4.07x
Germany Market PB Ratio Median Figure of 570 Publicly-Listed Companies 1.87x
DB:LID PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:ADS Share Price ÷ Book Value per Share (both in USD)

= 162.6 ÷ 43.67

3.72x

* Primary Listing of Alliance Data Systems.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Alliance Data Systems is good value based on assets compared to the DE IT industry average.
X
Value checks
We assess Alliance Data Systems's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Alliance Data Systems has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Alliance Data Systems expected to perform in the next 1 to 3 years based on estimates from 21 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Alliance Data Systems expected to grow at an attractive rate?
  • Alliance Data Systems's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Alliance Data Systems's earnings growth is positive but not above the Germany market average.
  • Alliance Data Systems's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:LID Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:LID Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 21 Analysts 6.5%
DB:LID Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 21 Analysts 5.8%
Germany IT Industry Earnings Growth Rate Market Cap Weighted Average 23.7%
Germany IT Industry Revenue Growth Rate Market Cap Weighted Average 16.3%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.7%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:LID Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:LID Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 9,531 3,118 1,227 4
2020-12-31 8,650 3,031 1,043 18
2019-12-31 7,966 2,812 874 21
DB:LID Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 7,791 2,755 963
2018-09-30 7,842 2,876 950
2018-06-30 7,807 2,909 886
2018-03-31 7,725 2,787 806
2017-12-31 7,719 2,599 789
2017-09-30 7,441 2,518 528
2017-06-30 7,414 2,382 502
2017-03-31 7,341 2,306 438
2016-12-31 7,138 2,127 432
2016-09-30 7,059 2,029 566
2016-06-30 6,763 1,897 487
2016-03-31 6,515 1,811 545

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Alliance Data Systems's earnings are expected to grow by 6.5% yearly, however this is not considered high growth (20% yearly).
  • Alliance Data Systems's revenue is expected to grow by 5.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:LID Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below

All data from Alliance Data Systems Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:LID Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 23.81 24.01 23.46 3.00
2020-12-31 19.51 22.07 17.42 11.00
2019-12-31 16.44 19.54 15.09 14.00
DB:LID Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 17.54
2018-09-30 17.19
2018-06-30 16.01
2018-03-31 14.54
2017-12-31 14.16
2017-09-30 9.40
2017-06-30 8.82
2017-03-31 7.58
2016-12-31 7.38
2016-09-30 9.50
2016-06-30 8.08
2016-03-31 8.93

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Alliance Data Systems is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Alliance Data Systems's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Alliance Data Systems has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Alliance Data Systems performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Alliance Data Systems's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Alliance Data Systems's year on year earnings growth rate has been positive over the past 5 years.
  • Alliance Data Systems's 1-year earnings growth exceeds its 5-year average (22.1% vs 13.1%)
  • Alliance Data Systems's earnings growth has exceeded the DE IT industry average in the past year (22.1% vs 18.1%).
Earnings and Revenue History
Alliance Data Systems's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Alliance Data Systems Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:LID Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 7,791.20 963.10 172.70
2018-09-30 7,841.50 949.50 167.90
2018-06-30 7,806.70 886.40 160.50
2018-03-31 7,724.60 806.20 154.80
2017-12-31 7,719.40 788.70 166.30
2017-09-30 7,440.80 528.00 156.70
2017-06-30 7,413.90 502.10 159.70
2017-03-31 7,341.00 437.50 160.20
2016-12-31 7,138.10 432.30 143.20
2016-09-30 7,059.30 566.10 137.90
2016-06-30 6,762.90 487.10 137.90
2016-03-31 6,514.60 545.30 135.90
2015-12-31 6,439.70 551.50 138.50
2015-09-30 6,176.65 459.54 151.97
2015-06-30 5,906.68 495.38 150.24
2015-03-31 5,671.24 501.52 137.64
2014-12-31 5,302.90 491.60 141.50
2014-09-30 4,958.28 556.95 126.22
2014-06-30 4,735.59 525.59 120.90
2014-03-31 4,498.53 504.59 120.85
2013-12-31 4,319.06 496.17 109.12
2013-09-30 4,149.82 461.96 116.34
2013-06-30 3,964.87 448.63 107.08
2013-03-31 3,803.26 436.01 106.35
2012-12-31 3,641.39 422.26 108.06
2012-09-30 3,517.10 404.50 103.17
2012-06-30 3,450.45 378.94 104.83

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Alliance Data Systems made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • Alliance Data Systems used its assets less efficiently than the DE IT industry average last year based on Return on Assets.
  • Alliance Data Systems has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Alliance Data Systems's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Alliance Data Systems has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Alliance Data Systems's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Alliance Data Systems's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Alliance Data Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Alliance Data Systems's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Alliance Data Systems's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Alliance Data Systems Company Filings, last reported 3 months ago.

DB:LID Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 2,332.10 25,183.30 3,863.10
2018-09-30 2,291.20 24,627.60 3,600.90
2018-06-30 2,119.30 24,123.00 3,449.20
2018-03-31 2,001.40 24,695.70 3,549.50
2017-12-31 1,855.30 25,817.80 4,190.00
2017-09-30 1,593.60 23,482.70 3,326.00
2017-06-30 1,424.80 21,706.80 1,945.90
2017-03-31 1,363.50 20,670.70 1,866.80
2016-12-31 1,658.20 20,948.70 1,859.20
2016-09-30 1,783.80 19,339.30 1,500.50
2016-06-30 1,729.70 18,581.70 1,316.50
2016-03-31 1,933.60 17,930.90 970.00
2015-12-31 2,177.40 17,106.00 1,168.00
2015-09-30 2,184.73 15,294.83 977.34
2015-06-30 2,192.81 14,651.51 822.31
2015-03-31 2,138.31 14,172.90 760.40
2014-12-31 2,631.95 14,175.03 1,077.15
2014-09-30 1,398.09 11,137.09 634.82
2014-06-30 1,290.01 10,283.85 631.17
2014-03-31 1,292.71 9,806.50 706.64
2013-12-31 855.76 10,208.56 969.82
2013-09-30 711.42 8,975.74 784.04
2013-06-30 580.85 9,123.33 749.82
2013-03-31 604.53 9,133.90 764.15
2012-12-31 528.49 9,222.74 893.35
2012-09-30 492.49 7,809.65 766.32
2012-06-30 360.99 7,541.97 642.20
  • Alliance Data Systems's level of debt (1079.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (1185.7% vs 1079.9% today).
  • Debt is not well covered by operating cash flow (10.9%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.3x coverage).
X
Financial health checks
We assess Alliance Data Systems's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Alliance Data Systems has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Alliance Data Systems's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.55%
Current annual income from Alliance Data Systems dividends. Estimated to be 1.54% next year.
If you bought €2,000 of Alliance Data Systems shares you are expected to receive €31 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Alliance Data Systems's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.44%).
  • Alliance Data Systems's dividend is below the markets top 25% of dividend payers in Germany (3.74%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:LID Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 21 Analyst Estimates (S&P Global) See Below
Germany IT Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 0.6%
Germany Market Average Dividend Yield Market Cap Weighted Average of 324 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:LID Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 2.52 2.00
2020-12-31 2.53 9.00
2019-12-31 2.48 9.00
DB:LID Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-07 2.520 1.472
2018-10-18 2.280 1.261
2018-07-19 2.280 0.978
2018-04-19 2.280 1.042
2018-01-25 2.280 0.991
2017-10-19 2.080 0.866
2017-07-20 2.080 0.921
2017-04-20 2.080 0.827
2017-01-26 2.080 0.868
2016-10-20 2.080 0.936

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Alliance Data Systems has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Alliance Data Systems only paid a dividend in the past 2 years.
Current Payout to shareholders
What portion of Alliance Data Systems's earnings are paid to the shareholders as a dividend.
  • Dividends paid are thoroughly covered by earnings (7.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (11.1x coverage).
X
Income/ dividend checks
We assess Alliance Data Systems's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Alliance Data Systems afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Alliance Data Systems has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Alliance Data Systems's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ed Heffernan
COMPENSATION $10,882,810
AGE 55
TENURE AS CEO 10.1 years
CEO Bio

Mr. Edward J. Heffernan, also known as Ed, serves as the President and Chief Executive Officer at Alliance Data Systems Corp. Mr. Heffernan has been a Director at Mr. Edward J. Heffernan since June 2009. From May 2000 until March 2009, Mr. Heffernan served as an Executive Vice President and Chief Financial Officer and, prior to that, he was responsible for mergers and acquisitions. Before joining us, he served as Vice President of mergers and acquisitions, for First Data Corporation from October 1994 to May 1998. Prior to that, he served as Vice President of Mergers and Acquisitions for Citicorp from July 1990 to October 1994, and prior to that he served in corporate finance at Credit Suisse First Boston from June 1986 until July 1990. Mr. Heffernan's other board activities are focused solely in the not-for-profit sector, and specifically those areas identified by associates as most meaningful to them: children's health and education. He supports the Plano Independent School District (PISD) Foundation in the North Texas area, and is a Member of the PISD CEO Council. He serves as Director of Valor Telecommunications, LLC. He is the Chairman of the board of Children's Health System of Texas (parent company of Children's Medical Centers), serves on the board of trustees of The Shelton School of Dallas (for learning different children) as well as holding board positions in higher education at Wesleyan University and Columbia Business School. Mr. Heffernan holds a Bachelor's degree from Wesleyan University and an MBA from Columbia Business School.

CEO Compensation
  • Ed's compensation has increased by more than 20% in the past year.
  • Ed's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Alliance Data Systems management team in years:

9.3
Average Tenure
55
Average Age
  • The average tenure for the Alliance Data Systems management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Ed Heffernan

TITLE
President
COMPENSATION
$11M
AGE
55
TENURE
10.1 yrs

Charles Horn

TITLE
Executive VP & CFO
COMPENSATION
$3M
AGE
57
TENURE
9.3 yrs

Bryan Pearson

TITLE
Executive VP & President of LoyaltyOne
COMPENSATION
$4M
AGE
54
TENURE
13.3 yrs

Bryan Kennedy

TITLE
Executive Vice President
COMPENSATION
$4M
AGE
49
TENURE
22.8 yrs

Melisa Miller

TITLE
Executive VP & President of Card Services
COMPENSATION
$4M
AGE
59
TENURE
7.6 yrs

Laura Santillan

TITLE
Senior VP & Chief Accounting Officer
AGE
46
TENURE
9.2 yrs

Tiffany Louder

TITLE
Investor Relations

Joseph Motes

TITLE
Senior VP
AGE
56
TENURE
3.8 yrs

Karen Wald

TITLE
Senior Vice President of Corporate Affairs & Chief of Staff

Jeff Chesnut

TITLE
Senior VP & Treasurer
Board of Directors Tenure

Average tenure and age of the Alliance Data Systems board of directors in years:

9.8
Average Tenure
66
Average Age
  • The tenure for the Alliance Data Systems board of directors is about average.
Board of Directors

Rob Minicucci

TITLE
Non-Executive Chairman
COMPENSATION
$385K
AGE
66
TENURE
9.3 yrs

Ed Heffernan

TITLE
President
COMPENSATION
$11M
AGE
55
TENURE
9.8 yrs

Roger Ballou

TITLE
Director
COMPENSATION
$298K
AGE
67
TENURE
18.2 yrs

Ernest Draper

TITLE
Director
COMPENSATION
$275K
AGE
76
TENURE
14.2 yrs

Laurie Tucker

TITLE
Director
COMPENSATION
$244K
AGE
61
TENURE
3.8 yrs

Bruce Anderson

TITLE
Director
COMPENSATION
$244K
AGE
78
TENURE
22.7 yrs

Ken Jensen

TITLE
Director
COMPENSATION
$255K
AGE
74
TENURE
18.2 yrs

Tim Theriault

TITLE
Director
COMPENSATION
$247K
AGE
57
TENURE
2.5 yrs

Kelly Barlow

TITLE
Director
COMPENSATION
$229K
AGE
49
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
30. Nov 18 Sell ValueAct Capital Management L.P. Company 28. Nov 18 29. Nov 18 -200,000 €174.97 €-34,905,497
08. Nov 18 Sell ValueAct Capital Management L.P. Company 06. Nov 18 06. Nov 18 -675,000 €175.24 €-118,287,000
16. Aug 18 Sell Bryan Pearson Individual 14. Aug 18 14. Aug 18 -3,424 €203.98 €-698,440
26. Jul 18 Sell Charles Horn Individual 24. Jul 18 24. Jul 18 -16,035 €200.98 €-3,189,376
17. May 18 Buy ValueAct Capital Management L.P. Company 15. May 18 15. May 18 2,646 €172.77 €457,160
10. May 18 Buy ValueAct Capital Management L.P. Company 08. May 18 09. May 18 202,600 €170.89 €34,477,806
X
Management checks
We assess Alliance Data Systems's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Alliance Data Systems has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Alliance Data Systems Corporation provides data-driven marketing and loyalty solutions worldwide. It operates through three segments: LoyaltyOne, Epsilon, and Card Services. The company offers a portfolio of integrated outsourced marketing solutions, including customer loyalty programs, database marketing services, end-to-end marketing services, analytics and creative services, direct marketing services, and private label and co-brand retail credit card programs. It also focuses on facilitating and managing interactions between its clients and their customers through various consumer marketing channels, including in-store, online, email, social media, mobile, direct mail, and telephone. The company captures and analyzes data created during each customer interaction, leveraging the insight derived from that data to enable clients to identify and acquire new customers and to enhance customer loyalty. It serves clients across various end-markets, including financial services, specialty retail, grocery and drugstore chains, petroleum retail, automotive, hospitality and travel, telecommunications, insurance, and healthcare. Alliance Data Systems Corporation was founded in 1996 and is headquartered in Plano, Texas.

Details
Name: Alliance Data Systems Corporation
LID
Exchange: DB
Founded: 1996
$7,759,410,564
52,997,685
Website: http://www.alliancedata.com
Address: Alliance Data Systems Corporation
7500 Dallas Parkway,
Suite 700,
Plano,
Texas, 75024,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE ADS Common Stock New York Stock Exchange US USD 08. Jun 2001
DB LID Common Stock Deutsche Boerse AG DE EUR 08. Jun 2001
LSE 0HCR Common Stock London Stock Exchange GB USD 08. Jun 2001
Number of employees
Current staff
Staff numbers
20,000
Alliance Data Systems employees.
Industry
Data Processing and Outsourced Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/18 21:41
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/02/26
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.