Alliance Data Systems
Alliance Data Systems Corporation provides data-driven marketing and loyalty solutions worldwide. The last earnings update was 22 days ago. More info.
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ADS Share Price and Events
7 Day Returns
1 Year Returns
ADS Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Alliance Data Systems (ADS) | -1.5% | -2.8% | 9.2% | -25.7% | -19.7% | -38.2% |
| US IT | 1.7% | 4.9% | 22.3% | 15.5% | 80.2% | 94.8% |
| US Market | 1.2% | 2.1% | 14.6% | 3% | 39% | 43.5% |
1 Year Return vs Industry and Market
- ADS underperformed the IT industry which returned 15.5% over the past year.
- ADS underperformed the Market in United States of America which returned 3% over the past year.
ADS Value
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.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Alliance Data Systems.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 22 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 14.7% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| 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))
= 1.064 (1 + (1- 21%) (282.17%)) |
2.632 |
| 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)
= 2.73% + (2 * 5.96%) |
14.65% |
Discounted Cash Flow Calculation for NYSE:ADS 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.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 14.65%) |
|
|---|---|---|---|
| 2019 | 2,549.33 | Analyst x3 | 2,223.58 |
| 2020 | 2,780.00 | Analyst x2 | 2,114.93 |
| 2021 | 2,893.97 | Est @ 4.1% | 1,920.31 |
| 2022 | 3,000.71 | Est @ 3.69% | 1,736.71 |
| 2023 | 3,102.77 | Est @ 3.4% | 1,566.32 |
| 2024 | 3,202.05 | Est @ 3.2% | 1,409.89 |
| 2025 | 3,299.99 | Est @ 3.06% | 1,267.34 |
| 2026 | 3,397.68 | Est @ 2.96% | 1,138.13 |
| 2027 | 3,495.91 | Est @ 2.89% | 1,021.40 |
| 2028 | 3,595.29 | Est @ 2.84% | 916.21 |
| Present value of next 10 years cash flows | $15,314.81 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $3,595.29 × (1 + 2.73%) ÷ (14.65% – 2.73%) |
$30,985.27 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $30,985.27 ÷ (1 + 14.65%)10 |
$7,896.14 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $15,314.81 + $7,896.14 |
$23,210.95 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $23,210.95 / 53.00 |
$437.96 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $437.96 |
| Current discount | Discount to share price of
$168.40
= -1 x ($168.40 - $437.96) / $437.96 |
61.5% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- 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?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $17.54 |
| NYSE:ADS Share Price ** | NYSE (2019-03-20) in USD | $168.4 |
| United States of America IT Industry PE Ratio | Median Figure of 78 Publicly-Listed IT Companies | 30.36x |
| United States of America Market PE Ratio | Median Figure of 3,058 Publicly-Listed Companies | 17.69x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Alliance Data Systems.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:ADS Share Price ÷ EPS (both in USD) = 168.4 ÷ 17.54 |
9.6x |
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 US IT industry average.
- Alliance Data Systems is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Alliance Data Systems's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 9.6x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts |
4.5%per year |
| United States of America IT Industry PEG Ratio | Median Figure of 64 Publicly-Listed IT Companies | 2.42x |
| United States of America Market PEG Ratio | Median Figure of 2,103 Publicly-Listed Companies | 1.48x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 9.6x ÷ 4.5% |
2.15x |
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?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $43.67 |
| NYSE:ADS Share Price * | NYSE (2019-03-20) in USD | $168.4 |
| United States of America IT Industry PB Ratio | Median Figure of 122 Publicly-Listed IT Companies | 4.43x |
| United States of America Market PB Ratio | Median Figure of 5,156 Publicly-Listed Companies | 1.89x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:ADS Share Price ÷ Book Value per Share (both in USD) = 168.4 ÷ 43.67 |
3.86x |
* 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 US IT industry average.
Value checks
We assess Alliance Data Systems's value by looking at:- 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. )
- Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the IT industry average (and greater than 0)? (1 check) 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.
ADS Future Performance
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!
Earnings growth vs Low Risk Savings
- Alliance Data Systems's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Alliance Data Systems's earnings growth is positive but not above the United States of America market average.
- Alliance Data Systems's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:ADS Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 22 Analysts | 4.5% |
| NYSE:ADS Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 22 Analysts | 5.6% |
| United States of America IT Industry Earnings Growth Rate | Market Cap Weighted Average | 15.7% |
| United States of America IT Industry Revenue Growth Rate | Market Cap Weighted Average | 9% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.3% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*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
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 22 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 9,676 | 1,239 | 2 | |
| 2020-12-31 | 8,647 | 3,031 | 1,013 | 20 |
| 2019-12-31 | 7,998 | 2,754 | 868 | 22 |
| 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.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 22 Analyst Estimates (S&P Global) | See Below |
All data from Alliance Data Systems Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 24.29 | 25.13 | 23.46 | 2.00 |
| 2020-12-31 | 19.62 | 23.04 | 17.46 | 13.00 |
| 2019-12-31 | 16.49 | 20.31 | 15.30 | 15.00 |
| 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%).
Future performance checks
We assess Alliance Data Systems's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Alliance Data Systems has a total score of 1/6, 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.
ADS 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
Past Earnings growth analysis
- 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 US IT industry average in the past year (22.1% vs 16%).
Earnings and Revenue History
All data from Alliance Data Systems Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| 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 | |
| 2012-03-31 | 3,324.42 | 344.14 | 98.32 |
*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 US 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).
Past performance checks
We assess Alliance Data Systems's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
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.
ADS 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.
- 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
Assets
Liabilities and shares
- 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.
All data from Alliance Data Systems Company Filings, last reported 2 months ago.
| 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 |
| 2012-03-31 | 293.57 | 6,657.45 | 399.04 |
- 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).
Financial health checks
We assess Alliance Data Systems's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Alliance Data Systems has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- 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.
ADS 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
If you bought
$2,000 of
Alliance Data Systems
shares you are expected to receive
$30
in your first year as a dividend.
Dividend Amount
- Alliance Data Systems's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
- Alliance Data Systems's dividend is below the markets top 25% of dividend payers in United States of America (3.64%).
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.
| 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 22 Analyst Estimates (S&P Global) | See Below |
| United States of America IT Industry Average Dividend Yield | Market Cap Weighted Average of 33 Stocks | 1.4% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2004 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-12-31 | ||
| 2020-12-31 | 2.55 | 9.00 |
| 2019-12-31 | 2.50 | 9.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-02-07 | 2.520 | 1.480 |
| 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.
Income/ dividend checks
We assess Alliance Data Systems's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- 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) 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.
ADS Management
CEO
| COMPENSATION | $10,882,810 |
| AGE | 55 |
| TENURE AS CEO | 10 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 United States of America.
Management Team Tenure
Average tenure and age of the Alliance Data Systems management team in years:
- 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
President
$11M
55
10 yrs
Charles Horn
Executive VP & CFO
$3M
57
9.3 yrs
Bryan Pearson
Executive VP & President of LoyaltyOne
$4M
54
13.2 yrs
Bryan Kennedy
Executive Vice President
$4M
49
22.8 yrs
Melisa Miller
Executive VP & President of Card Services
$4M
59
7.5 yrs
Laura Santillan
Senior VP & Chief Accounting Officer
46
9.1 yrs
Tiffany Louder
Investor Relations
Joseph Motes
Senior VP
56
3.7 yrs
Karen Wald
Senior Vice President of Corporate Affairs & Chief of Staff
Jeff Chesnut
Senior VP & Treasurer
Board of Directors Tenure
Average tenure and age of the Alliance Data Systems board of directors in years:
- The tenure for the Alliance Data Systems board of directors is about average.
Board of Directors
Rob Minicucci
Non-Executive Chairman
$385K
66
9.3 yrs
Ed Heffernan
President
$11M
55
9.8 yrs
Roger Ballou
Director
$298K
67
18.1 yrs
Ernest Draper
Director
$275K
76
14.1 yrs
Laurie Tucker
Director
$244K
61
3.8 yrs
Bruce Anderson
Director
$244K
78
22.6 yrs
Ken Jensen
Director
$255K
74
18.1 yrs
Tim Theriault
Director
$247K
57
2.4 yrs
Kelly Barlow
Director
$229K
49
1.8 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 30. Nov 18 | Sell | ValueAct Capital Management L.P. | Company | 28. Nov 18 | 29. Nov 18 | -200,000 | $199.10 | $-39,719,500 | ||
| 08. Nov 18 | Sell | ValueAct Capital Management L.P. | Company | 06. Nov 18 | 06. Nov 18 | -675,000 | $200.00 | $-135,000,000 | ||
| 16. Aug 18 | Sell | Bryan Pearson | Individual | 14. Aug 18 | 14. Aug 18 | -3,424 | $231.67 | $-793,231 | ||
| 26. Jul 18 | Sell | Charles Horn | Individual | 24. Jul 18 | 24. Jul 18 | -16,035 | $235.01 | $-3,729,392 | ||
| 17. May 18 | Buy | ValueAct Capital Management L.P. | Company | 15. May 18 | 15. May 18 | 2,646 | $205.00 | $542,430 | ||
| 10. May 18 | Buy | ValueAct Capital Management L.P. | Company | 08. May 18 | 09. May 18 | 202,600 | $202.65 | $40,884,390 | ||
Management checks
We assess Alliance Data Systems's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) 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.
ADS News
Simply Wall St News
Is Now The Time To Look At Buying Alliance Data Systems Corporation (NYSE:ADS)?
Alliance Data Systems Corporation (NYSE:ADS), which is in the it business, and is based in United States,. … As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Today I will analyse the most recent data on Alliance Data Systems’s outlook and valuation to see if the opportunity still exists
Simply Wall St - – Full articleAre Insiders Selling Alliance Data Systems Corporation (NYSE:ADS) Stock?
So before you buy or sell Alliance Data Systems Corporation (NYSE:ADS), you may well want to know whether insiders have been buying or selling. … The Last 12 Months Of Insider Transactions At Alliance Data Systems. … Over the last year we saw more insider selling of Alliance Data Systems shares, than buying
Simply Wall St - – Full articleWhat Should You Know About Alliance Data Systems Corporation's (NYSE:ADS) Future?
Help shape the future of investing tools and receive a $20 prize! … The latest earnings update Alliance Data Systems Corporation (NYSE:ADS) released in December 2018a
Simply Wall St - – Full articleDoes Alliance Data Systems Corporation's (NYSE:ADS) CEO Pay Compare Well With Peers?
First, this article will compare CEO compensation with compensation at other large companies. … View our latest analysis for Alliance Data Systems … How Does Ed Heffernan's Compensation Compare With Similar Sized Companies?
Simply Wall St - – Full articleWhy Fundamental Investors Might Love Alliance Data Systems Corporation (NYSE:ADS)
In the case of Alliance Data Systems Corporation (NYSE:ADS), there's. … is a company that has been able to sustain great financial health, trading at an attractive share price. … report on Alliance Data Systems here
Simply Wall St - – Full articleIs Alliance Data Systems Corporation (NYSE:ADS) A Smart Pick For Income Investors?
Alliance Data Systems Corporation (NYSE:ADS) has paid a dividend to shareholders in the last few years. … Let's dig deeper into whether Alliance Data Systems should have a place in your portfolio. … View our latest analysis for Alliance Data Systems
Simply Wall St - – Full articleDoes Alliance Data Systems Corporation (NYSE:ADS) Have A Good P/E Ratio?
To keep it practical, we'll show how Alliance Data Systems Corporation's (NYSE:ADS) P/E ratio could help you assess the value on offer. … Alliance Data Systems has a P/E ratio of 10.42, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleAt US$196, Is It Time To Put Alliance Data Systems Corporation (NYSE:ADS) On Your Watch List?
Alliance Data Systems Corporation (NYSE:ADS). … A question to answer is whether Alliance Data Systems's current trading price of $196 reflective of the actual value of the? … Let’s take a look at Alliance Data Systems’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change
Simply Wall St - – Full articleWhat Should You Know About Alliance Data Systems Corporation's (NYSE:ADS) Return On Capital?
and want a simplistic look at the return on Alliance Data Systems Corporation (NYSE:ADS) stock. … This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock. … Thus, to understand how your money can grow by investing in Alliance Data Systems, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)
Simply Wall St - – Full articleDoes Alliance Data Systems Corporation's (NYSE:ADS) CEO Pay Matter?
Ed Heffernan became the CEO of Alliance Data Systems Corporation (NYSE:ADS) in 2009. … First, this article will compare CEO compensation with compensation at other large companies. … Our data indicates that Alliance Data Systems Corporation is worth US$11.7b, and total annual CEO compensation is US$11m.
Simply Wall St - – Full articleADS 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 |
| ADS | |
| Exchange: | NYSE |
| Founded: | 1996 |
| $8,924,810,154 | |
| 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
Industry
| Data Processing and Outsourced Services | |
| Software |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/03/20 23:32 |
| End of day share price update: | 2019/03/20 00:00 |
| Last estimates confirmation: | 2019/03/18 |
| 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.
