Alliance Data Systems
Market Cap
US$5.7b
Last Updated
2019/10/23 23:31 UTC
Data Sources
Company Financials +
Executive Summary
Alliance Data Systems Corporation provides data-driven marketing and loyalty solutions worldwide.
Snowflake
Fundamentals
Good value with mediocre balance sheet.
Similar Companies
Share Price & News
How has Alliance Data Systems's share price performed over time and what events caused price changes?
Latest Share Price and Events
Market Performance
7 Day Return
0.4%
ADS
-4.1%
US IT
0.4%
US Market
1 Year Return
-37.8%
ADS
20.6%
US IT
11.4%
US Market
Return vs Industry: ADS underperformed the US IT industry which returned 19% over the past year.
Return vs Market: ADS underperformed the US Market which returned 8.9% over the past year.
Shareholder returns
| ADS | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.4% | -4.1% | 0.4% |
| 30 Day | -4.3% | -3.2% | 0.3% |
| 90 Day | -21.0% | -8.0% | -1.2% |
| 1 Year | -36.8%-37.8% | 21.9%20.6% | 13.9%11.4% |
| 3 Year | -36.8%-39.0% | 88.8%81.1% | 47.2%37.6% |
| 5 Year | -53.7%-55.3% | 134.9%113.5% | 62.4%44.6% |
Price Volatility Vs. Market
How volatile is Alliance Data Systems's share price compared to the market and industry in the last 5 years?
Simply Wall St News
22 hours ago | Simply Wall St
Is Alliance Data Systems Corporation (NYSE:ADS) Investing Your Capital Efficiently?1 week ago | Simply Wall St
Is There Now An Opportunity In Alliance Data Systems Corporation (NYSE:ADS)?3 weeks ago | Simply Wall St
Did Changing Sentiment Drive Alliance Data Systems's (NYSE:ADS) Share Price Down By 48%?Valuation
Is Alliance Data Systems undervalued compared to its fair value and its price relative to the market?
7.53x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: ADS ($123.76) is trading above our estimate of fair value ($93.02)
Significantly Below Fair Value: ADS is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: ADS is good value based on its PE Ratio (7.5x) compared to the IT industry average (36.1x).
PE vs Market: ADS is good value based on its PE Ratio (7.5x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: ADS is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: ADS is good value based on its PB Ratio (2.6x) compared to the US IT industry average (4.2x).
Next Steps
Future Growth
How is Alliance Data Systems forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
8.3%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ADS's forecast earnings growth (8.3% per year) is above the savings rate (2.7%).
Earnings vs Market: ADS's earnings (8.3% per year) are forecast to grow slower than the US market (14.5% per year).
High Growth Earnings: ADS's earnings are forecast to grow, but not significantly.
Revenue vs Market: ADS's revenue (4.4% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: ADS's revenue (4.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ADS's Return on Equity is forecast to be high in 3 years time (32%)
Next Steps
Past Performance
How has Alliance Data Systems performed over the past 5 years?
15.7%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: ADS's earnings have grown by 15.7% per year over the past 5 years.
Accelerating Growth: ADS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ADS had negative earnings growth (-3.5%) over the past year, making it difficult to compare to the IT industry average (9.8%).
Return on Equity
High ROE: Whilst ADS's Return on Equity (36.8%) is high, this metric is skewed due to their high level of debt.
Return on Assets
ROA vs Industry: ADS's Return on Assets is below or equal to the IT industry average last year.
Return on Capital Employed
ROCE Improving: ADS's Return on Capital Employed has declined over the past 3 years.
Next Steps
Financial Health
How is Alliance Data Systems's financial position?
Financial Position Analysis
Short Term Liabilities: ADS's short term assets ($28.3B) exceeds its short term liabilities ($10.6B)
Long Term Liabilities: ADS's short term assets (28.3B) exceeds its long term liabilities (17.7B)
Debt to Equity History and Analysis
Debt Level: ADS's debt to equity ratio (1048.9%) is considered high
Reducing Debt: ADS's debt to equity ratio has increased from 796.9% to 1048.9% over the past 5 years.
Debt Coverage: ADS's debt is not well covered by operating cash flow (10.1%).
Interest Coverage: ADS's interest payments on its debt are well covered by EBIT (5.1x coverage).
Balance Sheet
Inventory Level: ADS has a low level of unsold assets or inventory.
Debt Coverage by Assets: ADS's debt is covered by short term assets (assets are 1.1x debt).
Next Steps
Dividend
What is Alliance Data Systems's current dividend yield, its reliability and sustainability?
2.04%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: ADS's dividend (2.04%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: ADS's dividend (2.04%) is low compared to the top 25% of dividend payers in the US market (3.68%).
Stable Dividend: Whilst dividend payments have been stable, ADS has been paying a dividend for less than 10 years.
Growing Dividend: ADS's dividend payments have increased, but the company has only paid a dividend for 3 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (14.6%), ADS's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ADS's dividends in 3 years are forecast to be thoroughly covered by earnings (10.2% payout ratio).
Next Steps
Management
What is the CEO of Alliance Data Systems's salary, the management and board of directors tenure and is there insider trading?
0.5yrs
Average management tenure
CEO
Melisa Miller (60yo)
0.3yrs
Tenure
US$3,654,015
Compensation
Ms. Melisa A. Miller has been President, Chief Executive Officer and Director at Alliance Data Systems Corp. since June 05, 2019. She served as Executive Vice President and President of Card Services at Al ...
CEO Compensation Analysis
Compensation vs. Market: Melisa has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.
Compensation vs Earnings: Melisa's compensation has been consistent with company performance over the past year.
Management Age and Tenure
0.5yrs
Average Tenure
56.5yo
Average Age
Experienced Management: ADS's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.
Board Age and Tenure
4.3yrs
Average Tenure
62yo
Average Age
Experienced Board: ADS's board of directors are considered experienced (4.3 years average tenure).
Insider Trading
Insider Buying: ADS insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Financial Officer Executive VP & CFO |
| Shares | 2,600 |
| Max Price | US$156.30 |
| Entity | Company |
| Shares | 200,000 |
| Max Price | US$199.10 |
| Entity | Company |
| Shares | 675,000 |
| Max Price | US$200.00 |
Ownership Breakdown
Management Team
Charles Horn (58yo)
Executive VP & Vice Chairman
- Tenure: 0.8yrs
- Compensation: US$2.96m
Joseph Motes (57yo)
Executive VP
- Tenure: 0.3yrs
Claudia Mennen-Vermeule (46yo)
Interim Chief Executive Officer of BrandLoyalty
- Tenure: 0.2yrs
Laura Santillan (47yo)
Senior VP & Chief Accounting Officer
- Tenure: 9.7yrs
Melisa Miller (60yo)
President
- Tenure: 0.3yrs
- Compensation: US$3.65m
Jami Dewolf
Chief Marketing Officer of Card Services Business for Alliance Data
- Tenure: 0yrs
Jeff Chesnut
Senior VP & Treasurer
- Tenure: 4.8yrs
Tiffany Louder
Investor Relations
- Tenure: 0yrs
Greg Betchkal
Chief Risk Officer
- Tenure: 1.7yrs
Tim King (56yo)
Executive VP & CFO
- Tenure: 0.3yrs
Board Members
Bruce Anderson (79yo)
Independent Director
- Tenure: 23.2yrs
- Compensation: US$251.85k
Rob Minicucci (67yo)
Non-Executive Chairman
- Tenure: 9.8yrs
- Compensation: US$422.53k
Roger Ballou (68yo)
Independent Director
- Tenure: 18.7yrs
- Compensation: US$286.18k
Ken Jensen (75yo)
Independent Director
- Tenure: 18.7yrs
- Compensation: US$255.26k
Tim Theriault (58yo)
Independent Director
- Tenure: 3yrs
- Compensation: US$254.76k
Kelly Barlow (50yo)
Independent Director
- Tenure: 2.3yrs
- Compensation: US$253.76k
Sharen Turney (62yo)
Director
- Tenure: 0.3yrs
Laurie Tucker (62yo)
Independent Director
- Tenure: 4.3yrs
- Compensation: US$271.13k
Melisa Miller (60yo)
President
- Tenure: 0.3yrs
- Compensation: US$3.65m
Company Information
Alliance Data Systems Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Alliance Data Systems Corporation
- Ticker: ADS
- Exchange: NYSE
- Founded: 1996
- Industry: Data Processing and Outsourced Services
- Sector: Software
- Market Cap: US$5.699b
- Shares outstanding: 46.05m
- Website: https://www.alliancedata.com
Number of Employees
Location
- Alliance Data Systems Corporation
- 3075 Loyalty Circle
- Columbus
- Ohio
- 43219
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ADS | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jun 2001 |
| LID | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jun 2001 |
| LID | BST (Boerse-Stuttgart) | Yes | Common Stock | DE | EUR | Jun 2001 |
| 0HCR | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jun 2001 |
Biography
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  ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/23 23:31 |
| End of Day Share Price | 2019/10/23 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.