ALLIANCE DATA SYSTEMS CORP (ADS)
Common Stock
ADS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 86 industry peers in the IT Services industry. ADS has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, ADS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year ADS was profitable.
ADS had positive earnings in each of the past 5 years.
In the past 5 years ADS always reported a positive cash flow from operatings.
1.2 Ratios
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.29% | ||
| ROE | 75.95% | ||
| ROIC | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 35.19% | ||
| PM (TTM) | 23.12% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
Compared to 1 year ago, ADS has about the same amount of shares outstanding.
The debt/assets ratio for ADS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.89, we must say that ADS is in the distress zone and has some risk of bankruptcy.
A Debt/Equity ratio of 8.85 is on the high side and indicates that ADS has dependencies on debt financing.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.89 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
ADS has a Current Ratio of 1.50. This is a normal value and indicates that ADS is financially healthy and should not expect problems in meeting its short term obligations.
ADS has a Quick Ratio of 1.48. This is a normal value and indicates that ADS is financially healthy and should not expect problems in meeting its short term obligations.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.48 |
3. Growth
3.1 Past
ADS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 91.57%, which is quite impressive.
ADS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.18% yearly.
The Revenue has grown by 51.53% in the past year. This is a very strong growth!
ADS shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -12.53% yearly.
EPS 1Y (TTM)91.57%
EPS 3Y-7.6%
EPS 5Y1.18%
EPS growth Q2Q-63.44%
Revenue 1Y (TTM)51.53%
Revenue growth 3Y-13.6%
Revenue growth 5Y-12.53%
Revenue growth Q2Q229.31%
3.2 Future
Based on estimates for the next years, ADS will show a decrease in Earnings Per Share. The EPS will decrease by -3.22% on average per year.
Based on estimates for the next years, ADS will show a quite strong growth in Revenue. The Revenue will grow by 8.78% on average per year.
EPS Next Y-34.51%
EPS Next 2Y-18.42%
EPS Next 3Y-9.2%
EPS Next 5Y-3.22%
Revenue Next Year-7.76%
Revenue Next 2Y1.58%
Revenue Next 3Y6%
Revenue Next 5Y8.78%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 3.16, which indicates a rather cheap valuation of ADS.
The average S&P500 Price/Earnings ratio is at 28.06. ADS is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 4.83 indicates a rather cheap valuation of ADS.
ADS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.16 | ||
| Fwd PE | 4.83 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 7.2 |
4.3 Compensation for Growth
ADS's earnings are expected to decrease with -9.20% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)2.69
EPS Next 2Y-18.42%
EPS Next 3Y-9.2%
5. Dividend
5.1 Amount
ADS has a Yearly Dividend Yield of 1.47%.
Compared to the average S&P500 Dividend Yield of 2.41, ADS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
5.2 History
The dividend of ADS decreases each year by -28.31%.
ADS has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-28.31%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
ADS pays out 2.65% of its income as dividend. This is a sustainable payout ratio.
The Dividend Rate of ADS has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP2.65%
EPS Next 2Y-18.42%
EPS Next 3Y-9.2%
ALLIANCE DATA SYSTEMS CORP
NYSE:ADS (4/1/2022, 7:10:18 PM)
After market: 56.8 0 (0%)56.8
+0.65 (+1.16%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.83B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.16 | ||
| Fwd PE | 4.83 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.29% | ||
| ROE | 75.95% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 35.19% | ||
| PM (TTM) | 23.12% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 8.85 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.5 | ||
| Quick Ratio | 1.48 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)91.57%
EPS 3Y-7.6%
EPS 5Y
EPS growth Q2Q
EPS Next Y-34.51%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)51.53%
Revenue growth 3Y-13.6%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y