Alliance Data Systems Corporation (ADS) Stock Guide

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Before we start: if you're looking for ADS stock price, you can quickly find it out by visiting Finny and typing "ADS quote". If you're looking for a quick scoop on ADS stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "ADS". You'll get all this info in one place. Or you can just type "ADS news" to get the latest stock news.

Looking to buy or sell Alliance Data Systems Corporation (ADS)? Interested in getting the full scoop on ADS, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this ADS stock guide, we'll address key questions about ADS, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are ADS earnings?
2. When is ADS earnings date?
3. What is ADS dividend?
4. What is ADS dividend yield?
5. What is ADS stock forecast (i.e., prediction)?
6. ADS buy or sell? What is ADS Finny Score?
7. What are the reasons to buy ADS? Why should I buy ADS stock?
8. What are the reasons to sell ADS? Why should I sell ADS stock?
9. What are ADS key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are ADS earnings?

ADS trailing 12-month earnings per share (EPS) is $3.07.

2. When is ADS earnings date?

ADS earnings date is July 16, 2020.

3. What is ADS dividend?

ADS forward dividend is $0.84.

4. What is ADS dividend yield?

ADS forward dividend yield is 2.27%.

Analyst Predictions

5. What is ADS stock forecast (i.e., prediction)?

Based on ADS analyst price targets, ADS stock forecast is $55.07 (for a year from now). That means the average analyst price target for ADS stock is $55.07. The prediction is based on 27 analyst estimates.

The low price target for ADS is $35.00, while the high price target is $85.00.

ADS analyst rating is Buy.

Analysis

6. ADS buy or sell? What is ADS Finny Score?

Our quantitative analysis shows 9 reasons to buy and 1 reason to sell ADS, resulting in Finny Score of 90.

7. What are the reasons to buy ADS? Why should I buy ADS stock?

Here are the reasons to buy ADS stock:

  • Alliance Data Systems is coming off a record period for signing new retail partnerships. Partnerships such as Williams-Sonoma and Ulta Beauty should fuel significant growth in the coming years.
  • The high switching costs that retail partners must endure insulate Alliance Data Systems from competitors.
  • Credit quality should not be an issue, because Alliance Data Systems caters to mostly higher-income consumers.
  • ADS quarterly revenue growth was 3.60%, higher than the industry and sector average revenue growth (2.55% and 2.03%, respectively). See ADS revenue growth chart.
  • ADS forward dividend yield is 2.27%, higher than the industry (0.52%) and sector (1.09%) forward dividend yields. See ADS forward dividend chart.
  • ADS forward P/E ratio is 2.96, which is low compared to its industry peers’ P/E ratios. See ADS forward P/E ratio chart.
  • ADS Price/Sales ratio is 0.33, which is low compared to its industry peers’ P/S ratios. See ADS forward Price/Sales ratio chart.
  • ADS PEG ratio (P/E adjusted for growth) is 1.16, which is low compared to its industry peers’ PEG ratios. See ADS PEG chart.
  • ADS average analyst rating is Buy. See ADS analyst rating chart.
  • ADS average analyst price target ($55.07) is above its current price ($42.05). See ADS price target chart.
  • ADS cash to debt ratio is 0.21, higher than the average industry (0.14) and sector (0.18) cash to debt ratio. See ADS cash to debt chart.
  • ADS Enterprise Value/EBITDA multiple is 19.38, which is low compared to its industry peers’ Enterprise Value/EBITDA ratios. See ADS Enterprise Value/EBITDA chart.

8. What are the reasons to sell ADS? Why should I sell ADS stock?

Let's look at the reasons to sell ADS stock (i.e., the bear case):

  • The impressive returns of private-label credit cards have attracted the attention of other card issuers, who would like to establish a presence in the space.
  • The company's growth in credit card receivables raises questions about whether the strong credit performance can continue.
  • Epsilon's agency marketing segment has come under pressure from traditional advertising agencies, which are enabling clients to circumvent Epsilon's offering.
  • ADS short share of float is 7.47%. The stock is much more frequently shorted than the average industry, sector or S&P 500 stock. See ADS short share of float chart.

Key Stats

9. What are ADS key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for ADS:

Metrics ADS
Price $49.35
Average Price Target / Upside $55.07 / 11.59%
Average Analyst Rating Buy
Forward Dividend Yield 2.27%
Industry Credit Services
Sector Financial Services
Number of Employees 20,000
Market Cap $1.88B
Forward P/E Ratio 2.96
Price/Book Ratio 0.33
Revenue (TTM) $5.63B
YoY Quarterly Revenue Growth 3.60%
Profit Margin 2.82%

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