|Company name||Alliance Data Systems Corporation|
|Live stock price||[stckqut]ADS[/stckqut]|
|P/E compared to competitors||Good|
|Confident Investor Rating||Fair|
|Target stock price (TWCA growth scenario)||$73.77|
|Target stock price (averages with growth)||$93.53|
|Target stock price (averages with no growth)||$93.53|
|Target stock price (manual assumptions)||$90.74|
The following company description is from Reuters: https://www.reuters.com/finance/stocks/company-profile/ads
Alliance Data Systems Corporation, incorporated on February 23, 1995, is a provider of data-driven marketing and loyalty solutions serving consumer-based businesses in a range of industries. 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. The Company operates through three segments: LoyaltyOne, which provides coalition and short-term loyalty programs through the Company’s Canadian AIR MILES Reward Program and BrandLoyalty Group B.V. (BrandLoyalty); Epsilon, which provides end-to-end, integrated direct marketing solutions, and Card Services, which provides risk management solutions, account origination, funding, transaction processing, customer care, collections and marketing services for the Company’s private label and co-brand retail credit card programs. Its client base is diversified across a range of end-markets, including financial services, specialty retail, grocery and drugstore chains, petroleum retail, automotive, hospitality and travel, telecommunications, insurance and healthcare.
Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Alliance Data Systems Corporation as long as the price is correct and the indicators that I describe in my book The Confident Investor are favorable. Most of the fundamentals of this company are good but there are some concerns.
Since ADS is only a Fair company and I know there are many Good Companies out there so I will be removing Alliance Data from my Watch List and finding another company to add to it in its place.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.
How was this analysis of Alliance Data Systems Corporation calculated?
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
- Stock price at the time of the calculation: $146.83
- Growth: 0.2
- Current EPS (TTM): $17.38
- P/E: 51
- Future EPS Calc: $43.24
- Future Stock Price Calc: $2205.59
- Target stock price: $1369.5
I hope that this makes you a Confident Investor.