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Alliance Data Systems Corp
ADS : NYSE : Services
$203.31 up2.11 | 1.05%
Today's Range: 200.14 - 203.65
Avg. Daily Volume: 943,200
04/29/16 - 4:02 PM ET

Financial Analysis


Even though sales increased, the net income has decreased.

During the same period, stockholders' equity ("net worth") has decreased by 8.90% from the same quarter last year.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)1676.11601.16
EBITDA ($mil)0.0446.17
EBIT ($mil)0.0324.54
Net Income ($mil)141.2147.37


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)1465.21256.06
Total Assets ($mil)22399.119052.49
Total Debt ($mil)17930.914172.72
Equity ($mil)1741.21911.43


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin0.038.18
EBITDA Margin0.027.86
Operating Margin0.020.27
Sales Turnover0.290.3
Return on Assets2.432.63
Return on Equity31.3226.23
Debt Q1 FY16 Q1 FY15
Current Ratio0.02.08
Debt/Capital0.910.88
Interest Expense98.878.01
Interest Coverage0.04.16


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)60.8862.11
Div / share0.00.0
EPS2.352.32
Book value / share28.630.77
Institutional Own % n/a n/a
Avg Daily Volume993984.0398843.0

Valuation


BUY. ALLIANCE DATA SYSTEMS CORP's P/E ratio indicates a discount compared to an average of 26.18 for the IT Services industry and a value on par with the S&P 500 average of 24.17. For additional comparison, its price-to-book ratio of 7.08 indicates a significant premium versus the S&P 500 average of 2.76 and a discount versus the industry average of 8.21. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, ALLIANCE DATA SYSTEMS CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ADS 22.79 Peers 26.18   ADS 6.88 Peers 18.68

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

ADS is trading at a discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

ADS is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ADS 10.66 Peers 21.65   ADS 0.25 Peers 2.78

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

ADS is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

ADS trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ADS 7.08 Peers 8.21   ADS 9.61 Peers 7.93

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

ADS is trading at a discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

ADS is expected to have an earnings growth rate that exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ADS 1.89 Peers 5.70   ADS 14.87 Peers 4.67

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

ADS is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

ADS has a sales growth rate that significantly exceeds its peers.

 

 

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