ALLIANCE DATA SYSTEMS CORP's gross profit margin for the third quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. ALLIANCE DATA SYSTEMS CORP has strong liquidity. Currently, the Quick Ratio is 1.95 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has greatly increased by 51.90% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||1319.13||1096.45|
|Net Income ($mil)||164.24||132.88|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||1170.48||1329.98|
|Total Assets ($mil)||15193.28||11964.66|
|Total Debt ($mil)||11136.76||8975.74|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||41.82||42.69|
|Return on Assets||3.66||3.86|
|Return on Equity||51.53||64.93|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||59.41||48.67|
|Div / share||0.0||0.0|
|Book value / share||18.19||14.62|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||488901.0||635740.0|
BUY. ALLIANCE DATA SYSTEMS CORP's P/E ratio indicates a significant premium compared to an average of 23.69 for the IT Services industry and a significant premium compared to the S&P 500 average of 19.41. For additional comparison, its price-to-book ratio of 16.53 indicates a significant premium versus the S&P 500 average of 2.74 and a significant premium versus the industry average of 9.26. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. After reviewing these and other key valuation criteria, ALLIANCE DATA SYSTEMS CORP proves to trade at a premium to investment alternatives within the industry.
|ADS 34.16||Peers 23.69||ADS 15.54||Peers 20.50|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
ADS is trading at a significant premium 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 discount to its peers.
|ADS 20.04||Peers 20.44||ADS 0.50||Peers 1.71|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
ADS is trading at a premium 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.
|ADS 16.53||Peers 9.26||ADS 27.35||Peers 19.38|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
ADS is trading at a significant premium 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 significantly exceeds its peers.
|ADS 3.60||Peers 5.08||ADS 19.48||Peers 8.08|
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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV