Alliance Data Systems Corporation [NYSE:ADS]: Analyst Rating and Earnings
Experts stock market traders frequently make a point to check what top Wall Street analysts say regarding a potential buy. Regarding Alliance Data Systems Corporation [ADS] currently, the latest Wall Street ratings we can see is from the fiscal quarter that’s going to end in December. On average, stock market experts give ADS an Outperform rating. Its stock price has been found in the range of 142.58 to 250.27. This is compared to its latest closing price of $164.04.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Alliance Data Systems Corporation [ADS] is sitting at 2.38. This is compared to 1 month ago, when its average rating was 2.23.
For the quarter ending in Dec-18 Alliance Data Systems Corporation [ADS] generated $2.06 billion in sales. That’s 3.17% lower than the average estimate of $2.12 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Stay on the lookout for the next publication of this organization’s financial results for the quarter, which will be made public on Thu 25 Apr (In 9 Days).
Fundamental Analysis of Alliance Data Systems Corporation [ADS]
Now let’s turn to look at profitability: with a current Operating Margin for Alliance Data Systems Corporation [ADS] sitting at +24.17 and its Gross Margin at +39.57, this company’s Net Margin is now 12.40%. These measurements indicate that Alliance Data Systems Corporation [ADS] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 6.83, and its Return on Invested Capital has reached 5.80%. Its Return on Equity is 46.00, and its Return on Assets is 3.15. These metrics show a mixed bag, which means that this investment’s attractiveness can be quickly increased or decreased in the short term, depending on future updates ADS financial performance.
Turning to investigate this organization’s capital structure, Alliance Data Systems Corporation [ADS] has generated a Total Debt to Total Equity ratio of 1,079.86. Similarly, its Total Debt to Total Capital is 91.52, while its Total Debt to Total Assets stands at 82.87. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 676.79, and its Long-Term Debt to Total Capital is 57.36. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is 12.64 and its Total Debt to EBITDA Value is 10.58. The Enterprise Value to Sales for this firm is now 3.86, and its Total Debt to Enterprise Value stands at 0.87. Alliance Data Systems Corporation [ADS] has a Price to Book Ratio of 3.44, a Price to Cash Flow Ratio of 3.00 and P/E Ratio of 9.41. These metrics all suggest that Alliance Data Systems Corporation is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Alliance Data Systems Corporation [ADS] earns $389,560 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 0.43 and its Total Asset Turnover is 0.26. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 2.13 and its Current Ratio is 2.15. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Alliance Data Systems Corporation [ADS] has 53.81M shares outstanding, amounting to a total market cap of $8.83B. Its stock price has been found in the range of 142.58 to 250.27. At its current price, it has moved by -34.16% from its 52-week high, and it has moved 15.57% from its 52-week low.
This stock’s Beta value is currently 1.78, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 38.87. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Alliance Data Systems Corporation [ADS] a Reliable Buy?
Shares of Alliance Data Systems Corporation [ADS], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.