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How to buy Alliance Data Systems Corporation (ADS) shares

Learn how to easily invest in Alliance Data Systems Corporation shares.

Alliance Data Systems Corporation is a credit services business based in the US. Alliance Data Systems Corporation stocks (ADS.US) are listed on the NYSE and all prices are listed in US Dollars. Its last market close was $73.43 – an increase of 1.4% over the previous week. Alliance Data Systems Corporation employs 8,000 staff and has a trailing 12-month revenue of around $4.3 billion.

How to buy shares in Alliance Data Systems Corporation

  1. Compare share trading platforms. Use our comparison table to help you find a platform that fits you.
  2. Open your brokerage account. Complete an application with your details.
  3. Confirm your payment details. Fund your account.
  4. Research the stock. Find the stock by name or ticker symbol – ADS – and research it before deciding if it's a good investment for you.
  5. Purchase now or later. Buy your desired number of shares with a market order or use a limit order to delay your purchase until the stock reaches a desired price.
  6. Check in on your investment. Optimize your portfolio by tracking your stock.

Alliance Data Systems Corporation stock price (NYSE:ADS)

Use our graph to track the performance of ADS stocks over time.

Alliance Data Systems Corporation shares at a glance

Information last updated 2022-01-24.
Latest market close$66.46
52-week range$51.59 - $101.72
50-day moving average $71.28
200-day moving average $79.52
Wall St. target price$104.60
PE ratio 4.1877
Dividend yield $0.84 (1.3%)
Earnings per share (TTM) $16.04

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Is it a good time to buy Alliance Data Systems Corporation stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Alliance Data Systems Corporation price performance over time

Historical closes compared with the close of $66.46 from 2022-01-26

1 week (2022-01-21) 2.86%
1 month (2021-12-28) -2.02%
3 months (2021-10-28) -23.07%
6 months (2021-07-28) -32.93%
1 year (2021-01-28) -6.12%
2 years (2020-01-27) -37.06%
3 years (2019-01-25) 177.6132
5 years (2017-01-27) 222.2289

Is Alliance Data Systems Corporation under- or over-valued?

Valuing Alliance Data Systems Corporation stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Alliance Data Systems Corporation's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Alliance Data Systems Corporation's P/E ratio

Alliance Data Systems Corporation's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 4x. In other words, Alliance Data Systems Corporation shares trade at around 4x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

Alliance Data Systems Corporation's PEG ratio

Alliance Data Systems Corporation's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.8052. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Alliance Data Systems Corporation's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Alliance Data Systems Corporation's EBITDA

Alliance Data Systems Corporation's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $1.5 billion.

The EBITDA is a measure of a Alliance Data Systems Corporation's overall financial performance and is widely used to measure a its profitability.

Alliance Data Systems Corporation financials

Revenue TTM $4.3 billion
Operating margin TTM 30.84%
Gross profit TTM $707.1 million
Return on assets TTM 3.83%
Return on equity TTM 49.14%
Profit margin 18.47%
Book value $45.09
Market capitalisation $3.3 billion

TTM: trailing 12 months

Alliance Data Systems Corporation's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Alliance Data Systems Corporation.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Alliance Data Systems Corporation's total ESG risk score

Total ESG risk: 16.19

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Alliance Data Systems Corporation's overall score of 16.19 (as at 01/01/2019) is excellent – landing it in it in the 14th percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Alliance Data Systems Corporation is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Alliance Data Systems Corporation's environmental score

Environmental score: 3.12/100

Alliance Data Systems Corporation's environmental score of 3.12 puts it squarely in the 4th percentile of companies rated in the same sector. This could suggest that Alliance Data Systems Corporation is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Alliance Data Systems Corporation's social score

Social score: 14.21/100

Alliance Data Systems Corporation's social score of 14.21 puts it squarely in the 4th percentile of companies rated in the same sector. This could suggest that Alliance Data Systems Corporation is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Alliance Data Systems Corporation's governance score

Governance score: 6.37/100

Alliance Data Systems Corporation's governance score puts it squarely in the 4th percentile of companies rated in the same sector. That could suggest that Alliance Data Systems Corporation is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Alliance Data Systems Corporation share dividends

4%

Dividend payout ratio: 3.55% of net profits

Recently Alliance Data Systems Corporation has paid out, on average, around 3.55% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.3% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Alliance Data Systems Corporation shareholders could enjoy a 1.3% return on their shares, in the form of dividend payments. In Alliance Data Systems Corporation's case, that would currently equate to about $0.84 per share.

While Alliance Data Systems Corporation's payout ratio might seem low, this can signify that Alliance Data Systems Corporation is investing more in its future growth.

Alliance Data Systems Corporation's most recent dividend payout was on 17 December 2021. The latest dividend was paid out to all shareholders who bought their shares by 10 November 2021 (the "ex-dividend date").

Have Alliance Data Systems Corporation's shares ever split?

Alliance Data Systems Corporation's shares were split on a 1253:1000 basis on 8 November 2021. So if you had owned 1000 shares the day before before the split, the next day you'd have owned 1253 shares. This wouldn't directly have changed the overall worth of your Alliance Data Systems Corporation shares – just the quantity. However, indirectly, the new 20.2% lower share price could have impacted the market appetite for Alliance Data Systems Corporation shares which in turn could have impacted Alliance Data Systems Corporation's share price.

Alliance Data Systems Corporation share price volatility

Over the last 12 months, Alliance Data Systems Corporation's shares have ranged in value from as little as $51.589 up to $101.7169. A popular way to gauge a stock's volatility is its "beta".

ADS.US volatility(beta: 2.33)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Alliance Data Systems Corporation's is 2.3305. This would suggest that Alliance Data Systems Corporation's shares are significantly more volatile than the average for this exchange and represent a higher risk.

Alliance Data Systems Corporation overview

Alliance Data Systems Corporation provides data-driven marketing, loyalty, and payment solutions in the United States, Canada, Europe, the Middle East, Africa, the Asia Pacific, and internationally. It operates through two segments, LoyaltyOne and Card Services. The LoyaltyOne segment offers AIR MILES reward program; short term loyalty program; and loyalty services, which include loyalty consulting, customer analytics, creative services, and mobile solutions. The Card Services segment provides receivable financing services comprising underwriting and risk management, as well as receivables funding services, including comenity card, private label and co-brand credit card programs, and installment lending; processing services, such as new account processing, bill processing, remittance processing, and customer care; marketing services; and digital offerings, including Bread digital payments platform and enhanced digital suite. It serves clients across various end-markets, including financial services, specialty retail, grocery and drugstore chains, petroleum retail, home furnishing and hardware, beauty and jewelry, hospitality and travel, and telecommunications. Alliance Data Systems Corporation was founded in 1996 and is headquartered in Columbus, Ohio. .

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