Alliance Data Systems Corporation Stock Price and Value Analysis

Should you buy Alliance Data Systems Corporation stock? (NYSE:ADS). Let's see how it does in our automated value investing analysis system.

ADS Free Cash Flow Trend

Free Cash Flow trendline for ADS
Free Cash Flow trendline for Alliance Data Systems Corporation

Based on historical returns, we believe that Alliance Data Systems Corporation can grow its free cash at a rate of about 3%. That's positive!

AdvantagesDisadvantages
  • This company has an average dividend yield.
  • This stock is available at a great discount!
  • This company has wild ups and downs.
  • This company is less known than others.
  • This company is making money at a modest rate.

Inside the ADS Numbers

ADS Price
(Alliance Data Systems Corporation stock price per share)
$130.58
[?] ADS Fair Price
(based on intrinsic value)
$304.48
[?] ADS Safety Price (based on a variable margin of safety) $182.69
[?] PE Ratio versus Sector 39% lower than other Financial stocks
[?] PE Ratio versus Industry 55% lower than other Credit Services stocks
[?] Cash Yield 30.61%
[?] Free Cash Flow Jitter 50%
[?] Dividend Yield 2%

Is Alliance Data Systems Corporation Stock on Sale?

We believe that Alliance Data Systems Corporation may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Even better, Alliance Data Systems Corporation looks like a stock on sale. Based on our analysis—if the company keeps making money the way it has been—you may be looking at a bargain. Keep this stock in mind as you put together your portfolio! See Before You Buy for your next steps (and read our disclaimer about investing risk).

Should You Buy ADS Stock?

Does Alliance Data Systems Corporation have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.