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Alliance Data Systems Corporation (NYSE: ADS) – Is this large market cap stock undervalued?

Alliance Data Systems Corporation (NYSE: ADS), is firmly in the large market cap category with market cap of 12607.13. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Alliance Data Systems Corporation is 217.63 (with a change from open of 0.87%), this in conjunction with a target price of 256.55. Volume today has so far reached 180505, with an average volume of about 884.19. The GAP for this stock, is 0.60%.

The P/E ratio is 26.78, bringing the forward P/E to a value of 11.27. The current EPS for Alliance Data Systems Corporation, is 8.01, with a EPS growth for this year coming to a value of 12.50%. Performance has been interesting with performance year to date coming to -22.45%.

Looking further into the growth statistics for Alliance Data Systems Corporation, EPS is looking like it will grow 12.90% in the next year. Looking even further it is projected to be 13.33%. Quarter over quarter is -41.20% for EPS growth and for sales growth quarter over quarter it is 16.50%. Looking at past EPS growth statistics we see that for the past five years it has been 20.30%. Sales growth for the past five years has in fact been 18.20%.

Looking at the ownership, we see that the insider ownership is at 1.90% and institutional ownership is 95.90%. Shares outstanding is 58.78, while shares float is at a value of 57.06. Float short for Alliance Data Systems Corporation is 7.35% and the short ratio is 4.74.

In terms of debt, long term debt/equity is 5.44, while the total debt/equity comes to 6.77. The ability to meet these debts, means that the current ratio is 2.2, and the quick ratio is 2.2. The most recent gross margin is 41.40% and their operating margin is 19.50%. The profit margin is 7.20%.

Alliance Data Systems Corporation has seen returns on assets of 2.20%, and on investment, 6.30%. Return on equity is 26.20%. Price/Earnings to growth ratio is 2.01. Price/Sales ratio is at a value of 1.86, with Price/book ratio coming to 7.29 and Price/cash is 9.58, and finally Price/Free cash Flow is 7.59.

The simple moving averages are 1.48% and -1.06% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -28.35% and the 52 week low is 23.21%.

Alliance Data Systems Corporation has a dividend yield of , with a current price of 217.63. The ability to pay this means the payout ratio is 0.00%. This is in an industry, Business Services, with equally high dividends from other companies in this sector, which it is Services. Alliance Data Systems Corporation is based in USA.

Performance in the Business Services industry means that Alliance Data Systems Corporation has seen performance for the past week of 2.79%, with performance for the month coming to 5.29%. Looking at the data for the quarter it is at a value of 3.50%, and for the half year the performance is -16.01%. Volatility for this week is 3.07% and for the month this is 2.49%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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