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A look at a High Market Cap Stock: Alliance Data Systems Corporation, ADS

Alliance Data Systems Corporation, ADS is in the exchange NYSE and its industry is Business Services in the sector of Services. Based in USA, Alliance Data Systems Corporation, ADS  has a market cap of 13210.29. Since its IPO date on the 6/15/2001, Alliance Data Systems Corporation, ADS performance year to date is -17.09%. Today Alliance Data Systems Corporation, ADS has gained -0.18%, with a current price of 228.3.

Ownership of the company is 1.90% for insider ownership while institutional ownership is 97.90%. The management of the company have seen the company have a payout ratio of 0.00%. Return of assets are at 2.50%, with return on investment at 6.30%.

In terms of debt levels and profit levels, Alliance Data Systems Corporation, ADS is seeing a long-term debt/equity of 5.59. While Total debt/equity is 6.57. With a profit margin of 8.00%, this is combined with a gross margin of 41.90%, and operating margin of 20.50%. Alliance Data Systems Corporation ability to meet debt levels, with a current ratio of 2.4, while the quick ratio is 2.3.

For the last year Alliance Data Systems Corporation, ADS has seen a EPS growth of 12.50%. A performance for the year of -20.07%. The 52-week high is -21.16%, and the 52-week low is 29.58%. The average volume for Alliance Data Systems Corporation, ADS is 93621.

With a target price of 246.72, can Alliance Data Systems Corporation, ADS reach this target? Looking at the value indicators of Alliance Data Systems Corporation, ADS. Alliance Data Systems Corporation has a P/E of 24.11 and a forward P/E of 12.22. Perhaps the more useful indicator than P/E, is PEG which has a value of 2. Alliance Data Systems Corporation also has a P/S and a P/B of 1.87 and 7.47 respectively. For P/cash, Alliance Data Systems Corporation has a value of 8.8, while it is 7.36 for P/free cash flow.

At the current price of 228.3, Alliance Data Systems Corporation has a dividend yield of 0.91%. We see a return on equity of 31.20%.

Looking more long-term Alliance Data Systems Corporation, is projected to get an EPS growth for the next five years of 12.04%. In the short-term an EPS growth of 10.69% in the next year is forecasted. This is after a EPS growth of 12.50% for this year and for the last five years a 20.30% growth has been seen.

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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Peter Clarke

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