Alliance Data Current Valuation vs. Operating Margin
| 0HCR Stock | 58.29 2.23 3.98% |
For Alliance Data profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Alliance Data to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Alliance Data Systems utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Alliance Data's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Alliance Data Systems over time as well as its relative position and ranking within its peers.
Alliance |
Alliance Data Systems Operating Margin vs. Current Valuation Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Alliance Data's current stock value. Our valuation model uses many indicators to compare Alliance Data value to that of its competitors to determine the firm's financial worth. Alliance Data Systems is rated second in current valuation category among its peers. It also is rated second in operating margin category among its peers . The ratio of Current Valuation to Operating Margin for Alliance Data Systems is about 61,823,481,718 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Alliance Data's earnings, one of the primary drivers of an investment's value.Alliance Current Valuation vs. Competition
Alliance Data Systems is rated second in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Industrials industry is presently estimated at about 56.86 Billion. Alliance Data holds roughly 4.03 Billion in current valuation claiming about 7% of equities under Industrials industry.
Alliance Operating Margin vs. Current Valuation
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Alliance Data |
| = | 4.03 B |
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Alliance Data |
| = | 0.07 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Alliance Operating Margin Comparison
Alliance Data is currently under evaluation in operating margin category among its peers.
Alliance Data Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Alliance Data, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Alliance Data will eventually generate negative long term returns. The profitability progress is the general direction of Alliance Data's change in net profit over the period of time. It can combine multiple indicators of Alliance Data, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -19 M | -19.9 M | |
| Operating Income | 1.6 B | 1.7 B | |
| Income Before Tax | 968 M | 648.7 M | |
| Net Income | 718 M | 584.5 M | |
| Income Tax Expense | 231 M | 193.3 M | |
| Total Other Income Expense Net | -625 M | -656.2 M | |
| Net Income Applicable To Common Shares | 200.7 M | 190.7 M | |
| Interest Income | 568 M | 547.6 M | |
| Change To Netincome | 1.7 B | 1.2 B |
Alliance Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Alliance Data. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Alliance Data position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Alliance Data's important profitability drivers and their relationship over time.
Use Alliance Data in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Alliance Data position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Alliance Data will appreciate offsetting losses from the drop in the long position's value.Alliance Data Pair Trading
Alliance Data Systems Pair Trading Analysis
The ability to find closely correlated positions to Alliance Data could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Alliance Data when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Alliance Data - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Alliance Data Systems to buy it.
The correlation of Alliance Data is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Alliance Data moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Alliance Data Systems moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Alliance Data can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Alliance Data position
In addition to having Alliance Data in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Insurance Thematic Idea Now
Insurance
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Insurance theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Insurance Theme or any other thematic opportunities.
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Additional Tools for Alliance Stock Analysis
When running Alliance Data's price analysis, check to measure Alliance Data's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Alliance Data is operating at the current time. Most of Alliance Data's value examination focuses on studying past and present price action to predict the probability of Alliance Data's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Alliance Data's price. Additionally, you may evaluate how the addition of Alliance Data to your portfolios can decrease your overall portfolio volatility.