ADS – Market expectations are for Uniform ROA to reach new lows, but management is confident about investments, Enhanced Digital Suite integration, and capital budgeting

• Alliance Data Systems Corporation (ADS:USA) currently trades at a historical low relative to UAFRS-based (Uniform) earnings, with a 9.3x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident about their acquisition budgeting, Enhanced Digital Suite integration, and capital allocation decisions
  
• Specifically, management is confident their $50 million allotment for acquisitions and sales will contribute to double-digit growth going forward. They are also confident the integration of partners to their Enhanced Digital Suite integration will continue to become more seamless and drive partners online and they are focused on returning shareholder value through dividends and paying down their debt