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ADS – Market expectations are for Uniform ROA to reach new lows, but management is excited about their growth verticals and Comenity card, and confident about their partnerships

January 28, 2021

  • Alliance Data Systems Corporation (ADS:USA) currently trades at a historical low relative to UAFRS-based (Uniform) earnings, with a 10.4x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is excited about their growth verticals and Comenity card, and confident about their Fiserv partnership
  • Specifically, management generated excitement markers when saying they are ramping up their marketing spend in their growth verticals in Q4 and that their Comenity card is attracting millennials. In addition, they are confident about the potential of Fiserv as a leading-edge fintech investment and that their partners will steer customers to their products