ALLY FINANCIAL INC (ALLY) Stock Fundamental Analysis
NYSE:ALLY - New York Stock Exchange, Inc. - US02005N1000 - Common Stock - Currency: USD
Taking everything into account, ALLY scores 3 out of 10 in our fundamental rating. ALLY was compared to 53 industry peers in the Consumer Finance industry. ALLY may be in some trouble as it scores bad on both profitability and health. ALLY is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ALLY had positive earnings in the past year.
ALLY had a positive operating cash flow in the past year.
Each year in the past 5 years ALLY has been profitable.
Of the past 5 years ALLY 4 years had a positive operating cash flow.
1.2 Ratios
ALLY has a Return On Assets of 0.48%. This is in the lower half of the industry: ALLY underperforms 65.38% of its industry peers.
ALLY has a Return On Equity (6.25%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 6.25% | ||
| ROIC | N/A |
ROA(3y)0.53%
ROA(5y)0.77%
ROE(3y)7.7%
ROE(5y)9.62%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ALLY has a Profit Margin of 6.88%. This is comparable to the rest of the industry: ALLY outperforms 42.31% of its industry peers.
ALLY's Profit Margin has declined in the last couple of years.
ALLY does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 6.88% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-43.38%
PM growth 5Y-23.2%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
ALLY does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for ALLY has been increased compared to 1 year ago.
ALLY has less shares outstanding than it did 5 years ago.
ALLY has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of ALLY is 24.35, which is on the high side as it means it would take ALLY, 24.35 years of fcf income to pay off all of its debts.
ALLY has a worse Debt to FCF ratio (24.35) than 63.46% of its industry peers.
ALLY has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
ALLY has a Debt to Equity ratio (1.01) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 24.35 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC21.67%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
ALLY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.94%.
ALLY shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.32% yearly.
ALLY shows a strong growth in Revenue. In the last year, the Revenue has grown by 47.11%.
Measured over the past years, ALLY shows a small growth in Revenue. The Revenue has been growing by 4.02% on average per year.
EPS 1Y (TTM)2.94%
EPS 3Y-28.45%
EPS 5Y-3.32%
EPS Q2Q%73.33%
Revenue 1Y (TTM)47.11%
Revenue growth 3Y0.78%
Revenue growth 5Y4.02%
Sales Q2Q%-1.98%
3.2 Future
The Earnings Per Share is expected to grow by 16.81% on average over the next years. This is quite good.
Based on estimates for the next years, ALLY will show a small growth in Revenue. The Revenue will grow by 4.95% on average per year.
EPS Next Y16.97%
EPS Next 2Y34.68%
EPS Next 3Y30.55%
EPS Next 5Y16.81%
Revenue Next Year5%
Revenue Next 2Y7.02%
Revenue Next 3Y6.04%
Revenue Next 5Y4.95%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
ALLY is valuated reasonably with a Price/Earnings ratio of 11.90.
The rest of the industry has a similar Price/Earnings ratio as ALLY.
ALLY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
With a Price/Forward Earnings ratio of 10.18, the valuation of ALLY can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALLY is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.68. ALLY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.9 | ||
| Fwd PE | 10.18 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALLY indicates a slightly more expensive valuation: ALLY is more expensive than 63.46% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.01 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ALLY's earnings are expected to grow with 30.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.7
PEG (5Y)N/A
EPS Next 2Y34.68%
EPS Next 3Y30.55%
5. Dividend
5.1 Amount
ALLY has a Yearly Dividend Yield of 3.22%.
Compared to an average industry Dividend Yield of 4.09, ALLY pays a bit more dividend than its industry peers.
ALLY's Dividend Yield is a higher than the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
5.2 History
On average, the dividend of ALLY grows each year by 22.54%, which is quite nice.
ALLY has been paying a dividend for at least 10 years, so it has a reliable track record.
As ALLY did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)22.54%
Div Incr Years0
Div Non Decr Years8
5.3 Sustainability
52.23% of the earnings are spent on dividend by ALLY. This is a bit on the high side, but may be sustainable.
ALLY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP52.23%
EPS Next 2Y34.68%
EPS Next 3Y30.55%
37.49
-1.43 (-3.67%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners81.75%
Inst Owner Change-0.4%
Ins Owners0.61%
Ins Owner Change3.88%
Market Cap11.45B
Analysts75.38
Price Target45.13 (20.38%)
Short Float %2.49%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.22% |
Yearly Dividend1.59
Dividend Growth(5Y)22.54%
DP52.23%
Div Incr Years0
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)63.06%
Min EPS beat(2)49.57%
Max EPS beat(2)76.55%
EPS beat(4)3
Avg EPS beat(4)39.72%
Min EPS beat(4)-1.62%
Max EPS beat(4)76.55%
EPS beat(8)6
Avg EPS beat(8)20.2%
EPS beat(12)8
Avg EPS beat(12)10.28%
EPS beat(16)12
Avg EPS beat(16)19.51%
Revenue beat(2)1
Avg Revenue beat(2)-0.94%
Min Revenue beat(2)-3.43%
Max Revenue beat(2)1.55%
Revenue beat(4)2
Avg Revenue beat(4)-0.22%
Min Revenue beat(4)-3.43%
Max Revenue beat(4)1.55%
Revenue beat(8)4
Avg Revenue beat(8)2.14%
Revenue beat(12)8
Avg Revenue beat(12)3.68%
Revenue beat(16)12
Avg Revenue beat(16)6.54%
PT rev (1m)7.89%
PT rev (3m)13.23%
EPS NQ rev (1m)-3.19%
EPS NQ rev (3m)-4.46%
EPS NY rev (1m)-12.47%
EPS NY rev (3m)-13.03%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)0.34%
Revenue NY rev (1m)-3.13%
Revenue NY rev (3m)-3.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.9 | ||
| Fwd PE | 10.18 | ||
| P/S | 0.85 | ||
| P/FCF | 15.01 | ||
| P/OCF | 2.94 | ||
| P/B | 0.78 | ||
| P/tB | 0.82 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.15
EY8.4%
EPS(NY)3.68
Fwd EY9.83%
FCF(TTM)2.5
FCFY6.66%
OCF(TTM)12.74
OCFY33.99%
SpS43.85
BVpS48.22
TBVpS45.84
PEG (NY)0.7
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.48% | ||
| ROE | 6.25% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 6.88% | ||
| GM | N/A | ||
| FCFM | 5.7% |
ROA(3y)0.53%
ROA(5y)0.77%
ROE(3y)7.7%
ROE(5y)9.62%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-43.38%
PM growth 5Y-23.2%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.07
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 24.35 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 249.44% | ||
| Cap/Sales | 23.36% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 82.84% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC21.67%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)2.94%
EPS 3Y-28.45%
EPS 5Y-3.32%
EPS Q2Q%73.33%
EPS Next Y16.97%
EPS Next 2Y34.68%
EPS Next 3Y30.55%
EPS Next 5Y16.81%
Revenue 1Y (TTM)47.11%
Revenue growth 3Y0.78%
Revenue growth 5Y4.02%
Sales Q2Q%-1.98%
Revenue Next Year5%
Revenue Next 2Y7.02%
Revenue Next 3Y6.04%
Revenue Next 5Y4.95%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-27.36%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-74.46%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-33.52%
OCF growth 3YN/A
OCF growth 5YN/A