ALLY FINANCIAL INC (ALLY)
US02005N1000 - Common Stock
Taking everything into account, ALLY scores 3 out of 10 in our fundamental rating. ALLY was compared to 52 industry peers in the Consumer Finance industry. ALLY may be in some trouble as it scores bad on both profitability and health. ALLY is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
ALLY had positive earnings in the past year.
In the past year ALLY had a positive cash flow from operations.
In the past 5 years ALLY has always been profitable.
Each year in the past 5 years ALLY had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of 0.40%, ALLY is not doing good in the industry: 67.31% of the companies in the same industry are doing better.
The Return On Equity of ALLY (5.26%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.4% | ||
| ROE | 5.26% | ||
| ROIC | N/A |
ROA(3y)0.98%
ROA(5y)0.9%
ROE(3y)12.23%
ROE(5y)11.19%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of ALLY (8.64%) is comparable to the rest of the industry.
ALLY's Profit Margin has declined in the last couple of years.
The Operating Margin and Gross Margin are not available for ALLY so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 8.64% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-11.35%
PM growth 5Y-11.52%
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.
ALLY has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ALLY has less shares outstanding
The debt/assets ratio for ALLY has been reduced compared to a year ago.
2.2 Solvency
ALLY has a debt to FCF ratio of 24.35. This is a negative value and a sign of low solvency as ALLY would need 24.35 years to pay back of all of its debts.
With a Debt to FCF ratio value of 24.35, ALLY is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
ALLY has a Debt/Equity ratio of 1.01. This is a high value indicating a heavy dependency on external financing.
ALLY's Debt to Equity ratio of 1.01 is in line compared to the rest of the industry. ALLY outperforms 57.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 24.35 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC22.03%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
ALLY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.58%.
Measured over the past years, ALLY shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.74% on average per year.
ALLY shows a decrease in Revenue. In the last year, the revenue decreased by -2.88%.
Measured over the past years, ALLY shows a small growth in Revenue. The Revenue has been growing by 5.85% on average per year.
EPS 1Y (TTM)-23.58%
EPS 3Y0.44%
EPS 5Y-1.74%
EPS Q2Q%14.46%
Revenue 1Y (TTM)-2.88%
Revenue growth 3Y6.38%
Revenue growth 5Y5.85%
Sales Q2Q%6.86%
3.2 Future
ALLY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.90% yearly.
Based on estimates for the next years, ALLY will show a small growth in Revenue. The Revenue will grow by 3.87% on average per year.
EPS Next Y-1.74%
EPS Next 2Y17.29%
EPS Next 3Y25.5%
EPS Next 5Y13.9%
Revenue Next Year-0.43%
Revenue Next 2Y3.89%
Revenue Next 3Y5.54%
Revenue Next 5Y3.87%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 12.36, ALLY is valued correctly.
ALLY's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of ALLY to the average of the S&P500 Index (27.73), we can say ALLY is valued rather cheaply.
With a Price/Forward Earnings ratio of 8.28, the valuation of ALLY can be described as very reasonable.
Based on the Price/Forward Earnings ratio, ALLY is valued a bit cheaper than the industry average as 73.08% of the companies are valued more expensively.
ALLY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.36 | ||
| Fwd PE | 8.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALLY is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.92 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
ALLY's earnings are expected to grow with 25.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y17.29%
EPS Next 3Y25.5%
5. Dividend
5.1 Amount
ALLY has a Yearly Dividend Yield of 3.47%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.38, ALLY pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, ALLY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
5.2 History
The dividend of ALLY is nicely growing with an annual growth rate of 22.54%!
ALLY has been paying a dividend for over 5 years, so it has already some 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
ALLY pays out 62.14% of its income as dividend. This is not a sustainable payout ratio.
ALLY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP62.14%
EPS Next 2Y17.29%
EPS Next 3Y25.5%
ALLY FINANCIAL INC
NYSE:ALLY (12/20/2024, 8:04:00 PM)
After market: 35.16 +0.3 (+0.86%)34.86
+0.23 (+0.66%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners81.75%
Inst Owner Change1.93%
Ins Owners0.61%
Ins Owner Change1.36%
Market Cap10.62B
Analysts74.81
Price Target40.17 (15.23%)
Short Float %3.03%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.47% |
Dividend Growth(5Y)22.54%
DP62.14%
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)0.8%
PT rev (3m)-13.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-43.89%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-16.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.55%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)-1.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.36 | ||
| Fwd PE | 8.28 | ||
| P/S | 1.19 | ||
| P/FCF | 13.92 | ||
| P/OCF | 2.73 | ||
| P/B | 0.72 | ||
| P/tB | 0.76 | ||
| EV/EBITDA | N/A |
EPS(TTM)2.82
EY8.09%
EPS(NY)4.21
Fwd EY12.07%
FCF(TTM)2.5
FCFY7.18%
OCF(TTM)12.77
OCFY36.63%
SpS29.41
BVpS48.32
TBVpS45.94
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.4% | ||
| ROE | 5.26% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 8.64% | ||
| GM | N/A | ||
| FCFM | 8.52% |
ROA(3y)0.98%
ROA(5y)0.9%
ROE(3y)12.23%
ROE(5y)11.19%
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-11.35%
PM growth 5Y-11.52%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.01 | ||
| Debt/FCF | 24.35 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 249.44% | ||
| Cap/Sales | 34.91% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 98.58% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC22.03%
ROIC/WACCN/A
Cap/Depr(3y)297.81%
Cap/Depr(5y)286.17%
Cap/Sales(3y)42.18%
Cap/Sales(5y)47.68%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-23.58%
EPS 3Y0.44%
EPS 5Y-1.74%
EPS Q2Q%14.46%
EPS Next Y-1.74%
EPS Next 2Y17.29%
EPS Next 3Y25.5%
EPS Next 5Y13.9%
Revenue 1Y (TTM)-2.88%
Revenue growth 3Y6.38%
Revenue growth 5Y5.85%
Sales Q2Q%6.86%
Revenue Next Year-0.43%
Revenue Next 2Y3.89%
Revenue Next 3Y5.54%
Revenue Next 5Y3.87%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-61.49%
EBIT Next 3Y-6.25%
EBIT Next 5YN/A
FCF growth 1Y-66.88%
FCF growth 3YN/A
FCF growth 5Y33.98%
OCF growth 1Y-35.5%
OCF growth 3Y7.64%
OCF growth 5Y2.36%