ALLY FINANCIAL INC (ALLY)
US02005N1000 - Common Stock
ALLY gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 51 industry peers in the Consumer Finance industry. ALLY may be in some trouble as it scores bad on both profitability and health. ALLY has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year ALLY was profitable.
In the past year ALLY had a positive cash flow from operations.
Each year in the past 5 years ALLY has been profitable.
ALLY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of ALLY (0.37%) is worse than 62.75% of its industry peers.
ALLY's Return On Equity of 5.15% is in line compared to the rest of the industry. ALLY outperforms 43.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.37% | ||
| ROE | 5.15% | ||
| 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
ALLY has a Profit Margin of 8.07%. This is comparable to the rest of the industry: ALLY outperforms 52.94% of its industry peers.
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) | 8.07% | ||
| 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.
Compared to 1 year ago, ALLY has more shares outstanding
The number of shares outstanding for ALLY has been reduced compared to 5 years ago.
Compared to 1 year ago, ALLY has an improved debt to assets ratio.
2.2 Solvency
ALLY has a debt to FCF ratio of 11.29. This is a negative value and a sign of low solvency as ALLY would need 11.29 years to pay back of all of its debts.
ALLY has a Debt to FCF ratio of 11.29. This is comparable to the rest of the industry: ALLY outperforms 45.10% of its industry peers.
ALLY has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
ALLY has a Debt to Equity ratio (1.05) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 11.29 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC21.19%
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%.
The Revenue has been growing slightly by 5.85% on average over the past years.
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
Based on estimates for the next years, ALLY will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.74% on average per year.
ALLY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.58% yearly.
EPS Next Y-1.61%
EPS Next 2Y17.66%
EPS Next 3Y26.21%
EPS Next 5Y15.74%
Revenue Next Year-0.49%
Revenue Next 2Y3.94%
Revenue Next 3Y5.62%
Revenue Next 5Y4.58%
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
ALLY is valuated correctly with a Price/Earnings ratio of 12.65.
ALLY's Price/Earnings is on the same level as the industry average.
ALLY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.10.
With a Price/Forward Earnings ratio of 8.42, the valuation of ALLY can be described as very reasonable.
70.59% of the companies in the same industry are more expensive than ALLY, based on the Price/Forward Earnings ratio.
ALLY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.65 | ||
| Fwd PE | 8.42 |
4.2 Price Multiples
The rest of the industry has a similar Price/Free Cash Flow ratio as ALLY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.42 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
A more expensive valuation may be justified as ALLY's earnings are expected to grow with 26.21% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y17.66%
EPS Next 3Y26.21%
5. Dividend
5.1 Amount
ALLY has a Yearly Dividend Yield of 3.16%.
Compared to an average industry Dividend Yield of 3.91, ALLY pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.21, ALLY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
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 over 5 years, so it has already some track record.
ALLY has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)22.54%
Div Incr Years0
Div Non Decr Years7
5.3 Sustainability
67.18% of the earnings are spent on dividend by ALLY. This is not a sustainable payout ratio.
ALLY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP67.18%
EPS Next 2Y17.66%
EPS Next 3Y26.21%
ALLY FINANCIAL INC
NYSE:ALLY (11/14/2024, 2:01:58 PM)
35.67
-0.91 (-2.49%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.87B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.16% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.65 | ||
| Fwd PE | 8.42 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.37% | ||
| ROE | 5.15% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 8.07% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-23.58%
EPS 3Y0.44%
EPS 5Y
EPS Q2Q%
EPS Next Y-1.61%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.88%
Revenue growth 3Y6.38%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y