ALLY FINANCIAL INC (ALLY)
US02005N1000 - Common Stock
We assign a fundamental rating of 3 out of 10 to ALLY. ALLY was compared to 51 industry peers in the Consumer Finance industry. ALLY has a bad profitability rating. Also its financial health evaluation is rather negative. ALLY has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year ALLY was profitable.
ALLY had a positive operating cash flow in the past year.
ALLY had positive earnings in each of the past 5 years.
ALLY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 0.37%, ALLY is doing worse than 64.71% of the companies in the same industry.
ALLY has a Return On Equity (5.15%) which is comparable to the rest of the industry.
| 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 (8.07%) which is in line with 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) | 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.
The number of shares outstanding for ALLY has been increased compared to 1 year ago.
The number of shares outstanding for ALLY has been reduced compared to 5 years ago.
The debt/assets ratio for ALLY has been reduced compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of ALLY is 11.29, which is on the high side as it means it would take ALLY, 11.29 years of fcf income to pay off all of its debts.
ALLY has a Debt to FCF ratio (11.29) which is in line with its industry peers.
A Debt/Equity ratio of 1.05 is on the high side and indicates that ALLY has dependencies on debt financing.
ALLY has a Debt to Equity ratio of 1.05. This is comparable to the rest of the industry: ALLY outperforms 56.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 11.29 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC21.3%
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%.
The Earnings Per Share has been decreasing by -1.74% on average over the past years.
Looking at the last year, ALLY shows a decrease in Revenue. The Revenue has decreased by -2.88% in the last year.
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
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.19, which indicates a correct valuation of ALLY.
ALLY's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of ALLY to the average of the S&P500 Index (28.96), we can say ALLY is valued rather cheaply.
ALLY is valuated reasonably with a Price/Forward Earnings ratio of 8.78.
Based on the Price/Forward Earnings ratio, ALLY is valued a bit cheaper than the industry average as 72.55% 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 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.19 | ||
| Fwd PE | 8.78 |
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 | 6.7 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
ALLY's earnings are expected to grow with 26.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y17.66%
EPS Next 3Y26.21%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.31%, ALLY has a reasonable but not impressive dividend return.
ALLY's Dividend Yield is a higher than the industry average which is at 4.08.
Compared to an average S&P500 Dividend Yield of 2.23, ALLY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
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.
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 Years7
5.3 Sustainability
ALLY pays out 67.18% of its income as dividend. This is not a sustainable payout ratio.
The dividend of ALLY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP67.18%
EPS Next 2Y17.66%
EPS Next 3Y26.21%
ALLY FINANCIAL INC
NYSE:ALLY (11/21/2024, 8:11:52 PM)
Premarket: 37.2 +0.01 (+0.03%)37.19
+1.66 (+4.67%)
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 Cap11.33B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.31% |
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(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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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 | 13.19 | ||
| Fwd PE | 8.78 | ||
| 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