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ALLY FINANCIAL INC (ALLY) Stock Fundamental Analysis

NYSE:ALLY - New York Stock Exchange, Inc. - US02005N1000 - Common Stock

38.18  +1.25 (+3.38%)

After market: 38.7412 +0.56 (+1.47%)

Fundamental Rating

3

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 has a bad profitability rating. Also its financial health evaluation is rather negative. ALLY has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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3

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.
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.
ALLY Yearly Net Income VS EBIT VS OCF VS FCFALLY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B 6B

1.2 Ratios

ALLY has a Return On Assets of 0.40%. This is in the lower half of the industry: ALLY underperforms 67.31% of its industry peers.
Looking at the Return On Equity, with a value of 5.26%, ALLY is in line with its industry, outperforming 40.38% of the companies in the same industry.
Industry RankSector 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
ALLY Yearly ROA, ROE, ROICALLY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 -5 10 15

1.3 Margins

ALLY has a Profit Margin (8.64%) which is in line with its industry peers.
In the last couple of years the Profit Margin of ALLY has declined.
ALLY does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector 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
ALLY Yearly Profit, Operating, Gross MarginsALLY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 -10 20 30

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1

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
ALLY has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ALLY has an improved debt to assets ratio.
ALLY Yearly Shares OutstandingALLY Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M 400M
ALLY Yearly Total Debt VS Total AssetsALLY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 50B 100B 150B

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.
The Debt to FCF ratio of ALLY (24.35) is worse 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's Debt to Equity ratio of 1.01 is in line compared to the rest of the industry. ALLY outperforms 55.77% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.01
Debt/FCF 24.35
Altman-Z N/A
ROIC/WACCN/A
WACC21.5%
ALLY Yearly LT Debt VS Equity VS FCFALLY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20B 40B 60B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
ALLY Yearly Current Assets VS Current LiabilitesALLY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B

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3

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.
The Revenue has decreased by -2.88% in the past year.
ALLY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.85% yearly.
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 13.90% on average per year.
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-0.35%
Revenue Next 2Y3.94%
Revenue Next 3Y5.68%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ALLY Yearly Revenue VS EstimatesALLY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2B 4B 6B 8B 10B
ALLY Yearly EPS VS EstimatesALLY Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6 8

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 13.54, which indicates a correct valuation of ALLY.
The rest of the industry has a similar Price/Earnings ratio as ALLY.
The average S&P500 Price/Earnings ratio is at 28.29. ALLY is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 9.07, which indicates a very decent valuation of ALLY.
Based on the Price/Forward Earnings ratio, ALLY is valued a bit cheaper than the industry average as 75.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, ALLY is valued rather cheaply.
Industry RankSector Rank
PE 13.54
Fwd PE 9.07
ALLY Price Earnings VS Forward Price EarningsALLY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 61.54% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 15.25
EV/EBITDA N/A
ALLY Per share dataALLY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

A more expensive valuation may be justified as ALLY's earnings are expected to grow with 25.50% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y17.29%
EPS Next 3Y25.5%

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5

5. Dividend

5.1 Amount

ALLY has a Yearly Dividend Yield of 3.21%.
Compared to an average industry Dividend Yield of 4.39, 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 2.28.
Industry RankSector Rank
Dividend Yield 3.21%

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 Years8
ALLY Yearly Dividends per shareALLY Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8 1

5.3 Sustainability

62.14% 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.
DP62.14%
EPS Next 2Y17.29%
EPS Next 3Y25.5%
ALLY Yearly Income VS Free CF VS DividendALLY Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 1B -1B 2B 3B
ALLY Dividend Payout.ALLY Dividend Payout, showing the Payout Ratio.ALLY Dividend Payout.PayoutRetained Earnings

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ALLY FINANCIAL INC

NYSE:ALLY (1/21/2025, 8:04:00 PM)

After market: 38.7412 +0.56 (+1.47%)

38.18

+1.25 (+3.38%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)10-18 2024-10-18/bmo
Earnings (Next)01-22 2025-01-22/bmo
Inst Owners81.75%
Inst Owner Change0.49%
Ins Owners0.61%
Ins Owner Change1.01%
Market Cap11.63B
Analysts73.33
Price Target41.83 (9.56%)
Short Float %2.43%
Short Ratio2.25
Dividend
Industry RankSector Rank
Dividend Yield 3.21%
Yearly Dividend1.59
Dividend Growth(5Y)22.54%
DP62.14%
Div Incr Years0
Div Non Decr Years8
Ex-DateN/A
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)4.12%
PT rev (3m)2.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-43.89%
EPS NY rev (1m)0%
EPS NY rev (3m)-16.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-6.55%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)-0.29%
Valuation
Industry RankSector Rank
PE 13.54
Fwd PE 9.07
P/S 1.3
P/FCF 15.25
P/OCF 2.99
P/B 0.79
P/tB 0.83
EV/EBITDA N/A
EPS(TTM)2.82
EY7.39%
EPS(NY)4.21
Fwd EY11.02%
FCF(TTM)2.5
FCFY6.56%
OCF(TTM)12.77
OCFY33.45%
SpS29.41
BVpS48.32
TBVpS45.94
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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
WACC21.5%
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-0.35%
Revenue Next 2Y3.94%
Revenue Next 3Y5.68%
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%