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ALLY FINANCIAL INC (ALLY) Stock Fundamental Analysis

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

33.93  -1.73 (-4.85%)

After market: 33.93 0 (0%)

Fundamental Rating

3

ALLY gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 52 industry peers in the Consumer Finance industry. Both the profitability and financial health of ALLY have multiple concerns. ALLY has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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2

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.
In the past 5 years ALLY always reported a positive cash flow from operatings.
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 2024 0 2B 4B 6B

1.2 Ratios

With a Return On Assets value of 0.09%, ALLY is not doing good in the industry: 73.08% of the companies in the same industry are doing better.
ALLY has a worse Return On Equity (1.24%) than 71.15% of its industry peers.
Industry RankSector Rank
ROA 0.09%
ROE 1.24%
ROIC N/A
ROA(3y)0.52%
ROA(5y)0.76%
ROE(3y)7.56%
ROE(5y)9.53%
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 2024 0 5 -5 10 15

1.3 Margins

Looking at the Profit Margin, with a value of 2.07%, ALLY is doing worse than 73.08% of the companies in the same industry.
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) 2.07%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-43.24%
PM growth 5Y-23.09%
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 2024 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 2024 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 2024 50B 100B 150B

2.2 Solvency

The Debt to FCF ratio of ALLY is 35.55, which is on the high side as it means it would take ALLY, 35.55 years of fcf income to pay off all of its debts.
ALLY has a Debt to FCF ratio of 35.55. This is in the lower half of the industry: ALLY underperforms 65.38% of its industry peers.
ALLY has a Debt/Equity ratio of 1.08. This is a high value indicating a heavy dependency on external financing.
ALLY has a Debt to Equity ratio (1.08) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity 1.08
Debt/FCF 35.55
Altman-Z N/A
ROIC/WACCN/A
WACC25.29%
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 2024 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 2024 5B 10B

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5

3. Growth

3.1 Past

ALLY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.93%, which is quite impressive.
The Earnings Per Share has been decreasing by -3.32% on average over the past years.
ALLY shows a decrease in Revenue. In the last year, the revenue decreased by -4.81%.
Measured over the past years, ALLY shows a small growth in Revenue. The Revenue has been growing by 3.87% on average per year.
EPS 1Y (TTM)21.93%
EPS 3Y-28.45%
EPS 5Y-3.32%
EPS Q2Q%28.89%
Revenue 1Y (TTM)-4.81%
Revenue growth 3Y0.53%
Revenue growth 5Y3.87%
Sales Q2Q%-22.41%

3.2 Future

The Earnings Per Share is expected to grow by 14.21% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.92% on average over the next years.
EPS Next Y12.65%
EPS Next 2Y33.16%
EPS Next 3Y24.2%
EPS Next 5Y14.21%
Revenue Next Year-2.09%
Revenue Next 2Y6.08%
Revenue Next 3Y5.06%
Revenue Next 5Y4.92%

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 accelerating.
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 2029 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 2029 2 4 6 8

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5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 10.34, which indicates a very decent valuation of ALLY.
ALLY's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.03. ALLY is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 6.07, which indicates a rather cheap valuation of ALLY.
ALLY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ALLY is cheaper than 73.08% of the companies in the same industry.
ALLY is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.94, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 10.34
Fwd PE 6.07
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

Based on the Price/Free Cash Flow ratio, ALLY is valued a bit more expensive than 65.38% of the companies in the same industry.
Industry RankSector Rank
P/FCF 18.71
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

ALLY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as ALLY's earnings are expected to grow with 24.20% in the coming years.
PEG (NY)0.82
PEG (5Y)N/A
EPS Next 2Y33.16%
EPS Next 3Y24.2%

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5

5. Dividend

5.1 Amount

ALLY has a Yearly Dividend Yield of 3.36%.
Compared to an average industry Dividend Yield of 4.26, ALLY pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, ALLY pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 3.36%

5.2 History

On average, the dividend of ALLY grows each year by 17.75%, which is quite nice.
ALLY has paid a dividend for at least 10 years, which is a reliable track record.
ALLY has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)17.75%
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 2025 0.2 0.4 0.6 0.8 1

5.3 Sustainability

275.57% of the earnings are spent on dividend by ALLY. 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.
DP275.57%
EPS Next 2Y33.16%
EPS Next 3Y24.2%
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 2024 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 (5/21/2025, 7:32:47 PM)

After market: 33.93 0 (0%)

33.93

-1.73 (-4.85%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)04-17 2025-04-17/bmo
Earnings (Next)07-15 2025-07-15/amc
Inst Owners81.08%
Inst Owner Change4.51%
Ins Owners0.7%
Ins Owner Change3.85%
Market Cap10.42B
Analysts75.38
Price Target42.97 (26.64%)
Short Float %5.81%
Short Ratio3.34
Dividend
Industry RankSector Rank
Dividend Yield 3.36%
Yearly Dividend1.59
Dividend Growth(5Y)17.75%
DP275.57%
Div Incr Years0
Div Non Decr Years8
Ex-Date05-01 2025-05-01 (0.3)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)34.08%
Min EPS beat(2)33.79%
Max EPS beat(2)34.38%
EPS beat(4)4
Avg EPS beat(4)48.57%
Min EPS beat(4)33.79%
Max EPS beat(4)76.55%
EPS beat(8)7
Avg EPS beat(8)28.91%
EPS beat(12)8
Avg EPS beat(12)15.59%
EPS beat(16)12
Avg EPS beat(16)15.9%
Revenue beat(2)0
Avg Revenue beat(2)-12.86%
Min Revenue beat(2)-23.98%
Max Revenue beat(2)-1.75%
Revenue beat(4)1
Avg Revenue beat(4)-6.9%
Min Revenue beat(4)-23.98%
Max Revenue beat(4)1.55%
Revenue beat(8)2
Avg Revenue beat(8)-4.4%
Revenue beat(12)6
Avg Revenue beat(12)-0.31%
Revenue beat(16)10
Avg Revenue beat(16)2.19%
PT rev (1m)-3.11%
PT rev (3m)-4.79%
EPS NQ rev (1m)-4.13%
EPS NQ rev (3m)-5.53%
EPS NY rev (1m)0.71%
EPS NY rev (3m)-3.69%
Revenue NQ rev (1m)-0.91%
Revenue NQ rev (3m)-2.13%
Revenue NY rev (1m)-5.83%
Revenue NY rev (3m)-6.75%
Valuation
Industry RankSector Rank
PE 10.34
Fwd PE 6.07
P/S 1.22
P/FCF 18.71
P/OCF 2.53
P/B 0.73
P/tB 0.74
EV/EBITDA N/A
EPS(TTM)3.28
EY9.67%
EPS(NY)5.59
Fwd EY16.46%
FCF(TTM)1.81
FCFY5.34%
OCF(TTM)13.44
OCFY39.6%
SpS27.7
BVpS46.34
TBVpS45.72
PEG (NY)0.82
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.09%
ROE 1.24%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 2.07%
GM N/A
FCFM 6.55%
ROA(3y)0.52%
ROA(5y)0.76%
ROE(3y)7.56%
ROE(5y)9.53%
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-43.24%
PM growth 5Y-23.09%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.04
Health
Industry RankSector Rank
Debt/Equity 1.08
Debt/FCF 35.55
Debt/EBITDA N/A
Cap/Depr 288.37%
Cap/Sales 41.96%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 316.48%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score6
WACC25.29%
ROIC/WACCN/A
Cap/Depr(3y)259.87%
Cap/Depr(5y)292.87%
Cap/Sales(3y)35.67%
Cap/Sales(5y)44.53%
Profit Quality(3y)190.98%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.93%
EPS 3Y-28.45%
EPS 5Y-3.32%
EPS Q2Q%28.89%
EPS Next Y12.65%
EPS Next 2Y33.16%
EPS Next 3Y24.2%
EPS Next 5Y14.21%
Revenue 1Y (TTM)-4.81%
Revenue growth 3Y0.53%
Revenue growth 5Y3.87%
Sales Q2Q%-22.41%
Revenue Next Year-2.09%
Revenue Next 2Y6.08%
Revenue Next 3Y5.06%
Revenue Next 5Y4.92%
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-79.45%
FCF growth 3YN/A
FCF growth 5Y108.66%
OCF growth 1Y-31.65%
OCF growth 3Y3.86%
OCF growth 5Y2.26%