ALLY FINANCIAL INC (ALLY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALLY - US02005N1000 - Common Stock
45.76 USD
+0.47 (+1.04%)
45.76 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to ALLY. ALLY was compared to 55 industry peers in the Consumer Finance industry. ALLY has a bad profitability rating. Also its financial health evaluation is rather negative. ALLY is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ALLY had positive earnings in the past year.
ALLY had a positive operating cash flow in the past year.
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
With a Return On Assets value of 0.14%, ALLY is not doing good in the industry: 74.55% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of 1.82%, ALLY is doing worse than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.14% | ||
| ROE | 1.82% | ||
| 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
1.3 Margins
The Profit Margin of ALLY (3.15%) is worse than 69.09% of 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 Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 3.15% | ||
| 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
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.
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/Equity ratio of 0.91. This is a neutral value indicating ALLY is somewhat dependend on debt financing.
The Debt to Equity ratio of ALLY (0.91) is better than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC23.31%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
ALLY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 24.11%, which is quite impressive.
Measured over the past years, ALLY shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.32% on average per year.
ALLY shows a decrease in Revenue. In the last year, the revenue decreased by -2.70%.
The Revenue has been growing slightly by 3.87% on average over the past years.
EPS 1Y (TTM)24.11%
EPS 3Y-28.45%
EPS 5Y-3.32%
EPS Q2Q%21.05%
Revenue 1Y (TTM)-2.7%
Revenue growth 3Y0.53%
Revenue growth 5Y3.87%
Sales Q2Q%3.09%
3.2 Future
The Earnings Per Share is expected to grow by 14.05% on average over the next years. This is quite good.
Based on estimates for the next years, ALLY will show a small growth in Revenue. The Revenue will grow by 4.69% on average per year.
EPS Next Y21.56%
EPS Next 2Y32.01%
EPS Next 3Y26.36%
EPS Next 5Y14.05%
Revenue Next Year-1.88%
Revenue Next 2Y5.71%
Revenue Next 3Y5.47%
Revenue Next 5Y4.69%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 13.07, the valuation of ALLY can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of ALLY is on the same level as its industry peers.
When comparing the Price/Earnings ratio of ALLY to the average of the S&P500 Index (26.60), we can say ALLY is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.34, the valuation of ALLY can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALLY indicates a somewhat cheap valuation: ALLY is cheaper than 69.09% of the companies listed in the same industry.
ALLY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.07 | ||
| Fwd PE | 8.34 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
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.
ALLY's earnings are expected to grow with 26.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.61
PEG (5Y)N/A
EPS Next 2Y32.01%
EPS Next 3Y26.36%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.59%, ALLY has a reasonable but not impressive dividend return.
ALLY's Dividend Yield is a higher than the industry average which is at 2.59.
ALLY's Dividend Yield is a higher than the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
5.2 History
The dividend of ALLY is nicely growing with an annual growth rate of 17.75%!
ALLY has been paying a dividend for at least 10 years, so it has 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
5.3 Sustainability
177.09% 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.
DP177.09%
EPS Next 2Y32.01%
EPS Next 3Y26.36%
45.76
+0.47 (+1.04%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners84.24%
Inst Owner Change0.33%
Ins Owners0.61%
Ins Owner Change-3.63%
Market Cap14.10B
Revenue(TTM)8.72B
Net Income(TTM)275.00M
Analysts78.46
Price Target50.81 (11.04%)
Short Float %3.89%
Short Ratio3.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.59% |
Yearly Dividend1.59
Dividend Growth(5Y)17.75%
DP177.09%
Div Incr Years0
Div Non Decr Years8
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.16%
Min EPS beat(2)11.87%
Max EPS beat(2)20.45%
EPS beat(4)4
Avg EPS beat(4)25.12%
Min EPS beat(4)11.87%
Max EPS beat(4)34.38%
EPS beat(8)7
Avg EPS beat(8)32.42%
EPS beat(12)10
Avg EPS beat(12)21.84%
EPS beat(16)12
Avg EPS beat(16)13.99%
Revenue beat(2)2
Avg Revenue beat(2)0.28%
Min Revenue beat(2)0.24%
Max Revenue beat(2)0.32%
Revenue beat(4)2
Avg Revenue beat(4)-6.29%
Min Revenue beat(4)-23.98%
Max Revenue beat(4)0.32%
Revenue beat(8)4
Avg Revenue beat(8)-3.28%
Revenue beat(12)6
Avg Revenue beat(12)-0.69%
Revenue beat(16)10
Avg Revenue beat(16)1.17%
PT rev (1m)3.51%
PT rev (3m)6.74%
EPS NQ rev (1m)0.12%
EPS NQ rev (3m)0.75%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)4%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.07 | ||
| Fwd PE | 8.34 | ||
| P/S | 1.62 | ||
| P/FCF | N/A | ||
| P/OCF | 3.8 | ||
| P/B | 0.93 | ||
| P/tB | 0.94 | ||
| EV/EBITDA | N/A |
EPS(TTM)3.5
EY7.65%
EPS(NY)5.49
Fwd EY12%
FCF(TTM)-1.92
FCFYN/A
OCF(TTM)12.04
OCFY26.31%
SpS28.3
BVpS49.07
TBVpS48.46
PEG (NY)0.61
PEG (5Y)N/A
Graham Number62.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.14% | ||
| ROE | 1.82% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 3.15% | ||
| GM | N/A | ||
| FCFM | 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
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc 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-Score5
Asset Turnover0.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.91 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | 331.61% | ||
| Cap/Sales | 49.33% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC23.31%
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)24.11%
EPS 3Y-28.45%
EPS 5Y-3.32%
EPS Q2Q%21.05%
EPS Next Y21.56%
EPS Next 2Y32.01%
EPS Next 3Y26.36%
EPS Next 5Y14.05%
Revenue 1Y (TTM)-2.7%
Revenue growth 3Y0.53%
Revenue growth 5Y3.87%
Sales Q2Q%3.09%
Revenue Next Year-1.88%
Revenue Next 2Y5.71%
Revenue Next 3Y5.47%
Revenue Next 5Y4.69%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-47.94%
EBIT Next 3Y-7.11%
EBIT Next 5YN/A
FCF growth 1Y-119.82%
FCF growth 3YN/A
FCF growth 5Y108.66%
OCF growth 1Y-36.63%
OCF growth 3Y3.86%
OCF growth 5Y2.26%
ALLY FINANCIAL INC / ALLY FAQ
What is the fundamental rating for ALLY stock?
ChartMill assigns a fundamental rating of 3 / 10 to ALLY.
What is the valuation status of ALLY FINANCIAL INC (ALLY) stock?
ChartMill assigns a valuation rating of 5 / 10 to ALLY FINANCIAL INC (ALLY). This can be considered as Fairly Valued.
Can you provide the profitability details for ALLY FINANCIAL INC?
ALLY FINANCIAL INC (ALLY) has a profitability rating of 2 / 10.
What is the earnings growth outlook for ALLY FINANCIAL INC?
The Earnings per Share (EPS) of ALLY FINANCIAL INC (ALLY) is expected to grow by 21.56% in the next year.
Is the dividend of ALLY FINANCIAL INC sustainable?
The dividend rating of ALLY FINANCIAL INC (ALLY) is 5 / 10 and the dividend payout ratio is 177.09%.