ALLY FINANCIAL INC (ALLY)
US02005N1000 - Common Stock
Taking everything into account, ALLY scores 3 out of 10 in our fundamental rating. ALLY was compared to 51 industry peers in the Consumer Finance industry. Both the profitability and financial health of ALLY have multiple concerns. ALLY has a expensive valuation and it also scores bad on growth.
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.
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.
1.2 Ratios
ALLY has a Return On Assets (0.46%) which is comparable to the rest of the industry.
ALLY has a Return On Equity (6.61%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 6.61% | ||
| 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
Looking at the Profit Margin, with a value of 10.03%, ALLY is in line with its industry, outperforming 50.98% of the companies in the same industry.
In the last couple of years the Profit Margin of ALLY has declined.
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) | 10.03% | ||
| 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.
ALLY has more shares outstanding than it did 1 year ago.
ALLY has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ALLY has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of ALLY is 10.96, which is on the high side as it means it would take ALLY, 10.96 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 10.96, ALLY perfoms like the industry average, outperforming 45.10% of the companies in the same industry.
A Debt/Equity ratio of 1.20 is on the high side and indicates that ALLY has dependencies on debt financing.
ALLY has a Debt to Equity ratio of 1.20. This is comparable to the rest of the industry: ALLY outperforms 56.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 10.96 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC21.28%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for ALLY have decreased strongly by -48.91% in the last year.
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 -2.87% 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)-48.91%
EPS 3Y0.44%
EPS 5Y-1.74%
EPS growth Q2Q-58.33%
Revenue 1Y (TTM)-2.87%
Revenue growth 3Y6.38%
Revenue growth 5Y5.85%
Revenue growth Q2Q-6.23%
3.2 Future
The Earnings Per Share is expected to grow by 19.17% on average over the next years. This is quite good.
ALLY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.70% yearly.
EPS Next Y0.91%
EPS Next 2Y33.53%
EPS Next 3Y29.55%
EPS Next 5Y19.17%
Revenue Next Year1.41%
Revenue Next 2Y6.89%
Revenue Next 3Y6.11%
Revenue Next 5Y5.7%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.98, the valuation of ALLY can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as ALLY.
Compared to an average S&P500 Price/Earnings ratio of 25.20, ALLY is valued a bit cheaper.
The Price/Forward Earnings ratio is 12.86, which indicates a correct valuation of ALLY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALLY is on the same level as its industry peers.
ALLY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.98 | ||
| Fwd PE | 12.86 |
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 | 6.34 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ALLY's earnings are expected to grow with 29.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)14.2
PEG (5Y)N/A
EPS Next 2Y33.53%
EPS Next 3Y29.55%
5. Dividend
5.1 Amount
ALLY has a Yearly Dividend Yield of 3.07%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.32, 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 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
5.2 History
The dividend of ALLY is nicely growing with an annual growth rate of 22.54%!
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
52.53% of the earnings are spent on dividend by ALLY. This is a bit on the high side, but may be sustainable.
The dividend of ALLY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP52.53%
EPS Next 2Y33.53%
EPS Next 3Y29.55%
ALLY FINANCIAL INC
NYSE:ALLY (4/23/2024, 7:04:00 PM)
After market: 39.86 +0.15 (+0.38%)39.71
-0.03 (-0.08%)
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 Cap12.07B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 12.98 | ||
| Fwd PE | 12.86 | ||
| 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)14.2
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.46% | ||
| ROE | 6.61% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 10.03% | ||
| 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 | 1.2 | ||
| 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)
Growth
EPS 1Y (TTM)-48.91%
EPS 3Y0.44%
EPS 5Y
EPS growth Q2Q
EPS Next Y0.91%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.87%
Revenue growth 3Y6.38%
Revenue growth 5Y
Revenue growth 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