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Ally Financial

DB:GMZ
Snowflake Description

Fair value second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GMZ
DB
$13B
Market Cap
  1. Home
  2. DE
  3. Diversified Financials
Company description

Ally Financial Inc. provides various financial products and services to consumers, businesses, automotive dealers, and corporate customers primarily in the United States and Canada. The last earnings update was 71 days ago. More info.


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GMZ Share Price and Events
7 Day Returns
2.2%
DB:GMZ
0.1%
Europe Consumer Finance
-1%
DE Market
1 Year Returns
22.9%
DB:GMZ
-15.8%
Europe Consumer Finance
-6.2%
DE Market
GMZ Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ally Financial (GMZ) 2.2% 9.1% 10% 22.9% 81.4% 61.5%
Europe Consumer Finance 0.1% -3.8% -9.4% -15.8% -37.4% -34%
DE Market -1% 2.1% -1.8% -6.2% 10.4% 12.6%
1 Year Return vs Industry and Market
  • GMZ outperformed the Consumer Finance industry which returned -15.8% over the past year.
  • GMZ outperformed the Market in Germany which returned -6.2% over the past year.
Price Volatility
GMZ
Industry
5yr Volatility vs Market

Value

 Is Ally Financial undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Ally Financial to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Ally Financial.

DB:GMZ Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 9 analysts.
= Stable Book Value * Return on Equity
= $38.53 * 10.8%
$4.16
Book Value of Equity per Share Weighted future Book Value estimates from 11 analysts. $38.53
Discount Rate (Cost of Equity) See below 12.1%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:GMZ
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Consumer Finance Unlevered Beta Simply Wall St/ S&P Global 0.7
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.696 (1 + (1- 21%) (376.36%))
2.182
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (2 * 5.96%)
12.15%

Discounted Cash Flow Calculation for DB:GMZ using Excess Returns Model Model

The calculations below outline how an intrinsic value for Ally Financial is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:GMZ Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (10.8% – 12.15%) * $38.53)
$-0.52
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $-0.52 / (12.15% - 0.23%)
$-4.40
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $38.53 + $-4.40
$34.14
DB:GMZ Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:GMZ represents 0.8959x of NYSE:ALLY
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.8959x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 34.14 x 0.8959
€30.58
Value per share (EUR) From above. €30.58
Current discount Discount to share price of €28.40
= -1 x (€28.40 - €30.58) / €30.58
7.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Ally Financial is available for.
Intrinsic value
7%
Share price is €28.4 vs Future cash flow value of €30.58
Current Discount Checks
For Ally Financial to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Ally Financial's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Ally Financial's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Ally Financial's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ally Financial's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:GMZ PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $3.32
NYSE:ALLY Share Price ** NYSE (2019-07-16) in USD $31.7
Europe Consumer Finance Industry PE Ratio Median Figure of 29 Publicly-Listed Consumer Finance Companies 11.05x
Germany Market PE Ratio Median Figure of 419 Publicly-Listed Companies 19.92x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Ally Financial.

DB:GMZ PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:ALLY Share Price ÷ EPS (both in USD)

= 31.7 ÷ 3.32

9.54x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ally Financial is good value based on earnings compared to the Europe Consumer Finance industry average.
  • Ally Financial is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Ally Financial's expected growth come at a high price?
Raw Data
DB:GMZ PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.54x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
1.3%per year
Europe Consumer Finance Industry PEG Ratio Median Figure of 18 Publicly-Listed Consumer Finance Companies 0.7x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

DB:GMZ PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.54x ÷ 1.3%

7.6x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ally Financial is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Ally Financial's assets?
Raw Data
DB:GMZ PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $34.27
NYSE:ALLY Share Price * NYSE (2019-07-16) in USD $31.7
Europe Consumer Finance Industry PB Ratio Median Figure of 39 Publicly-Listed Consumer Finance Companies 1.22x
Germany Market PB Ratio Median Figure of 565 Publicly-Listed Companies 1.75x
DB:GMZ PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:ALLY Share Price ÷ Book Value per Share (both in USD)

= 31.7 ÷ 34.27

0.93x

* Primary Listing of Ally Financial.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ally Financial is good value based on assets compared to the Europe Consumer Finance industry average.
X
Value checks
We assess Ally Financial's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Finance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Finance industry average (and greater than 0)? (1 check)
  5. Ally Financial has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Ally Financial expected to perform in the next 1 to 3 years based on estimates from 13 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
1.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ally Financial expected to grow at an attractive rate?
  • Ally Financial's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Ally Financial's earnings growth is positive but not above the Germany market average.
  • Ally Financial's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:GMZ Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:GMZ Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts 1.3%
DB:GMZ Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 4.3%
Europe Consumer Finance Industry Earnings Growth Rate Market Cap Weighted Average 14.6%
Europe Consumer Finance Industry Revenue Growth Rate Market Cap Weighted Average 10.3%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:GMZ Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:GMZ Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 6,822 1,466 5
2020-12-31 6,539 1,450 13
2019-12-31 6,288 1,435 13
DB:GMZ Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 5,936 4,134 1,386
2018-12-31 5,788 4,150 1,263
2018-09-30 5,834 4,050 1,153
2018-06-30 5,741 4,018 1,059
2018-03-31 5,685 4,001 965
2017-12-31 5,766 4,079 926
2017-09-30 5,838 4,351 993
2017-06-30 5,950 4,201 974
2017-03-31 6,062 4,540 1,062
2016-12-31 6,190 4,567 1,081
2016-09-30 6,318 4,730 -104
2016-06-30 6,403 5,804 -130

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ally Financial's earnings are expected to grow by 1.3% yearly, however this is not considered high growth (20% yearly).
  • Ally Financial's revenue is expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:GMZ Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from Ally Financial Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:GMZ Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 4.43 4.68 4.12 5.00
2020-12-31 4.03 4.23 3.92 13.00
2019-12-31 3.65 3.82 3.42 14.00
DB:GMZ Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 3.32
2018-12-31 2.97
2018-09-30 2.66
2018-06-30 2.41
2018-03-31 2.16
2017-12-31 2.04
2017-09-30 2.15
2017-06-30 2.07
2017-03-31 2.23
2016-12-31 2.25
2016-09-30 -0.21
2016-06-30 -0.27

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Ally Financial is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Ally Financial's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Ally Financial has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Ally Financial performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Ally Financial's growth in the last year to its industry (Consumer Finance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Ally Financial has delivered over 20% year on year earnings growth in the past 5 years.
  • Ally Financial's 1-year earnings growth is less than its 5-year average (43.6% vs 43.8%)
  • Ally Financial's earnings growth has exceeded the Europe Consumer Finance industry average in the past year (43.6% vs 7.4%).
Earnings and Revenue History
Ally Financial's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Ally Financial Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:GMZ Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 5,936.00 1,386.00 1,394.00
2018-12-31 5,788.00 1,263.00 1,372.00
2018-09-30 5,834.00 1,153.00 1,341.00
2018-06-30 5,741.00 1,059.00 1,326.00
2018-03-31 5,685.00 965.00 1,304.00
2017-12-31 5,766.00 926.00 1,274.00
2017-09-30 5,838.00 993.00 1,244.00
2017-06-30 5,950.00 974.00 1,224.00
2017-03-31 6,062.00 1,062.00 1,190.00
2016-12-31 6,190.00 1,081.00 1,155.00
2016-09-30 6,318.00 -104.00 1,132.00
2016-06-30 6,403.00 -130.00 1,119.00
2016-03-31 6,494.00 -1,554.00 1,115.00
2015-12-31 6,658.00 -1,674.00 1,121.00
2015-09-30 6,669.00 -652.00 1,127.00
2015-06-30 6,754.00 -661.00 1,131.00
2015-03-31 6,730.00 639.00 1,112.00
2014-12-31 6,529.00 657.00 1,108.00
2014-09-30 6,508.00 204.00 1,112.00
2014-06-30 6,331.00 -45.00 1,123.00
2014-03-31 6,083.00 -363.00 1,162.00
2013-12-31 5,698.00 -634.00 1,202.00
2013-09-30 6,293.00 469.00 1,200.00
2013-06-30 6,326.00 543.00 1,112.00
2013-03-31 6,312.00 625.00 1,135.00
2012-12-31 6,208.00 568.00 1,301.00
2012-09-30 3,276.00 -662.00 566.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Ally Financial has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Ally Financial used its assets less efficiently than the Europe Consumer Finance industry average last year based on Return on Assets.
  • Unable to establish if Ally Financial improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Ally Financial's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Finance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Ally Financial has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Ally Financial's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Ally Financial's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ally Financial's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Ally Financial's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Ally Financial's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Ally Financial Company Filings, last reported 3 months ago.

DB:GMZ Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 13,699.00 47,626.00 3,979.00
2018-12-31 13,268.00 54,217.00 4,578.00
2018-09-30 13,085.00 52,950.00 3,842.00
2018-06-30 13,139.00 54,501.00 3,987.00
2018-03-31 13,082.00 54,696.00 3,777.00
2017-12-31 13,494.00 55,680.00 4,291.00
2017-09-30 13,573.00 55,327.00 4,461.00
2017-06-30 13,473.00 59,900.00 4,418.00
2017-03-31 13,365.00 59,513.00 4,382.00
2016-12-31 13,317.00 66,896.00 6,029.00
2016-09-30 13,630.00 63,316.00 4,430.00
2016-06-30 13,611.00 67,121.00 5,940.00
2016-03-31 13,823.00 67,533.00 5,225.00
2015-12-31 13,439.00 74,480.00 6,613.00
2015-09-30 14,599.00 73,015.00 5,526.00
2015-06-30 14,295.00 76,046.00 6,072.00
2015-03-31 15,934.00 72,475.00 7,951.00
2014-12-31 15,399.00 73,694.00 5,839.00
2014-09-30 15,190.00 72,853.00 5,934.00
2014-06-30 14,878.00 74,487.00 6,012.00
2014-03-31 14,459.00 73,710.00 6,145.00
2013-12-31 14,208.00 78,327.00 5,893.00
2013-09-30 19,061.00 66,944.00 6,849.00
2013-06-30 19,165.00 68,951.00 8,084.00
2013-03-31 20,474.00 75,645.00 8,105.00
2012-12-31 19,898.00 84,490.00 9,811.00
2012-09-30 18,765.00 103,616.00 21,765.00
  • Ally Financial's level of debt (347.7%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (509.7% vs 347.7% today).
  • Debt is not well covered by operating cash flow (8.7%, less than 20% of total debt).
  • Unable to confirm if the interest payments on Ally Financial's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Ally Financial's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Ally Financial has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Ally Financial's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.15%
Current annual income from Ally Financial dividends. Estimated to be 2.4% next year.
If you bought €2,000 of Ally Financial shares you are expected to receive €43 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Ally Financial's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.46%).
  • Ally Financial's dividend is below the markets top 25% of dividend payers in Germany (3.82%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:GMZ Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below
Europe Consumer Finance Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 4.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:GMZ Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 0.88 6.00
2020-12-31 0.77 12.00
2019-12-31 0.69 12.00
DB:GMZ Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-15 0.680 2.271
2019-01-15 0.680 2.531
2018-10-10 0.600 2.440
2018-07-16 0.600 2.216
2018-04-12 0.520 1.946
2018-01-11 0.520 1.841
2017-10-11 0.480 1.773
2017-07-19 0.480 2.106
2017-04-18 0.320 1.609
2017-01-13 0.320 1.523
2016-10-19 0.320 1.665
2016-07-19 0.320 1.679

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Ally Financial has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Ally Financial only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of Ally Financial's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.3x coverage).
X
Income/ dividend checks
We assess Ally Financial's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Ally Financial afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ally Financial has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Ally Financial's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
JB Brown
COMPENSATION $9,591,566
AGE 46
TENURE AS CEO 4.4 years
CEO Bio

Mr. Jeffrey J. Brown, also known as JB, has been the Chief Executive Officer of Ally Financial Inc. since February 2, 2015. He serves as Director at Ally Bank Corp. Mr. Brown served as the Chief Executive Officer of Dealer Financial Services Business and President of Dealer Financial Services Business at Ally Financial Inc. from March 2014 to February 2, 2015. He served as a Senior Executive Vice President of Finance and Corporate Planning at Ally Financial Inc. from June 2011 to March 2014. He oversees the finance, treasury and corporate strategy activities of the Ally Financial. He joined Ally Financial in March 2009 as Corporate Treasurer with responsibility for global treasury activities, including funding and balance sheet management and held that position until 2011. From March 2008 to February 2009, he served as the Corporate Treasurer for Bank of America Corporation, where he was responsible for the core treasury functions, including funding and managing interest rate risk and also served as its Deputy Treasurer until March 2008. He served for 10 years at Bank of America, beginning his career in finance and joined the Balance Sheet Management Division. At Bank of America, he served as Deputy Treasurer until March 2008 and oversaw balance sheet management and the corporate funding division. He has been a Director of Ally Financial Inc. since February 2, 2015. He serves on the Trevillian Cabinet of the College of Business and Behavioral Sciences at Clemson University and on the Board of Advisors for the McColl School of Business at Queens University of Charlotte. Mr. Brown received a Bachelor's Degree in Economics from Clemson University and an Executive Master's Degree in Business from Queens University in Charlotte.

CEO Compensation
  • JB's compensation has been consistent with company performance over the past year, both up more than 20%.
  • JB's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Ally Financial management team in years:

5.5
Average Tenure
53
Average Age
  • The average tenure for the Ally Financial management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

JB Brown

TITLE
CEO & Director
COMPENSATION
$10M
AGE
46
TENURE
4.4 yrs

Jenn LaClair

TITLE
Chief Financial Officer
COMPENSATION
$3M
AGE
47
TENURE
1.3 yrs

Scott Stengel

TITLE
General Counsel
COMPENSATION
$2M
AGE
47
TENURE
3.2 yrs

Doug Timmerman

TITLE
President of Auto Finance
COMPENSATION
$2M
AGE
56
TENURE
5.5 yrs

Di Morais

TITLE
President of Consumer & Commercial Banking Products
COMPENSATION
$3M
AGE
53

Dave DeBrunner

TITLE
VP, Controller & Chief Accounting Officer
AGE
53
TENURE
11.8 yrs

Michael Baresich

TITLE
Chief Information Officer
TENURE
7.5 yrs

Daniel Eller

TITLE
Executive Director of Investor Relations

Dan Soto

TITLE
Chief Compliance Officer
TENURE
8.8 yrs

Andrea Brimmer

TITLE
Chief Marketing & Public Relations Officer
AGE
53
Board of Directors Tenure

Average tenure and age of the Ally Financial board of directors in years:

4.7
Average Tenure
64
Average Age
  • The tenure for the Ally Financial board of directors is about average.
Board of Directors

Fritz Hobbs

TITLE
Non-Executive Chairman of the Board
COMPENSATION
$536K
AGE
72
TENURE
10.2 yrs

JB Brown

TITLE
CEO & Director
COMPENSATION
$10M
AGE
46
TENURE
4.4 yrs

Kim Fennebresque

TITLE
Director
COMPENSATION
$315K
AGE
69
TENURE
10.2 yrs

Ken Bacon

TITLE
Director
COMPENSATION
$308K
AGE
64
TENURE
4.4 yrs

Bill Cary

TITLE
Director
COMPENSATION
$301K
AGE
60
TENURE
3.1 yrs

Mayree Clark

TITLE
Director
COMPENSATION
$281K
AGE
62
TENURE
10.2 yrs

Jack Stack

TITLE
Director
COMPENSATION
$288K
AGE
73
TENURE
5 yrs

Marge Magner

TITLE
Director
COMPENSATION
$265K
AGE
70
TENURE
9.2 yrs

Maureen Breakiron-Evans

TITLE
Director
COMPENSATION
$271K
AGE
64
TENURE
4 yrs

Mike Steib

TITLE
Director
COMPENSATION
$295K
AGE
42
TENURE
4 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Ally Financial individual insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
03. May 19 Buy Mayree Clark Individual 02. May 19 02. May 19 5,000 €26.57 €132,863
22. Feb 19 Sell Jeffrey Brown Individual 21. Feb 19 21. Feb 19 -97,311 €23.83 €-2,319,011
12. Feb 19 Buy Michael Steib Individual 11. Feb 19 11. Feb 19 2,000 €23.47 €46,931
X
Management checks
We assess Ally Financial's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Ally Financial has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Ally Financial Inc. provides various financial products and services to consumers, businesses, automotive dealers, and corporate customers primarily in the United States and Canada. It operates through Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations segments. The Automotive Finance Operations segment offers automotive financing services, including providing retail installment sales contracts, loans and operating leases, term loans to dealers, financing dealer floorplans, other lines of credit to dealers, warehouse lines to automotive retailers, and fleet financing. It also offers financing services to companies and municipalities for the purchase or lease of vehicles, and vehicle-remarketing services. The Insurance Operations segment provides consumer finance protection and insurance products through the automotive dealer channel, and commercial insurance products directly to dealers. The Mortgage Finance Operations segment manages held-for-investment consumer mortgage finance loan portfolio that includes bulk purchases of jumbo and low-to-moderate income mortgage loans originated by third parties, as well as direct-to-consumer mortgage offerings. The Corporate Finance Operations segment offers senior secured leveraged cash flow and asset-based loans to middle market companies. It primarily focuses on businesses owned by private equity sponsors with loans used for leveraged buyouts, mergers and acquisitions, debt refinancing, restructurings, and working capital. The company, through its subsidiary, Ally Bank, also provides commercial banking products and services. In addition, it offers digital securities brokerage and investment advisory services. The company was formerly known as GMAC Inc. and changed its name to Ally Financial Inc. in May 2010. Ally Financial Inc. was founded in 1919 and is headquartered in Detroit, Michigan.

Details
Name: Ally Financial Inc.
GMZ
Exchange: DB
Founded: 1919
$11,331,435,871
397,159,456
Website: http://www.ally.com
Address: Ally Financial Inc.
Ally Detroit Center,
Floor 10,
Detroit,
Michigan, 48226,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE ALLY Common Stock New York Stock Exchange US USD 28. Jan 2014
DB GMZ Common Stock Deutsche Boerse AG DE EUR 28. Jan 2014
LSE 0HD0 Common Stock London Stock Exchange GB USD 28. Jan 2014
Number of employees
Current staff
Staff numbers
8,200
Ally Financial employees.
Industry
Consumer Finance
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/16 21:54
End of day share price update: 2019/07/16 00:00
Last estimates confirmation: 2019/07/16
Last earnings filing: 2019/05/06
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.