LSE:0HD0

Stock Analysis Report

Executive Summary

Ally Financial Inc. provides various financial products and services to consumers, businesses, automotive dealers, and corporate customers primarily in the United States and Canada.


Snowflake Analysis

Undervalued with proven track record.


Similar Companies

Share Price & News

How has Ally Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0HD0 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

0HD0

-2.9%

GB Consumer Finance

-4.4%

GB Market


1 Year Return

22.1%

0HD0

-38.8%

GB Consumer Finance

1.4%

GB Market

Return vs Industry: 0HD0 exceeded the UK Consumer Finance industry which returned -38.8% over the past year.

Return vs Market: 0HD0 exceeded the UK Market which returned 1.4% over the past year.


Shareholder returns

0HD0IndustryMarket
7 Day0%-2.9%-4.4%
30 Day3.6%-2.6%-6.3%
90 Dayn/a5.2%-2.7%
1 Year24.9%22.1%-35.8%-38.8%6.7%1.4%
3 Yearn/a-55.2%-67.9%12.6%-1.5%
5 Yearn/a-55.1%-69.9%28.8%-0.7%

Price Volatility Vs. Market

How volatile is Ally Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Ally Financial undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0HD0 ($33.06) is trading below our estimate of fair value ($88.78)

Significantly Below Fair Value: 0HD0 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0HD0 is good value based on its PE Ratio (6x) compared to the Consumer Finance industry average (12x).

PE vs Market: 0HD0 is good value based on its PE Ratio (6x) compared to the UK market (17.7x).


Price to Earnings Growth Ratio

PEG Ratio: 0HD0's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 0HD0 is good value based on its PB Ratio (0.7x) compared to the GB Consumer Finance industry average (1.6x).


Next Steps

Future Growth

How is Ally Financial forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0HD0's earnings are forecast to decline over the next 3 years (-5.7% per year).

Earnings vs Market: 0HD0's earnings are forecast to decline over the next 3 years (-5.7% per year).

High Growth Earnings: 0HD0's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 0HD0's revenue (4.8% per year) is forecast to grow faster than the UK market (3.8% per year).

High Growth Revenue: 0HD0's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0HD0's Return on Equity is forecast to be low in 3 years time (10.7%).


Next Steps

Past Performance

How has Ally Financial performed over the past 5 years?

45.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0HD0 has high quality earnings.

Growing Profit Margin: 0HD0's current net profit margins (27%) are higher than last year (21.8%).


Past Earnings Growth Analysis

Earnings Trend: 0HD0's earnings have grown significantly by 45.2% per year over the past 5 years.

Accelerating Growth: 0HD0's earnings growth over the past year (36.3%) is below its 5-year average (45.2% per year).

Earnings vs Industry: 0HD0 earnings growth over the past year (36.3%) exceeded the Consumer Finance industry 9.2%.


Return on Equity

High ROE: 0HD0's Return on Equity (11.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ally Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 0HD0 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0HD0's debt is covered by short term assets (assets are 2.9x debt).


Financial Institutions Analysis

Asset Level: 0HD0's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if 0HD0 has a sufficient allowance for bad loans.

Low Risk Liabilities: 0HD0 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 0HD0 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0HD0 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 0HD0 has an appropriate level of bad loans.


Next Steps

Dividend

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

2.91%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%1.9%markettop25%5.3%industryaverage5.6%forecastin3Years3.1%

Current dividend yield vs market & industry

Notable Dividend: 0HD0's dividend (2.91%) is higher than the bottom 25% of dividend payers in the UK market (1.9%).

High Dividend: 0HD0's dividend (2.91%) is low compared to the top 25% of dividend payers in the UK market (5.34%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 0HD0 has been paying a dividend for less than 10 years.

Growing Dividend: 0HD0's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.5%), 0HD0's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0HD0's dividends in 3 years are forecast to be well covered by earnings (17.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

JB Brown (46yo)

5yrs

Tenure

US$9,591,566

Compensation

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  ...


CEO Compensation Analysis

Compensation vs Market: JB's total compensation ($USD9.59M) is above average for companies of similar size in the UK market ($USD4.70M).

Compensation vs Earnings: JB's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Brown
CEO & Director5yrsUS$9.59mno data
Jennifer LaClair
Chief Financial Officer1.9yrsUS$3.21m0.029% $2.9m
Scott Stengel
General Counsel3.8yrsUS$2.09m0.030% $3.1m
Douglas Timmerman
President of Auto Finance6.1yrsUS$2.11m0.040% $4.1m
Diane Morais
President of Consumer & Commercial Banking Products0yrsUS$3.48m0.067% $6.9m
David DeBrunner
VP, Controller & Chief Accounting Officer12.4yrsno data0.029% $3.0m
Sathish Muthukrishnan
Chief Information0.08yrsno datano data
Daniel Eller
Executive Director of Investor Relations0yrsno datano data
Daniel Soto
Chief Compliance Officer9.3yrsno datano data
Andrea Brimmer
Chief Marketing & Public Relations Officer0yrsno datano data

5.0yrs

Average Tenure

53yo

Average Age

Experienced Management: 0HD0's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Brown
CEO & Director5yrsUS$9.59mno data
Franklin Hobbs
Non-Executive Chairman of the Board10.8yrsUS$535.55k0.0013% $137.5k
Kenneth Bacon
Independent Director5yrsUS$308.41kno data
Marjorie Magner
Independent Director9.8yrsUS$265.02k0.00072% $73.9k
William Cary
Independent Director3.7yrsUS$301.02kno data
Kim Fennebresque
Independent Director10.8yrsUS$315.02kno data
Maureen Breakiron-Evans
Independent Director4.6yrsUS$271.09k0.015% $1.5m
John Stack
Independent Director5.6yrsUS$287.69k0.0011% $109.8k
Mayree Clark
Independent Director10.8yrsUS$281.12k0.0040% $411.4k
Michael Steib
Independent Director4.6yrsUS$295.02k0.00053% $54.4k

5.3yrs

Average Tenure

64yo

Average Age

Experienced Board: 0HD0's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ally Financial Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ally Financial Inc.
  • Ticker: 0HD0
  • Exchange: LSE
  • Founded: 1919
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$10.260b
  • Shares outstanding: 374.33m
  • Website: https://www.ally.com

Number of Employees


Location

  • Ally Financial Inc.
  • Ally Detroit Center
  • Floor 10
  • Detroit
  • Michigan
  • 48226
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ALLYNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 2014
GMZDB (Deutsche Boerse AG)YesCommon StockDEEURJan 2014
0HD0LSE (London Stock Exchange)YesCommon StockGBUSDJan 2014

Biography

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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 23:13
End of Day Share Price2020/02/17 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.