NYSE:ALLY

Stock Analysis Report

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Executive Summary

Ally Financial Inc., a bank holding company, provides various digital financial products and services to consumer, commercial, and corporate customers primarily in the United States and Canada. More Details


Snowflake Analysis

Flawless balance sheet and fair value.


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: ALLY's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.1%

ALLY

5.7%

US Consumer Finance

3.9%

US Market


1 Year Return

-20.3%

ALLY

-15.5%

US Consumer Finance

18.5%

US Market

Return vs Industry: ALLY matched the US Consumer Finance industry which returned -19.4% over the past year.

Return vs Market: ALLY underperformed the US Market which returned 17.2% over the past year.


Shareholder returns

ALLYIndustryMarket
7 Day7.1%5.7%3.9%
30 Day9.6%0.7%-4.3%
90 Day28.8%9.2%8.1%
1 Year-17.8%-20.3%-13.8%-15.5%21.2%18.5%
3 Year11.2%3.3%1.2%-3.9%38.2%29.0%
5 Year32.6%20.5%17.0%7.5%84.3%63.4%

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

Valuation

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

13.92x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ALLY ($25.07) is trading above our estimate of fair value ($21.17)

Significantly Below Fair Value: ALLY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ALLY is poor value based on its PE Ratio (13.9x) compared to the US Consumer Finance industry average (7.6x).

PE vs Market: ALLY is good value based on its PE Ratio (13.9x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: ALLY is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: ALLY is good value based on its PB Ratio (0.7x) compared to the US Consumer Finance industry average (1.1x).


Next Steps

Future Growth

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

62.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALLY's forecast earnings growth (62.1% per year) is above the savings rate (2.2%).

Earnings vs Market: ALLY's earnings (62.1% per year) are forecast to grow faster than the US market (22.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ALLY's revenue (7.1% per year) is forecast to grow slower than the US market (9.9% per year).

High Growth Revenue: ALLY's revenue (7.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ALLY's Return on Equity is forecast to be low in 3 years time (9%).


Next Steps

Past Performance

How has Ally Financial performed over the past 5 years?

47.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALLY has high quality earnings.

Growing Profit Margin: ALLY's current net profit margins (12.4%) are lower than last year (26.6%).


Past Earnings Growth Analysis

Earnings Trend: ALLY has become profitable over the past 5 years, growing earnings by 47.5% per year.

Accelerating Growth: ALLY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ALLY had negative earnings growth (-57.8%) over the past year, making it difficult to compare to the Consumer Finance industry average (-32.3%).


Return on Equity

High ROE: ALLY's Return on Equity (5%) is considered low.


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


Financial Institutions Analysis

Asset Level: ALLY's Assets to Equity ratio (13.3x) is moderate.

Allowance for Bad Loans: ALLY has a sufficient allowance for bad loans (219%).

Low Risk Liabilities: 77% of ALLY's liabilities are made up of primarily low risk sources of funding.

Loan Level: ALLY has an appropriate level of Loans to Assets ratio (62%).

Low Risk Deposits: ALLY's Loans to Deposits ratio (88%) is appropriate.

Level of Bad Loans: ALLY has an appropriate level of bad loans (1.3%).


Next Steps

Dividend

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

3.03%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ALLY's dividend (3.03%) is higher than the bottom 25% of dividend payers in the US market (1.72%).

High Dividend: ALLY's dividend (3.03%) is low compared to the top 25% of dividend payers in the US market (4.89%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (40%), ALLY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ALLY's dividends in 3 years are forecast to be well covered by earnings (21.5% payout ratio).


Next Steps

Management

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

5.5yrs

Average management tenure


CEO

JB Brown (47 yo)

5.5yrs

Tenure

US$10,642,118

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 ($USD10.64M) is above average for companies of similar size in the US market ($USD7.33M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Brown
CEO & Director5.5yrsUS$10.64mno data
Jennifer LaClair
Chief Financial Officer2.5yrsUS$3.32m0.0068%
$ 639.2k
Scott Stengel
General Counsel4.33yrsUS$2.31m0.014%
$ 1.3m
Douglas Timmerman
President of Auto Finance6.67yrsUS$3.53m0.039%
$ 3.7m
Diane Morais
President of Consumer & Commercial Banking Productsno dataUS$3.63m0.041%
$ 3.8m
David DeBrunner
VP, Controller & Chief Accounting Officer13yrsno data0.029%
$ 2.7m
Sathish Muthukrishnan
Chief Information0.67yrno datano data
Daniel Eller
Executive Director of Investor Relationsno datano datano data
Daniel Soto
Chief Compliance Officer9.92yrsno datano data
Andrea Brimmer
Chief Marketing & Public Relations Officerno datano datano data
Kathleen Patterson
Chief Human Resources Officer4.08yrsno datano data
Jim Babcock
Senior Managing Director of Healthcare Capital6yrsno datano data

5.5yrs

Average Tenure

54yo

Average Age

Experienced Management: ALLY's management team is seasoned and experienced (5.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Brown
CEO & Director5.5yrsUS$10.64mno data
Franklin Hobbs
Independent Non-Executive Chairman of the Board11.33yrsUS$395.07k0.0040%
$ 375.8k
Kenneth Bacon
Independent Director5.5yrsUS$305.02k0.011%
$ 1.1m
Marjorie Magner
Independent Director10.33yrsUS$265.02k0.00072%
$ 67.5k
William Cary
Independent Director4.25yrsUS$305.02k0%
$ 0
Kim Fennebresque
Independent Director11.33yrsUS$315.02k0.012%
$ 1.1m
Maureen Breakiron-Evans
Independent Director5.17yrsUS$265.10k0.0034%
$ 321.5k
John Stack
Independent Director6.17yrsUS$285.02k0.0011%
$ 100.3k
Mayree Clark
Independent Director11.33yrsUS$265.02k0.0080%
$ 751.6k
Katryn Blake
Independent Director2.08yrsUS$265.10k0%
$ 0
Michael Steib
Independent Director5.17yrsUS$295.02k0.00053%
$ 49.7k
Brian Sharples
Independent Director2.08yrsUS$265.02kno data

5.5yrs

Average Tenure

64yo

Average Age

Experienced Board: ALLY's board of directors are considered experienced (5.5 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: ALLY
  • Exchange: NYSE
  • Founded: 1919
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$9.372b
  • Shares outstanding: 373.84m
  • 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
ALLY1 *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJan 2014

Biography

Ally Financial Inc., a bank holding company, provides various digital financial products and services to consumer, commercial, and corporate customers primarily in the United States and Canada. It operates ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/30 23:53
End of Day Share Price2020/09/30 00:00
Earnings2020/06/30
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.