NYSE:ALLY

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

Fundamentals

Good value 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: ALLY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.3%

ALLY

-0.5%

US Consumer Finance

0.2%

US Market


1 Year Return

21.8%

ALLY

10.0%

US Consumer Finance

12.2%

US Market

Return vs Industry: ALLY exceeded the US Consumer Finance industry which returned 10% over the past year.

Return vs Market: ALLY exceeded the US Market which returned 12.2% over the past year.


Shareholder returns

ALLYIndustryMarket
7 Day-2.3%-0.5%0.2%
30 Day0.7%4.2%3.5%
90 Day0.3%0.9%6.3%
1 Year24.6%21.8%11.9%10.0%14.7%12.2%
3 Year68.9%58.9%45.9%38.9%47.8%38.3%
5 Year41.0%31.5%37.9%27.8%62.1%44.1%

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?

35.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ALLY ($30.84) is trading below our estimate of fair value ($47.81)

Significantly Below Fair Value: ALLY is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ALLY is good value based on its PE Ratio (7.6x) compared to the Consumer Finance industry average (8.5x).

PE vs Market: ALLY is good value based on its PE Ratio (7.6x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ALLY is good value based on its PB Ratio (0.8x) compared to the US Consumer Finance industry average (1.3x).


Next Steps

Future Growth

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

-2.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALLY's earnings are forecast to decline over the next 3 years (-2.6% per year).

Earnings vs Market: ALLY's earnings are forecast to decline over the next 3 years (-2.6% per year).

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

Revenue vs Market: ALLY's revenue (5.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: ALLY's revenue (5.9% 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 (11.3%).


Next Steps

Past Performance

How has Ally Financial performed over the past 5 years?

44.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALLY has high quality earnings.

Growing Profit Margin: ALLY's current net profit margins (27%) are higher than last year (19.8%).


Past Earnings Growth Analysis

Earnings Trend: ALLY's earnings have grown significantly by 44% per year over the past 5 years.

Accelerating Growth: ALLY's earnings growth over the past year (41.3%) is below its 5-year average (44% per year).

Earnings vs Industry: ALLY earnings growth over the past year (41.3%) exceeded the Consumer Finance industry 17.1%.


Return on Equity

High ROE: ALLY's Return on Equity (11.3%) 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: ALLY has a low level of unsold assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

2.20%

Current Dividend Yield


Dividend Yield vs Market

company2.2%marketbottom25%1.4%markettop25%3.6%industryaverage1.8%forecastin3Years2.4%

Current dividend yield vs market & industry

Notable Dividend: ALLY's dividend (2.2%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: ALLY's dividend (2.2%) is low compared to the top 25% of dividend payers in the US market (3.65%).


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 3 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.2%), 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 (17.6% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

JB Brown (46yo)

4.8yrs

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 ($USD9.59M) is about average for companies of similar size in the US market ($USD11.01M).

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


Management Age and Tenure

5.8yrs

Average Tenure

53yo

Average Age

Experienced Management: ALLY's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

63yo

Average Age

Experienced Board: ALLY's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$500,25023 Jul 19
Diane Morais
EntityIndividual
Role
Unit President
President of Consumer & Commercial Banking Products
Shares15,000
Max PriceUS$33.35
BuyUS$148,55003 May 19
Mayree Clark
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$29.71
SellUS$2,628,37022 Feb 19
Jeffrey Brown
EntityIndividual
Shares97,311
Max PriceUS$27.01
BuyUS$52,94012 Feb 19
Michael Steib
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$26.47

Ownership Breakdown

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


Management Team

  • Michael Baresich

    Chief Information Officer

    • Tenure: 7.8yrs
  • Dave DeBrunner (53yo)

    VP, Controller & Chief Accounting Officer

    • Tenure: 12.2yrs
  • Doug Timmerman (56yo)

    President of Auto Finance

    • Tenure: 5.8yrs
    • Compensation: US$2.11m
  • JB Brown (46yo)

    CEO & Director

    • Tenure: 4.8yrs
    • Compensation: US$9.59m
  • Scott Stengel (47yo)

    General Counsel

    • Tenure: 3.5yrs
    • Compensation: US$2.09m
  • Dan Soto

    Chief Compliance Officer

    • Tenure: 9.1yrs
  • Di Morais (53yo)

    President of Consumer & Commercial Banking Products

    • Tenure: 0yrs
    • Compensation: US$3.48m
  • Andrea Brimmer (53yo)

    Chief Marketing & Public Relations Officer

    • Tenure: 0yrs
  • Jenn LaClair (47yo)

    Chief Financial Officer

    • Tenure: 1.7yrs
    • Compensation: US$3.21m
  • Daniel Eller

    Executive Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Fritz Hobbs (72yo)

    Non-Executive Chairman of the Board

    • Tenure: 10.5yrs
    • Compensation: US$535.55k
  • Ken Bacon (64yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$308.41k
  • Marge Magner (70yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$265.02k
  • Bill Cary (60yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$301.02k
  • Kim Fennebresque (69yo)

    Independent Director

    • Tenure: 10.5yrs
    • Compensation: US$315.02k
  • Maureen Breakiron-Evans (64yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$271.09k
  • Mayree Clark (62yo)

    Independent Director

    • Tenure: 10.5yrs
    • Compensation: US$281.12k
  • Mike Steib (42yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$295.02k
  • JB Brown (46yo)

    CEO & Director

    • Tenure: 4.8yrs
    • Compensation: US$9.59m
  • Brian Sharples (58yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$259.95k

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$11.721b
  • Shares outstanding: 380.07m
  • 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 Aut ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/15 00:35
End of Day Share Price2019/11/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.