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ALLY

Ally FinancialNYSE:ALLY Stock Report

Market Cap

US$15.9b

7D

-8.4%

1Y

47.6%

Updated

01 Dec, 2021

Data

Company Financials +
ALLY fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health6/6
Dividends3/6

ALLY Stock Overview

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.

Ally Financial Competitors

Synchrony Financial

NYSE:SYF

US$24.5b

Credit Acceptance

NasdaqGS:CACC

US$9.3b

JPMorgan Chase

NYSE:JPM

US$469.4b

Morgan Stanley

NYSE:MS

US$170.1b

Price History & Performance

Summary of all time highs, changes and price drops for Ally Financial
Historical stock prices
Current Share PriceUS$45.83
52 Week HighUS$56.61
52 Week LowUS$30.29
Beta1.47
1 Month Change-4.00%
3 Month Change-12.69%
1 Year Change47.65%
3 Year Change82.52%
5 Year Change133.47%
Change since IPO76.49%

Recent News & Updates

Oct 24
Ally Financial's (NYSE:ALLY) Upcoming Dividend Will Be Larger Than Last Year's

Ally Financial's (NYSE:ALLY) Upcoming Dividend Will Be Larger Than Last Year's

Ally Financial Inc. ( NYSE:ALLY ) will increase its dividend on the 15th of November to US$0.25. Based on the announced...

Oct 10
Ally Financial (NYSE:ALLY) Is Increasing Its Dividend To US$0.25

Ally Financial (NYSE:ALLY) Is Increasing Its Dividend To US$0.25

Ally Financial Inc. ( NYSE:ALLY ) will increase its dividend on the 15th of November to US$0.25. This takes the annual...

Oct 02

Ally Financial: It's Time To Consider For Outsized Return

Ally Financial has placed itself in fast growing business segments in fast growing regions in the United States. As a result, I expect them to outperform the broader financial services industry and the market overall. After previously being hesitant about initiating a position, I now believe they are ripe for a 30% return over the next 24 to 26 months.

Shareholder Returns

ALLYUS Consumer FinanceUS Market
7D-8.4%-8.2%-2.8%
1Y47.6%22.1%20.0%

Return vs Industry: ALLY exceeded the US Consumer Finance industry which returned 22.1% over the past year.

Return vs Market: ALLY exceeded the US Market which returned 20% over the past year.

Price Volatility

Is ALLY's price volatile compared to industry and market?
ALLY volatility
ALLY Average Weekly Movement4.4%
Consumer Finance Industry Average Movement6.9%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

Stable Share Price: ALLY is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: ALLY's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19149,500JB Brownhttps://www.ally.com

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 through four segments: Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations. 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 and other lines of credit to dealers, warehouse lines to automotive retailers, and fleet financing.

Ally Financial Fundamentals Summary

How do Ally Financial's earnings and revenue compare to its market cap?
ALLY fundamental statistics
Market CapUS$15.88b
Earnings (TTM)US$3.07b
Revenue (TTM)US$8.59b

5.2x

P/E Ratio

1.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ALLY income statement (TTM)
RevenueUS$8.59b
Cost of RevenueUS$0
Gross ProfitUS$8.59b
ExpensesUS$5.53b
EarningsUS$3.07b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)8.85
Gross Margin100.00%
Net Profit Margin35.67%
Debt/Equity Ratio86.8%

How did ALLY perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

10%

Payout Ratio

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: ALLY ($45.83) is trading below our estimate of fair value ($119.5)

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


Price To Earnings Ratio

PE vs Industry: ALLY is good value based on its PE Ratio (5.2x) compared to the US Consumer Finance industry average (6.8x).

PE vs Market: ALLY is good value based on its PE Ratio (5.2x) compared to the US market (16.8x).


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 (1.1x) compared to the US Consumer Finance industry average (1.5x).


Future Growth

How is Ally Financial forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

-15.5%

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 (-15.5% per year).

Earnings vs Market: ALLY's earnings are forecast to decline over the next 3 years (-15.5% per year).

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

Revenue vs Market: ALLY's revenue (4.7% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: ALLY's revenue (4.7% 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 (15%).


Past Performance

How has Ally Financial performed over the past 5 years?

23.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ALLY has high quality earnings.

Growing Profit Margin: ALLY's current net profit margins (35.7%) are higher than last year (13.6%).


Past Earnings Growth Analysis

Earnings Trend: ALLY has become profitable over the past 5 years, growing earnings by 23.1% per year.

Accelerating Growth: ALLY's earnings growth over the past year (292.9%) exceeds its 5-year average (23.1% per year).

Earnings vs Industry: ALLY earnings growth over the past year (292.9%) exceeded the Consumer Finance industry 121.9%.


Return on Equity

High ROE: ALLY's Return on Equity (17.9%) is considered low.


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 (10.4x) is moderate.

Allowance for Bad Loans: ALLY has a sufficient allowance for bad loans (245%).

Low Risk Liabilities: 86% 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 (80%) is appropriate.

Level of Bad Loans: ALLY has an appropriate level of bad loans (1.1%).


Dividend

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

2.18%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ALLY's dividend (2.18%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: ALLY's dividend (2.18%) is low compared to the top 25% of dividend payers in the US market (3.63%).


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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (9.9%), ALLY's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ALLY's dividends in 3 years are forecast to be thoroughly covered by earnings (14% 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 (48 yo)

6.75yrs

Tenure

US$11,622,074

Compensation

Mr. Jeffrey J. Brown, also known as JB, has been the Chief Executive Officer and Director of Ally Financial Inc. since February 2, 2015. He serves as a Director of Ally Bank Corp. Mr. Brown served as the C...


CEO Compensation Analysis

Compensation vs Market: JB's total compensation ($USD11.62M) is about average for companies of similar size in the US market ($USD11.14M).

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


Leadership Team

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


Board Members

Experienced Board: ALLY's board of directors are considered experienced (6.8 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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Ally Financial Inc.
  • Ticker: ALLY
  • Exchange: NYSE
  • Founded: 1914
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$15.878b
  • Shares outstanding: 346.44m
  • Website: https://www.ally.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/01 00:01
End of Day Share Price2021/11/30 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.