Ally Financial Inc.
Ally Financial Inc. Fundamental Analysis
Ally Financial Inc. (ALLY) shows weak financial fundamentals with a PE ratio of 13.29, profit margin of 5.61%, and ROE of 5.74%. The company generates $15.1B in annual revenue with weak year-over-year growth of 2.52%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 20.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze ALLY's fundamental strength across five key dimensions:
Efficiency Score
WeakALLY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentALLY trades at attractive valuation levels.
Growth Score
WeakALLY faces weak or negative growth trends.
Financial Health Score
WeakALLY carries high financial risk with limited liquidity.
Profitability Score
WeakALLY struggles to sustain strong margins.
Key Financial Metrics
Is ALLY Expensive or Cheap?
P/E Ratio
ALLY trades at 13.29 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ALLY's PEG of 0.31 indicates potential undervaluation.
Price to Book
The market values Ally Financial Inc. at 0.73 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.19 times EBITDA. This is generally considered low.
How Well Does ALLY Make Money?
Net Profit Margin
For every $100 in sales, Ally Financial Inc. keeps $5.61 as profit after all expenses.
Operating Margin
Core operations generate 6.92 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.74 in profit for every $100 of shareholder equity.
ROA
Ally Financial Inc. generates $0.43 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ally Financial Inc. produces operating cash flow of $3.72B, showing steady but balanced cash generation.
Free Cash Flow
Ally Financial Inc. generates weak or negative free cash flow of $-531.08M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.72 in free cash annually.
FCF Yield
ALLY converts -4.78% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
13.29
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.31
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.73
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.74
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.90
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.004
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How ALLY Stacks Against Its Sector Peers
| Metric | ALLY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 13.29 | 18.50 | Better (Cheaper) |
| ROE | 5.74% | 809.00% | Weak |
| Net Margin | 5.61% | 2211.00% | Weak |
| Debt/Equity | 1.40 | 0.90 | Weak (High Leverage) |
| Current Ratio | 0.90 | 691.82 | Weak Liquidity |
| ROA | 0.43% | -24320.00% (disorted) | Weak |
ALLY outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ally Financial Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
81.46%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-50.09%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
43.25%
Industry Style: Value, Dividend, Cyclical
High Growth