NYSE
ALLY
Last Price
US $46.08
KEY FIGURES
MKT CAP
$14.5B
EPS
TTM
$4.49
PEG
TTM
0.06x
P/E
TTM
11.37x
P/S
TTM
1.19x
YIELD
2.54%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
9.19%
Return on equity
ROIC: 3.27%
Valuation History
11.4X
Price to Earnings
EV/EBITDA: 8.4X
Cash flow
Profit margin
2.54%
(FY vs FY)
EBITDA Y/Y
-3.75%
(FY vs FY)
Cash flow Y/Y
-2.13%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $46.08
—
Default assumptions
EBITDA Multiple
Fair Value
Market $46.08
-62.07%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial risk - Cash flow debt coverage.
Ally Financial Inc. cash flow to debt ratio of 16.67% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.
Financial risk - Healthy cash flow growth.
Ally Financial Inc.'s free cash flow has decreased -160.58% from $1.07G last year to $-647.00M, signaling decreasing performance
Financial risk - Healthy debt to equity ratio.
Ally Financial Inc.'s debt to equity ratio is 1.38, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial stability - Healthy debt to equity ratio development.
Ally Financial Inc.'s debt has decreased relative to shareholder equity from 1.38 last year to 1.38 today, signaling strengthened financials
Financial risk - Net debt/EBITDA.
Ally Financial Inc. has a net debt to EBITDA ratio of 4.79x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk
Financial stability - ICR.
Ally Financial Inc. earns at least as much interest as it pays. Interest obligations are fully covered.
Financial stability - Profit margin growth.
Ally Financial Inc.'s profit margin has increased (118.56%) in the last year from 4.08% to 8.92%, signaling increasing performance
Financial risk - Short term assets vs short term liabilities.
Ally Financial Inc.'s short-term liabilities of $163.43G exceed its short-term assets of $147.39G, signaling financial risk
Decreasing performance - ROA.
Ally Financial Inc.'s return on assets of 0.71% is lower than the 5.00% threshold, indicating inefficient asset utilization
Decreasing performance - Absolute return on equity.
Ally Financial Inc.'s return on equity of 9.19%, is lower than 15.00%, indicating bad performance
Increasing performance - Earnings quality.
Ally Financial Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Ally Financial Inc. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Decreasing performance - Free cash flow.
Ally Financial Inc. has negative free cash flow, indicating the company is burning cash rather than generating it
Decreasing performance - FCF yield.
Ally Financial Inc. has negative free cash flow, indicating cash burn
Increasing performance - Healthy earnings growth.
Ally Financial Inc.'s yearly earnings has increased 27.54% since last year from $668.00M to $852.00M, signaling increasing performance
Decreasing performance - Healthy revenue growth.
Ally Financial Inc.'s yearly revenue has decreased -25.75% since last year from $16.37G to $12.15G, signaling decreasing performance
Decreasing performance - ROIC.
ROIC 3.27% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.
Increasing performance - 3-year revenue CAGR.
Ally Financial Inc.'s 3-year revenue CAGR of 0.16% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Ally Financial Inc. had revenue growth in 3.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Ally Financial Inc. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Ally Financial Inc. has insufficient data to evaluate this check.
Undervalued - Earnings yield.
Ally Financial Inc. has an earnings yield of 9.52%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Ally Financial Inc. is overvalued relative to its fair value price of 17.48 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Ally Financial Inc. has an EV/EBITDA ratio of 8.43x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Undervalued - PEG ratio value.
Ally Financial Inc. has a PEG-ratio under 1 which is considered undervalued
Undervalued - P/B ratio.
Ally Financial Inc. has a price-to-book ratio of 0.94x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Ally Financial Inc. has a price-to-sales ratio of 0.92x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue