-0.56%
9.19%
12.18%
-12.64%
7.20%
-17.60%
22.76%
AI Spotlight on ALLY
Company Description
Ally Financial Inc., a digital financial-services 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.
It also provides financing services to companies and municipalities for the purchase or lease of vehicles, and vehicle-remarketing services.The Insurance Operations segment offers consumer finance protection and insurance products through the automotive dealer channel, and commercial insurance products directly to dealers.This segment provides vehicle service and maintenance contract, and guaranteed asset protection products; and underwrites commercial insurance coverages, which primarily insure dealers' vehicle inventory.
The Mortgage Finance Operations segment manages consumer mortgage loan portfolio that includes bulk purchases of jumbo and low-to-moderate income mortgage loans originated by third parties, as well as direct-to-consumer mortgage offerings.The Corporate Finance Operations segment provides senior secured leveraged cash flow and asset-based loans to middle market companies; leveraged loans; and commercial real estate product to serve companies in the healthcare industry.The company also offers commercial banking products and services.
In addition, it provides securities brokerage and investment advisory services.The company was formerly known as GMAC Inc.and changed its name to Ally Financial Inc.
in May 2010.Ally Financial Inc.was founded in 1919 and is based in Detroit, Michigan.
Market Data
| Last Price | 39.32 |
| Change Percentage | -0.56% |
| Open | 39.55 |
| Previous Close | 39.54 |
| Market Cap ( Millions) | 11981 |
| Volume | 801154 |
| Year High | 45.46 |
| Year Low | 31.95 |
| M A 50 | 37.17 |
| M A 200 | 38.32 |
Financial Ratios
| FCF Yield | 3.94% |
| Dividend Yield | 3.05% |
| ROE | 6.31% |
| Debt / Equity | 124.36% |
| Net Debt / EBIDTA | 494.95% |
| Price To Book | 0.82 |
| Price Earnings Ratio | 13.7 |
| Price To FCF | 25.38 |
| Price To sales | 0.94 |
| EV / EBITDA | 11.08 |
News
- 11:33 - Here's My Top Bank Stock to Buy in February
- Jan -28 - 3 Stocks to Watch From the Challenging Consumer Loan Industry
- Jan -27 - TIME and Ally Financial Name 2025 Dealer of the Year
- Jan -24 - Ally Financial: Asset Sale Should Not Outweigh A Mixed Outlook
- Jan -24 - 2025 Could Be an Inflection Point for This Fintech Stock
- Jan -23 - ALLY Stock Up on Q4 Earnings Beat, Divestiture of Credit Card Business
- Jan -23 - Ally Financial price target raised to $34 from $32 at Wells Fargo
- Jan -22 - Ally Financial Stock Surges as Company Beats Profit Estimates, Sells Credit Card Business
- Jan -22 - Ally Financial Inc. (ALLY) Q4 2024 Earnings Call Transcript
- Jan -22 - Leading Indicators Data in Focus
- Jan -22 - Ally Financial (ALLY) Reports Q4 Earnings: What Key Metrics Have to Say
- Jan -22 - Ally Sells $2.3 Billion Credit Card Business to CardWorks
- Jan -22 - The Best Warren Buffett Stocks to Buy With $10,000 in 2025
- Jan -22 - Ally Financial (ALLY) Beats Q4 Earnings Estimates
- Jan -22 - Consumer lender Ally Financial to sell credit card business to CardWorks
- Jan -22 - Ally and CardWorks Reach Agreement on Sale of Ally's Credit Card Business
- Jan -22 - Ally Financial reports fourth quarter and full year 2024 financial results
- Jan -22 - Is Ally Financial a Millionaire Maker?
- Jan -17 - Ally Financial declares dividend on common stock and Series B and Series C preferred stock
- Jan -16 - Unlocking Q4 Potential of Ally Financial (ALLY): Exploring Wall Street Estimates for Key Metrics
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Automotive Finance
Expected Growth : 6.5 %
What the company do ?
Ally Financial Inc.'s Automotive Finance provides financing solutions for auto dealerships and consumers, offering loans and leases for new and used vehicles.
Why we expect these perspectives ?
Ally Financial Inc.'s 6.5% growth in Automotive Finance is driven by increasing demand for vehicle financing, strategic partnerships with dealerships, and a strong online presence. Additionally, the company's diversified product offerings, including leasing and insurance services, contribute to its growth. Furthermore, Ally's digital platform and mobile app provide a seamless customer experience, attracting more customers and driving business expansion.
Segment n°2 -> Insurance
Expected Growth : 6.8 %
What the company do ?
Ally's insurance offers a range of products, including auto, home, and powersports insurance, providing financial protection and peace of mind to its customers.
Why we expect these perspectives ?
Ally Financial Inc.'s 6.8% insurance growth is driven by increasing demand for digital insurance products, expansion into new markets, and strategic partnerships. Additionally, the company's focus on customer experience, competitive pricing, and a wide range of insurance offerings have contributed to its growth.
Segment n°3 -> Corporate Finance
Expected Growth : 7.2 %
What the company do ?
Ally's Corporate Finance segment provides financing solutions to middle-market companies, offering asset-based lending, cash flow lending, and other financial services.
Why we expect these perspectives ?
Ally Financial Inc.'s 7.2% growth in Corporate Finance is driven by increasing demand for auto financing, strategic partnerships, and expansion into new markets. Additionally, the company's digital transformation efforts, cost savings initiatives, and strong risk management practices have contributed to its growth.
Segment n°4 -> Corporate and Other
Expected Growth : 6.2 %
What the company do ?
Corporate and Other from Ally Financial Inc. refers to the company's non-operating units, including investments, debt, and other miscellaneous items not attributed to its core automotive and banking businesses.
Why we expect these perspectives ?
Ally Financial Inc.'s Corporate and Other segment growth of 6.2% is driven by increasing investment income, growth in Ally Invest brokerage accounts, and expansion of its digital offerings. Additionally, the company's cost savings initiatives and improved operational efficiency also contributed to the segment's growth.
Segment n°5 -> Mortgage Finance
Expected Growth : 7.5 %
What the company do ?
Ally Financial Inc.'s Mortgage Finance offers home loan solutions, including fixed-rate and adjustable-rate mortgages, refinancing, and home equity loans, with flexible terms and competitive rates.
Why we expect these perspectives ?
Ally Financial Inc.'s 7.5% growth in Mortgage Finance is driven by increasing demand for home purchases and refinancing, low interest rates, and government-backed loan programs. Additionally, Ally's digital platform and expanded broker network have improved customer access and experience, contributing to the segment's growth.
Ally Financial Inc. Products
| Product Range | What is it ? |
|---|---|
| Auto Finance | Ally Financial Inc. provides financing for new and used vehicles, including cars, trucks, and SUVs, through its network of dealerships and online platforms. |
| Home Loans | Ally Financial Inc. offers a range of home loan products, including mortgages, refinancing, and home equity loans, to help customers achieve their homeownership goals. |
| Online Banking | Ally Financial Inc. provides online banking services, including checking and savings accounts, CDs, and IRAs, with competitive rates and no monthly maintenance fees. |
| Investment and Brokerage Services | Ally Financial Inc. offers investment and brokerage services, including self-directed trading, investment advice, and retirement accounts, through its Ally Invest platform. |
| Corporate Finance | Ally Financial Inc. provides corporate finance services, including capital markets, treasury services, and asset-based lending, to businesses and corporations. |
Ally Financial Inc.'s Porter Forces
Threat Of Substitutes
Ally Financial Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's strong brand recognition and customer loyalty.
Bargaining Power Of Customers
Ally Financial Inc. has a large customer base, but customers have significant bargaining power due to the availability of alternative financial services providers.
Bargaining Power Of Suppliers
Ally Financial Inc. has a diversified supplier base, and suppliers have limited bargaining power due to the company's large scale of operations.
Threat Of New Entrants
The threat of new entrants in the financial services industry is moderate, as there are significant barriers to entry, including regulatory hurdles and capital requirements.
Intensity Of Rivalry
The financial services industry is highly competitive, with many established players competing for market share, leading to a high intensity of rivalry.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 59.51% |
| Debt Cost | 10.85% |
| Equity Weight | 40.49% |
| Equity Cost | 10.85% |
| WACC | 10.85% |
| Leverage | 146.98% |
Ally Financial Inc. : Quality Control
Ally Financial Inc. passed 3 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| NNI | Nelnet, Inc. engages in loan servicing, communications, education technology, services, and payment processing businesses worldwide. The Loan Servicing and Systems segment provides loan conversion, application processing, borrower updates, customer service, … |
| FCFS | FirstCash Holdings, Inc, together with its subsidiaries, operates retail pawn stores in the United States, Mexico, and rest of Latin America. Its pawn stores lend money on the collateral of … |
| OMF | OneMain Holdings, Inc., a financial service holding company, engages in the consumer finance and insurance businesses. The company originates, underwrites, and services personal loans secured by automobiles, other titled collateral, … |
| WU | The Western Union Company provides money movement and payment services worldwide. The company operates in two segments, Consumer-to-Consumer and Business Solutions. The Consumer-to-Consumer segment facilitates money transfers between two consumers, … |
| SLM | SLM Corporation, through its subsidiaries, originates and services private education loans to students and their families to finance the cost of their education in the United States. It also offers … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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OneMain Holdings
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SLM
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Western Union
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4
Nelnet
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Ally Financial
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1-Year Total Return ->
6
