Ally Financial, Inc. (ALLY) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

SouthState Corp.

East West Bancorp, Inc.

Ally Financial, Inc.

First Citizens BancShares, Inc. (North Carolina)

Commerce Bancshares, Inc. (Missouri)

Cullen/Frost Bankers, Inc.

Truist Financial Corp.

M&T Bank Corp.

Fifth Third Bancorp

First Horizon Corp. (Tennessee)

Fiserv, Inc.

Why is Ally Financial, Inc. ?

High Profitability with a Net Interest Margin of 3.74%

Positive results in Jun 25

NII(Q) Highest at USD 1,732 MM
PRE-TAX PROFIT(Q) Highest at USD 436 MM

With ROA of 0.47%, it has a expensive valuation with a 1.18 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 19.26%, its profits have fallen by -5%

Market Beating performance in long term as well as near term

Along with generating 19.26% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Ally Financial, Inc. should be less than 10%
Overall Portfolio exposure to Regional Banks should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Regional Banks)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Ally Financial, Inc. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Ally Financial, Inc.

21.63%

0.54

34.58%

S&P 500

19.75%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.98%

EBIT Growth (5y)

-1.26%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

50.63%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.13

EV to EBIT

155.29

EV to EBITDA

17.74

EV to Capital Employed

1.10

EV to Sales

1.71

PEG Ratio

1.43

Dividend Yield

2.10%

ROCE (Latest)

0.71%

ROE (Latest)

7.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Mildly Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bullish

Mildly Bearish

OBV

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

22What is working for the Company

PRE-TAX PROFIT(Q)

At USD 400 MM has Grown at 1,804.76%

NET PROFIT(Q)

At USD 319 MM has Grown at 298.75%

GROSS NPA (%)

NII(Q)

Highest at USD 1,857 MM

ROCE(HY)

Highest at 0.71%

CASH AND EQV(HY)

Highest at USD 4,275 MM

CREDIT DEPOSIT RATIO(HY)

Highest at 91.34%

-4What is not working for the Company

ROCE(HY)

Lowest at 0.71%

OPERATING PROFIT(Q)

Lowest at USD 355 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 10.52 %

Here's what is working for Ally Financial, Inc.

Pre-Tax Profit

At USD 400 MM has Grown at 1,804.76%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Profit

At USD 319 MM has Grown at 298.75%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (USD MM)

Non Performing Loans (%)

Lowest at 0.33% and Fallen

In each half year in the last four Semi-Annual periods

MOJO Watch

Proportion of stressed loans given by the bank are falling

Non Performing Loans (%)

NII

Highest at USD 1,857 MM and Grown

In each period in the last five periods

MOJO Watch

The bank's income from core business is increasing

Net NPA

Cash and Eqv

Highest at USD 4,275 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Credit Deposit Ratio

Highest at 91.34%

in the last four Semi-Annual periods

MOJO Watch

Bank has been creating proportionately higher loans against its deposits, thereby creating higher revenue generating assets

Credit Deposit Ratio (%)

Depreciation

Highest at USD 317 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Ally Financial, Inc.

Operating Profit

Lowest at USD 355 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 10.52 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales