Ally Financial logged a -16.7% change during today's afternoon session, and is now trading at a price of $33.05 per share.
Ally Financial returned gains of 38.1% last year, with its stock price reaching a high of $45.46 and a low of $22.54. Over the same period, the stock outperformed the S&P 500 index by 15.5%. More recently, the company's 50-day average price was $41.8. Ally Financial Inc., a digital financial-services company, provides various digital financial products and services in the United States, Canada, and Bermuda. Based in Detroit, MI, the Large-Cap Finance company has 11,100 full time employees. Ally Financial has offered a 3.0% dividend yield over the last 12 months.
EPS Trend Sustained Primarily by Reducing the Number of Shares Outstanding:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $5,804 | $6,394 | $6,686 | $8,206 | $8,428 | $8,214 |
| Interest Income (M) | $3,637 | $4,243 | $3,243 | $1,914 | $2,857 | $6,897 |
| Operating Margins | 28% | 31% | 21% | 47% | 28% | 13% |
| Net Margins | 22% | 27% | 16% | 37% | 20% | 12% |
| Net Income (M) | $1,263 | $1,715 | $1,085 | $3,060 | $1,714 | $1,020 |
| Depreciation & Amort. (M) | $1,649 | $1,555 | $1,550 | $1,261 | $1,327 | $1,247 |
| Diluted Shares (M) | 428 | 395 | 377 | 365 | 319 | 305 |
| Earnings Per Share | $2.95 | $4.34 | $2.88 | $8.38 | $5.38 | $3.34 |
| EPS Growth | n/a | 47.12% | -33.64% | 190.97% | -35.8% | -37.92% |
| Avg. Price | $23.36 | $26.58 | $21.98 | $45.73 | $41.27 | $32.91 |
| P/E Ratio | 8.06 | 6.24 | 7.61 | 5.59 | 8.03 | 9.71 |
| Free Cash Flow (M) | $4,150 | $4,050 | $3,739 | $4,042 | $6,247 | $4,663 |
| EV / EBITDA | 15.23 | 11.69 | 4.94 | 5.68 | 7.07 | 8.81 |
| Total Debt (M) | $44,193 | $34,027 | $22,006 | $17,029 | $17,762 | $17,570 |
| Net Debt / EBITDA | 12.12 | 8.65 | 2.15 | 2.34 | 3.32 | 4.56 |
Ally Financial Is Potentially Undervalued and Trades Below Its Graham Number:
Ally Financial has a trailing twelve month P/E ratio of 18.0, compared to an average of 19.48 for the Finance sector. Based on its EPS guidance of $5.65, the company has a forward P/E ratio of 7.4. The 9.7% compound average growth rate of Ally Financial's historical and projected earnings per share yields a PEG ratio of 1.85. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing Ally Financial in terms of its equity because its P/B ratio is 0.87 while the sector average is 1.85. The company's shares are currently trading -43.3% above their Graham number.
Analysts Give Ally Financial an Average Rating of Buy:
The 18 analysts following Ally Financial have set target prices ranging from $23.2 to $53.0 per share, for an average of $45.69 with a buy rating. The company is trading -27.7% away from its average target price, indicating that there is an analyst consensus of strong upside potential.
Ally Financial has an average amount of shares sold short because 2.9% of the company's shares are sold short. Institutions own 81.4% of the company's shares, and the insider ownership rate stands at 10.51%, suggesting a large amount of insider shareholders. The largest shareholder is Berkshire Hathaway, Inc, whose 10% stake in the company is worth $958,304,946.
