Understanding Ally Financial (ALLY) – A Closer Look at the Basics

One of the losers of today's trading session was Ally Financial. Shares of the Banking company plunged -4.3%, and some investors may be wondering if its price of $34.29 would make a good entry point. Here's what you should know if you are considering this investment:

  • Ally Financial has moved 49.0% over the last year, and the S&P 500 logged a change of 38.3%

  • ALLY has an average analyst rating of buy and is -13.1% away from its mean target price of $39.46 per share

  • Its trailing earnings per share (EPS) is $2.32

  • Ally Financial has a trailing 12 month Price to Earnings (P/E) ratio of 14.8 while the S&P 500 average is 29.3

  • Its forward earnings per share (EPS) is $4.62 and its forward P/E ratio is 7.4

  • The company has a Price to Book (P/B) ratio of 0.91 in contrast to the S&P 500's average ratio of 4.74

  • Ally Financial is part of the Finance sector, which has an average P/E ratio of 20.04 and an average P/B of 1.86

  • ALLY has reported YOY quarterly earnings growth of -13.1% and gross profit margins of 0.0%

  • Ally Financial Inc., a digital financial-services company, provides various digital financial products and services in the United States, Canada, and Bermuda. The company operates through Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations segments. 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 nursing facilities, senior housing, and medical office buildings. It 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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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