Loading stock…

Ally Financial Inc. (ALLY) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Ally Financial Inc.

ALLYMarket cap $11BPrice $37.6

Country🇺🇸United States

SectorFinancials

IndustryConsumer Finance

Ally Financial runs one of the largest all-digital banks in the US, with no physical branches to weigh it down. It's also the top auto lender, financing vehicles for millions who never set foot in a bank.

In Bastion Portfolios?

52W Return-3%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)-2%2

Revenue Forecast

Rev CAGR (1y)+22%8

Rev CAGR (3y)+10%7

Rev CAGR (5y)+7%6

Earnings Forecast

EPS Growth Y+1+122%10

EPS Growth Y+2+19%8

EPS Growth Y+3+6%6

Quality

Margins

EBIT Margin0%5

Net Income Margin18%8

Free Cash Flow Margin10%6

Debt

Net Debt/EBITDAna–

Efficiency

ROE10%5

ROA1%2

Earnings Stability44

GEAR+AVERAGE58

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)610

P/E Ratio (Forward 3y)610

P/BV0.810

EV Multiples

EV/EBITDA Fwd010

EV/EBIT Fwd010

Yield

Free Cash Flow Yield0.0%10

Dividend Yield3.2%7

Momentum

Short term

1 month return-14%1

3 month return-17%2

YTD return-15%3

Mid term

Price vs 52wHigh80%5

1 year return-3%4

Long term

3 year return+64%6

5 year return-16%3

Risk Shield

Price Risk

Beta1.32

Volatility30%7

Free Cash Flow

Free Cash Flow Margin10%6

Free Cash Flow Yield0.0%10

Quality

ROCE5%2

Earnings Stability44

Net Debt/EBITDAna–

02Growth

Is it actually growing, and how fast?

ALLYAlly Financial

Revenue FY25$9.4B

GROWTH RATING↗

AVERAGE63 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-2%2

Revenue, next 1Y+22%8

Revenue, next 3Y, CAGR+10%7

Revenue, next 5Y, CAGR+7%6

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+122%10

EPS growth, FY27E+19%8

EPS growth, FY28E+6%6

GROWTH ASSESSMENT

STRENGTHS

Revenue is set to grow 10%/yr over the next 3 years, ahead of most of the market.7/10

After shrinking over the last 3 years, revenue is set to grow 10%/yr from here.

Earnings are set to grow faster than sales (EPS about 19%/yr vs revenue 10%/yr), so margins should widen.

WATCH

A mid-pack grower, ahead of 63% of companies worldwide.

Over five years revenue is set to grow 7%/yr, ahead of 50% of companies worldwide.6/10

WEAKNESSES

Revenue fell 2%/yr over the last 3 years, behind 80% of companies worldwide.2/10

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower that's turning around. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK18 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-14%1

3-month return-17%2

YTD return-15%3

MID & LONG-TERM▾SCORE

% of 52-week high80%5

1-year return-3%4

3-year return+64%6

5-year return-16%3

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (+64% over three years and -16% over five), roughly average for the market.

It's down 3% over the past year, now 20% below its 52-week high. That is right in line with the market.

WEAKNESSES

The stock is underperforming over the past month (-14%), over three months (-17%) and so far this year (-15%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the stock is underperforming over the past month, over three months and so far this year.

04Value

Are you paying a fair price for it?

Stop guessing on Ally Financial Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community

Loading charts…

02Growth

Is it actually growing, and how fast?

ALLYAlly Financial

Revenue FY25$9.4B

GROWTH RATING↗

AVERAGE63 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR-2%2

Revenue, next 1Y+22%8

Revenue, next 3Y, CAGR+10%7

Revenue, next 5Y, CAGR+7%6

EARNINGS FORECAST▾SCORE

EPS growth, FY26E+122%10

EPS growth, FY27E+19%8

EPS growth, FY28E+6%6

GROWTH ASSESSMENT

STRENGTHS

Revenue is set to grow 10%/yr over the next 3 years, ahead of most of the market.7/10

After shrinking over the last 3 years, revenue is set to grow 10%/yr from here.

Earnings are set to grow faster than sales (EPS about 19%/yr vs revenue 10%/yr), so margins should widen.

WATCH

A mid-pack grower, ahead of 63% of companies worldwide.

Over five years revenue is set to grow 7%/yr, ahead of 50% of companies worldwide.6/10

WEAKNESSES

Revenue fell 2%/yr over the last 3 years, behind 80% of companies worldwide.2/10

BOTTOM LINE

Margin Expander

A middle-of-the-pack grower that's turning around. The one thing to watch: revenue has shrunk over the past 3 years.

03Price Momentum

Is the market behind it right now?

MOMENTUM RATING↗

WEAK18 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-14%1

3-month return-17%2

YTD return-15%3

MID & LONG-TERM▾SCORE

% of 52-week high80%5

1-year return-3%4

3-year return+64%6

5-year return-16%3

MOMENTUM ASSESSMENT

STRENGTHS

None flagged.

WATCH

Average long-term results. Multi-year returns are middling (+64% over three years and -16% over five), roughly average for the market.

It's down 3% over the past year, now 20% below its 52-week high. That is right in line with the market.

WEAKNESSES

The stock is underperforming over the past month (-14%), over three months (-17%) and so far this year (-15%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on Ally Financial Inc.. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community