Is Ally Financial Stock a Good Investment?
Ally Financial Investment Advice | ALLY |
- Examine Ally Financial's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Ally Financial's leadership team and their track record. Good management can help Ally Financial navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Consumer Finance space and any emerging trends that could impact Ally Financial's business and its evolving consumer preferences.
- Compare Ally Financial's performance and market position to its competitors. Analyze how Ally Financial is positioned in terms of product offerings, innovation, and market share.
- Check if Ally Financial pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Ally Financial's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Ally Financial stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Ally Financial is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Not Available | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Ally Financial Stock
Researching Ally Financial's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 82.0% of the company shares are held by institutions such as insurance companies. The company has price-to-book (P/B) ratio of 0.99. Some equities with similar Price to Book (P/B) outperform the market in the long run. Ally Financial has Price/Earnings To Growth (PEG) ratio of 0.62. The entity last dividend was issued on the 31st of January 2025. The firm had 310:1 split on the 10th of April 2014.
To determine if Ally Financial is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Ally Financial's research are outlined below:
| Ally Financial generated a negative expected return over the last 90 days | |
| Ally Financial has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations | |
| Ally Financial currently holds 19.12 B in liabilities with Debt to Equity (D/E) ratio of 275.8, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Ally Financial has a current ratio of 0.83, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Ally Financial's use of debt, we should always consider it together with its cash and equity. | |
| Over 82.0% of Ally Financial shares are held by institutions such as insurance companies | |
| On 14th of February 2025 Ally Financial paid $ 0.3 per share dividend to its current shareholders |
Ally Financial uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Ally Financial. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Ally Financial's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 17th of April 2024 Upcoming Quarterly Report | View | |
| 17th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 17th of January 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Ally Financial's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 11.51 B.Ally Financial's profitablity analysis
The company has Profit Margin (PM) of 0.1 %, which maeans that even a very small decline in it revenue will erase profits resulting in a net loss. This is way below average. Similarly, it shows Operating Margin (OM) of 0.13 %, which suggests for every 100 dollars of sales, it generated a net operating income of $0.13.Determining Ally Financial's profitability involves analyzing its financial statements and using various financial metrics to determine if Ally Financial is a good buy. For example, gross profit margin measures Ally Financial's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Ally Financial's profitability and make more informed investment decisions.
Please note, the imprecision that can be found in Ally Financial's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Ally Financial. Check Ally Financial's Beneish M Score to see the likelihood of Ally Financial's management manipulating its earnings.
Basic technical analysis of Ally Stock
As of the 25th of February, Ally Financial shows the Risk Adjusted Performance of (0.03), mean deviation of 1.3, and Standard Deviation of 1.82. Ally Financial technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices.Ally Financial's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Ally Financial insiders, such as employees or executives, is commonly permitted as long as it does not rely on Ally Financial's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Ally Financial insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Ally Financial's Outstanding Corporate Bonds
Ally Financial issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Ally Financial uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Ally bonds can be classified according to their maturity, which is the date when Ally Financial has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| ALLSTATE P 555 Corp BondUS020002AS04 | View | |
| US020002AU59 Corp BondUS020002AU59 | View | |
| ALLSTATE P 45 Corp BondUS020002BA86 | View | |
| US020002BB69 Corp BondUS020002BB69 | View | |
| ALLSTATE P 42 Corp BondUS020002BC43 | View | |
| US020002AP64 Corp BondUS020002AP64 | View | |
| ALLSTATE P 535 Corp BondUS020002AQ48 | View | |
| ALL 69 15 MAY 38 Corp BondUS020002AJ05 | View |
Understand Ally Financial's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Ally Financial's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.03) | |||
| Market Risk Adjusted Performance | (0.08) | |||
| Mean Deviation | 1.3 | |||
| Coefficient Of Variation | (2,120) | |||
| Standard Deviation | 1.82 | |||
| Variance | 3.33 | |||
| Information Ratio | (0.06) | |||
| Jensen Alpha | (0.10) | |||
| Total Risk Alpha | (0.11) | |||
| Treynor Ratio | (0.09) | |||
| Maximum Drawdown | 8.81 | |||
| Value At Risk | (3.67) | |||
| Potential Upside | 3.38 | |||
| Skewness | (0.04) | |||
| Kurtosis | 1.49 |
| Risk Adjusted Performance | (0.03) | |||
| Market Risk Adjusted Performance | (0.08) | |||
| Mean Deviation | 1.3 | |||
| Coefficient Of Variation | (2,120) | |||
| Standard Deviation | 1.82 | |||
| Variance | 3.33 | |||
| Information Ratio | (0.06) | |||
| Jensen Alpha | (0.10) | |||
| Total Risk Alpha | (0.11) | |||
| Treynor Ratio | (0.09) | |||
| Maximum Drawdown | 8.81 | |||
| Value At Risk | (3.67) | |||
| Potential Upside | 3.38 | |||
| Skewness | (0.04) | |||
| Kurtosis | 1.49 |
Consider Ally Financial's intraday indicators
Ally Financial intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Ally Financial stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 103251.0 | |||
| Daily Balance Of Power | (0.44) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 36.95 | |||
| Day Typical Price | 36.79 | |||
| Price Action Indicator | (0.70) | |||
| Period Momentum Indicator | (0.43) | |||
| Relative Strength Index | 50.22 |
Ally Stock media impact
Far too much social signal, news, headlines, and media speculation about Ally Financial that are available to investors today. That information is available publicly through Ally media outlets and privately through word of mouth or via Ally internal channels. However, regardless of the origin, that massive amount of Ally data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Ally Financial news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Ally Financial relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Ally Financial's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Ally Financial alpha.
Ally Financial Corporate Directors
| John Stack | Independent Director | Profile | |
| Kenneth Bacon | Independent Director | Profile | |
| Katryn Blake | Independent Director | Profile | |
| Mayree Clark | Independent Director | Profile |
Already Invested in Ally Financial?
The danger of trading Ally Financial is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Ally Financial is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Ally Financial. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Ally Financial is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Additional Tools for Ally Stock Analysis
When running Ally Financial's price analysis, check to measure Ally Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Ally Financial is operating at the current time. Most of Ally Financial's value examination focuses on studying past and present price action to predict the probability of Ally Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ally Financial's price. Additionally, you may evaluate how the addition of Ally Financial to your portfolios can decrease your overall portfolio volatility.