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Fundamental analysis: Ally Financial Inc. (ALLY)

Awarener score: 8.0

Conclusion

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.0

• Business has been shrinking at a fast pace. It's been substantially worse when measured against peer companies.
• Ally Financial Inc. business trend stability is very good. The higher the stability, the lower the risk. It looks slightly better than rivals.

Margins score: 8.2

• ALLY profit margins -on goods and services sold- are usually extremely poor. They stand bottom tier against rival companies.
• Business profit on sales tends to be excellent. It's encouraging in relation to competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually huge. They remain excellent in relation to peers.
• Earnings -before income taxes and interests on loans taken- tend to be huge in relation to total revenues. They're still better than most similar companies.
• Profits -before income taxes- are usually excellent considering total sales, and remain more than average in relation to rivals.
• Total net profit tends to be excellent when confronted to sales. Company stands encouraging in relation to comparable firms.

Growth score: 5.9

• Ally Financial Inc. profit -on goods and services sold- has been growing at a very good pace. It's been rather normal in relation to competitors.
• In recent years, earnings -on operations- have been growing at a very good step, which has been somewhat better than comparable firms.
• Profits -available to repay debt and purchase properties- tended to shrink, which compares substantially worse when measured against peer enterprises.
• Growth on earnings -before income taxes and interests on loans taken- have been almost stagnant. It turns to be in a weak position compared to similar stocks.
• In past years, profits -before income taxes- grew at a good speed. It was well ranked against rivals.
• In the previous years, growth on total net profit has been average, and almost average when measured against peer companies.
• Earnings per share have grown at a good rhythm in past years. It's been rather normal in relation to industry peers.

Miscellaneous score: 6.0

• ALLY had to pay sparse income taxes in relation to profits made in the past years. It's been slightly better than peers.
• The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
• We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 7.2

• Ally Financial Inc. usually gets sufficient returns on the resources it controls. It proves weak when measured against peer firms.
• The company normally gets excellent proceeds -on the resources directly invested in the business-. They remain a slight improvement compared to similar companies.
• There's usually abundant profitability -in relation to owned resources-. It ranks similar to competitors.
• In the past, got sufficient returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's weak when measured against comparable enterprises.

Usage of Funds score: 8.4

• ALLY usually uses a large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is large. It stands weak when measured against rival firms.
• The company is usually heavily investing in new property, plant, and equipment, to expand its operating capabilities, which is top tier when measured against industry peers.
• In the past twelve months it paid excellent dividends, considering the current stock price. It came slightly better than competitors.
• Has significantly increased dividend payments in the past years. Business prospects probably have improved. The company has behaved a slight improvement compared to similar firms.
• Dividend payments usually represent a slight portion of genuine funds generation and are most likely safe. Sustainability looks slightly worse than comparable companies.
• The company usually significantly reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains excellent in relation to peer enterprises.
• Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands in good shape compared to rivals.
• The company uses a modest portion of genuine fund generation to reward investors, which can probably be sustained. It still looks almost average when measured against competitors.

Balance Sheet score: 7.2

• Ally Financial Inc. has no intangible assets (like brands and goodwill) according to accounting books, which is safest. It happens to be top tier when measured against peer companies.
• The company has a lot more short-term resources than short-term obligations. Liquidity concerns are most likely irrelevant. It turns to be a slight improvement compared to similar firms.
• A very minor portion of resources controlled were provided for with financial debt. Financial strength is solid. Company could increase debt if it wished so, to reinvest in business, to buy a smaller company or to reward stockholders. It remains well ranked against rival firms.
• Controlled resources might be only very slowly turned into cash and equivalents, which is riskier. It looks weak when measured against rivals.
• For every dollar of short-term obligations, the company has abundant dollars in cash and short-term receivables. It's a slight improvement compared to peer firms.
• For every dollar of short-term obligations, the company has more than enough dollars in cash and equivalents, which is well ranked against similar enterprises.
• Usually, sales are mostly on cash. It still ranks encouraging in relation to peers.
• Normally has no inventories. It comes up as impressive in relation to competitors.
• On average, it takes less than one month from the purchase to charging customers. It happens to be well ranked against peers.
• On average pays suppliers approximately three months after the purchase. It ranks great when measured against industry peers.
• The company charges its customers long before it must pay its suppliers, so the more it sales, the more free funds it gets. It's impressive in relation to similar companies.
• Company earns net interest income on its investments and therefore is in a quite comfortable financial position. It stands top-notch against rival firms.
• Business earnings have usually been quite good when measured against loans taken. Cutting back reinvesting in the business, it could take around three years to repay the obligations with current profitability. It ranks more than average in relation to comparable enterprises.
• Last twelve months revenues were non-significant in relation to fixed assets. The company must improve income to take advantage of used resources. It looks a disappointment compared to similar firms.
• Resources exploitation is virtually zero, as the firm hardly reports any sales. It's still bottom tier against peer companies.

Valuation score: 8.4

• Ally Financial Inc. looks reasonable in relation to profits and financial position. It happens to be more than average in relation to competitors.
• Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains excellent in relation to peers.
• In the past twelve months, the company generated extraordinary free funds in relation to the stock price, which stands well ranked against similar companies.
• The company usually generates plenty more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share looks to be very attractive. It's still more than average in relation to industry firms.
• In the past twelve months, the company has rewarded investors, considering both dividends and share on the pie of earnings. It came up excellent in relation to peer ventures.
• The company is largely indebted. It should focus on loan repayment before rewarding stockholders. It looks somewhat worse than similar enterprises.
• Considering the past twelve months, traditional Price-to-Earnings relation looks very cheap. Possible reasons are that the market might be betting current earnings will be hard to sustain through time, or that the company has very high fund needs, or a weak financial position, among others. If that isn't the case, the current stock price might be very attractive. It ranks more than average in relation to peer companies.
• Comparing the current stock price with the past twelve-months revenues gives a more than one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks close to average when compared to rival firms.
• The stock price is at or below the accounting book value. Unless profitability is really low, the stock may be selling a t a discount. Pay attention to the other key indicators for hints. The company remains better than most peer firms.
• In the past twelve months, the operating business earned huge money when compared to the current stock price and financial position. It happens to be great when measured against industry peers.
• In an alternate metric of bang for the buck, the company has usually shown an extreme earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be significantly undervalued. It's still excellent in relation to peer companies.

Total score: 7.0

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Awarener score: 8.0

Conclusion

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