Ally Financial Stock Buy Hold or Sell Recommendation

ALLY
 Stock
  

USD 25.92  0.20  0.77%   

Given the investment horizon of 90 days and your way above-average risk tolerance, our recommendation regarding Ally Financial is 'Hold'. Macroaxis provides Ally Financial buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding ALLY positions. The advice algorithm takes into account all of Ally Financial's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Ally Financial's buy-and-hold perspective. Please continue to Ally Financial Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Ally Financial and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Ally Financial.

Execute Ally Financial Buy or Sell Advice

The Ally Financial recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Ally Financial. Macroaxis does not own or have any residual interests in Ally Financial or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Ally Financial's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Ally FinancialBuy Ally Financial
Hold

Volatility

Details

Hype Condition

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Current Valuation

Details

Odds of Distress

Details

Economic Sensitivity

Details

Analyst Consensus

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Financial Strenth (F Score)

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Financial Leverage

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Reporting Quality (M-Score)

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For the selected time horizon Ally Financial has a Risk Adjusted Performance of (0.12), Jensen Alpha of (0.48), Total Risk Alpha of (0.52) and Treynor Ratio of (0.17)
Our investment recommendation module complements current analysts and expert consensus on Ally Financial. It analyzes the firm potential to grow using all fundamental, technical, and market related data available at the time. To make sure Ally Financial is not overpriced, please confirm all Ally Financial fundamentals, including its price to book, cash flow from operations, net asset, as well as the relationship between the cash and equivalents and beta . Given that Ally Financial has a price to earning of 4.50 X, we suggest you to validate Ally Financial market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Ally Financial Trading Alerts and Improvement Suggestions

Ally Financial generated a negative expected return over the last 90 days
Ally Financial has high historical volatility and very poor performance
Ally Financial has high financial leverage indicating that it may have difficulties to generate enough cash to satisfy its financial obligations
The company currently holds 17.03 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. Debt can assist Ally Financial until it has trouble settling it off, either with new capital or with free cash flow. So, Ally Financial's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Ally Financial sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Ally Financial to invest in growth at high rates of return. When we think about Ally Financial's use of debt, we should always consider it together with cash and equity.
Over 95.0% of Ally Financial shares are held by institutions such as insurance companies
On 15th of November 2022 Ally Financial paid $ 0.3 per share dividend to its current shareholders
Latest headline from news.google.com: 3 Warren Buffett Stocks to Buy Hand Over Fist in December - The Motley Fool

Ally Financial Returns Distribution Density

The distribution of Ally Financial's historical returns is an attempt to chart the uncertainty of Ally Financial's future price movements. The chart of the probability distribution of Ally Financial stock daily returns describes the distribution of returns around its average expected value. We use Ally Financial price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Ally Financial returns is essential to provide solid investment advice for Ally Financial.
Mean Return-0.29Value At Risk-5.02
Potential Upside4.24Standard Deviation3.40
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Ally Financial historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Ally Financial Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Ally Financial is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Ally Financial backward and forwards among themselves. Ally Financial's institutional investor refers to the entity that pools money to purchase Ally Financial's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Zweigdimenna Associates LlcCommon Shares9.6 K218 K
Zweigdimenna Associates LlcCommon Shares8.9 K242 K
Zweigdimenna Associates LlcCommon Shares20.4 K388 K
Zweigdimenna Associates LlcCommon Shares219.9 K5.2 M
Zurich Insurance Group LtdCommon Shares33.3 K927 K
Zurich Insurance Group LtdCommon Shares73.9 K2.2 M
Zurich Insurance Group LtdCommon Shares88.7 K2.2 M
Note, although Ally Financial's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Ally Financial Cash Flow Accounts

201720182019202020212022 (projected)
Depreciation Amortization and Accretion1.86 B1.65 B1.55 B1.55 B1.26 B1.58 B
Net Cash Flow or Change in Cash and Cash Equivalents(2.61 B)357 M(1.25 B)12.19 B(10.9 B)(11.19 B)
Net Cash Flow Business Acquisitions and Disposals1.05 B(309 M)(171 M)(699 M)(629.1 M)(645.66 M)
Issuance Purchase of Equity Shares(753 M)(939 M)(1.04 B)(106 M)(1.99 B)(2.05 B)
Issuance Repayment of Debt Securities(11.2 B)(965 M)(14.77 B)(15.84 B)(5.21 B)(5.62 B)
Payment of Dividends and Other Cash Distributions(184 M)(242 M)(273 M)(289 M)(324 M)(349.58 M)
Net Cash Flow from Financing2.03 B10.72 B(1.53 B)25 M(3.85 B)(3.95 B)
Net Cash Flow from Investing(8.73 B)(14.51 B)(3.77 B)8.43 B(11.1 B)(11.97 B)
Net Cash Flow Investment Acquisitions and Disposals(10.02 B)(13.55 B)(1.82 B)10.52 B(8.27 B)(8.93 B)
Net Cash Flow from Operations4.08 B4.15 B4.05 B3.74 B4.04 B4.91 B
Effect of Exchange Rate Changes on Cash(4 M)1,000 K3 M(5 M)2.7 M2.94 M

Ally Financial Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Ally Financial or Consumer Finance sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Ally Financial's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Ally Financial stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over NYSE Composite
-0.48
β
Beta against NYSE Composite1.81
σ
Overall volatility
3.45
Ir
Information ratio -0.12

Ally Financial Volatility Alert

Ally Financial exhibits very low volatility with skewness of 1.29 and kurtosis of 6.09. However, we advise investors to further study Ally Financial technical indicators to ensure that all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Ally Financial's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Ally Financial's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Ally Financial Fundamentals Vs Peers

Comparing Ally Financial's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Ally Financial's direct or indirect competition across all of the common fundamentals between Ally Financial and the related equities. This way, we can detect undervalued stocks with similar characteristics as Ally Financial or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Ally Financial's fundamental indicators could also be used in its relative valuation, which is a method of valuing Ally Financial by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Ally Financial to competition
FundamentalsAlly FinancialPeer Average
Return On Equity0.14 %(0.31) %
Return On Asset0.0114 %(0.14) %
Profit Margin0.26 %(1.27) %
Operating Margin0.34 %(5.51) %
Current Valuation25.79 B16.62 B
Shares Outstanding298.65 M571.82 M
Shares Owned by Insiders0.60 %10.09 %
Shares Owned by Institutions94.80 %39.21 %
Number of Shares Shorted11.52 M4.71 M
Price to Earning4.50 X28.72 X
Price to Book0.79 X9.51 X
Price to Sales0.95 X11.42 X
Revenue8.78 B9.43 B
Gross Profit8.67 B27.38 B
EBITDA7.03 B3.9 B
Net Income3.06 B570.98 M
Cash and Equivalents5 B2.7 B
Cash per Share16.76 X5.01 X
Total Debt17.03 B5.32 B
Debt to Equity275.80 %48.70 %
Current Ratio0.85 X2.16 X
Book Value Per Share33.66 X1.93 K
Cash Flow from Operations4.04 B971.22 M
Short Ratio1.82 X4.00 X
Earnings Per Share6.00 X3.12 X
Price to Earnings To Growth0.30 X4.89 X
Target Price32.45
Number of Employees10.5 K18.84 K
Beta1.27-0.15
Market Capitalization7.8 B19.03 B
Total Asset182.11 B29.47 B
Retained Earnings(4.38 B)9.33 B
Annual Yield0.0453 %
   Acquisition by Melissa Goldman of 1168 shares of Ally Financial subject to Rule 16b-3 [view details]

About Ally Financial Buy or Sell Advice

When is the right time to buy or sell Ally Financial? Buying financial instruments such as Ally Financial Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Cash and Equivalents3.56 B15.62 B5.06 B6.94 B
Total Assets180.64 B182.16 B182.11 B167.94 B

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Please continue to Ally Financial Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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Is Ally Financial's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ally Financial. If investors know Ally Financial will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ally Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.54) 
Market Capitalization
7.8 B
Quarterly Revenue Growth YOY
(0.14) 
Return On Assets
0.0114
Return On Equity
0.14
The market value of Ally Financial is measured differently than its book value, which is the value of Ally Financial that is recorded on the company's balance sheet. Investors also form their own opinion of Ally Financial's value that differs from its market value or its book value, called intrinsic value, which is Ally Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ally Financial's market value can be influenced by many factors that don't directly affect Ally Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ally Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine Ally Financial value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ally Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.