Ally Financial Piotroski F Score

ALLY
 Stock
  

USD 25.92  0.20  0.77%   

This module uses fundamental data of Ally Financial to approximate its Piotroski F score. Ally Financial F Score is determined by combining nine binary scores representing 3 distinct fundamental categories of Ally Financial. These three categories are profitability, efficiency, and funding. Some research analysts and sophisticated value traders use Piotroski F Score to find opportunities outside of the conventional market and financial statement analysis.They believe that some of the new information about Ally Financial financial position does not get reflected in the current market share price suggesting a possibility of arbitrage. Please continue to Ally Financial Altman Z Score, Ally Financial Correlation, Ally Financial Valuation, as well as analyze Ally Financial Alpha and Beta and Ally Financial Hype Analysis.
  
Ally Financial Long Term Debt is fairly stable at the moment as compared to the past year. Ally Financial reported Long Term Debt of 17.03 Billion in 2021. Total Debt is likely to rise to about 17.5 B in 2022, whereas Issuance Repayment of Debt Securities is likely to drop (5.6 B) in 2022. Ally Financial Enterprise Value over EBIT is fairly stable at the moment as compared to the past year. Ally Financial reported Enterprise Value over EBIT of 5.00 in 2021. Enterprise Value over EBITDA is likely to rise to 4.17 in 2022, whereas Accrued Expenses Turnover is likely to drop 12.53 in 2022.
At this time, it appears that Ally Financial's Piotroski F Score is Healthy. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..
5.0
Piotroski F Score - Healthy
1
Current Return On AssetsPositiveFocus
2
Change in Return on AssetsIncreasedFocus
3
Cash Flow Return on AssetsPositiveFocus
4
Current Quality of Earnings (accrual)DecreasingFocus
5
Asset Turnover GrowthIncreaseFocus
6
Current Ratio ChangeN/AFocus
7
Long Term Debt Over Assets ChangeHigher LeverageFocus
8
Change In Outstending SharesIncreaseFocus
9
Change in Gross MarginIncreaseFocus

Ally Financial Piotroski F Score Drivers

The critical factor to consider when applying the Piotroski F Score to Ally Financial is to make sure Ally Financial is not a subject of accounting manipulations and runs a healthy internal audit department. So, if Ally Financial's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if Ally Financial's financial numbers are properly reported.
Current ValueLast YearChange From Last Year 10 Year Trend
Weighted Average Shares Diluted440.3 M365.2 M
Fairly Up
Decreasing
Stable
Weighted Average Shares438.2 M362.6 M
Fairly Up
Decreasing
Stable
Return on Average Assets1.811.68
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations4.9 BB
Fairly Up
Decreasing
Slightly volatile
Total Liabilities152.3 B165.1 B
Significantly Down
Increasing
Slightly volatile
Gross Margin1.050.968
Significantly Up
Increasing
Slightly volatile
Total Debt17.5 B17 B
Fairly Up
Decreasing
Slightly volatile
Asset Turnover0.06830.0587
Fairly Up
Decreasing
Slightly volatile
Total Assets167.9 B182.1 B
Significantly Down
Increasing
Stable

Ally Financial F Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to project the various growth rates. Understanding the correlation between Ally Financial's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Ally Financial in a much-optimized way.

About Ally Financial Piotroski F Score

F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.

Book Value per Share

40.15

Ally Financial Book Value per Share is fairly stable at the moment as compared to the past year. Ally Financial reported Book Value per Share of 47.02 in 2021

Ally Financial Current Valuation Drivers

We derive many important indicators used in calculating different scores of Ally Financial from analyzing Ally Financial's financial statements. These drivers represent accounts that assess Ally Financial's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Ally Financial's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee117.59 K154.02 K197.13 K113.9 K291.43 K314.44 K
Revenue Per Employee1.25 M1.28 M1.34 M1.13 M1.02 M1.04 M
Average Assets164.4 B173.33 B180.67 B183.51 B180.91 B193.34 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA3.37 B3.27 B3.52 B2.96 B5.05 B4.74 B
Earnings Before Interest Taxes and Depreciation Amortization USD3.37 B3.27 B3.52 B2.96 B5.05 B4.74 B
Earnings before Tax1.51 B1.62 B1.96 B1.41 B3.79 B4.09 B
Average Equity13.48 B13.14 B14.22 B14.04 B16.62 B15.33 B
Enterprise Value63.77 B58.47 B49.06 B22.13 B20.53 B21.07 B
Free Cash Flow4.08 B4.15 B4.05 B3.74 B4.04 B3.9 B
Invested Capital218.53 B228.51 B216.65 B190.69 B194.08 B196.74 B
Invested Capital Average217.62 B223.38 B220.05 B199.87 B186.9 B192.37 B
Market Capitalization12.89 B9.36 B11.61 B13.33 B16.49 B15.41 B
Tangible Asset Value167.15 B178.87 B180.64 B182.16 B182.11 B194.93 B

Ally Financial ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Ally Financial's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Ally Financial's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Ally Financial Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Ally Financial's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Ally Financial using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Ally Financial based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Ally Financial Inc., a digital financial-services company, provides various digital financial products and services to consumer, commercial, and corporate customers primarily in the United States and Canada. Ally Financial Inc. was founded in 1919 and is based in Detroit, Michigan. Ally Financial operates under Credit Services classification in the United States and is traded on New York Stock Exchange. It employs 10500 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Ally Financial without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with Ally Financial

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Ally Financial position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ally Financial will appreciate offsetting losses from the drop in the long position's value.

Moving against Ally Financial

-0.53JPMJPMorgan Chase Fiscal Year End 13th of January 2023 PairCorr
The ability to find closely correlated positions to Ally Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ally Financial when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Ally Financial - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Ally Financial to buy it.
The correlation of Ally Financial is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Ally Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ally Financial moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Ally Financial can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Please continue to Ally Financial Altman Z Score, Ally Financial Correlation, Ally Financial Valuation, as well as analyze Ally Financial Alpha and Beta and Ally Financial Hype Analysis. You can also try Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

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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.