Ally Financial Z Score

ALLY
 Stock
  

USD 26.12  0.20  0.77%   

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Please continue to Ally Financial Piotroski F Score and Ally Financial Valuation analysis.
  
Ally Financial Return on Invested Capital is fairly stable at the moment as compared to the past year. Ally Financial reported Return on Invested Capital of 0.02 in 2021. Invested Capital is likely to rise to about 196.7 B in 2022, whereas Market Capitalization is likely to drop slightly above 15.4 B in 2022. Ally Financial Consolidated Income is fairly stable at the moment as compared to the past year. Ally Financial reported Consolidated Income of 3.06 Billion in 2021. Cost of Revenue is likely to rise to about 287.7 M in 2022, whereas Gross Profit is likely to drop slightly above 7.1 B in 2022.

Ally Financial Z Score Analysis

Ally Financial's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
 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
Z Score 
 = 
Sum Of  
 
5 Factors 
More About Z Score | All Equity Analysis
First Factor
 = 
1.2 * (
Working Capital
/
Total Assets )
Second Factor
 = 
1.4 * (
Retained Earnings
/
Total Assets )
Thrid Factor
 = 
3.3 * (
EBITAD
/
Total Assets )
Fouth Factor
 = 
0.6 * (
Market Value of Equity
/
Total Liabilities )
Fifth Factor
 = 
0.99 * (
Revenue
/
Total Assets )

Ally Financial Z Score Driver Correlations

Understanding the fundamental principles of building solid financial models for Ally Financial is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Z Score. Since Ally Financial's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Ally Financial's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Ally Financial's interrelated accounts and indicators.
To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Compare to competition

In accordance with the company's disclosures, Ally Financial has a Z Score of 0.0. This is 100.0% lower than that of the Consumer Finance sector and 100.0% lower than that of the Financials industry. The z score for all United States stocks is 100.0% higher than that of the company.

Ally Financial Z Score Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Ally Financial's direct or indirect competition against its Z Score to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Ally Financial could also be used in its relative valuation, which is a method of valuing Ally Financial by comparing valuation metrics of similar companies.
Ally Financial is currently under evaluation in z score category among related companies.

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

Ally Financial Institutional Holders

Institutional Holdings refers to the ownership stake in Ally Financial that is held by large financial organizations, pension funds or endowments. Institutions may purchase large blocks of Ally Financial's outstanding shares and can exert considerable influence upon its management. Institutional holders may also work to push the share price higher once they own the stock. Extensive social media coverage, TV shows, articles in high-profile magazines, and presentations at investor conferences help move the stock higher, increasing Ally Financial's value.
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

Ally Financial Fundamentals

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 Piotroski F Score and Ally Financial Valuation analysis. You can also try Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.

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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.