Ally Financial Inc. [NYSE:ALLY]: Analyst Rating and Earnings
Expert stock traders often make certain they pay attention what leading Wall Street analysts think regarding a potential stock purchase. As it relates to Ally Financial Inc. [ALLY] currently, the latest ratings from Wall St. experts that can be seen publicly is related to the fiscal quarter that’s scheduled to end in December. On average, stock market experts give ALLY an Outperform rating. Its stock price has been found in the range of 20.60 to 29.66. This is compared to its latest closing price of $29.46.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Ally Financial Inc. [ALLY] is sitting at 1.74. This is compared to 1 month ago, when its average rating was 1.70.
For the quarter ending in Dec-18 Ally Financial Inc. [ALLY] generated $1.44 billion in sales. That’s 5.82% lower than the average estimate of $1.53 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Pay attention to the next-scheduled financial results for this company to be released, which is slated for Thu 18 Apr (In 2 Days).
Fundamental Analysis of Ally Financial Inc. [ALLY]
Now let’s turn to look at profitability: with a current Operating Margin for Ally Financial Inc. [ALLY] sitting at +14.82, this company’s Net Margin is now 14.00%. These measurements indicate that Ally Financial Inc. [ALLY] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 2.31, and its Return on Invested Capital has reached 6.80%. Its Return on Equity is 9.44, and its Return on Assets is 0.73. These metrics suggest that this Ally Financial Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Ally Financial Inc. [ALLY] has generated a Total Debt to Total Equity ratio of 408.35. Similarly, its Total Debt to Total Capital is 80.33, while its Total Debt to Total Assets stands at 30.29. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 265.43, and its Long-Term Debt to Total Capital is 52.21. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 22.88. The Enterprise Value to Sales for this firm is now 6.00, and its Total Debt to Enterprise Value stands at 0.87. Ally Financial Inc. [ALLY] has a Price to Book Ratio of 0.69, a Price to Cash Flow Ratio of 2.30 and P/E Ratio of 9.90. These metrics all suggest that Ally Financial Inc. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Ally Financial Inc. [ALLY] earns $1,296,463 for each employee under its payroll. Similarly, this company’s Total Asset Turnover is 0.06.
Ally Financial Inc. [ALLY] has 400.23M shares outstanding, amounting to a total market cap of $11.71B. Its stock price has been found in the range of 20.60 to 29.66. At its current price, it has moved by -1.31% from its 52-week high, and it has moved 42.09% from its 52-week low.
This stock’s Beta value is currently 1.35, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 67.05. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Ally Financial Inc. [ALLY] a Reliable Buy?
Ally Financial Inc. [ALLY] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.