Ally Financial Story

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ALLY -- USA Stock  

USD 29.08  0.23  0.80%

Ally Financial is scheduled to announce its earnings today. The next earnings report is expected on the 27th of January 2021. The stock is in a buyout trend. Ally Financial Cash Flow Per Share is fairly stable at the moment as compared to the past year. Ally Financial reported Cash Flow Per Share of 10.82 in 2019. Revenue to Assets is likely to rise to 0.07 in 2020, whereas Revenue Per Employee is likely to drop slightly above 1.2 M in 2020. Although many aggressive traders are getting into financial services space, Ally Financial may or may not be your first choice. We will check if the company can maintain a respectable level of debt while minimizing operating losses.
Published over a week ago
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How much will Ally Financial owe in November?
The company currently holds 33.03 B in liabilities with Debt to Equity (D/E) ratio of 275.8, indicating Ally Financial 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. The company has Profit Margin (PM) of 12.31 %, which can signify that it executes well on its competitive strategies and has good control over its expenditures. This is very large. Similarly, it shows Operating Margin (OM) of 17.41 %, which suggests for every 100 dollars of sales, it generated a net operating income of 0.17.
Ally Financial financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Ally Financial, including all of Ally Financial's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Ally Financial assets, the company is considered highly leveraged. Understanding the composition and structure of overall Ally Financial debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Ally Financial Total Debt

Ally Financial liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Ally Financial has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Ally Financial balance sheet include debt obligations and money owed to different Ally Financial vendors, workers, and loan providers. Below is the chart of Ally Financial main long-term debt accounts currently reported on its balance sheet.
You can use Ally Financial financial leverage analysis tool to get a better grip on understanding its financial position

How important is Ally Financial's Liquidity

Ally Financial financial leverage refers to using borrowed capital as a funding source to finance Ally Financial ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Ally Financial financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Ally Financial's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Ally Financial, but it might be worth checking our own buy vs. sell analysis

Sale by Jeffrey Brown of 4300 shares of Ally Financial

Legal trades by Ally Financial insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Ally Financial insider trading alert for sale of common stock by Jeffrey Brown, Chief Executive Officer, on 22nd of October 2020. This event was filed by Ally Financial Inc with SEC on 2020-10-22. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Ally Financial Indicators

The entity reported the previous year's revenue of 5.53 B. Net Income was 685 M with profit before overhead, payroll, taxes, and interest of 6.38 B.

Another 3 percent rise for Ally Financial

Downside variance is down to 4.82. It may suggest a possible volatility slide. As of the 16th of October 2020, Ally Financial shows the Risk Adjusted Performance of 0.1995, downside deviation of 2.2, and Mean Deviation of 1.96. Ally Financial technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to analyze nineteen technical drivers for Ally Financial, which can be compared to its rivals. Please confirm Ally Financial downside deviation, treynor ratio, as well as the relationship between the Treynor Ratio and expected short fall to decide if Ally Financial is priced correctly, providing market reflects its regular price of 28.63 per share. Given that Ally Financial has jensen alpha of 0.4754, we suggest you to validate Ally Financial's prevailing market performance to make sure the company can sustain itself at a future point.

The Bottom Line

While some other entities within the credit services industry are still a little expensive, even after the recent corrections, Ally Financial may offer a potential longer-term growth to investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither take in nor drop any shares of Ally Financial at this time. The Ally Financial risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Ally Financial.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Ally Financial. Please refer to our Terms of Use for any information regarding our disclosure principles.

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