Ally Financial Return On Asset vs. Profit Margin
| ALLY Stock | USD 34.63 0.02 0.06% |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.37 | 0.56 |
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| Operating Profit Margin | 0.4 | 0.2569 |
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| Pretax Profit Margin | 0.11 | 0.1194 |
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For Ally Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ally Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ally Financial utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ally Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ally Financial over time as well as its relative position and ranking within its peers.
Ally |
Ally Financial's Revenue Breakdown by Earning Segment
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Is Consumer Finance space 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 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 0.205 | Dividend Share 1.2 | Earnings Share 2.5 | Revenue Per Share 22.094 | Quarterly Revenue Growth (0.01) |
The market value of Ally Financial is measured differently than its book value, which is the value of Ally 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 if Ally Financial is a good investment 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.
Ally Financial Profit Margin vs. Return On Asset Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Ally Financial's current stock value. Our valuation model uses many indicators to compare Ally Financial value to that of its competitors to determine the firm's financial worth. Ally Financial is rated fourth in return on asset category among its peers. It also is rated fourth in profit margin category among its peers fabricating about 28.41 of Profit Margin per Return On Asset. At this time, Ally Financial's Net Profit Margin is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Ally Financial's earnings, one of the primary drivers of an investment's value.Ally Financial's Earnings Breakdown by Geography
Ally Profit Margin vs. Return On Asset
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Ally Financial |
| = | 0.0046 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Ally Financial |
| = | 0.13 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Ally Profit Margin Comparison
Ally Financial is currently under evaluation in profit margin category among its peers.
Ally Financial Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Ally Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ally Financial will eventually generate negative long term returns. The profitability progress is the general direction of Ally Financial's change in net profit over the period of time. It can combine multiple indicators of Ally Financial, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -3.8 B | -3.6 B | |
| Operating Income | 2.3 B | 4.1 B | |
| Income Before Tax | 1.1 B | 1.2 B | |
| Net Income | 1 B | 745 M | |
| Income Tax Expense | 61 M | 58 M | |
| Net Income Applicable To Common Shares | 1.4 B | 1.3 B | |
| Total Other Income Expense Net | -1.2 B | -1.3 B | |
| Net Income From Continuing Ops | 1 B | 1.5 B | |
| Non Operating Income Net Other | -6.3 M | -6 M | |
| Net Interest Income | 7.1 B | 6.8 B | |
| Interest Income | 14 B | 10.5 B | |
| Change To Netincome | 561.2 M | 650.6 M | |
| Net Income Per Share | 3.36 | 2.27 | |
| Income Quality | 4.57 | 4.80 | |
| Net Income Per E B T | 0.94 | 0.55 |
Ally Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Ally Financial. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Ally Financial position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Ally Financial's important profitability drivers and their relationship over time.
Use Ally Financial in pair-trading
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.Ally Financial Pair Trading
Ally Financial Pair Trading Analysis
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 instruments. 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.Use Investing Themes to Complement your Ally Financial position
In addition to having Ally Financial in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Companies involved in publishing of books, newspapers, periodicals and other mass publications. The Books theme has 48 constituents at this time.
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Additional Tools for Ally Stock Analysis
When running Ally Financial's price analysis, check to measure Ally Financial's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Ally Financial is operating at the current time. Most of Ally Financial's value examination focuses on studying past and present price action to predict the probability of Ally Financial's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ally Financial's price. Additionally, you may evaluate how the addition of Ally Financial to your portfolios can decrease your overall portfolio volatility.