- Total Deposits: $152.15 billion, missing the estimate of $155.1 billion.
- Core Return on Tangible Common Equity: +14%, well above the estimate of +9.17%
- Net Interest Margin: 3.27% compared to 3.38% last year, slightly above the estimate of 3.26%.
- Adjusted EPS: 97 cents, exceeding the estimate of 64 cents and last year’s 96 cents.
- Net Revenue: $2.00 billion, down 3.8% from last year and below the estimate of $2.03 billion.
- Provision for Loan Losses: $457.0 million, up 7% from last year but below the estimate of $488.3 million.
- Net Charge-Offs: $435 million, up 9% from last year but below the estimate of $481.3 million.
- Net Charge-Offs Ratio: 1.26% compared to 1.16% last year.
- Consumer Auto Originations: $9.8 billion, down 5.8% from last year and below the estimate of $10.51 billion.
- Future Net Interest Margin Outlook: Around 3.3% for the year.
- Stock Buybacks: No share buybacks on the open market during the quarter.
- Analyst Ratings: 12 buys, 9 holds, 2 sells.
“`
Ally Financial on Smartkarma
Analysts on Smartkarma are bullish on Ally Financial, as highlighted in a recent report by Value Investors Club. The author of the report sees significant long-term growth potential in Ally’s stock, suggesting it could triple in value. Despite potential short-term risks, Ally is viewed favorably due to its strong capital position and strategic focus on digital banking. The company’s commitment to pricing and underwriting discipline adds to its appeal, with analysts confident in Ally’s ability to navigate challenges. This positive sentiment is underpinned by expectations of benefiting from potential economic recovery and rising interest rates.
A look at Ally Financial Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Ally Financial Inc., a leading automotive financial services company with a direct banking arm, is showing promising signs for its long-term outlook based on the Smartkarma Smart Scores. With strong ratings in Value and Momentum, scoring 4 and 4 respectively, Ally Financial is positioned well in terms of its underlying value and market momentum. These scores suggest that the company is considered undervalued and has positive price momentum, which could attract investors looking for growth potential.
While the company scores slightly lower in Dividend, Growth, and Resilience with ratings of 3, 3, and 2 respectively, Ally Financial‘s overall outlook remains positive. The company’s diversified portfolio and strategic position in the automotive financial services sector indicate resilience to market fluctuations. Investors may find Ally Financial a solid choice for long-term growth prospects backed by its robust financial services platform and banking infrastructure.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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