- Ally Financial‘s adjusted earnings per share (EPS) for Q4 were 78 cents, exceeding the estimated 55 cents.
- Total deposits stood at $151.6 billion, slightly below the estimated $153.19 billion.
- Core return on tangible common equity was 11.3%, surpassing the estimated 7.51%.
- Net interest margin was reported at 3.3%, higher than the estimated 3.19%.
- Net revenue for the quarter was $2 billion.
- Provision for loan losses decreased by 5.1% year-over-year to $557 million, lower than the estimated $656.9 million.
- Consumer auto originations totaled $10.3 billion, beating the estimate of $9.43 billion.
- Expectation for 2025 net interest margin excluding original issue discount (NIM Ex OID) is between 3.55% and 3.65%.
- Pro Forma NIM Ex OID for 2025 is projected to be from 3.40% to 3.50%.
- Recorded a $22 million restructuring charge related to enterprise-wide workforce reduction.
- Changes were made to the accounting method for electric vehicle (EV) leases, and to corporate expense allocations and reporting segments.
- Ally Financial will cease new mortgage loan originations from January 31.
- The company has agreed to sell its credit card business.
- Analyst ratings include 13 buys, 8 holds, and 2 sells.
Ally Financial on Smartkarma
Analyst coverage of Ally Financial on Smartkarma reveals insights from Value Investors Club, highlighting the company’s strategic positioning in the consumer finance sector. The report emphasizes Ally Financial‘s value creation through focused strategies and strong management practices. Particularly noteworthy is Ally’s response to rate-cycle dynamics and a shift towards leveraging past investments for growth. The appointment of a new CEO at Ally signals potential shifts in the company’s strategic direction, focusing on management culture, competitive strength, and earnings sustainability amidst changing market conditions.
Published on Smartkarma, this analysis by Value Investors Club offers a bullish perspective on Ally Financial, positioning it as a compelling investment opportunity within the evolving financial landscape. Investors are urged to consider Ally’s differentiated approach to generating shareholder value and adapting to market trends, underlining the company’s resilience and growth potential in the face of industry challenges.
A look at Ally Financial Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 4 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
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., an automotive financial services company with a strong direct banking presence, is positioned favorably for long-term growth. Utilizing the Smartkarma Smart Scores, Ally Financial scores high in value and dividend, indicating solid financial health and returns for investors. This suggests that the company’s stock may be undervalued and could potentially offer attractive dividend yields over time, making it an appealing choice for investors seeking stable returns.
While Ally Financial‘s growth and resilience scores are moderate, its momentum score indicates positive market sentiment and potential for upward movement. This suggests that despite facing some challenges, the company has the ability to capitalize on opportunities in the market. Overall, Ally Financial‘s Smart Scores paint a promising picture for its long-term outlook, pointing toward a combination of strong value, dividends, and market momentum in the future.
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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