ALLY
Ally Financial Inc
Finance/Real Estate
10/14/2020
Presented
| Date | 10/09/2020 |
| Price | $27.85 |
| Market Cap | $10.41B |
| Ent Value | $39.04B |
| P/E Ratio | 15.93x |
| Book Value | $36.98 |
| Div Yield | 2.66% |
| Shares O/S | 373.84M |
| Ave Daily Vol | 4,833,318 |
| Short Int | 3.35% |
Current
| Price | $34.97 |
| Market Cap | $10.65B |
| Ally Financial, Inc. is a holding company, which provides digital financial services to consumers, businesses, automotive dealers, and corporate clients. It operates through the following segments: Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations. The Automotive Finance Operations segment offers retail installment sales contracts, loans and leases, offering term loans to dealers, financing dealer floorplans and other lines of credit to dealers, warehouse lines to companies, fleet financing, providing financing to companies and municipalities for the purchase or lease of vehicles and equipment, and vehicle remarketing services. The Insurance Operations segment focuses on finance protection and insurance products sold primarily through the automotive dealer channel, and commercial insurance products sold directly to dealers. The Mortgage Finance Operations segment consists of the management of a held-for-investment consumer mortgage finance loan portfolio, which includes bulk purchases of jumbo and LMI mortgage loans originated by third parties. The Corporate Finance Operations segment provides senior secured leveraged cash flow and asset-based loans to mostly United States based middle market companies focuses on businesses owned by private equity sponsors with loans typically used for leveraged buyouts, mergers and acquisitions, debt refinancing, restructurings, and working capital. The company was founded in 1919 and is headquartered in Detroit, MI. |
Publicly traded companies mentioned herein: Ally Financial Inc (ALLY), Hertz Global Holdings Inc (HTZ)
Highlights
The presenter is long Ally Financial Inc (ALLY), the largest auto lender and online bank in the US, due to his positive outlook for financials and the company’s strong positioning relative to the sector. Despite financials trailing the broader market in 2020 and being out of favor since the financial crisis, he believes the system is substantially de-risked. He is forecasting above market growth for the sector in coming quarters driven by his expectations of credit trends remaining stronger than consensus and net interest margins (NIM) reaching a trough in the next quarter or early 2021. He views ALLY in particular as well positioned in light of reported data indicating better than expected results following the initial lockdowns, leading him to find the company mispriced at 85% of tangible book.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.
◆Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.