ALLY

Ally Financial Inc.

Fundamental data last updated:June 5, 2026

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company profile

SECTOR

Financial Services

industry

Financial - Credit Services

Exchange

NYSE

County of HQ

US

Next Earnings Date

07/17/2026

Business Summary

Ally Financial Inc., a digital financial-services company, provides various digital financial products and services to consumer, commercial, and corporate customers primarily in the United States and Canada. It operates through four segments: Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations. The Automotive Finance Operations segment offers automotive financing services, including providing retail installment sales contracts, loans and operating leases, term loans to dealers, financing dealer floorplans and other lines of credit to dealers, warehouse lines to automotive retailers, and fleet financing. It also provides financing services to companies and municipalities for the purchase or lease of vehicles, and vehicle-remarketing services. The Insurance Operations segment offers consumer finance protection and insurance products through the automotive dealer channel, and commercial insurance products directly to dealers. This segment provides vehicle service and maintenance contract, and guaranteed asset protection products; and underwrites commercial insurance coverages, which primarily insure dealers' vehicle inventory. The Mortgage Finance Operations segment manages consumer mortgage loan portfolio that includes bulk purchases of jumbo and low-to-moderate income mortgage loans originated by third parties, as well as direct-to-consumer mortgage offerings. The Corporate Finance Operations segment provides senior secured leveraged cash flow and asset-based loans to middle market companies; leveraged loans; and commercial real estate product to serve companies in the healthcare industry. The company also offers commercial banking products and services. In addition, it provides securities brokerage and investment advisory services. The company was formerly known as GMAC Inc. and changed its name to Ally Financial Inc. in May 2010. Ally Financial Inc. was founded in 1919 and is based in Detroit, Michigan.

 


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VALUATION

P/E

9.59

Market Cap ($M USD)

$13.20B

Forward P/E

5.92

PEG

0.10

PRICE TO SALES

0.84

PRICE TO BOOK

0.86

EV / EBITDA

9.12

5-Year Average P/E

Free Cash Flow Yield

0.08%

DCF Value

$-99.60

Graham Number

$71.20

Price to FCF

1199.76

EV to FCF

2297.76

Earnings Yield

10.43%

FCF Yield

0.08%

DIVIDEND

Yield

2.79%

Annual Payout

$1.20

Payout Ratio

35.17%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$4.49

Next Year EPS Growth Estimate

$7.27

Next Year Revenue Growth Estimate

$998.46B

Return on Equity (ROE)

9.19%

FREE CASH FLOW

Operating Margin

11.08%

Debt-to-Equity

1.40

Piotroski F-Score

6

Altman Z-Score

-0.61

Return on Invested Capital (ROIC)

4.50%

Current Ratio

0.20

Quick Ratio

0.20

Net Debt to EBITDA

4.36

Interest Coverage

0.28

Gross Profit margin

48.87%

FCF PER SHARE

$0.04

REVENUE PER SHARE

$50.33

Analyze ALLY on TradingView

Gainseekers Quantitative Analysis

Summary

The market seems to be mispricing Ally Financial Inc. relative to its intrinsic value. With a Forward P/E of 6.08 and a PEG ratio of 0.10, the stock appears undervalued, suggesting significant growth potential. However, the Altman Z-score of 0.14 raises red flags about financial distress, indicating potential risks. The Earnings Yield of 10.15% is attractive, yet the negative DCF Value suggests caution. Overall, the valuation metrics paint a mixed picture of opportunity and risk.

AI Exposure / Tech Reliance

Operating in the financial services sector, Ally Financial is well-positioned to leverage AI and tech advancements. As a credit services provider, integrating AI can enhance risk assessment and customer service. However, the industry faces disruption from fintech, demanding agility and innovation.

The Bull Case

For value and GARP investors, Ally Financial offers compelling reasons to buy. The ROIC of 0.90% and a Piotroski F-Score of 5 indicate moderate operational efficiency. Despite a low FCF Yield, the operating margin of 11.08% suggests decent pricing power. These metrics hint at a company capable of capitalizing on its existing assets while maintaining profitability.

The Bear Case

Ally Financial's structural weaknesses are glaring. The Altman Z-score signals potential financial distress, and the Price to FCF ratio of 1232.78 is alarmingly high, indicating poor cash flow generation. Trading near its 52-week high, the stock appears technically overextended. Additionally, the low interest coverage ratio of 0.28 suggests vulnerability to rising interest rates.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$53.33

Institutional Ownership %

1-Year Beta

1.11

Insider Buying % (6 Mo)

Distance to 52-Week High

9.79%

Distance to 52-Week Low

20.33%

EARNINGS SURPRISE %

19.35%

50-DAY SMA

$42.04

200-DAY SMA

$41.49

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.