APPF

AppFolio

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Technology

industry

Software - Application

Exchange

Nasdaq

County of HQ

United States

Next Earnings Date

04/23/26

Business Summary

Ally Financial operates as a consumer-focused credit provider, generating revenue primarily through lending spreads and financing activities within Credit Services. Its economic engine depends on originating loans, managing credit risk, and earning net interest margins while maintaining disciplined underwriting. The moat is not brand mystique but scale in data, underwriting models, and funding efficiency — advantages that compound over time if credit quality is maintained. Cash generation hinges on the spread between borrowing costs and loan yields, making risk management and capital allocation the true determinants of long-term shareholder returns.

VALUATION

P/E

36.9

Market Cap ($M USD)

$5,158

Forward P/E

18

PEG

0.3

PRICE TO SALES

5.5

PRICE TO BOOK

9.5

EV / EBITDA

27.8

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$3.91

Next Year EPS Growth Estimate

$7.96

Next Year Revenue Growth Estimate

16.70%

Return on Equity (ROE)

26.00%

Operating Margin

16.10%

Debt-to-Equity

0.1

Piotroski F-Score

5

Altman Z-Score

24.6

Return on Invested Capital (ROIC)

23.40%%

Current Ratio

3.3

Quick Ratio

Gainseekers Quantitative Analysis

Summary

ALLY screens as a statistically cheap but balance-sheet-fragile lender. A 17.4 P/E collapsing to a 6.5 Forward P/E with a 0.8 PEG Forward signals the market is discounting either cyclical earnings risk or credit deterioration, not stagnation. However, the Altman Z-Score of 0.1 is a severe distress flag that cannot be ignored, especially in a credit-driven business with 31.40% Debt/Equity. This is not a “sleep well at night” compounder — it is a leveraged financial play where the upside comes from multiple expansion and earnings normalization, but the safety margin is thin. The market is pricing in stress, and based purely on the Z-score, that stress is not irrational.

AI Exposure / Tech Reliance

As a Credit Services company, ALLY sits directly in the path of AI-driven underwriting, risk modeling, and automation efficiencies. Financial Services firms that integrate machine learning into credit scoring and fraud detection can materially improve margins and risk-adjusted returns. With a 4.80% Operating Margin, even modest tech-enabled efficiency gains could have disproportionate earnings impact.

The Bull Case

A value or GARP investor would focus on the disconnect between profitability metrics and valuation compression. A 19.40% ROIC paired with a 6.10% Return on Equity suggests capital is still being deployed productively despite cyclical headwinds. The Piotroski F-Score of 5 signals financial condition that is stable, not collapsing, and the 1 Price/Book implies the market values the company roughly at its accounting equity — classic deep value territory in Financial Services. Add a Forward P/E of 6.5 and a PEG Forward of 0.8, and you have a setup where even modest earnings stabilization could drive material re-rating. Institutional Ownership at 52.18% indicates that sophisticated capital has not abandoned the name, reinforcing the case that this is a cyclical dislocation rather than structural decay.

The Bear Case

Now the structural risks: the Altman Z-Score of 0.1 is flashing distress, and in a leveraged lender that matters more than in most sectors. Debt/Equity at 31.40% amplifies vulnerability in a downturn, particularly if credit losses spike. A Short % of Float at 9.60% shows a meaningful cohort betting against recovery, and the 1.55 Mean Consensus Target Price implies extremely muted upside expectations relative to current valuation metrics. With only a 4.80% Operating Margin, earnings are not deeply insulated from credit cost volatility, making this a high-beta financial balance sheet rather than a defensive value play.

Market Sentiment & Smart Money

Short Interest %

10.80%

Analyst Consensus

1.33

Average Analyst Price Target

$263.86

Institutional Ownership %

87.10%

1-Year Beta

0.71

Insider Buying % (6 Mo)

4.60%%

Distance to 52-Week High

44.00%%

Distance to 52-Week Low

100.40%%