A Business at a Glance
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Ally Financial Inc.
ALLY
$13.4B
Mkt Cap
$42.92
-2.39%
Ally Financial Inc. (ALLY) has a current P/E ratio of 18.1, compared to its historical median P/E of 8.6. The stock is currently considered Expensive based on its historical valuation range.
Ally Financial Inc. (ALLY) has a 5-year average return on invested capital (ROIC) of 4.8%. This is below average and may indicate limited pricing power.
Ally Financial Inc. (ALLY) has a market capitalization of $13.2B. It is classified as a large-cap stock.
Yes, Ally Financial Inc. (ALLY) pays a dividend with a trailing twelve-month yield of 2.89%. The company also returns capital through share buybacks, with a buyback yield of 1.30%.
Based on historical P/E analysis, Ally Financial Inc. (ALLY) appears expensive. The current P/E of 18.1 is 110% above its historical median of 8.6. The estimated fair value CAGR (P/E method) is -7.4%.
Ally Financial Inc. (ALLY) operates in the State Commercial Banks industry, within the Financials sector.
Ally Financial Inc. (ALLY) reported annual revenue of $1.8 billion in its most recent fiscal year, based on SEC EDGAR filings.
Ally Financial Inc. is a financial-services company with $196.0 billion in assets comprising the nation's largest all-digital bank and an industry-leading automotive financing and insurance business. The company operates through two primary segments: Dealer Financial Services, which includes Automotive Finance and Insurance operations serving a network of approximately 22,000 dealers, and Corporate Finance, which provides capital to equity sponsors and middle-market companies. Ally Bank, with $184.6 billion in total assets and $151.6 billion in nonaffiliate deposits, serves consumers with deposit and securities brokerage and investment advisory services. The automotive finance business generates revenue through fixed-rate retail auto loans originated at approximately 10% yields funded by core deposits below 4%, with expected annual losses between 1.6% and 1.8%, complemented by fee revenue from pass-through programs and SmartAuction services. The insurance operations, which generated record written premiums exceeding $1.5 billion, leverage the automotive dealer network to drive customer growth and retention while managing risk through strategic reinsurance. The company's competitive moat is built on its digital-first platform, extensive dealer relationships, data and AI capabilities, and a diversified funding base of core deposits, positioning it to compete effectively against banks, credit unions, captive automotive finance companies, and independent finance companies across highly competitive markets.
【Margin expansion and credit stability】 Management expects net interest margin to reach the upper threes over the medium term, supported by continued deposit pricing beta optimization toward the through-the-cycle target of 60% and portfolio yield stabilization as lower benchmarks are reflected in originated yields. Retail auto net charge-offs are expected to remain in the 1.8%-2% range for 2026, with performance supported by continued improvement from vintage rollover and stable delinquency and used car price trends, though management acknowledges higher unemployment expectations for 2026 compared to 2025 as a potential headwind. The company expects average earning assets to grow 2%-4% year-over-year, with growth concentrated in retail auto and corporate finance, while mortgage loans and lower-yielding investment securities continue to run off. Expenses are expected to increase approximately 1% in 2026, with disciplined cost management and investments in AI, automation, and customer experience expected to drive positive operating leverage and support progress toward the mid-teens return on tangible common equity target.
| Metric | Target | Period |
|---|---|---|
| Net Interest Margin | 3.60%-3.70% | FY2026 |
| Retail Auto Net Charge-Offs | 1.8%-2% | FY2026 |
| Average Earning Assets Growth | 2%-4% | FY2026 |
| Non-Interest Expense Growth | approximately 1% | FY2026 |
| Other Revenue Growth | low single-digit % | FY2026 |
| Consolidated Net Charge-Offs | 1.2%-1.4% | FY2026 |
| Effective Tax Rate | 20%-22% | FY2026 |
Net Interest Margin (FY2026): “For the year, we expect 3.60%-3.70%”
Retail Auto Net Charge-Offs (FY2026): “We've left our Retail Auto NCO guide for 2026 unchanged at 1.8%-2%”
Average Earning Assets Growth (FY2026): “average earning assets are expected to be up between 2% and 4% year-over-year”
Non-Interest Expense Growth (FY2026): “we expect 2026 to be up approximately 1%”
Other Revenue Growth (FY2026): “we expect continued momentum across insurance, SmartAuction, and Auto Pass-Through Programs to drive low single-digit % growth year-over-year”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 2.2B | 1.8B | 2.2B | 2.0B | 1.6B | 2.1B |
| Net Income | 1.3B | 742M | 558M | 847M | 1.6B | 3.0B |
| EPS | $4.18 | $2.37 | $1.80 | $2.77 | $5.03 | $8.22 |
| Free Cash Flow | 0 | 3.7B | 4.5B | 4.6B | 6.2B | 4.0B |
| ROIC | 2.1% | 2.6% | 2.1% | 3.2% | 5.9% | 10.0% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 1.22 | 1.40 | 1.38 | 1.52 | 1.57 | 1.00 |
| Dividends/Share | $1.24 | $1.20 | $1.20 | $1.20 | $1.20 | $0.88 |
| Operating Income | 664M | 684M | 658M | 582M | 495M | 686M |
| Operating Margin | 30.0% | 38.8% | 29.7% | 28.4% | 30.8% | 33.3% |
| ROE | 8.2% | 5.0% | 4.0% | 6.4% | 10.7% | 18.9% |
| Shares Outstanding | 307M | 313M | 310M | 306M | 319M | 365M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 5.7B | 5.7B | 6.7B | 7.4B | 8.1B | 9.1B | 2.0B | 2.1B | 1.6B | 2.0B | 2.2B | 1.8B | 2.2B |
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 947M | 963M | 992M | 1.1B | 1.2B | 1.2B | 1.4B | 1.6B | 1.9B | 1.9B | 1.8B | 1.9B | 1.8B |
| EBIT | 311M | 359M | 389M | 401M | 418M | 405M | 565M | 686M | 495M | 582M | 658M | 684M | 664M |
| Op. Margin | 5.4% | 6.3% | 5.8% | 5.4% | 5.2% | 4.5% | 28.3% | 33.3% | 30.8% | 28.4% | 29.7% | 38.8% | 30.0% |
| Net Income | 882M | -1.3B | 1.0B | 929M | 1.3B | 1.7B | 1.1B | 3.0B | 1.6B | 847M | 558M | 742M | 1.3B |
| Net Margin | 15.4% | -22.4% | 15.5% | 12.6% | 15.6% | 18.9% | 54.3% | 146.0% | 99.7% | 41.4% | 25.2% | 42.1% | 58.0% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 50M | 0 | 0 | 149M | 118M | 305M | 305M |
| Returns on Capital | |||||||||||||
| ROIC | 1.4% | -1.9% | 1.7% | 1.9% | 2.7% | 3.9% | 3.1% | 10.0% | 5.9% | 3.2% | 2.1% | 2.6% | 2.1% |
| ROE | 6.0% | -8.9% | 7.8% | 6.9% | 9.4% | 12.4% | 7.5% | 18.9% | 10.7% | 6.4% | 4.0% | 5.0% | 8.2% |
| ROA | 0.6% | -0.8% | 0.6% | 0.6% | 0.7% | 1.0% | 0.6% | 1.6% | 0.9% | 0.4% | 0.3% | 0.4% | 0.7% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 3.4B | 5.1B | 4.6B | 4.1B | 4.2B | 4.0B | 3.7B | 4.0B | 6.2B | 4.6B | 4.5B | 3.7B | 4.2B |
| Free Cash Flow | 3.4B | 5.1B | 4.6B | 4.1B | 4.2B | 4.0B | 3.7B | 4.0B | 6.2B | 4.6B | 4.5B | 3.7B | 0 |
| Owner Earnings | 3.2B | 5.0B | 4.4B | 3.9B | 4.0B | 3.9B | 3.5B | 3.8B | 5.9B | 4.2B | 4.1B | 3.3B | 2.7B |
| CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 46M | 0 | 0 | 0 | 0 | 0 |
| Maint. CapEx | 81M | 82M | 84M | 89M | 87M | 96M | 136M | 153M | 165M | 196M | 224M | 243M | 1.3B |
| Growth CapEx | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0 | N/A | N/A | N/A | N/A | 0 |
| D&A | 81M | 82M | 84M | 89M | 87M | 96M | 136M | 153M | 165M | 196M | 224M | 243M | 1.3B |
| CapEx/OCF | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 1.1% | N/A | N/A | N/A | N/A | 0.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 268M | 2.6B | 108M | 184M | 242M | 273M | 289M | 324M | 384M | 368M | 372M | 379M | 381M |
| Dividend Yield | 3.0% | 32.9% | 1.6% | 2.3% | 2.7% | 2.9% | 3.8% | 2.1% | 3.7% | 4.8% | 3.3% | 3.2% | 2.9% |
| Share Buybacks | 0 | 16M | 341M | 753M | 939M | 1.0B | 106M | 2.0B | 1.6B | 33M | 38M | 59M | 172M |
| Buyback Yield | N/A | 0.2% | 4.6% | 7.2% | 12.2% | 10.5% | 1.0% | 13.2% | 24.7% | 0.3% | 0.4% | 0.4% | 1.3% |
| Stock-Based Comp | 99M | 62M | 66M | 79M | 100M | 93M | 106M | 127M | 145M | 159M | 167M | 153M | 155M |
| Debt Repayment | 30.4B | 31.4B | 26.4B | 27.9B | 17.9B | 17.2B | 16.1B | 6.1B | 6.5B | 4.6B | 4.5B | 5.2B | 5.2B |
| Balance Sheet | |||||||||||||
| Net Debt | 64.8B | 65.3B | 58.6B | 50.4B | 23.3B | 4.9B | -22.3B | 11.4B | 13.9B | 13.4B | 7.7B | 10.0B | 9.5B |
| Cash & Equiv. | 8.2B | 8.7B | 7.9B | 5.3B | 5.6B | 4.4B | 16.6B | 5.7B | 6.2B | 7.4B | 11.4B | 11.8B | 9.5B |
| Long-Term Debt | 48.5B | 54.6B | 39.3B | 33.2B | 35.2B | 24.8B | 16.9B | 11.2B | 13.3B | 13.2B | 12.7B | 14.4B | 14.9B |
| Debt/Equity | 4.74 | 5.51 | 4.99 | 4.12 | 4.08 | 2.74 | 1.64 | 1.00 | 1.57 | 1.52 | 1.38 | 1.40 | 1.22 |
| Interest Coverage | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Equity | 15.4B | 13.4B | 13.3B | 13.5B | 13.3B | 14.4B | 14.7B | 17.1B | 12.9B | 13.7B | 13.9B | 15.5B | 15.6B |
| Total Assets | 151.6B | 158.6B | 163.7B | 167.1B | 178.9B | 180.6B | 182.2B | 182.1B | 191.8B | 196.3B | 191.8B | 196.0B | 197.3B |
| Total Liabilities | 136.2B | 145.1B | 150.4B | 153.7B | 165.6B | 166.2B | 167.5B | 165.1B | 179.0B | 182.6B | 177.9B | 180.5B | 181.7B |
| Intangibles | N/A | N/A | N/A | N/A | 59M | 69M | 50M | 129M | 98M | 73M | 54M | 0 | 0 |
| Retained Earnings | -6.8B | -8.1B | -7.2B | -6.4B | -5.5B | -4.1B | -4.3B | -1.6B | -384M | 91M | 270M | 633M | 827M |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | |||||||||||||
| EPS | 1.83 | -2.66 | 2.15 | 2.04 | 2.95 | 4.34 | 2.88 | 8.22 | 5.03 | 2.77 | 1.80 | 2.37 | 4.18 |
| Owner EPS | 6.69 | 10.31 | 9.16 | 8.59 | 9.26 | 9.77 | 9.28 | 10.30 | 18.62 | 13.74 | 13.35 | 10.65 | 8.83 |
| Book Value | 31.95 | 27.88 | 27.61 | 29.63 | 30.99 | 36.48 | 39.03 | 46.67 | 40.32 | 44.81 | 44.85 | 49.50 | 50.78 |
| Cash Flow/Share | 7.06 | 10.60 | 9.47 | 8.96 | 9.69 | 10.25 | 9.92 | 11.06 | 19.59 | 14.90 | 14.61 | 11.91 | 8.38 |
| Dividends/Share | 0.56 | 5.33 | 0.16 | 0.40 | 0.56 | 0.68 | 0.76 | 0.88 | 1.20 | 1.20 | 1.20 | 1.20 | 1.24 |
| Shares Out. | 482.0M | 482.0M | 482.3M | 455.4M | 428.1M | 395.2M | 376.7M | 365.3M | 318.9M | 305.8M | 310.0M | 313.1M | 307.4M |
| Valuation | |||||||||||||
| P/E Ratio | 10.0 | N/A | 7.0 | 11.3 | 6.1 | 5.8 | 10.3 | 5.0 | 4.2 | 11.8 | 19.0 | 19.4 | 10.3 |
| P/FCF | 2.6 | 1.4 | 1.6 | 2.6 | 1.9 | 2.4 | 3.0 | 3.8 | 1.1 | 2.2 | 2.3 | 3.9 | N/A |
| EV/EBIT | 341.0 | 233.2 | 206.4 | 179.6 | 98.4 | 61.3 | 42.5 | 48.0 | 50.8 | 47.5 | 36.1 | 41.5 | 34.2 |
| Price/Book | 0.7 | 0.5 | 0.6 | 0.8 | 0.6 | 0.7 | 0.8 | 0.9 | 0.5 | 0.7 | 0.8 | 0.9 | 0.8 |
| Price/Sales | 2.0 | 1.5 | 1.2 | 1.1 | 1.1 | 1.0 | 0.9 | 1.8 | 1.1 | 0.6 | 0.8 | 0.9 | 6.0 |
| FCF Yield | 29.5% | 76.8% | 61.4% | 38.8% | 53.8% | 40.9% | 33.5% | 26.5% | 93.4% | 45.5% | 42.6% | 25.9% | N/A |
| Market Cap | 11.5B | 6.7B | 7.4B | 10.5B | 7.7B | 9.9B | 11.2B | 15.1B | 6.7B | 10.0B | 10.6B | 14.4B | 13.2B |
| Avg. Price | 18.53 | 16.21 | 13.86 | 17.41 | 21.32 | 24.17 | 19.94 | 41.45 | 32.32 | 25.29 | 35.99 | 37.33 | 42.92 |
| Year-End Price | 18.33 | 14.32 | 14.98 | 23.08 | 18.02 | 25.06 | 29.61 | 41.31 | 20.98 | 32.73 | 34.27 | 45.93 | 42.92 |
Ally Financial Inc. passes 2 of 9 quality checks, indicating weak fundamentals.
Ally Financial Inc. trades at 18.1x trailing earnings, compared to its 15-year median P/E of 8.6x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 3.6x vs a median of 2.4x. The company's 5-year average ROIC is 4.8%. Total shareholder yield (dividends + buybacks) is 4.2%. At current prices, the estimated annualized return to fair value is +7.5%.
Ally Financial Inc. (ALLY) has a net profit margin of 42.1%. This is a strong margin indicating high profitability.
Ally Financial Inc. (ALLY) generated $3.7 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Ally Financial Inc. (ALLY) has a debt-to-equity ratio of 1.40. This indicates moderate leverage.
Ally Financial Inc. (ALLY) reported earnings per share (EPS) of $2.37 in its most recent fiscal year.
Ally Financial Inc. (ALLY) has a return on equity (ROE) of 5.0%. This indicates moderate shareholder returns.
The Ledger Terminal provides 16 years of financial data for Ally Financial Inc. (ALLY), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Ally Financial Inc. (ALLY) has a book value per share of $49.50, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects net interest margin to reach the upper threes over the medium term, supported by continued deposit pricing beta optimization toward the through-the-cycle target of 60% and portfolio yield stabilization as lower benchmarks are reflected in originated yields. Retail auto net charge-offs are expected to remain in the 1.8%-2% range for 2026, with performance supported by continued improvement from vintage rollover and stable delinquency and used car price trends, though management acknowledges higher unemployment expectations for 2026 compared to 2025 as a potential headwind. The company expects average earning assets to grow 2%-4% year-over-year, with growth concentrated in retail auto and corporate finance, while mortgage loans and lower-yielding investment securities continue to run off. Expenses are expected to increase approximately 1% in 2026, with disciplined cost management and investments in AI, automation, and customer experience expected to drive positive operating leverage and support progress toward the mid-teens return on tangible common equity target.
Based on recent SEC filings and earnings calls, Ally Financial Inc. (ALLY) has provided the following forward guidance: Net Interest Margin: 3.60%-3.70% (FY2026); Retail Auto Net Charge-Offs: 1.8%-2% (FY2026); Average Earning Assets Growth: 2%-4% (FY2026); Non-Interest Expense Growth: approximately 1% (FY2026); Other Revenue Growth: low single-digit % (FY2026), plus 2 additional metrics.
Consolidated Net Charge-Offs (FY2026): “we expect consolidated net charge-offs between 1.2% and 1.4%”
Effective Tax Rate (FY2026): “we expect an effective tax rate between 20% and 22%”