Ally Financial (ALLY)
NYSE:ALLY
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Ally Financial
(NYSE:ALLY)
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Rating:61Neutral
Price Target:
$44.00
▼(-3.00% Downside)
Action:Reiterated
Date:05/14/26
The score is primarily held back by weak free-cash-flow conversion and only moderate balance-sheet strength, despite improved TTM profitability. Offsetting factors include a constructive earnings-call outlook (reiterated guidance, stronger returns/credit, and capital return) and an attractive valuation (low P/E with a ~2.9% yield). Technical indicators are mixed-to-weak, limiting near-term confidence.
Positive Factors
Deposit Funding Stability
A large, retail-heavy deposit base provides durable, low-cost funding and reduces reliance on volatile wholesale markets. With ~90% of funding from retail deposits and high FDIC coverage, Ally has structural funding stability that supports lendable assets and NIM resilience over the medium term.
Negative Factors
Weak Free Cash Flow Conversion
Despite strong operating cash generation, near-zero free cash flow indicates weak conversion of earnings to discretionary cash. This constrains long-term financial flexibility, limiting funding for capex, additional buybacks or buffer against credit stress and makes capital returns more contingent on volatile cash items.
Read all positive and negative factors
Positive Factors
Negative Factors
Deposit Funding Stability
A large, retail-heavy deposit base provides durable, low-cost funding and reduces reliance on volatile wholesale markets. With ~90% of funding from retail deposits and high FDIC coverage, Ally has structural funding stability that supports lendable assets and NIM resilience over the medium term.
Read all positive factors
Ally Financial Key Performance Indicators (KPIs)
Any
Assets by Segment
Highlights the distribution of assets across different business segments, indicating where the company is allocating resources and potential areas of strength or vulnerability in its portfolio.
Highlights the distribution of assets across different business segments, indicating where the company is allocating resources and potential areas of strength or vulnerability in its portfolio.
Data provided by:
The Fly
The FlyAlly Financial (ALLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$13.06B
Dividend Yield2.58%
Average Volume (3M)3.36M
Price to Earnings (P/E)9.6
Beta (1Y)1.21
Revenue Growth-0.72%
EPS Growth198.95%
CountryUS
Employees10,700
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)4.15
Shares Outstanding306,523,070
10 Day Avg. Volume3,010,980
30 Day Avg. Volume3,363,027
Financial Highlights & Ratios
PEG Ratio0.53
Price to Book (P/B)0.91
Price to Sales (P/S)1.16
P/FCF Ratio-21.76
Enterprise Value/Market Cap1.92
Enterprise Value/Revenue1.61
Enterprise Value/Gross Profit3.29
Enterprise Value/Ebitda9.07
Forecast
1Y Price Target
$52.55Price Target Upside15.84% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)5.33
Revenue Forecast (FY)$8.99B
Ally Financial Business Overview & Revenue Model
Company Description
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: Auto...
How the Company Makes Money
Ally primarily makes money through net interest income and fees generated across its lending and banking activities. In auto finance—historically its largest business—it earns interest income on retail auto loans and leases originated largely thro...
Ally Financial Earnings Call Summary
Earnings Call Date:Apr 17, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 22, 2026
Earnings Call Sentiment Positive
The call presented a majority of positive operating and financial developments: double-digit EPS growth, material improvement in ROTCE, record application and origination volumes, stronger credit trends, improved tangible book value, and a constructive view on regulatory capital. Management reiterated guidance and emphasized disciplined, capital-aware growth plus shareholder returns via dividend and buybacks. Headwinds were present but manageable — chiefly lease-related margin pressure (including a $10M lease termination loss), CECL reserve impact in Auto, competition in auto and deposits, and macro uncertainty that could affect NIM timing and asset quality. Overall, positives materially outweigh the modest, defined challenges, and management projects confidence in executing its strategy and achieving medium-term targets.Positive Updates
Strong Earnings per Share Growth
Adjusted EPS of $1.11, up 90% year over year, reflecting improved profitability and operating leverage.
Negative Updates
Margin Impact from Lease Headwinds
Net interest margin of 3.52% was impacted by lower lease yields; the quarter included a $10 million loss on lease terminations tied to select plug-in hybrid models and accelerated depreciation on certain near-term leases.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Earnings per Share Growth
Adjusted EPS of $1.11, up 90% year over year, reflecting improved profitability and operating leverage.
Read all positive updates
Company Guidance
Ally reiterated that its full‑year guidance remains unchanged versus three months ago, anchored on a net interest margin of 3.60%–3.70% (expecting to exit the year at or above the high end) assuming the March‑31 forward curve (no fed funds cut until June 2027), and retail‑auto net charge‑offs guidance of 1.8%–2.0% for 2026; capital priorities remain to grow CET1 (10.1% at quarter end, ~60 bps YoY) while supporting a $0.30 quarterly dividend and ongoing buybacks (‑$147M repurchased this quarter under an open‑ended authorization), with adjusted tangible book value at $41 (≈+14% YoY), noninterest expense guided to ~+1% in 2026 (long‑term low‑ to mid‑single‑digit growth), a cumulative deposit beta of ~63% (retail deposits $146B, ~90% of funding, 92% FDIC insured, and ~$18B of 2026 CD maturities at ~4% WA yield), and balance‑sheet growth focused on higher‑return assets (average earning assets +2% YoY; Retail Auto + Corporate Finance ≈+6% YoY).Ally Financial Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
58
Neutral
Cash Flow
41
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.65B | 12.15B | 16.37B | 15.97B | 12.10B | 10.69B |
| Gross Profit | 7.65B | 6.32B | 6.73B | 7.10B | 7.84B | 8.54B |
| EBITDA | 2.77B | 2.45B | 2.04B | 2.33B | 3.67B | 5.12B |
| Net Income | 1.40B | 852.00M | 668.00M | 957.00M | 1.71B | 3.06B |
Balance Sheet | ||||||
| Total Assets | 197.27B | 196.00B | 191.84B | 196.33B | 191.83B | 182.11B |
| Cash, Cash Equivalents and Short-Term Investments | 29.06B | 10.03B | 29.30B | 26.66B | 31.21B | 38.45B |
| Total Debt | 21.60B | 21.77B | 19.23B | 20.98B | 20.30B | 17.20B |
| Total Liabilities | 181.66B | 180.50B | 177.93B | 182.63B | 178.97B | 165.06B |
| Stockholders Equity | 15.61B | 15.50B | 13.90B | 13.70B | 12.86B | 17.05B |
Cash Flow | ||||||
| Free Cash Flow | 11.00M | -647.00M | 1.07B | 1.80B | 2.71B | -1.08B |
| Operating Cash Flow | 4.17B | 3.63B | 4.53B | 4.56B | 6.25B | 4.04B |
| Investing Cash Flow | -6.98B | -5.16B | 4.99B | -7.18B | -17.26B | -11.10B |
| Financing Cash Flow | 2.61B | 1.96B | -5.57B | 3.84B | 11.57B | -3.85B |
Ally Financial Technical Analysis
Positive
45.36
Price Trends
41.23
Positive
41.64
Positive
40.81
Positive
Market Momentum
-0.04
Positive
50.49
Neutral
23.91
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALLY, the sentiment is Positive. The current price of 45.36 is above the 20-day moving average (MA) of 43.18, above the 50-day MA of 41.23, and above the 200-day MA of 40.81, indicating a neutral trend. The MACD of -0.04 indicates Positive momentum. The RSI at 50.49 is Neutral, neither overbought nor oversold. The STOCH value of 23.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALLY.
Ally Financial Risk Analysis
Ally Financial disclosed 42 risk factors in its most recent earnings report. Ally Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ally Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $4.10B | 9.27 | 24.88% | ― | 17.46% | 46.61% | |
70 Outperform | $24.24B | 7.23 | 21.41% | 1.34% | -3.18% | 32.55% | |
68 Neutral | $5.84B | 8.37 | 29.39% | ― | 4.52% | 72.48% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $4.15B | 3.40 | 31.16% | 1.88% | 1.73% | 28.93% | |
64 Neutral | $6.26B | 6.91 | 23.62% | 6.07% | 7.80% | 42.28% | |
61 Neutral | $13.06B | 9.56 | 9.19% | 2.58% | -0.72% | 198.95% |
* Financial Sector Average
ALLY
Ally Financial
42.62
9.68
29.38%
CACC
Credit Acceptance
557.94
74.80
15.48%
SLM
SLM
22.02
-10.15
-31.54%
SYF
Synchrony Financial
72.05
15.75
27.98%
OMF
OneMain Holdings
54.19
8.11
17.61%
ENVA
Enova International
164.59
72.17
78.09%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.