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Ally Financial
(NYSE:ALLY)
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Rating:59Neutral
Price Target:
$45.00
▲(4.85% Upside)
Action:Reiterated
Date:07/25/26
ALLY scores as moderate overall. The biggest positives are the constructive earnings-call outlook (raised growth and tighter loss guidance) and a supportive valuation (low P/E with a dividend). Offsetting these, financial performance still shows leverage and uneven cash conversion, and technical signals indicate weak near-term momentum.
Positive Factors
Deposit Franchise / Stable Funding
A large, sticky retail deposit base ($144bn; 87% of funding; multi-year customer growth) supplies low-cost, durable funding. That reduces reliance on volatile wholesale markets, supports sustained asset growth (loans/leases), and underpins net interest income and funding resilience over cycles.
Negative Factors
Elevated Leverage
Persistently elevated leverage (D/E ~1.4–1.6) reduces financial flexibility and amplifies earnings sensitivity to credit or margin shocks. Higher leverage limits the firm's ability to absorb losses or pursue opportunistic investments without raising external capital during stress periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Deposit Franchise / Stable Funding
A large, sticky retail deposit base ($144bn; 87% of funding; multi-year customer growth) supplies low-cost, durable funding. That reduces reliance on volatile wholesale markets, supports sustained asset growth (loans/leases), and underpins net interest income and funding resilience over cycles.
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
$13.18B
Dividend Yield2.77%
Average Volume (3M)3.16M
Price to Earnings (P/E)10.1
Beta (1Y)1.17
Revenue Growth1.97%
EPS Growth174.08%
CountryUS
Employees10,300
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)4.29
Shares Outstanding304,199,700
10 Day Avg. Volume3,798,991
30 Day Avg. Volume3,155,907
Financial Highlights & Ratios
PEG Ratio0.61
Price to Book (P/B)0.91
Price to Sales (P/S)1.16
P/FCF Ratio-21.76
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$55.18Price Target Upside28.57% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)5.23
Revenue Forecast (FY)$9.07B
Ally Financial Business Overview & Revenue Model
Company Description
Ally Financial Inc. (NYSE: ALLY) is a U.S.-based digital financial services company operating primarily in consumer banking and auto finance. Through its bank subsidiary, Ally Bank, the company offers deposit products and digital banking services,...
How the Company Makes Money
Ally makes money primarily through net interest income and, to a lesser extent, non-interest income generated across its lending and banking activities. (1) Net interest income (core driver): Ally funds itself largely through customer deposits gat...
Ally Financial Earnings Call Summary
Earnings Call Date:Jul 21, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 21, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive picture: strong revenue and earnings growth (adjusted EPS +22%), margin expansion (NIM up to 3.63%), robust origination and application volumes, improving retail credit metrics, record corporate finance performance, and stronger capital and customer franchises. Lowlights were largely manageable: CECL reserve builds tied to rapid asset growth (causing a modest EPS headwind), a temporary shift in origination mix that compressed quarter-originated yield, seasonal deposit outflows, and continued macro uncertainty. On balance the positives — broad-based growth, margin and capital improvement, and tightened loss guidance — materially outweigh the transitory and manageable negatives.Positive Updates
Adjusted EPS and Earnings Power
Adjusted EPS of $1.21, up 22% year-over-year, demonstrating margin expansion and stronger operating performance.
Negative Updates
CECL Reserve Build and Provision Increase
Provision expense rose to $430 million (up $46 million YoY) driven by CECL reserve builds tied to strong asset growth; an incremental $30 million CECL build in the quarter created a ~$0.08 EPS headwind.
Read all updates
Q2-2026 Updates
Positive
Negative
Adjusted EPS and Earnings Power
Adjusted EPS of $1.21, up 22% year-over-year, demonstrating margin expansion and stronger operating performance.
Read all positive updates
Company Guidance
Ally updated its 2026 outlook, raising average earning assets to +3–5% (from +2–4%), narrowing consolidated net charge‑offs to 1.2–1.3% (with retail auto NCO guidance centered around ~1.8–2% and the midpoint viewed as appropriate), and keeping net interest margin guidance at 3.6–3.7% with the potential to exit the year above the high end and a path to a sustainable "upper‑3s" margin; management also flagged elevated CECL reserve builds tied to strong asset growth (provision expense $430M, including a $30M incremental CECL build that created an ~$0.08 EPS headwind this quarter). Capital and liquidity positioning underpin the guide: CET1 ~10.1% (up ~20 bps YoY and estimated >9% fully phasing AOCI under the RSA proposal, with ~30 bps IRBA benefit), ~$148M of share repurchases in the quarter (nearly $300M YTD), a $0.30 Q3 dividend, $1B preferred issued at 7.1% (reducing Series B by $350M), and continued growth in high‑return assets (retail auto originations $13.3B, +21% YoY; corporate finance portfolio ~$13.7B, +25% YoY).Ally Financial Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
56
Neutral
Cash Flow
49
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.84B | 12.15B | 16.37B | 15.97B | 12.10B | 10.69B |
| Gross Profit | 7.87B | 6.32B | 6.73B | 7.10B | 7.84B | 8.54B |
| EBITDA | 3.03B | 2.45B | 2.04B | 2.33B | 3.67B | 5.12B |
| Net Income | 1.45B | 852.00M | 668.00M | 957.00M | 1.71B | 3.06B |
Balance Sheet | ||||||
| Total Assets | 199.77B | 196.00B | 191.84B | 196.33B | 191.83B | 182.11B |
| Cash, Cash Equivalents and Short-Term Investments | 8.68B | 10.03B | 29.30B | 26.66B | 31.21B | 38.45B |
| Total Debt | 22.97B | 21.77B | 19.23B | 20.98B | 20.30B | 17.20B |
| Total Liabilities | 184.28B | 180.50B | 177.93B | 182.63B | 178.97B | 165.06B |
| Stockholders Equity | 15.49B | 15.50B | 13.90B | 13.70B | 12.86B | 17.05B |
Cash Flow | ||||||
| Free Cash Flow | -609.00M | -647.00M | 1.07B | 1.80B | 2.71B | -1.08B |
| Operating Cash Flow | 3.90B | 3.63B | 4.53B | 4.56B | 6.25B | 4.04B |
| Investing Cash Flow | -14.48B | -5.16B | 4.99B | -7.18B | -17.26B | -11.10B |
| Financing Cash Flow | 7.54B | 1.96B | -5.57B | 3.84B | 11.57B | -3.85B |
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 | $6.33B | 17.78 | 25.76% | ― | 17.65% | 43.92% | |
73 Outperform | $24.66B | 7.69 | 20.94% | 1.65% | -2.40% | 18.50% | |
68 Neutral | $4.89B | 7.18 | 30.31% | 2.14% | 4.76% | 78.90% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $5.95B | 13.88 | 29.39% | ― | 4.52% | 72.48% | |
66 Neutral | $7.23B | 9.41 | 23.07% | 7.01% | 6.93% | 19.96% | |
59 Neutral | $13.18B | 10.10 | 9.42% | 2.80% | 1.97% | 174.08% |
* Financial Sector Average
ALLY
Ally Financial
43.33
6.94
19.08%
CACC
Credit Acceptance
568.91
120.71
26.93%
SLM
SLM
26.00
-5.20
-16.66%
SYF
Synchrony Financial
75.79
7.68
11.27%
OMF
OneMain Holdings
62.58
9.74
18.42%
ENVA
Enova International
254.14
151.54
147.70%
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.