Ally Financial (ALLY)
NYSE:ALLY
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Ally Financial
(NYSE:ALLY)
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Rating:51Neutral
Price Target:
$38.00
▼(-5.75% Downside)
Action:ReiteratedDate:02/26/26
ALLY scores in the low-50s mainly due to weakening financial performance (sharp 2025 revenue decline, margin compression, and a major step-down in operating cash flow) and soft technical momentum (negative MACD and below the 50-day average). These are partially offset by reasonable valuation (P/E ~17 and ~2.9% yield) and a generally positive earnings outlook with guidance for improving NIM and continued operational progress, despite notable credit/macro and capital-ratio headwinds.
Positive Factors
Stable Deposit Franchise
A large, low‑cost, largely insured retail deposit base provides durable funding stability versus wholesale markets. Multi‑year customer growth and high FDIC‑insured share reduce funding volatility, supporting consistent lending capacity and margin resilience over time.
Negative Factors
Sharply Weakened Cash Flow
A steep drop in revenue and operating cash flow signals structural stress in earnings quality and working capital dynamics. Persistently weak cash generation constrains capital accumulation, limits flexibility for capital returns, and complicates reaching CET1 targets without operational improvement.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable Deposit Franchise
A large, low‑cost, largely insured retail deposit base provides durable funding stability versus wholesale markets. Multi‑year customer growth and high FDIC‑insured share reduce funding volatility, supporting consistent lending capacity and margin resilience over time.
Read all positive factors
Ally Financial (ALLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.42B
Dividend Yield2.58%
Average Volume (3M)3.83M
Price to Earnings (P/E)16.5
Beta (1Y)1.11
Revenue Growth-6.89%
EPS Growth-33.20%
CountryUS
Employees10,700
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)1.09
Shares Outstanding307,918,240
10 Day Avg. Volume3,309,583
30 Day Avg. Volume3,832,215
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 Cap1.95
Enterprise Value/Revenue1.59
Enterprise Value/Gross Profit3.31
Enterprise Value/Ebitda9.88
Forecast
1Y Price Target
$51.31Price Target Upside27.26% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)5.23
Revenue Forecast (FY)$9.01B
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 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 Earnings Call Summary
Earnings Call Date:Jan 21, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 17, 2026
Earnings Call Sentiment Positive
The call conveyed clear progress across key financial and operational metrics — notably strong EPS growth, materially higher ROTCE, retail auto NCOs below 2%, record dealer applications and origination volumes, capital improvement and an actionable path to higher NIM — while acknowledging manageable near-term headwinds including NIM seasonality, lease residual pressure on certain EV models, reserve conservatism driven by macro uncertainty, and the need to reach the 9% CET1 target. Overall the tone was constructive and forward-looking, with management highlighting disciplined execution, momentum in core franchises, and a cautious but growing return of capital to shareholders.Positive Updates
Strong Earnings and EPS Growth
Full-year adjusted EPS of $3.81, up 62% year-over-year; Q4 adjusted EPS of $1.09 and GAAP EPS of $0.95, demonstrating material earnings expansion.
Negative Updates
Near-term NIM Volatility and Q1 Headwind
Q4 NIM (ex-OID) was 3.51%, down 4 basis points sequentially; management expects NIM to be slightly down in Q1 due to early beta and lease residual pressures before recovering through the year.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Earnings and EPS Growth
Full-year adjusted EPS of $3.81, up 62% year-over-year; Q4 adjusted EPS of $1.09 and GAAP EPS of $0.95, demonstrating material earnings expansion.
Read all positive updates
Company Guidance
Ally guided full‑year 2026 NIM of about 3.63%–3.70% (starting from Q4 NIM of 3.51% and FY‑2025 NIM of 3.47%), assumes two Fed cuts and early beta dynamics that may push NIM slightly down in 1Q before migrating to the upper‑3% range by year‑end (management expects a through‑the‑cycle beta in the sixties); retail auto net charge‑offs are guided to roughly 1.8%–2.0% (consolidated NCOs 1.2%–1.4%), other revenue is expected to grow low‑single‑digits y/y (including about a $25M headwind from lost card fees), retail auto and corporate finance balances to grow mid‑single‑digits, average earning assets to increase (management cited roughly 2%–4% y/y), non‑interest expense to be up ~1% while preserving disciplined controllable costs, and an effective tax rate of about 20%–22% — all intended to drive progress toward an upper‑3s NIM, sub‑2% retail auto NCOs and ultimately mid‑teens sustainable returns.Ally Financial Financial Statement Overview
Summary
Income Statement
47
Neutral
Balance Sheet
58
Neutral
Cash Flow
34
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 12.15B | 16.37B | 15.97B | 12.10B | 10.69B |
| Gross Profit | 6.32B | 6.73B | 7.10B | 7.84B | 8.54B |
| EBITDA | 2.45B | 2.04B | 2.33B | 3.67B | 5.12B |
| Net Income | 852.00M | 668.00M | 957.00M | 1.71B | 3.06B |
Balance Sheet | |||||
| Total Assets | 196.00B | 191.84B | 196.33B | 191.83B | 182.11B |
| Cash, Cash Equivalents and Short-Term Investments | 10.03B | 29.30B | 26.66B | 31.21B | 38.45B |
| Total Debt | 21.77B | 19.23B | 20.98B | 20.30B | 17.20B |
| Total Liabilities | 180.50B | 177.93B | 182.63B | 178.97B | 165.06B |
| Stockholders Equity | 15.50B | 13.90B | 13.70B | 12.86B | 17.05B |
Cash Flow | |||||
| Free Cash Flow | -647.00M | 1.07B | 1.80B | 2.71B | -1.08B |
| Operating Cash Flow | 3.63B | 4.53B | 4.56B | 6.25B | 4.04B |
| Investing Cash Flow | -5.16B | 4.99B | -7.18B | -17.26B | -11.10B |
| Financing Cash Flow | 1.96B | -5.57B | 3.84B | 11.57B | -3.85B |
Ally Financial Technical Analysis
Positive
40.32
Price Trends
40.11
Positive
41.41
Negative
40.27
Positive
Market Momentum
-0.07
Negative
57.40
Neutral
86.34
Negative
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 40.32 is above the 20-day moving average (MA) of 38.25, above the 50-day MA of 40.11, and above the 200-day MA of 40.27, indicating a bullish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 57.40 is Neutral, neither overbought nor oversold. The STOCH value of 86.34 is Negative, 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 1 New Risks
1.
The development and use of AI is rapidly evolving and our failure to appropriately evaluate, adopt, govern, or effectively integrate AI where beneficial could adversely affect us. Q4, 2025
Ally Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $3.47B | 12.62 | 24.45% | ― | 21.10% | 76.12% | |
68 Neutral | $6.44B | 10.25 | 23.40% | 6.07% | 9.51% | 29.38% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $24.07B | 8.41 | 21.09% | 1.34% | -6.38% | 19.65% | |
62 Neutral | $4.39B | 6.01 | 31.14% | 1.88% | 0.59% | -1.11% | |
58 Neutral | $4.74B | 11.59 | 26.63% | ― | 10.30% | 154.64% | |
51 Neutral | $12.42B | 16.52 | 5.74% | 2.58% | -6.89% | -33.20% |
* Financial Sector Average
ALLY
Ally Financial
40.32
10.71
36.18%
CACC
Credit Acceptance
441.09
-27.19
-5.81%
SLM
SLM
22.16
-2.21
-9.05%
SYF
Synchrony Financial
69.26
26.22
60.90%
OMF
OneMain Holdings
54.97
17.50
46.71%
ENVA
Enova International
138.77
52.58
61.00%
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.