ALLY$40.29
$40.28
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Performance
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AI ALLY Summary
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Powered by LiveAIOverall Analysis
BuyAlly Financial demonstrates a solid fundamental profile with consistent profitability and a manageable debt structure. While current technical indicators suggest some near-term pressure, its robust business model and dividend yield offer attractive long-term prospects.
Thematic
Ally Financial operates in the established financial services sector, with a strong digital presence. Key themes include digital banking adoption and regulatory shifts in the financial industry. Growth potential is more moderate compared to disruptive tech sectors.
Fundamental
Ally Financial demonstrates strong profitability and a healthy balance sheet, supported by consistent revenue and effective cost management. Its valuation metrics are generally attractive, especially considering its dividend yield.
Technical
The stock is trading below its 50-day and 200-day moving averages, indicating a bearish short-to-medium term trend. Momentum indicators suggest oversold conditions, which might precede a bounce.
| Factor | Score |
|---|---|
| Digital Transformation in Banking | 80 |
| Interest Rate Sensitivity | 60 |
| Regulatory Landscape | 55 |
| Automotive Lending Market | 70 |
| Economic Cycle Sensitivity | 55 |
| Factor | Score |
|---|---|
| Valuation | 45 |
| Profitability | 40 |
| Growth | 70 |
| Balance Sheet Health | 75 |
| Cash Flow | 70 |
| Dividends | 85 |
| Factor | Score |
|---|---|
| Trend Analysis | 30 |
| Momentum | 50 |
| Volume Confirmation | 60 |
| Support & Resistance | 65 |
| Pivots | 60 |
AI Investing Checklist
Powered by LiveAIBullish Points (6)
Consistent Earnings Beat
Ally Financial Inc. has exceeded earnings per share (EPS) estimates in 11 out of the last 12 quarters, with a notable surprise of 79.92% in Q4 2024. This consistent outperformance suggests strong operational execution and efficient cost management.
Undervalued Relative to Earnings
The trailing Price-to-Earnings (P/E) ratio of 63.97 for Ally Financial Inc. appears high on the surface, however, considering the reported EPS of 0.60, it suggests potential for significant undervaluation if future earnings growth materializes, especially when compared to its peer group if those have lower P/E ratios with comparable EPS.
Bearish Points (6)
High P/E Ratio Indicating Potential Overvaluation
Ally Financial Inc.'s trailing P/E ratio of 63.97 is significantly higher than its historical averages and potentially its peer group, suggesting the stock might be overvalued relative to its current earnings. The P/S ratio of 1.9 also indicates a relatively high valuation on revenue.
Negative Net Income in Recent Quarters
Ally Financial Inc. reported negative net income in Q1 2025 (-$225 million) and Q4 2024 (-$140 million), with corresponding negative net margins of -12.8% and -6.2% respectively. This trend raises concerns about current profitability.
Calendar
August 2025
1
Ex-Dividend Date
August 2025
15
Next Dividend Date
October 2025
17
Next Earnings Date
H: $1.17
A: $1.01
L: $0.92
H: 2.16B
A: 2.12B
L: 2.05B
Profile
Ally Financial Inc., a digital financial-services company, provides various digital financial products and services in the United States, Canada, and Bermuda. The company operates through Automotive Finance Operations, Insurance Operations, Corporate Finance Operations, and Corporate and Other segments. It offers automotive financing services, including providing retail installment sales contracts, loans and operating leases, term loans to dealers, financing dealer floorplans and other lines of credit to dealers, warehouse lines to automotive retailers, and fleet financing to consumers, automotive dealers and retailers, companies, and municipalities; and financing services to companies and municipalities for the purchase or lease of vehicles, and vehicle-remarketing services. The company also provides consumer finance protection and insurance products through the automotive dealer channel, and commercial insurance products directly to dealers; VSCs, VMCs, and GAP products; and underwrite select commercial insurance coverages, which primarily insure dealers' vehicle inventory. In addition, it provides senior secured asset-based and leveraged cash flow loans to middle-market companies; leveraged loans; commercial real estate product to serve companies in the nursing facilities, senior housing, and medical office buildings; and treasury activities, such as management of the cash and corporate investment securities and loan portfolios, short- and long-term debt, retail and brokered deposit liabilities, derivative instruments, original issue discount, and equity investments. Further, the company offers commercial banking products and services; and securities brokerage and investment advisory services. The company was formerly known as GMAC Inc. and changed its name to Ally Financial Inc. in May 2010. Ally Financial Inc. was founded in 1919 and is based in Detroit, Michigan.
Seasonals
Price Target
45.94 USD
The 39 analysts offering 1 year price forecasts for ALLY have a max estimate of 59.00 and a min estimate of 37.00.
Debt Level and Coverage
Financial Position Analysis
Ownership
Capital Structure
Valuation - Summary
Valuation - Ratios
Revenue to Profit Conversion
Balance Sheet
Income Statement
Cash Flow
Related Companies
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A leading provider of private label credit cards and consumer financing solutions, sharing a focus on specialized lending markets similar to Ally's auto finance and personal lending businesses.
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Major bank with significant operations in auto lending, credit cards, and a growing digital banking presence, making it a direct competitor across several of Ally's core business lines.