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Ally Financial
(NYSE:ALLY)
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Rating:59Neutral
Price Target:
$39.00
▼(-8.45% Downside)
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
Earnings and asset growth
Revenue growth and higher earning assets indicate expanding balance-sheet scale and stronger operating momentum. If sustained, this growth can support recurring net interest income, improve operating leverage, and reinforce Ally’s ability to compound earnings through its lending platform.
Negative Factors
Elevated leverage
Persistently elevated leverage reduces financial flexibility if profitability or credit performance weakens. It can constrain capital allocation, increase sensitivity to funding conditions, and leave less capacity to absorb portfolio losses while continuing to invest in growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Earnings and asset growth
Revenue growth and higher earning assets indicate expanding balance-sheet scale and stronger operating momentum. If sustained, this growth can support recurring net interest income, improve operating leverage, and reinforce Ally’s ability to compound earnings through its lending platform.
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
$11.53B
Dividend Yield3.17%
Average Volume (3M)3.43M
Price to Earnings (P/E)8.8
Beta (1Y)1.27
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. Volume3,931,944
30 Day Avg. Volume3,431,110
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 Cap3.23
Enterprise Value/Revenue2.35
Enterprise Value/Gross Profit4.73
Enterprise Value/Ebitda12.27
Forecast
1Y Price Target
$48.86Price Target Upside14.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering15
EPS Forecast (FY)5.18
Revenue Forecast (FY)$9.07B
Ally Financial Business Overview & Revenue Model
Company Description
Ally Financial Inc. operates as a digital-first financial services provider, offering a comprehensive suite of products and services to individual consumers, commercial enterprises, and corporate clients. Its primary operational footprint spans th...
How the Company Makes Money
Ally makes money primarily through net interest income and, to a lesser extent, fee-based and other noninterest income across its main lending and banking activities.
1) Net interest income (core earnings driver)
- Auto lending and leasing: Ally ...
Ally Financial Earnings Call Summary
Earnings Call Date:Jul 21, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 20, 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 Technical Analysis
Negative
42.60
Price Trends
42.02
Negative
42.94
Negative
42.25
Negative
Market Momentum
-1.35
Positive
27.55
Positive
25.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALLY, the sentiment is Negative. The current price of 42.6 is above the 20-day moving average (MA) of 40.04, above the 50-day MA of 42.02, and above the 200-day MA of 42.25, indicating a bearish trend. The MACD of -1.35 indicates Positive momentum. The RSI at 27.55 is Positive, neither overbought nor oversold. The STOCH value of 25.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $23.35B | 7.28 | 20.94% | 1.73% | -2.40% | 18.50% | |
73 Outperform | $5.48B | 11.37 | 32.35% | ― | 2.58% | 32.02% | |
72 Outperform | $4.27B | 6.28 | 30.31% | 2.29% | 4.76% | 78.90% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $6.44B | 8.41 | 23.07% | 7.50% | 6.93% | 19.96% | |
64 Neutral | $4.30B | 12.10 | 25.76% | ― | 17.65% | 43.92% | |
59 Neutral | $11.53B | 8.84 | 9.42% | 3.17% | 1.97% | 174.08% |
* Financial Sector Average
ALLY
Ally Financial
37.91
-0.76
-1.97%
CACC
Credit Acceptance
527.50
35.22
7.15%
SLM
SLM
22.75
-3.79
-14.27%
SYF
Synchrony Financial
71.77
1.56
2.22%
OMF
OneMain Holdings
56.02
4.36
8.45%
ENVA
Enova International
172.89
62.37
56.43%
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.