ALLY Ally Financial Inc. - Fundamental Analysis
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ALLY Stock | Fundamental Analysis & Investment Insights
NYSE
Financial Services
Credit Services
Current Price
Live
$41.11
Analyst Target
$53.06
+29.1%
Upside
52W High
$47.27
52W Low
$29.52
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 24, 2026
Market cap
$12.68B
P/E
17.72
ROE
5.8%
Profit margin
11.6%
Debt/Equity
N/A
Dividend yield
2.86%
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
72%
Analysis Accuracy
Ally Financial's Advanced Deterministic Scorecard reveals significant concerns, most notably a weak Piotroski F-Score of 2/9, indicating poor financial health. Despite this, the company shows strong recent earnings growth (YoY EPS +39.7%) and beats on earnings surprises, supported by a bullish analyst recommendation (buy) and a target price of $53.06. Valuation appears mixed: trading below intrinsic value ($68.44) and near Graham Number ($47.21), with a low P/E of 17.72 and forward P/E of 6.55 suggesting potential undervaluation. However, weak profitability metrics like ROE (5.80%) and ROA (0.44%), combined with bearish insider activity and technical trend, create counterbalancing risks.
Key Strengths
Strong year-over-year earnings growth (265.40%) and consistent earnings beat history (3 of last 4 quarters)
Attractive valuation with forward P/E of 6.55 well below sector average (21.61)
Current price ($41.11) below both Graham Number ($47.21) and Intrinsic Value ($68.44), suggesting margin of safety
Solid dividend yield of 2.86% with sustainable 50.63% payout ratio
Analyst consensus is strongly aligned with a 'buy' rating from 18 analysts and a high target price of $53.06
Key Risks
Critically low Piotroski F-Score of 2/9 signals severe financial distress and weak operational performance
Very low ROE (5.80%) and ROA (0.44%) indicate inefficient capital utilization
Bearish insider sentiment: recent $1.18M in officer sales and no buys in last 6 months
Technical trend is 0/100, indicating strong downward price momentum in the short term
Missing key financial health data (Debt/Equity, Altman Z-Score, cash/debt) raises transparency concerns
AI Fair Value Estimate
Based on comprehensive analysis
$58.5
+42.3% above current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
64
Strong
82
76
64
30
70
AI Verdict
Neutral with upside potential if financial health improves
Key drivers: Low Piotroski score dragging down health, Strong earnings growth and valuation support upside, Bearish insider and technical signals creating near-term headwinds
Confidence
75%
Value
82/100
Ref P/E, PEG, Graham Number
Positives
- Price below Graham Number ($47.21) and Intrinsic Value ($68.44)
- Forward P/E of 6.55 is deeply discounted vs sector average (21.61)
- Price/Book of 0.96 suggests asset-backed floor
Watchpoints
- P/B below 1 may reflect market skepticism on asset quality
Future
76/100
Ref Growth rates
Positives
- YoY earnings growth of 265.40% and revenue growth of 12.00%
- Q/Q earnings growth of 202.80% indicates strong momentum
Watchpoints
- Most recent Q/Q EPS growth is -5.2%, signaling a recent deceleration
Past
64/100
Ref Historical trends
Positives
- History of large earnings surprises (e.g., +137.8%, +79.9%)
- Long-term 5Y return of +22.5% outperforms sector average volatility
Watchpoints
- Erratic earnings pattern with sharp declines (e.g., 2022-10-19: -35.4%)
- Recent 1-month return of -11.2% and 1-week drop of -5.7% show weakening momentum
Health
30/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- No Altman Z-Score provided, but no immediate distress signal
Watchpoints
- Piotroski F-Score of 2/9 indicates critical financial weakness
- Missing Debt/Equity, Current Ratio, and ROIC limits health visibility
- ROA of 0.44% is extremely low for a financial institution
Dividend
70/100
Ref Yield, Payout
Positives
- Dividend yield of 2.86% is above market average
- Payout ratio of 50.63% is sustainable and aligned with Dividend Strength score of 50/100
Watchpoints
- No 5-year average yield data to assess consistency
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$41.11
Analyst Target
$53.06
Upside/Downside
+29.1%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for ALLY and closest competitors.
Updated 2026-01-23
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
ALLY
Ally Financial Inc.
Primary
|
+22.5% | +45.9% | +5.9% | +8.3% | -11.2% | -5.7% |
|
ARCC
Ares Capital Corporation
Peer
|
+51.1% | +32.8% | -6.4% | -13.9% | -7.8% | -2.1% |
|
BNT
Brookfield Wealth Solutions Ltd.
Peer
|
+17.8% | +95.9% | +19.2% | +4.4% | +0.8% | -0.6% |
|
BEN
Franklin Resources, Inc.
Peer
|
+21.5% | -0.8% | +34.2% | +4.8% | +6.1% | -2.6% |
|
ACGLO
Arch Capital Group Ltd.
Peer
|
+2.5% | +11.6% | +0.7% | -5.5% | -3.4% | -1.5% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
17.72
Forward P/E
6.55
PEG Ratio
N/A
P/B Ratio
0.96
P/S Ratio
1.72
EV/Revenue
3.63
EV/EBITDA
N/A
Market Cap
$12.68B
Profitability
Profit margins and return metrics
Profit Margin
11.55%
Operating Margin
20.4%
Gross Margin
N/A
ROE
5.8%
ROA
0.44%
Growth
Revenue and earnings growth rates
Revenue Growth
+12.0%
Earnings Growth
+265.4%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
+202.8%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
N/A
Current Ratio
N/A
Quick Ratio
N/A
Cash/Share
$32.51
Quarterly Earnings History
EPS performance vs analyst estimates
2026-04-16
$N/A
2026-01-21
$1.09
+6.5% surprise
2025-10-17
$1.15
+14.1% surprise
2025-07-18
$0.99
+22.1% surprise
Financial Services Sector Comparison
Comparing ALLY against 208 companies in the Financial Services sector
(5 bullish, 111 neutral, 92 bearish)
P/E Ratio
17.72
This Stock
vs
30.37
Sector Avg
-41.6%
(Discount)
Return on Equity (ROE)
5.8%
This Stock
vs
-7.62%
Sector Avg
-176.0%
(Below Avg)
Profit Margin
11.55%
This Stock
vs
82.75%
Sector Avg
-86.0%
(Weaker)
Revenue Growth
12.0%
This Stock
vs
28.35%
Sector Avg
-57.7%
(Slower)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
ALLY
Ally Financial Inc.
|
NEUTRAL | $12.68B | 17.72 | 5.8% | 11.6% | $41.11 | |
|
ARCC
Ares Capital Corporation
|
BEARISH | $12.82B | 9.6 | 9.4% | 42.6% | $17.86 | |
|
BNT
Brookfield Wealth Solutions Ltd.
|
NEUTRAL | $12.9B | 11.41 | 9.5% | 9.2% | $47.03 | |
|
BEN
Franklin Resources, Inc.
|
NEUTRAL | $13.2B | 28.44 | 3.8% | 6.0% | $25.31 | |
|
ACGLO
Arch Capital Group Ltd.
|
NEUTRAL | $11.78B | 4.31 | 19.5% | 22.1% | $20.2 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2026-01-09 | BRIGHT GUNTHER | Director | Stock Award | 160 | $7,246 |
| 2026-01-09 | GIBBONS THOMAS P | Director | Stock Award | 1,049 | $47,509 |
| 2026-01-09 | REILLY DAVID | Director | Stock Award | 718 | $32,518 |
| 2025-11-20 | BRIGHT GUNTHER | Director | Stock Award | 2,026 | $77,798 |
| 2025-11-20 | MERRILL ALLAN PERRY | Director | Stock Award | 2,026 | $77,798 |
| 2025-10-22 | PATTERSON KATHLEEN L. | Officer | Sale | 29,000 | $1,184,804 |
| 2025-10-08 | GIBBONS THOMAS P | Director | Stock Award | 1,212 | - |
| 2025-10-08 | REILLY DAVID | Director | Stock Award | 830 | - |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
BUY
18 analysts
JP Morgan
2026-01-12
Overweight
Overweight
TD Cowen
2026-01-08
Buy
Buy
UBS
2026-01-08
Buy
Evercore ISI Group
2026-01-06
In-Line
Outperform
Barclays
2026-01-05
Equal-Weight
Equal-Weight
Truist Securities
2025-12-22
Buy
Buy
Wells Fargo
2025-12-17
Equal-Weight
Overweight
JP Morgan
2025-10-20
Overweight
Overweight
Truist Securities
2025-10-20
Buy
Buy
TD Cowen
2025-10-20
Hold
Buy
Past News Coverage
Recent headlines mentioning ALLY from our newsroom.
Newest → oldest
No matching news yet.