Ally Financial Inc. (ALLY) AI Stock Analysis

Ally Financial Inc. is a digital financial-services company serving consumer, commercial, and corporate clients in the United States and Canada. It operates through Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations. In automotive finance, it provides retail installment contracts, loans, operating leases, and dealer floorplan financing. The Insurance segment sells protection products, vehicle service contracts, and commercial coverage through and for automotive dealerships. Mortgage Finance handles consumer mortgages, including direct-to-consumer and jumbo loans.

Between FY2021 and FY2024, Ally expanded annual revenue from $8.91B to $16.37B before revenue fell 25.7% to $12.15B in FY2025. Over the five years from FY2020 to FY2025, revenue posted a compound annual growth rate of 9.7%. Net income moved from $3.06B in FY2021 to $852.0M in FY2025, with EPS dropping from $8.60 to $2.41. In the latest quarter ended June 30, 2026, quarterly revenue grew 11.0% year-over-year, while quarterly earnings grew 13.5%. Operating margin for the trailing twelve months stood at 25.3% on $7.90B in revenue.

As of June 30, 2026, Ally held $8.68B in cash and short-term investments against total debt of $22.97B, resulting in net debt of $14.29B. Total assets stood at $199.77B and shareholders' equity was $15.49B, with a debt-to-equity ratio of 1.48 and a current ratio of 0.90. Operating cash flow in FY2025 reached $3.63B, while capital expenditures of $4.28B led to free cash flow of -$647.0M. During FY2025, the company spent $489.0M on dividends and $59.0M on share buybacks, with its five-year share count down 10.8%.

At $37.68, Ally carries a market cap of $11.46B and trades at a trailing P/E of 8.9x and a forward P/E of 6.0x, both below the median of its US-listed Financial Services peers at 12.1x and 10.8x, respectively. Its price-to-sales multiple is 1.5x versus the peer median of 3.2x, while price-to-book sits at 0.9x. Over the past year, the stock returned 0.8% compared to a 16.8% gain for the S&P 500 (SPY). Over five years, the shares declined 18.9% while the S&P 500 gained 83.0%.

Ally pays a quarterly dividend totaling an annualized $1.20 per share, representing a 3.18% dividend yield and a payout ratio of 26.3%. The company has paid dividends for 11 consecutive years, delivering a 9.6% annualized 5-year dividend growth rate. Its last ex-dividend date was July 31, 2026.

Wall Street analysts hold 10 Strong Buy, 4 Buy, and 4 Hold ratings on ALLY, with zero Sell ratings. The mean price target of $48.78 stands 29.5% above the last close of $37.68. For the current fiscal year ending December 31, 2026, consensus estimates project EPS of $5.05 on revenue of $9.01B. The company beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is October 20, 2026.

This page is an AI-written research summary of Ally Financial Inc. (ALLY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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