Ally Financial Inc.
- Open
- 42.98
- Day high
- 43.10
- Day low
- 41.98
- Prev close
- 43.11
- Volume
- 2.7M
- Mkt cap
- $12.9B
- P/E (TTM)
- 9.9
- EPS (TTM)
- $4.29
- P/B
- 0.8
- P/S
- 0.8
- Yield
- 2.84%
- Per share
- $1.20
- ▼Insiders net selling -$221K over the last 3 months (0 open-market buys, 1 sale)
- 🏛Institutions accumulating (13F)
Ally Financial Inc. (ALLY) is a Financial Services company listed on NYSE. The stock is up 11% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 1 sale (SEC Form 4). Drillr has 1 published research article covering ALLY.
Ally Financial Inc. (ALLY) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 4 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
ALLY earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 21, 2026 | $1.22 | $1.21 | -0.8% | $2.3B | +2.5% |
| Apr 17, 2026 | $0.93 | $1.11 | +19.4% | $2.1B | -1.8% |
| Jan 21, 2026 | $1.01 | $1.09 | +7.9% | $2.4B | +9.4% |
| Oct 17, 2025 | $1.00 | $1.15 | +15.0% | $2.4B | +12.1% |
| Jul 18, 2025 | $0.81 | $0.99 | +21.9% | $2.3B | +12.0% |
| Apr 17, 2025 | $0.42 | $0.58 | +36.8% | $1.8B | -13.7% |
| Jan 22, 2025 | $0.57 | $0.78 | +36.4% | $2.2B | +10.9% |
| Oct 18, 2024 | $0.53 | $0.95 | +79.2% | $2.3B | +13.0% |
| Jul 17, 2024 | $0.64 | $0.97 | +51.6% | $2.2B | +6.8% |
| Apr 18, 2024 | $0.33 | $0.45 | +36.4% | $2.2B | +12.3% |
| Jan 19, 2024 | $0.44 | $0.45 | +2.3% | $2.3B | +14.7% |
| Oct 18, 2023 | $0.80 | $0.83 | +3.7% | $2.2B | +5.7% |
ALLY insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Aug 5, 2026 | Richard Stephanie Nofficer: Chief Risk Officer | Sell | 5,000 | $44.23 |
| Jul 23, 2026 | Hutchinson Russell E.officer: Chief Financial Officer | Tax | 12,614 | $44.43 |
| Jul 10, 2026 | GIBBONS THOMAS Pdirector | Grant | 1,034 | $45.95 |
| Jul 10, 2026 | Bright Guntherdirector | Grant | 300 | $45.95 |
| Jul 10, 2026 | Reilly Daviddirector | Grant | 708 | $45.95 |
| May 19, 2026 | Richard Stephanie Nofficer: Chief Risk Officer | Sell | 5,000 | $42.14 |
| May 19, 2026 | Bright Guntherdirector | Grant | 3,632 | $41.99 |
| May 19, 2026 | HOBBS FRANKLIN W IVdirector | Grant | 6,133 | $41.99 |
| May 19, 2026 | SHARPLES BRIANdirector | Grant | 3,632 | $41.99 |
| May 19, 2026 | Fennebresque Kim Sdirector | Grant | 3,632 | $41.99 |
| May 19, 2026 | CARY WILLIAM Hdirector | Grant | 3,632 | $41.99 |
| May 19, 2026 | GIBBONS THOMAS Pdirector | Grant | 3,632 | $41.99 |
| May 19, 2026 | Clark Mayree Cdirector | Grant | 3,632 | $41.99 |
| May 19, 2026 | GOLDBERG MICHELLE Jdirector | Grant | 3,632 | $41.99 |
| May 19, 2026 | Reilly Daviddirector | Grant | 3,632 | $41.99 |
Source: ALLY SEC Form 4 filings, latest Aug 5, 2026. For informational purposes only — not investment advice.
See the full ALLY insider & 13F page →Ally Financial Inc. company profile
Overview
Ally Financial Inc. (NYSE:ALLY) is a digital financial services company founded in 1919 as the General Motors Acceptance Corporation (GMAC), originally created to finance General Motors vehicle purchases. The company underwent significant transformation following the 2008 financial crisis, when it received government bailout funds and was restructured. After changing its name to Ally Financial in 2010, the company went public in 2014 and has since evolved into a diversified digital banking and automotive finance provider. Today, Ally operates as one of the largest automotive finance companies in the United States while also providing digital banking services, insurance products, and corporate financing solutions to millions of customers across North America.
Business
Ally Financial operates in the financial services industry, specifically focusing on consumer and commercial lending, digital banking, and insurance services. The company's business is organized into four primary segments that serve different market needs. The Automotive Finance Operations segment represents Ally's core heritage business and largest revenue generator, accounting for approximately 60-65% of total revenues. This division provides financing solutions for vehicle purchases through retail installment contracts (loans for consumers buying cars), lease financing, and dealer financing services. The company works with automotive dealers across the country to offer financing options to car buyers, while also providing inventory financing (called "floorplan financing") to dealers so they can stock vehicles on their lots. Additionally, this segment handles vehicle remarketing services, helping dealers and lessees dispose of used vehicles. The Insurance Operations segment, contributing roughly 10-15% of revenues, offers various protection products primarily sold through automotive dealers. These include vehicle service contracts (extended warranties), guaranteed asset protection (GAP) insurance that covers the difference between what a borrower owes and what insurance pays if a vehicle is totaled, and commercial insurance products that protect dealer inventory and operations. The Mortgage Finance Operations segment, representing about 5-10% of revenues, manages a portfolio of residential mortgage loans. However, the company announced in 2024 that it would cease originating new mortgage loans to focus on its core businesses, though it continues to service existing mortgage customers. The Corporate Finance Operations segment, accounting for approximately 15-20% of revenues, provides commercial lending services to middle-market companies. This includes senior secured loans, asset-based lending, and specialized financing for healthcare companies and commercial real estate projects. Underlying all these lending operations is Ally Bank, the company's digital banking platform that serves over 3.3 million deposit customers with approximately $146 billion in deposits. The bank provides high-yield savings accounts, checking accounts, certificates of deposit, and investment services, operating entirely online without physical branches.
Competitive moat
Ally Financial possesses a moderate competitive moat built primarily around its established dealer relationships, digital banking scale, and operational expertise, though this moat faces ongoing competitive pressures. The company's strongest defensive position lies in its extensive automotive dealer network and relationships built over more than a century in the industry. These relationships create switching costs for dealers who rely on Ally for multiple services including consumer financing, inventory financing, and insurance products. The company's technology platform and digital application processes provide dealers with efficient tools that integrate into their sales operations, creating some operational stickiness. Ally's digital banking platform benefits from scale economics, with over 3.3 million customers and $146 billion in deposits providing a stable, low-cost funding base. The company's purely digital model allows it to offer competitive rates while maintaining lower overhead costs than traditional branch-based banks. However, this advantage is increasingly common as more banks adopt digital-first strategies. The company's diversified financial services model creates some cross-selling opportunities and revenue stability, as insurance and corporate finance operations can partially offset cyclical pressures in automotive lending. Additionally, Ally's expertise in automotive finance, including residual value management and remarketing capabilities, provides some specialized knowledge advantages. However, Ally's moat faces significant competitive threats. Automotive manufacturer captive finance companies like GM Financial, Ford Credit, and Toyota Financial Services often offer subsidized rates and promotional financing that Ally cannot match. Large banks with broader product offerings and relationship advantages continue to compete aggressively in automotive lending. Credit unions with tax advantages and member-focused models often provide competitive rates. In digital banking, fintech companies and online banks continuously innovate and compete on rates and user experience. The commoditized nature of lending products means that competitive advantages can erode quickly when competitors adjust pricing or improve technology platforms.
Risks & safety
Ally Financial presents a moderate margin of safety with manageable near-term risks but structural leverage inherent to the banking business model. Liquidity and Solvency: 1. Strong cash position of $10.4 billion in cash and short-term investments 2. Debt-to-equity ratio of 1.40x, typical for financial institutions but indicating high leverage 3. Current ratio of 0.20x reflects the banking business model where deposits (liabilities) far exceed liquid assets 4. Positive operating cash flow of $940 million in Q1 2025, though free cash flow was modest at $121 million 5. No immediate solvency concerns given regulatory capital requirements and deposit insurance Valuation Metrics: 1. Price-to-book ratio of 0.79x suggests trading below tangible book value 2. Forward P/E appears reasonable based on normalized earnings expectations 3. EV/EBITDA of 67x distorted by recent negative earnings, not meaningful for financial institutions Other Considerations: 1. Credit quality remains a key risk with net charge-offs expected between 2.0-2.25% 2. Interest rate sensitivity affects both asset yields and funding costs 3. Regulatory capital ratios appear adequate but subject to potential Basel III changes 4. Recent strategic focus on core businesses through asset sales should improve capital efficiency
Recent development
Over the past several years, Ally Financial has undergone significant strategic restructuring to focus on its core competencies while divesting non-essential business lines. The company completed the sale of its credit card business and ceased originating new mortgage loans, choosing instead to concentrate resources on automotive finance, corporate finance, and digital banking operations. A major leadership transition occurred with CEO changes, as Jeff Brown stepped down and was succeeded by interim CEO Doug Timmerman, followed by Michael Rhodes taking the permanent role. Under this new leadership, the company has emphasized operational efficiency, announcing workforce reductions to control expenses while maintaining flat expense guidance for 2025. The company has made substantial investments in electric vehicle (EV) financing capabilities, originating over $1 billion in EV leases and loans, representing approximately 10% of total originations. This positioning takes advantage of federal tax credits available for EV leases, which Ally can monetize while offering competitive rates to consumers. In automotive finance, Ally has maintained a disciplined credit approach, with over 40% of recent originations in the highest credit quality tier. The company has also enhanced its dealer relationships through technology investments and expanded service offerings, including record insurance premium volumes exceeding $1.5 billion annually. The corporate finance division has achieved record performance, generating over $400 million in pretax income with a 37% return on equity, demonstrating successful diversification beyond automotive lending. Meanwhile, the digital banking platform has grown to serve 3.3 million customers with $146 billion in deposits, providing stable funding for the company's lending operations. Recent quarters have shown net interest margin expansion from approximately 3.2% toward the company's target of 4% by 2025, driven by higher asset yields and disciplined deposit pricing. Management expects continued margin improvement as credit losses normalize and the company benefits from its strategic focus on higher-return core businesses.
ALLY company profile · for informational purposes only — not investment advice.
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