Ally Financial ALLY
United StatesFinancial Services · Credit ServicesUSD
50.28 USD (+34.6%)
18 analysts
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Ally Financial is a digital bank and financial services company offering consumer banking, auto loans, insurance, and investment services, with a business model centered on credit origination and deposit gathering through online channels.
Key points
from its scores- ✓High-quality business7.5
- ✓Attractive valuation7.5
- ✓Attractive dividend7.1
- ✕Fragile balance sheet3.6
- !Risks to watch5.3
AI analysis
bottom line, main risk, context and newsAlly Financial is well-valued and profitable, but the risk of a prolonged high-rate environment and the sensitivity of consumer credit warrant caution before adding to the position.
Ally Financial shows moderate financial health (ROE 9.68%, ROA 0.75%) but solid business quality (operating margin 25.27%) and an attractive valuation (P/E 8.79, adjusted P/B 0.87). Double-digit revenue and earnings growth is positive, although the high-rate environment in the US adds pressure on funding costs and consumer credit demand.
The main risk is exposure to the US consumer credit cycle, especially auto financing, which could deteriorate if interest rates remain high and the economy slows, impacting asset quality and margins.
Context and risks
Ally Financial operates in the consumer credit and banking sector, which is under active regulatory oversight in the US with capital requirements and lending practices under scrutiny. Its auto financing business is sensitive to a high-interest-rate environment, which makes credit more expensive and can pressure demand and asset quality.
Is Ally Financial stock cheap or expensive?
at the analysis dateOn P/E and Price / book, it trades 45% below the Financial Services median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 8.8 | 13.7 | −36% |
| Price / book | 0.8 | 1.9 | −55% |
| Price / sales | 1.4 | 3.5 | −58% |
Sector: median of the 351 Financial Services companies analysed. In bold, the multiples used for the comparison.
Valuation score: 7.5 out of 10 (median for Financial Services: 5.2).
Average analyst target: 50.28 USD, +34.6% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 3.6 (sector 5.5), Growth 6.6 (sector 6.9).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Financial Services medianValuation
- P/E
- 8.8
- Forward P/E
- 6.0
- Price / book
- 0.8
- Price / sales
- 1.4
- PEG
- 0.26
- Market cap
- 11.4B USD
- Enterprise value
- 28.5B USD
Profitability
- ROE
- 9.7%
- ROA
- 0.7%
- ROIC (approx.)
- 5.5%
- Gross margin
- 0.0%
- Operating margin
- 25.3%
- Net margin
- 18.4%
Solvency
- Total debt
- 23.1B USD
- Net debt
- 15.2B USD
- Cash
- 7.8B USD
Growth
- Revenue growth
- +11.0%
- Earnings growth
- +13.5%
- EPS (TTM)
- 4.25 USD
- EPS (forward)
- 6.21 USD
Dividend
- Dividend yield
- 3.2%
- Payout
- 28.2%
Risk and market
- Beta
- 1.10
- Analyst consensus
- Buy (18)
- Target price
- 50.28 USD
- 52-week range
- 35.92 – 47.29
Recent news
All ALLY news →Compare it with its sector
All 351 in Financial Services →Frequently asked questions about Ally Financial
Is Ally Financial stock cheap or expensive?
On P/E and Price / book, it trades 45% below the Financial Services median on average. Valuation score: 7.5 out of 10 (median for Financial Services: 5.2). Average analyst target: 50.28 USD, +34.6% versus the price. This is not investment advice.
What score does Ally Financial get on MeridIAn Screener?
It scores 6.2 out of 10, rank 783 of 2,130 (better than 60% of the companies analysed). Its strongest category is Quality / Moat (7.5) and its weakest, Financial health (3.6). Analysis of 08/10/2026.
What is Ally Financial's P/E ratio?
Its P/E is 8.8: the share price equals 8.8 times earnings per share over the last 12 months. The Financial Services median is 13.7. Based on the earnings analysts expect, the forward P/E is 6.0.
How much is Ally Financial worth on the stock market?
Its market capitalisation is 11.4B USD.
Does Ally Financial pay a dividend?
Yes: its dividend yield is 3.21% and it pays out 28% of its earnings.
How has Ally Financial stock performed over the last year?
It has risen 4.0% over the last year, excluding dividends. Over the last 52 weeks it has traded between 35.92 and 47.29 USD. Past performance does not guarantee future results.
What do analysts think of Ally Financial?
18 analysts cover it; their average recommendation is “Buy” and their average target is 50.28 USD (+34.6% versus the price). It is an estimate, not market data.