How does ALLY's PE Ratio compare to its peers?

ALLY is expensive based on its Price-To-Earnings Ratio (14.4x) compared to the peer average (8.8x).

How does ALLY's PE Ratio compare vs other companies in the US Consumer Finance Industry?

ALLY is expensive based on its Price-To-Earnings Ratio (14.4x) compared to the US Consumer Finance industry average (12.3x).

What is ALLY's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ALLY is good value based on its Price-To-Earnings Ratio (14.4x) compared to the estimated Fair Price-To-Earnings Ratio (24.2x).

What is the Fair Price of ALLY when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ALLY ($36.58) is trading below our estimate of [[fair value]] ($59.75)

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Target price is less than 20% higher than the current share price.

Ally Financial (NYSE:ALLY) - Stock Price, News & Analysis

ALLY Stock Overview

A digital financial-services company, provides various digital financial products and services in the United States, Canada, and Bermuda. More details

ALLY fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	4/6
Past Performance	1/6
Financial Health	6/6
Dividends	3/6

Rewards

Trading at 38.8% below our estimate of its fair value

Earnings are forecast to grow 29.24% per year

Risk Analysis

No risks detected for ALLY from our risk checks.

Community Narratives

Create a narrative

Narratives bring a range of perspectives from our community.

WarrenAI

Based on Analyst Price Targets

Proactive Strategies Ignite Profitability Amidst Industry Challenges

Key Takeaways Reduction in credit losses and effective cost management strategies are improving net margins and supporting earnings growth. Expansion in insurance and a stable deposit base contribute to diversified revenue streams and enhanced profitability.

View narrative

US$40.29

9.2% undervalued

12.05%

Revenue growth p.a.

Updated

Ally Financial Inc. Competitors

OneMain Holdings

NYSE:OMF

US$6.5b

SLM

NasdaqGS:SLM

US$5.1b

Synchrony Financial

NYSE:SYF

US$25.4b

Qifu Technology

NasdaqGS:QFIN

US$4.8b

Price History & Performance

Summary of all time highs, changes and price drops for Ally Financial
Historical stock prices
Current Share Price	US$36.58
52 Week High	US$45.46
52 Week Low	US$26.50
Beta	1.39
11 Month Change	2.21%
3 Month Change	-12.09%
1 Year Change	32.11%
33 Year Change	-23.79%
5 Year Change	18.73%
Change since IPO	40.87%

Ally Financial: Shares Are Unlikely To Rebound Until Delinquencies Stabilize

Oct 24

Ally Financial (NYSE:ALLY) Will Pay A Dividend Of $0.30

Oct 13

Recent updates

Ally Financial: Credit Concerns Likely Limit Upside After Q2 Results (Downgrade)

Jul 17

Ally Financial: Improving Credit Metrics, But Caution Is Warranted

Jun 30

Ally Financial (NYSE:ALLY) Is Paying Out A Dividend Of $0.30

Apr 25

Ally Financial: Strong Q1 Results Point To Accelerating Earnings

Apr 19

Ally Financial: Potentially Undervalued And Benefits From Strong Auto Segment Growth

Feb 26

Neutral On Ally Financial Based On My 2025 EPS Forecast Math

Jan 29

Ally Financial Earnings: The Current Narrative Could Change Rather Quickly

Jan 17

Household Financial Distress Is Rising - Short Ally Financial

Jan 09

Ally Financial Is A Risky, Yet Promising Investment

Dec 08

Ally Financial: Driving Forward With A Strong Moat In A High-Yield Environment

Oct 26

Ally Financial's Discount To Tangible Book Makes Little Sense

Oct 19

Ally Financial's (NYSE:ALLY) Dividend Will Be $0.30

Oct 13

Ally Financial: Collecting The Dividend While The Price Recovers

Oct 11

Ally Is Attractive And A Potential Winner From The Auto Strike

Sep 20

Falling Car Prices Leave Ally Financial Without Proper Collateral

Aug 30

Arch Capital - Ally Financial: Expect Market-Beating Returns Over The Next 3-5 Years

Aug 17

Buy Ally Financial Before Mr. Market Realizes He Has Been Too Pessimistic

Jul 24

Ally Financial (NYSE:ALLY) Is Paying Out A Dividend Of $0.30

Jul 21

Ally Financial: Undervalued Online Bank But Holding Out For A Better Price

Jul 17

Big Banks Have Massive Exposure: A Look At Ally Financial

Jun 16

Ally Financial: Trading Cheaply, But Not Worth Buying

Jun 09

Ally Financial's (NYSE:ALLY) Dividend Will Be $0.30

Apr 21

Ally Financial: A Risky Play, Unlikely To Work In A Recession

Feb 23

Ally Financial: Be Fearful When Others Are Greedy

Feb 03

Ally Financial's (NYSE:ALLY) Dividend Will Be $0.30

Jan 24

Ally Financial: It Could Get Worse

Dec 29

Ally Financial a new short idea at Hedgeye

Dec 19

Shareholder Returns

	ALLY	US Consumer Finance	US Market
7D	-3.4%	-2.0%	1.0%
1Y	32.1%	71.6%	33.1%

Return vs Industry: ALLY underperformed the US Consumer Finance industry which returned 71.6% over the past year.

Return vs Market: ALLY matched the US Market which returned 33.1% over the past year.

Price Volatility

Is ALLY's price volatile compared to industry and market?
ALLY volatility
ALLY Average Weekly Movement	6.4%
Consumer Finance Industry Average Movement	7.3%
Market Average Movement	6.2%
10% most volatile stocks in US Market	15.6%
10% least volatile stocks in US Market	3.0%

Stable Share Price: ALLY has not had significant price volatility in the past 3 months compared to the US market.

Volatility Over Time: ALLY's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1919	11,100	Michael Rhodes	www.ally.com

Ally Financial Inc., a digital financial-services company, provides various digital financial products and services in the United States, Canada, and Bermuda. The company operates through Automotive Finance Operations, Insurance Operations, Mortgage Finance Operations, and Corporate Finance Operations segments. The Automotive Finance Operations segment offers automotive financing services, including providing retail installment sales contracts, loans and operating leases, term loans to dealers, financing dealer floorplans and other lines of credit to dealers, warehouse lines to automotive retailers, and fleet financing.

Ally Financial Inc. Fundamentals Summary

How do Ally Financial's earnings and revenue compare to its market cap?
ALLY fundamental statistics
Market cap	US$11.17b
Earnings (TTM)	US$775.00m
Revenue (TTM)	US$6.76b

14.4x

P/E Ratio

1.6x

P/S Ratio

Is ALLY overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
ALLY income statement (TTM)
Revenue	US$6.76b
Cost of Revenue	US$0
Gross Profit	US$6.76b
Other Expenses	US$5.99b
Earnings	US$775.00m

Last Reported Earnings

Sep 30, 2024

Next Earnings Date

n/a

Earnings per share (EPS)	2.54
Gross Margin	100.00%
Net Profit Margin	11.46%
Debt/Equity Ratio	126.2%

How did ALLY perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

47%

Payout Ratio

Does ALLY pay a reliable dividends?

See ALLY dividend history and benchmarks

When do you need to buy ALLY by to receive an upcoming dividend?
Ally Financial dividend dates
Ex Dividend Date	Nov 01 2024
Dividend Pay Date	Nov 15 2024
Days until Ex dividend	13 days
Days until Dividend pay date	1 day

Does ALLY pay a reliable dividends?

See ALLY dividend history and benchmarks

ALLY Stock Overview

Rewards

Risk Analysis

Proactive Strategies Ignite Profitability Amidst Industry Challenges

Ally Financial Inc. Competitors

NYSE:OMF

US$6.5b

NasdaqGS:SLM

US$5.1b

NYSE:SYF

US$25.4b

NasdaqGS:QFIN

US$4.8b

Price History & Performance

Recent News & Updates

Now 21% undervalued after recent price drop

Upcoming dividend of US$0.30 per share

Consensus EPS estimates increase by 14%

Ally Financial: Shares Are Unlikely To Rebound Until Delinquencies Stabilize

Third quarter 2024 earnings: EPS and revenues exceed analyst expectations

Ally Financial (NYSE:ALLY) Will Pay A Dividend Of $0.30

Recent updates

Now 21% undervalued after recent price drop

Upcoming dividend of US$0.30 per share

Consensus EPS estimates increase by 14%

Ally Financial: Shares Are Unlikely To Rebound Until Delinquencies Stabilize

Third quarter 2024 earnings: EPS and revenues exceed analyst expectations

Ally Financial (NYSE:ALLY) Will Pay A Dividend Of $0.30

Second quarter dividend of US$0.30 announced

Ally Financial Inc. Declares Quarterly Cash Dividend on Common Stock, Payable on November 15, 2024

Now 20% undervalued after recent price drop

Ally Financial Inc. to Report Q3, 2024 Results on Oct 18, 2024

Consensus EPS estimates fall by 13%

Price target decreased by 7.3% to US$43.48

Ally Financial Inc. Appoints Hope Mehlman as Chief Legal and Corporate Affairs Officer, Effective December 2, 2024

Investor sentiment deteriorates as stock falls 22%

Ally Financial: Bright Outlook Ahead, But Is Overvalued

Now 23% undervalued

Consensus EPS estimates increase by 14%

Ally Financial (NYSE:ALLY) Has Announced A Dividend Of $0.30

Second quarter 2024 earnings released: EPS: US$0.87 (vs US$0.99 in 2Q 2023)

Ally Financial: Credit Concerns Likely Limit Upside After Q2 Results (Downgrade)

Ally Financial Inc. Declares Quarterly Dividend, Payable on August 15, 2024

Ally Financial: Improving Credit Metrics, But Caution Is Warranted

Ally Financial Inc. to Report Q2, 2024 Results on Jul 17, 2024

First quarter 2024 earnings: EPS and revenues exceed analyst expectations

Upcoming dividend of US$0.30 per share

Ally Financial (NYSE:ALLY) Is Paying Out A Dividend Of $0.30

First quarter dividend of US$0.30 announced

Ally Financial: Strong Q1 Results Point To Accelerating Earnings

First quarter 2024 earnings released: EPS: US$0.43 (vs US$0.96 in 1Q 2023)

Ally Financial Inc. Declares Quarterly Cash Dividend, Payable on May 15, 2024

Ally Financial Inc., Annual General Meeting, May 07, 2024

Ally Financial Inc. Appoints Michael G. Rhodes as Member of Board of Directors, Effective April 29, 2024

Ally Financial Inc. to Report Q1, 2024 Results on Apr 18, 2024

Synchrony Financial (NYSE:SYF) completed the acquisition of Ally Lending from Ally Financial Inc.

Ally Financial: Potentially Undervalued And Benefits From Strong Auto Segment Growth

Full year 2023 earnings: EPS misses analyst expectations

Price target increased by 7.4% to US$39.61

Neutral On Ally Financial Based On My 2025 EPS Forecast Math

Upcoming dividend of US$0.30 per share at 3.3% yield

Fourth quarter dividend of US$0.30 announced

Ally Financial Inc. Announces Net Charge-Offs for the Fourth Quarter of 2023

Ally Financial Earnings: The Current Narrative Could Change Rather Quickly

Ally Financial Inc. Declares a Quarterly Cash Dividend, Payable on February 15, 2024

Ally Financial Inc. Announces CEO Changes

Household Financial Distress Is Rising - Short Ally Financial

Price target increased by 8.7% to US$35.47

Ally Financial Inc. to Report Q4, 2023 Results on Jan 19, 2024

Ally Financial Inc. Announces Executive Changes

Ally Financial Is A Risky, Yet Promising Investment

Investor sentiment improves as stock rises 15%

Ally Financial Inc. Announces Retirement of Diane E. Morais as President of Consumer and Commercial Banking, Effective July 1, 2024

Ally Financial: Driving Forward With A Strong Moat In A High-Yield Environment

Upcoming dividend of US$0.30 per share at 5.2% yield

Second quarter 2023 earnings released: EPS: US$0.99 (vs US$1.41 in 2Q 2022)

Now 22% undervalued after recent price drop

Ally Financial's Discount To Tangible Book Makes Little Sense

Ally Financial's (NYSE:ALLY) Dividend Will Be $0.30

Ally Financial CEO Jeffrey J. Brown Announces Plans to Step Down