Ally Financial, Inc. (ALLY) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

SouthState Corp.

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M&T Bank Corp.

Cullen/Frost Bankers, Inc.

Fiserv, Inc.

Ally Financial, Inc.

First Horizon Corp. (Tennessee)

Why is Ally Financial, Inc. ?

High Profitability with a Net Interest Margin of 3.74%

Positive results in Jun 25

NII(Q) Highest at USD 1,732 MM
PRE-TAX PROFIT(Q) Highest at USD 436 MM

With ROA of 0.47%, it has a expensive valuation with a 1.18 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 19.26%, its profits have fallen by -5%

Market Beating performance in long term as well as near term

Along with generating 19.26% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Ally Financial, Inc. should be less than 10%
Overall Portfolio exposure to Regional Banks should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Regional Banks)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Ally Financial, Inc. for you?

Medium Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Ally Financial, Inc.

1.26%

0.54

34.58%

S&P 500

11.87%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.98%

EBIT Growth (5y)

-0.44%

EBIT to Interest (avg)

Debt to EBITDA (avg)

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

Dividend Payout Ratio

50.63%

Pledged Shares

Institutional Holding

100.00%

ROCE (avg)

ROE (avg)

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.08

EV to EBIT

135.89

EV to EBITDA

21.25

EV to Capital Employed

1.04

EV to Sales

2.06

PEG Ratio

1.36

Dividend Yield

2.21%

ROCE (Latest)

0.77%

ROE (Latest)

7.47%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Bullish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

GROSS NPA (%)

NII(Q)

Highest at USD 1,854 MM

NET PROFIT(9M)

Higher at USD 1,077 MM

PRE-TAX PROFIT(Q)

At USD 386 MM has Grown at 70.04%

-4What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 2,976 MM

CASH AND EQV(HY)

Lowest at USD 2,192 MM

Here's what is working for Ally Financial, Inc.

Non Performing Loans (%)

Lowest at 0.99% and Fallen

In each half year in the last four Semi-Annual periods

MOJO Watch

Proportion of stressed loans given by the bank are falling

Non Performing Loans (%)

NII

Highest at USD 1,854 MM

in the last five periods

MOJO Watch

The bank's income from core business is increasing

NII (USD MM)

Pre-Tax Profit

At USD 386 MM has Grown at 70.04%

Year on Year (YoY)

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Higher at USD 1,077 MM

than preceding 12 month period ended Dec 2025

MOJO Watch

In the nine month period the company has already crossed sales of the previous twelve months

Net Profit (USD MM)

CASA

Highest at 11.7%

in the last five periods

MOJO Watch

The Bank's capital base vs its risk assets is improving. However, the bank may not be taking adequate risk in its lending book.

CAR (%)

Here's what is not working for Ally Financial, Inc.

Operating Cash Flow

Lowest at USD 2,976 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Cash and Eqv

Lowest at USD 2,192 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents