NYSE · Financial Services

Ally Financial Inc.

ALLY · Credit Services

$45.49

▼ -0.01 (-0.02%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

D⤢

Net Income Margin 9.7%

Fin. Health

F⤢

Years to Pay Off Debt 25.1 yrs

Valuation

D⤢

Margin of Safety 5.0%

Price-to-Book 1.06x

Cash Flow

F⤢

Free Cash Flow -$546M

CapEx % of Net Income 501.8%

Owner Earnings $6.5B

Cash Flow

Free Cash Flow -$546M

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 501.8%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $6.5B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

About Ally Financial Inc.

Ally Financial Inc., a digital financial-services company, provides various digital financial products and services in the United States and Canada. The company operates through Automotive Finance operations, Insurance operations, and Corporate Finance operations. It 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; and financing services to companies and municipalities for the purchase or lease of vehicles, and vehicle-remarketing services. The company also provides consumer finance protection and insurance products through the automotive dealer channel, and commercial insurance products directly to dealers; VSCs, VMCs, and GAP products; and underwrite select commercial insurance coverages, which primarily insure dealers' vehicle inventory. In addition, it provides senior secured asset-based and leveraged cash flow loans to middle-market companies; leveraged loans; commercial real estate product to serve companies in the nursing facilities, senior housing, and medical office buildings; and treasury activities, such as management of the cash and corporate investment securities and loan portfolios, short- and long-term debt, retail and brokered deposit liabilities, derivative instruments, original issue discount, and equity investments. Further, the company offers deposits and securities brokerage and investment advisory services. The company was formerly known as GMAC Inc. and changed its name to Ally Financial Inc. in May 2010. Ally Financial Inc. was founded in 1919 and is based in Detroit, Michigan.

Metric Explanations

What each dimension measures and where the thresholds come from.

Market Data

Market Cap $13.9B

Enterprise Value $28.4B

P/E (TTM) 11.04

Dividend Yield 2.64%

Exchange NYSE

Key Margins

Gross Profit N/A

Operating Margin N/A

Net Margin 9.7%

Company Info

Sector Financial Services

Industry Credit Services

Employees 10300

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Ally Financial Inc. at $45.49.

The business passes 5 of 6 of Graham's defensive criteria — adequate but not exceptional.

At $45.49, the stock trades below its Graham Number of $47.87 — suggesting a margin of safety exists.

Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	N/A•	N/A•	N/A•	N/A•	N/A
Operating Margin %	N/A•	N/A•	N/A•	N/A•	N/A
Net Income %	9.7%▲	7.5%▼	10.6%▼	18.5%•	N/A
Diluted EPS	2.37▲	1.80▼	2.98▼	5.03•	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$196.0B	$191.8B	$196.3B	$191.8B	N/A
Total Debt	$21.3B▲	$19.2B▼	$20.2B▲	$19.8B•	N/A
Working Capital	N/A•	N/A•	N/A•	N/A•	N/A
Years to Pay Debt	25.05	28.79	21.14	11.55	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	-$546M▼	$1.1B▼	$1.8B▼	$2.7B•	N/A
Owner Earnings	$6.5B	$5.3B	$4.9B	$6.6B	N/A
CapEx % of Net Income	501.8%	518.0%	288.3%	206.1%	N/A

Income Statement

	2025	2024	2023	2022	2021
Tax Effect Of Unusual Items	-57,750	-23,572	-19,452	0
Tax Rate For Calcs	0	0	0	0
Total Unusual Items	-305,000	-118,000	-149,000	0
Total Unusual Items Excluding Goodwill	-305,000	-118,000	-149,000	0
Net Income From Continuing Operation Net Minority Interest	852,000	669,000	959,000	1,715,000
Reconciled Depreciation	1,397,000	1,199,000	1,227,000	1,327,000
Net Interest Income	7,113,000	6,750,000	7,061,000	7,764,000
Interest Expense	6,408,000	7,472,000	6,897,000	2,857,000
Interest Income	13,521,000	14,222,000	13,958,000	10,621,000
Normalized Income	1,099,250	763,428	1,088,548	1,715,000
Net Income From Continuing And Discontinued Operation	852,000	668,000	957,000	1,714,000
Rent Expense Supplemental			210,000	201,000	222,000
Diluted Average Shares	313,043	310,160	305,135	318,629
Basic Average Shares	310,015	306,913	303,751	316,690
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	742,000	558,000	847,000	1,604,000
Net Income Common Stockholders	742,000	558,000	847,000	1,604,000
Preferred Stock Dividends	110,000	110,000	110,000	110,000
Net Income	852,000	668,000	957,000	1,714,000
Net Income Including Noncontrolling Interests	852,000	668,000	957,000	1,714,000
Net Income Discontinuous Operations	0	-1,000	-2,000	-1,000
Net Income Continuous Operations	852,000	669,000	959,000	1,715,000
Tax Provision	199,000	167,000	144,000	627,000
Pretax Income	1,051,000	836,000	1,103,000	2,342,000
Special Income Charges	-305,000	-118,000	-149,000	0
Impairment Of Capital Assets	305,000	118,000	149,000	0
Gain On Sale Of Security	-361,000	72,000	144,000	-252,000
Depreciation Amortization Depletion Income Statement	1,183,000	979,000	1,061,000	1,110,000
Depreciation And Amortization In Income Statement	1,183,000	979,000	1,061,000	1,110,000
Amortization	3,000	19,000	25,000	31,000
Amortization Of Intangibles Income Statement	3,000	19,000	25,000	31,000
Depreciation Income Statement	1,180,000	960,000	1,036,000	1,079,000
Selling General And Administration	3,360,000	3,318,000	3,267,000	3,156,000
Selling And Marketing Expense	259,000	285,000	308,000	366,000
General And Administrative Expense	3,101,000	3,033,000	2,959,000	2,790,000
Insurance And Claims	1,244,000	1,191,000	1,058,000	890,000
Rent And Landing Fees			210,000	201,000	222,000
Salaries And Wages	1,857,000	1,842,000	1,901,000	1,900,000
Total Revenue	8,770,000	8,897,000	9,070,000	9,240,000
Operating Revenue	8,770,000	8,897,000	9,070,000	9,240,000
Occupancy And Equipment					62,000
Professional Expense And Contract Services Expense	145,000	147,000	145,000	173,000
Other Non Interest Expense	1,330,000	1,353,000	1,381,000	1,162,000

Balance Sheet

	2025	2024	2023	2022	2021
Treasury Shares Number	211,863	210,390	209,402	208,358
Preferred Shares Number	1,350	1,350	1,350	1,350
Ordinary Shares Number	308,493	305,220	302,459	299,324
Share Issued	520,356	515,611	511,861	507,683
Net Debt	11,190,000	8,828,000	13,175,000	14,091,000
Total Debt	21,344,000	19,231,000	20,233,000	19,799,000
Tangible Book Value	12,984,000	10,974,000	10,637,000	9,615,000
Invested Capital	34,394,000	30,699,000	31,499,000	30,197,000
Net Tangible Assets	15,308,000	13,298,000	12,961,000	11,939,000
Capital Lease Obligations	124,000	111,000	113,000	137,000
Common Stock Equity	13,174,000	11,579,000	11,379,000	10,535,000
Preferred Stock Equity	2,324,000	2,324,000	2,324,000	2,324,000
Total Capitalization	32,568,000	31,398,000	31,273,000	30,621,000
Total Equity Gross Minority Interest	15,498,000	13,903,000	13,703,000	12,859,000
Stockholders Equity	15,498,000	13,903,000	13,703,000	12,859,000
Gains Losses Not Affecting Retained Earnings	-2,786,000	-3,924,000	-3,816,000	-4,059,000
Other Equity Adjustments	-2,786,000	-3,924,000	-3,816,000	-4,059,000
Treasury Stock	6,968,000	6,909,000	6,871,000	6,838,000
Retained Earnings	633,000	270,000	91,000	-384,000
Capital Stock	24,619,000	24,466,000	24,299,000	24,140,000
Common Stock	22,295,000	22,142,000	21,975,000	21,816,000
Preferred Stock	2,324,000	2,324,000	2,324,000	2,324,000
Total Liabilities Net Minority Interest	180,504,000	177,933,000	182,626,000	178,967,000
Derivative Product Liabilities					62,000
Employee Benefits	417,000	424,000	409,000	424,000
Non Current Pension And Other Postretirement Benefit Plans					512,000
Non Current Deferred Liabilities	141,000	122,000	103,000	169,000
Non Current Deferred Revenue	141,000	122,000	103,000	169,000
Non Current Deferred Taxes Liabilities					10,000
Long Term Debt And Capital Lease Obligation	17,194,000	17,606,000	17,683,000	17,899,000
Long Term Capital Lease Obligation	124,000	111,000	113,000	137,000
Long Term Debt	17,070,000	17,495,000	17,570,000	17,762,000
Current Debt And Capital Lease Obligation	4,150,000	1,625,000	2,550,000	1,900,000
Current Debt	4,150,000	1,625,000	2,550,000	1,900,000
Other Current Borrowings	4,150,000	1,625,000	2,550,000	1,900,000
Payables And Accrued Expenses	1,149,000	1,395,000	1,367,000	843,000
Payables	1,149,000	1,395,000	1,367,000	843,000
Accounts Payable	1,149,000	1,395,000	1,367,000	843,000
Total Assets	196,002,000	191,836,000	196,329,000	191,826,000
Investments And Advances	28,251,000	27,779,000	28,608,000	30,430,000
Held To Maturity Securities	4,371,000	4,346,000	4,680,000	1,062,000
Available For Sale Securities	3,892,000	3,791,000	3,562,000	3,119,000
Long Term Equity Investment	715,000	632,000	651,000	608,000
Goodwill And Other Intangible Assets	190,000	605,000	742,000	920,000
Other Intangible Assets		54,000	73,000	98,000	129,000
Goodwill	190,000	551,000	669,000	822,000
Net PPE	10,031,000	9,336,000	10,457,000	11,831,000
Accumulated Depreciation	-2,521,000	-2,501,000	-2,801,000	-2,936,000
Gross PPE	12,552,000	11,837,000	13,258,000	14,767,000
Other Properties	12,552,000	11,837,000	13,258,000	14,767,000
Receivables	1,344,000	1,241,000	1,124,000	950,000
Other Receivables	403,000	312,000	189,000	164,000
Accounts Receivable	941,000	929,000	935,000	786,000
Other Short Term Investments	19,273,000	19,010,000	19,715,000	25,641,000
Cash And Cash Equivalents	10,030,000	10,292,000	6,945,000	5,571,000
Cash Cash Equivalents And Federal Funds Sold	11,809,000	11,380,000	7,439,000	6,222,000

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	-546,000	1,068,000	1,798,000	2,715,000
Repurchase Of Capital Stock	-59,000	-38,000	-33,000	-1,650,000
Repayment Of Debt	-5,181,000	-4,484,000	-4,595,000	-6,508,000
Issuance Of Debt	4,673,000	4,337,000	5,705,000	7,125,000
Issuance Of Capital Stock			0	0	2,324,000
Capital Expenditure	-4,275,000	-3,460,000	-2,759,000	-3,532,000
Interest Paid Supplemental Data	6,477,000	7,354,000	6,357,000	2,583,000
Income Tax Paid Supplemental Data	359,000	135,000			1,292,000
End Cash Position	11,809,000	11,380,000	7,439,000	6,222,000
Beginning Cash Position	11,380,000	7,439,000	6,222,000	5,670,000
Effect Of Exchange Rate Changes	8,000	-12,000	3,000	-7,000
Changes In Cash	421,000	3,953,000	1,214,000	559,000
Financing Cash Flow	1,956,000	-5,566,000	3,839,000	11,575,000
Cash Flow From Continuing Financing Activities	1,956,000	-5,566,000	3,839,000	11,575,000
Cash Dividends Paid	-489,000	-482,000	-478,000	-494,000
Preferred Stock Dividend Paid	-110,000	-110,000	-110,000	-110,000
Common Stock Dividend Paid	-379,000	-372,000	-368,000	-384,000
Net Preferred Stock Issuance			0	0	-386,000
Preferred Stock Payments			0	0	-2,710,000
Preferred Stock Issuance			0	0	2,324,000
Net Common Stock Issuance	-59,000	-38,000	-33,000	-1,650,000
Common Stock Payments	-59,000	-38,000	-33,000	-1,650,000
Net Issuance Payments Of Debt	2,562,000	-1,819,000	2,008,000	3,016,000
Net Short Term Debt Issuance	3,070,000	-1,672,000	898,000	2,399,000
Net Long Term Debt Issuance	-508,000	-147,000	1,110,000	617,000
Long Term Debt Payments	-5,181,000	-4,484,000	-4,595,000	-6,508,000
Long Term Debt Issuance	4,673,000	4,337,000	5,705,000	7,125,000
Investing Cash Flow	-5,264,000	4,991,000	-7,182,000	-17,263,000
Cash Flow From Continuing Investing Activities	-5,264,000	4,991,000	-7,182,000	-17,263,000
Net Other Investing Changes	-600,000	-608,000	-579,000	-531,000
Sale Of Investment	7,541,000	3,702,000	2,873,000	6,096,000
Purchase Of Investment	-6,832,000	-1,601,000	-857,000	-7,309,000
Net Business Purchase And Sale	2,412,000	1,956,000	0	0
Sale Of Business	2,412,000	1,956,000	0	0
Purchase Of Business			0	0	-699,000
Net PPE Purchase And Sale	-1,692,000	348,000	469,000	-509,000
Sale Of PPE	2,583,000	3,808,000	3,228,000	3,023,000
Purchase Of PPE	-4,275,000	-3,460,000	-2,759,000	-3,532,000
Operating Cash Flow	3,729,000	4,528,000	4,557,000	6,247,000
Cash Flow From Continuing Operating Activities	3,729,000	4,528,000	4,557,000	6,247,000
Change In Working Capital	-799,000	60,000	11,000	1,872,000
Change In Other Working Capital	237,000	264,000	150,000	267,000
Change In Other Current Liabilities	-33,000	127,000	-91,000	-103,000
Change In Other Current Assets	-308,000	73,000	-417,000	957,000
Change In Payables And Accrued Expense	-161,000	32,000	450,000	198,000
Change In Payable	-161,000	32,000	450,000	198,000
Change In Account Payable	-161,000	32,000	450,000	198,000
Other Non Cash Items	101,000	413,000	405,000	-133,000
Unrealized Gain Loss On Investment Securities	-51,000	6,000	-107,000	215,000
Asset Impairment Charge	305,000	118,000	149,000	0
Depreciation Amortization Depletion	1,397,000	1,199,000	1,227,000	1,327,000
Depreciation And Amortization	1,397,000	1,199,000	1,227,000	1,327,000
Operating Gains Losses	447,000	-102,000	-53,000	-147,000
Gain Loss On Investment Securities	412,000	-78,000	-37,000	-95,000
Net Income From Continuing Operations			957,000

5/6

Graham Score

Enterprising Investor

Requires deeper research. Suited for active investors.

Graham's Fair Value

$47.87

Margin of Safety

5.0%

Market Cap / Net Assets

0.9x

Net Assets: $15.5B

Warren's Owner Earnings

$6.5B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

5/6 — Enterprising Investor

✅

Adequate Size

Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.

$8.8B

vs > $1.5B revenue

✅

Earnings Stability

Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.

No loss years (4 yrs data)

vs No negative EPS years

✅

Dividend Record

Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.

2.64%

vs Uninterrupted dividends

❌

Earnings Growth

EPS grew from $5.03 to $2.37 over 3 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.

-52.9% EPS growth

vs > 33% EPS growth

✅

Moderate P/E Ratio

Graham's 15x P/E threshold was calibrated to 1960s market averages when interest rates were higher. Today's lower rate environment structurally supports higher multiples — the S&P 500 long-run average P/E is now closer to 20–25x. A stock trading at 20x is not automatically speculative in the modern context.

11.0x

vs P/E ≤ 15.0x

✅

Moderate Price-to-Book

Graham's 1.5x P/B threshold made sense when most company value was tangible. Today, intangible assets — brand, software, patents, network effects — rarely appear on the balance sheet. A high P/B in tech, pharma, or consumer brands often reflects intangible value, not overvaluation. P/FCF or EV/EBITDA are more reliable for asset-light businesses.

1.06x P/B (P/E×P/B: 11.7)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

These metrics estimate what Ally Financial Inc. is worth based on fundamentals — independent of what the market prices it at. Graham's Fair Value and NCAV are conservative floors. EPV assumes zero growth. These are reference points, not price targets.

Net Current Asset Value

N/A

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

N/A

Per share, no-growth floor. Compare to current price.

ROIC — Return on Invested Capital

N/A

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	501.8%	518.0%	288.3%	206.1%	N/A
Repurchase of Capital Stock	-$59M	-$38M	-$33M	-$1.6B	N/A
Free Cash Flow	-$546M ▼	$1.1B ▼	$1.8B ▼	$2.7B •	N/A •
Warren's Owner Earnings	$6.5B	$5.3B	$4.9B	$6.6B	N/A

Peers & Industry

No auto-detected peers for Credit Services. You can manually compare ALLY against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

10.23%

High — management has strong skin in the game

Return on Equity (ROE)

6.5%

Weak — poor returns on equity

Return on Assets (ROA)

0.4%

Poor — assets are not generating adequate returns

Share Buybacks (Latest Year)

$59M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+11.0% YoY

Debt is growing — management is leveraging up

Leadership Team

Michael Rhodes

CEO & Director

Age 59

Pay: $5,567,139

0.653% of net income

Russell E . Hutchinson

Chief Financial Officer

Age 50

Pay: $2,957,046

0.347% of net income

Douglas Timmerman

President of Dealer Financial Services

Age 62

Pay: $3,133,022

0.368% of net income

William Hall Jr.

President of Corporate Finance

Age 65

Pay: $2,259,290

0.265% of net income

Sean Leary

Chief Financial Planning & Investor Relations Officer

Top Institutional Holders

Institution	% Owned	Shares
Berkshire Hathaway, Inc	9.46%	29,000,000
Blackrock Inc.	9.31%	28,534,233
Harris Associates L.P.	8.62%	26,410,285
Vanguard Portfolio Management LLC	4.35%	13,349,079
Vanguard Capital Management LLC	4.07%	12,473,847
Wellington Management Group, LLP	3.71%	11,358,908
Dimensional Fund Advisors LP	2.94%	9,018,580
State Street Corporation	2.83%	8,682,978

Risk Analysis

Beta (Market Risk)

1.09

Moderate volatility — moves slightly more than market

Short Interest

4.0% of float

Low short interest — market is not heavily bearish

52-Week Price Range

Low: $35.92 Current: $45.49 High: $47.27

Currently at 84% of 52-week range

Ally Financial Inc.

Metric Explanations

Full Graham Analysis

Income Highlights

Balance Sheet Highlights

Cash Flow Highlights

Graham's Fair Value

Market Cap / Net Assets

Warren's Owner Earnings

Graham's 7 Criteria

Graham's 7 Criteria — Explained

Net Current Asset Value

Earnings Power Value

ROIC — Return on Invested Capital

Cash Flow Analysis

Peers & Industry

Capital Allocation & Alignment

Leadership Team

Top Institutional Holders

Risk Analysis