NYSE · Financial Services

Ally Financial Inc.

ALLY · Credit Services

$45.49

▼ -0.01 (-0.02%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

C⤢

Net Income Margin 13.6%

Fin. Health

F⤢

Years to Pay Off Debt 66.1 yrs

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 1.05x

Cash Flow

C⤢

Free Cash Flow $666M

CapEx % of Net Income 221.0%

Owner Earnings $1.4B

Cash Flow

Free Cash Flow $666M

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 221.0%

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 $1.4B

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 13.6%

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 4 of 6 of Graham's defensive criteria — adequate but not exceptional.

At $45.49, the stock trades at a 51% premium to its Graham Number of $30.11. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

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	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	N/A•	N/A•	N/A
Operating Margin %	N/A•	N/A•	N/A
Net Income %	13.6%▼	13.8%•	N/A
Diluted EPS	0.93▼	0.95•	N/A

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$197.3B	$196.0B	N/A
Total Debt	$21.1B▼	$21.3B•	N/A
Working Capital	N/A•	N/A•	N/A
Years to Pay Debt	66.05	65.27	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$666M▲	-$251M•	N/A
Owner Earnings	$1.4B	$1.6B	N/A
CapEx % of Net Income	221.0%	272.5%	N/A

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	0	0
Tax Rate For Calcs	0	0
Total Unusual Items	0	0
Total Unusual Items Excluding Goodwill	0	0
Net Income From Continuing Operation Net Minority Interest	319,000	327,000
Reconciled Depreciation	378,000	369,000
Net Interest Income	1,857,000	1,854,000
Interest Expense	1,517,000	1,562,000
Interest Income	3,374,000	3,416,000
Normalized Income	319,000	327,000
Net Income From Continuing And Discontinued Operation	319,000	327,000
Diluted Average Shares	313,219	314,264
Basic Average Shares	313,219	310,792
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders	291,000	300,000
Net Income Common Stockholders	291,000	300,000
Preferred Stock Dividends	28,000	27,000
Net Income	319,000	327,000
Net Income Including Noncontrolling Interests	319,000	327,000
Net Income Discontinuous Operations			-1,000
Net Income Continuous Operations	319,000	327,000
Tax Provision	81,000	59,000
Pretax Income	400,000	386,000
Special Income Charges	0	0
Impairment Of Capital Assets	0	0
Gain On Sale Of Security	-21,000	21,000
Depreciation Amortization Depletion Income Statement	327,000	315,000
Depreciation And Amortization In Income Statement	327,000	315,000
Amortization	0	0
Amortization Of Intangibles Income Statement	0	0
Depreciation Income Statement	327,000	315,000
Selling General And Administration	824,000	808,000
Selling And Marketing Expense	60,000	68,000
General And Administrative Expense	764,000	740,000
Insurance And Claims	273,000	265,000
Salaries And Wages	491,000	475,000
Total Revenue	2,353,000	2,362,000
Operating Revenue	2,353,000	2,362,000
Professional Expense And Contract Services Expense	35,000	40,000
Other Non Interest Expense	317,000	343,000

Balance Sheet

	2026	2025	2024
Treasury Shares Number	215,489	211,863
Preferred Shares Number	1,350	1,350
Ordinary Shares Number	307,408	308,493
Share Issued	522,896	520,356
Net Debt	11,431,000	11,190,000
Total Debt	21,070,000	21,344,000
Tangible Book Value	13,095,000	12,984,000
Invested Capital	34,234,000	34,394,000
Net Tangible Assets	15,419,000	15,308,000
Capital Lease Obligations	121,000	124,000
Common Stock Equity	13,285,000	13,174,000
Preferred Stock Equity	2,324,000	2,324,000
Total Capitalization	32,958,000	32,568,000
Total Equity Gross Minority Interest	15,609,000	15,498,000
Stockholders Equity	15,609,000	15,498,000
Gains Losses Not Affecting Retained Earnings	-2,773,000	-2,786,000
Other Equity Adjustments	-2,773,000	-2,786,000
Treasury Stock	7,115,000	6,968,000
Retained Earnings	827,000	633,000
Capital Stock	24,670,000	24,619,000
Common Stock	22,346,000	22,295,000
Preferred Stock	2,324,000	2,324,000
Total Liabilities Net Minority Interest	181,660,000	180,504,000
Employee Benefits	242,000	417,000
Non Current Deferred Liabilities	135,000	141,000
Non Current Deferred Revenue	135,000	141,000
Long Term Debt And Capital Lease Obligation	17,470,000	17,194,000
Long Term Capital Lease Obligation	121,000	124,000
Long Term Debt	17,349,000	17,070,000
Current Debt And Capital Lease Obligation	3,600,000	4,150,000
Current Debt	3,600,000	4,150,000
Other Current Borrowings	3,600,000	4,150,000
Payables And Accrued Expenses	1,396,000	1,149,000
Payables	1,396,000	1,149,000
Accounts Payable	1,396,000	1,149,000
Total Assets	197,269,000	196,002,000
Investments And Advances	28,412,000	28,251,000
Held To Maturity Securities	4,337,000	4,371,000
Available For Sale Securities	3,796,000	3,892,000
Long Term Equity Investment	741,000	715,000
Goodwill And Other Intangible Assets	190,000	190,000
Other Intangible Assets			54,000
Goodwill	190,000	190,000
Net PPE	9,931,000	10,031,000
Accumulated Depreciation	-2,582,000	-2,521,000
Gross PPE	12,513,000	12,552,000
Other Properties	12,513,000	12,552,000
Receivables	1,140,000	1,344,000
Other Receivables	210,000	403,000
Accounts Receivable	930,000	941,000
Other Short Term Investments	19,538,000	19,273,000
Cash And Cash Equivalents	9,518,000	10,030,000
Cash Cash Equivalents And Federal Funds Sold	11,229,000	11,809,000

Cash Flow

	2026	2025	2024
Free Cash Flow	666,000	-251,000
Repurchase Of Capital Stock	-147,000	-23,000
Repayment Of Debt	-824,000	-1,802,000
Issuance Of Debt	1,081,000	2,102,000
Capital Expenditure	-705,000	-891,000
Interest Paid Supplemental Data	1,370,000	1,905,000
Income Tax Paid Supplemental Data	12,000	198,000
End Cash Position	11,229,000	11,809,000
Beginning Cash Position	11,809,000	11,604,000
Effect Of Exchange Rate Changes	-3,000	3,000
Changes In Cash	-577,000	202,000
Financing Cash Flow	1,095,000	4,013,000
Cash Flow From Continuing Financing Activities	1,095,000	4,013,000
Cash Dividends Paid	-130,000	-121,000
Preferred Stock Dividend Paid	-28,000	-27,000
Common Stock Dividend Paid	-102,000	-94,000
Net Common Stock Issuance	-147,000	-23,000
Common Stock Payments	-147,000	-23,000
Net Issuance Payments Of Debt	-312,000	1,116,000
Net Short Term Debt Issuance	-569,000	816,000
Net Long Term Debt Issuance	257,000	300,000
Long Term Debt Payments	-824,000	-1,802,000
Long Term Debt Issuance	1,081,000	2,102,000
Investing Cash Flow	-3,043,000	-4,451,000
Cash Flow From Continuing Investing Activities	-3,043,000	-4,451,000
Net Other Investing Changes	-126,000	-180,000
Net Investment Purchase And Sale	-49,000	-109,000
Sale Of Investment	1,107,000	789,000
Purchase Of Investment	-1,156,000	-766,000
Net Business Purchase And Sale		0	0
Sale Of Business		0	0
Net PPE Purchase And Sale	-231,000	-416,000
Sale Of PPE	474,000	475,000
Purchase Of PPE	-705,000	-891,000
Operating Cash Flow	1,371,000	640,000
Cash Flow From Continuing Operating Activities	1,371,000	640,000
Change In Working Capital	224,000	-539,000
Change In Other Working Capital	88,000	121,000
Change In Other Current Liabilities	-80,000	-43,000
Change In Other Current Assets	71,000	-81,000
Change In Payables And Accrued Expense	123,000	-368,000
Change In Payable	123,000	-368,000
Change In Account Payable	123,000	-368,000
Other Non Cash Items	-41,000	-12,000
Unrealized Gain Loss On Investment Securities	59,000	-2,000
Asset Impairment Charge	0	0
Depreciation Amortization Depletion	378,000	369,000
Depreciation And Amortization	378,000	369,000
Operating Gains Losses	-35,000	10,000
Gain Loss On Investment Securities	-38,000	-19,000
Net Income From Continuing Operations	319,000	327,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $1.8B ▲ $2.4B +34.1%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Net Margin

Prior year: -12.8% ▲ 13.6% +26.4pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$2.4B/qtr (≈$9.4B ann.)

vs > $1.5B annualised revenue

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$666M

vs Positive

Operating Cash Flow

$1.4B

Latest quarter · Buffett's cash reality check

ROIC

N/A

Based on latest annual operating income

Market Cap / Net Assets

0.9x

Net Assets: $15.6B

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)

2.4%

Weak — poor returns on equity

Return on Assets (ROA)

0.2%

Poor — assets are not generating adequate returns

Share Buybacks (Latest Year)

$59M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

-1.3% YoY

Debt is declining — management is deleveraging

Leadership Team

Michael Rhodes

CEO & Director

Age 59

Pay: $5,567,139

1.745% of net income

Russell E . Hutchinson

Chief Financial Officer

Age 50

Pay: $2,957,046

0.927% of net income

Douglas Timmerman

President of Dealer Financial Services

Age 62

Pay: $3,133,022

0.982% of net income

William Hall Jr.

President of Corporate Finance

Age 65

Pay: $2,259,290

0.708% 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