Ally Financial Inc.ALLY
NYSE • Financial Services
$41.94
P/E
10.11
PEG
0.04
FCF Yield
—
Rev Growth YoY
+13.3% YoY
Gross Margin
49.0%
Health Score
5/10
D/E Ratio
1.40
Confidence
MEDIUM
Business Snapshot
Ally Financial is a digital-first financial services company focused primarily on auto finance and online banking, operating in the Financial - Credit Services industry. It originates auto loans through a large dealer network and also offers retail banking products (deposits, mortgages) through its online platform. With TTM revenue of $15.65B, the company is a large-cap player and a dominant force in U.S. auto lending, competing with both traditional banks and captive finance arms of automakers. A defining characteristic is its purely digital banking model, which gives it a lower cost structure than branch-based competitors.
Financial Health
Gross margin improved to 49.0% from 48.0% a year earlier, while net margin came in at 13.3%. The balance sheet shows debt/equity of 1.4x, which is elevated but manageable, though the current ratio of 0.9x indicates short-term liquidity is tight...
Risk Assessment
- FCF / CASH BURN — Free cash flow was negative at -$647M, signalling the company is burning cash and may need external financing or asset sales to fund operations.
- DEBT / LIQUIDITY — Debt/equity of 1.4x is above the typical 1.0x threshold for financial companies, and the current ratio of 0.9x indicates the company has less than $1 in current assets for every $1 in current liabilities.
- REVENUE DECELERATION — While revenue grew 13.3% year-over-year, the sequential contraction of -1.4% quarter-over-quarter points to a slowing trend in the most recent period.
- VALUATION DIVERGENCE — The FMP DCF fair value of -$99.62 is inconsistent with the positive earnings and book value; together with the low confidence rating, the DCF model is unreliable for assessing intrinsic value.
- TECHNICALS — RSI, MACD, and moving average data are unavailable for this period; momentum cannot be independently confirmed....