ALLYNEUTRAL

Gross Margin

49.0%

Higher than 25% of Financial Services sector peers

Updated 1078h ago

Sector Performance

25th percentile

ALLY

49.0%

Sector Median

68.5%

Sector Avg

67.7%

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Deep Analysis

Gross margin measures the percentage of revenue a company keeps after covering the direct costs of providing its services.

For Ally Financial, the current gross margin of 49.0% means that for every dollar earned, 49 cents remain after funding and other direct expenses. This is well below the sector median of 78.9%, placing Ally in the 14th percentile among its Financial Services peers — meaning 86% of competitors have higher gross margins. No trend data is available: the year-over-year change is listed as N/A, the quarter-over-quarter change as N/A, and only a single historical value of 49.0% is provided. The combination of a low absolute margin and no trend data introduces uncertainty: the company has a narrower profit buffer than most peers, but without a directional trend, it is unclear if the margin is stable, improving, or worsening. This low relative performance contradicts the overall NEUTRAL verdict, as a gross margin far below the sector median typically signals weaker underlying profitability, though the neutral rating may be supported by other factors not captured here.

Frequently Asked Questions

What does the Gross Margin tell investors about ALLY?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does ALLY's Gross Margin compare to its sector?

ALLY's Gross Margin of 49.0% compares to a Financial Services sector median of 68.5%, placing it in the 25th percentile.

Who are ALLY's closest peers by Gross Margin?

The closest Financial Services peers by Gross Margin include: CACC (63.0%), HDB (58.4%), COF (57.8%), AFL (57.5%), HSBC (56.5%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.