Start here if you're new
what it is
Ally lends money to car buyers, finances dealer inventory, and sells insurance on the side.
how it gets paid
Last year Ally Financial made $1.2B in revenue. Dealer auto finance was the main engine at $0.74B, or 62% of sales.
why it's growing
Revenue grew 3.8% last year. Revenue was up 206% from the year-ago quarter.
what just happened
Q4 revenue hit $943M and EPS came in at $1.41, up 19% vs. prior year.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
45/100 earnings predictability — expect surprises
10.7x trailing p/e — the market's not buying it — or you found a deal
2.9% dividend yield — cash in your pocket every quarter
xvary composite: 52/100 — below average
What they do
Ally lends money to car buyers, finances dealer inventory, and sells insurance on the side.
You do not meet Ally in a branch. You meet it in the car deal. In 2025, it handled 15.5 million loan applications and wrote $43.7B in originations (new loans written), while dealer auto finance produced 74% of pre-tax income. Leaving is painful because the loan is attached to your car purchase, not a separate app.
How they make money
$1.2B
annual revenue · their business grew +3.8% last year
Dealer auto finance
$0.74B
+4.0%
Consumer auto finance
$0.24B
+2.5%
Dealer insurance & remarketing
$0.11B
+6.0%
Corporate finance & other
$0.11B
+1.0%
The products that matter
finances dealer and retail auto loans
Dealer Auto Finance
$888M revenue · 74% of sales
it's the center of gravity: $888M of revenue, or 74% of the total. if auto credit holds together, this segment does the heavy lifting. if it doesn't, the rest of the page starts reading differently.
core engine
provides financing for businesses
Corporate Finance
$204M revenue · 17% of sales
this segment contributed $204M last year. that's useful diversification on paper, but it is not large enough to offset a real slowdown in the $888M auto book.
secondary engine
Key numbers
10.7x
P/E
You are paying 10.7 times trailing earnings for a lender. That is cheap only if credit stays calm.
$46
target
The target is only $5.20 above $40.80. That is 13% upside, not a rescue plan.
15.5M
applications
That volume is the reason Ally keeps finding borrowers without a giant branch network.
58%
debt/capital
Debt is 58% of capital. That leaves less room when funding gets expensive.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 40 / 100
- long-term debt $17.1B (58% of capital)
- return on equity 15% — $0.15 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in ALLY 3 years ago → it's now worth $13,640.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
Q4 revenue hit $943M and EPS came in at $1.41, up 19% vs. prior year.
Revenue was up 206% from the year-ago quarter, and EPS still cleared the street. The lender is recovering, but the story is still credit and spread income, not some software fairy tale.
$943M
revenue
$1.41
eps
n/a
n/a
the number that mattered
The $1.41 EPS mattered because it showed the core business is healing while the stock still trades like a slow mover.
-
in 2025, adjusted share earnings recovered to $3.81 from $2.35 in 2024.
-
soft revenues and higher expenses had weighed on the prior-year results.
-
last year, auto finance turned in a solid performance.
-
consumer loan applications hit a record 15.5 million, lifting originations to $43.7 billion.
-
net charge-offs, at less than 2%, were contained.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the top risk is credit deterioration in Ally's dealer auto book.
high
dealer auto credit turns
74% of revenue comes from dealer auto finance. if unemployment rises or used-car values weaken, losses show up where Ally makes most of its money.
this segment produced $888M of $1.2B in revenue, so a real credit turn hits the heart of the story.
med
funding costs stay stubborn
with $17.1B of long-term debt and 58% debt-to-capital, Ally is tied to the cost of money. if funding stays expensive, lending spreads have less room for error.
you feel that through weaker profitability even if loan volume holds up.
med
the diversification case is thinner than it sounds
corporate finance contributed $204M, or 17% of sales. that's helpful, but it does not offset a serious wobble in the $888M auto business.
translation: if autos slow down, the smaller segment softens the hit. it does not rewrite it.
med
legal and regulatory detail is thin on this page
there may be litigation or regulatory exposure, but this snapshot does not include quantified settlement data. we are not going to invent precision that isn't here.
that means filings matter more than this section if your thesis depends on a legal surprise.
74% of revenue tied to dealer auto finance and $17.1B of long-term debt means a credit turn would pressure earnings and valuation at the same time.
source: institutional data · regulatory filings · risk analysis
Pay attention to
risk
watch net charge-offs first
below 2% kept the 2025 recovery credible. above that, the low multiple starts reading like a message instead of a bargain.
metric
track auto originations
$43.7B was the 2025 number. if that slips while charge-offs climb, the core lending engine is slowing on both volume and quality.
calendar
next earnings need revenue help
2025 gave you an EPS rebound with quarterly revenue still down 3% from a year ago. you want the top line to stop arguing with the bottom line.
trend
monitor the mix, not just the total
74% of sales comes from dealer auto finance versus 17% from corporate finance. if that gap stays this wide, the stock keeps trading as a credit-cycle name.
Analyst rankings
short-term outlook
below average
momentum score 4 — analysts see below-average performance over the next year. in human-speak, they think the setup needs more proof.
risk profile
average
stability score 3 — middle of the pack. not a bunker stock, not a disaster magnet.
chart momentum
top 5%
technical score 1 is the highest rating. the chart looks stronger than the short-term fundamental rank. same stock, split message.
earnings predictability
45 / 100
earnings are harder to model here than at cleaner financial franchises. expect some noise because credit businesses do not move in straight lines.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 274 buyers vs. 239 sellers in 3q2025. total institutional holdings: 0.3B shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$30
$62
$41
current price
$46
target midpoint · +13% from current · 3-5yr high: $75 (+85% · 18% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive