Ally Financial Inc. Common Stock (ALLY)

FairStock Score: 42/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

At the close on 2026-10-13, FairStock puts Ally's P/E at 8.85 and P/B at 0.85, making it a Graham-style asset play, as FairStock classifies it. The FairStock Graham Number is $69.75, implying a 46.09% margin of safety, and the FCF yield is 6.7%. That looks cheap. But cheapness is not quality. The same data show ROE of 9.68%, ROCE of 0.75%, an Altman Z-Score of 0.06, and a FairStock score of 42/100. In fiscal Q2 2026, the quarter ended 2026-06-30, net income was $410.0M and diluted EPS $1.18, versus net income $352.0M and diluted EPS $1.04 in fiscal Q2 2025, the quarter ended 2025-06-30. Revenue was $310.0M versus $312.0M, so the top line slipped slightly. For FY2025, the year ended 2025-12-31, net income was $852.0M and diluted EPS $2.37, versus FY2024, the year ended 2024-12-31, net income $668.0M and diluted EPS $1.80. Profit is improving, and a 6/9 Piotroski F-Score is passable. The business mix—auto finance, insurance, and corporate finance—is understandable, but the return metrics do not prove a wide moat. Still, a lender's low price-to-book can be a value trap if the low return and weak Z-score reflect real balance-sheet fragility. I see an asset play, not a fortress. The stock is statistically cheap, but it needs better returns and balance-sheet strength before I would call it a high-quality compounder.

In plain English: Ally is a digital financial company that mainly makes auto loans and provides dealer financing, insurance, and corporate finance. In its latest filed quarter, profit rose from a year earlier even though revenue slipped a little, and full-year profit also improved. At $37.60, the stock looks cheap compared with its profits and the value of its assets, but low return measures and a weak balance-sheet score mean this is not a clean or obviously strong business.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer