# Ally Financial Inc. (ALLY) — Stock CV

Ally Financial Inc. is a $11.4B financial services company. Revenue grew 11.0% over the last year, and it keeps 17¢ of every dollar of sales as profit. It trades at 7.9× earnings — around the middle of its own history.

> Formerly the captive financial arm of General Motors, Ally Financial became an independent publicly traded firm in 2014 and is one of the largest consumer auto lenders in the country.

## Identity

- **Ticker**: ALLY
- **Sector**: Financial Services
- **Industry**: State Commercial Banks
- **Headquarters**: DETROIT, MI
- **Employees**: 10 300
- **Website**: https://www.ally.com
- **Market cap**: $11.4B
- **Last price**: $37.59
- **Financial profile**: Mixed

## Vitals (TTM)

- **Revenue**: $8.68B
- **Net income**: $1.45B
- **Free cash flow**: $4.57B
- **Net debt**: $11.7B
- **P/E**: 7.9
- **Revenue growth (YoY)**: 11.0%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 72 |
| Growth | 20 |
| Profitability | 57 |
| Health | 48 |
| Quality | 56 |
| Moat | 18 |

## Qualifications (beginner checklist) — 9 of 11 passed

- [x] Revenue growing — +11.0% YoY
- [x] Profitable — $1.45B TTM
- [ ] Profit growing — -20.3% YoY
- [x] Generates cash — $4.57B TTM
- [x] Debt under control — ~2.6y of cash flow to repay
- [x] Established company — $11.4B market cap
- [x] Not printing shares — -16.9% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [ ] Financially stable — Altman Z 0.0 — distress
- [x] Pays a dividend — yield 4.29%
- [x] Valuation not extreme — P/E 7.9

## Experience (career milestones)

- **FY2021** — Best year on record: $3.06B net income
- **2021** — Ally acquired Fair Square Financial, a credit card company, for $750 million
- **2019** — Ally acquired Health Credit Services, which provided financing for healthcare treatments
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $1B: $5.44B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **2016** — The company acquired TradeKing, a stockbrokerage, for $275 million
- **2015** — It moved its headquarters to One Detroit Center, which was subsequently renamed Ally Detroit Center
- **2014** — It became a public company via an initial public offering
- **2010** — Ally Financial Inc. (known as GMAC until 2010) is an American bank holding company incorporated in Delaware and…
- **2009** — Capmark filed for bankruptcy and its North American loan origination and servicing business was acquired by…
- **2009** — GMAC Bank was rebranded as Ally Bank
- **1999** — GMAC Mortgage acquired Ditech
- **1985** — While GM was under the leadership of Roger Smith, who sought to diversify the company, GMAC formed GMAC…

## Strengths

- Revenue growing 11.0% year over year
- Strong cash conversion — FCF is 52.6% of revenue

## Watch-outs

- Altman Z-Score 0.03 — elevated financial-distress risk
- Net debt would take ~20.0 years of free cash flow to repay

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $8.21B | $3.06B | $4.04B |
| FY2022 | $8.43B | $1.71B | $6.25B |
| FY2023 | $8.21B | $1.02B | $4.66B |
| FY2024 | $8.18B | $668M | $4.53B |
| FY2025 | $7.91B | $852M | $3.73B |

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Source: https://stockcv.com/ALLY — derived from company filings; may be delayed or incomplete. Information, not investment advice.