Ally Financial Inc. (ALLY): fair value, margin of safety and Wheel Score

Is ALLY undervalued?

At 37.73 (close of 16 Oct 2026), ALLY trades 47% below the GLS average fair value of 71.73. That average comes from 7 models run on the latest filings, and 5 of them land above the current price. Margins of safety over 30% are the exception rather than the rule across the ~7,400 stocks we value each night, so the number earns Ally Financial Inc. the full Value points in the Wheel Score - and a closer look at what the market is pricing in.

The 7 models disagree widely: GLS Growth gives 13.80 while Graham Growth gives 193.40. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.

The nightly engine files ALLY under Value: positive earnings at a P/E of 18 or less.

Nine valuation models for ALLY

Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.

Quality and financial health

On financial health ALLY scores 7/9 (Piotroski): most of the nine tests - positive earnings and cash flow, falling debt, rising margins and turnover - are passed, which is the kind of balance sheet a wheel trader is happy to be assigned. The GLS Moat score is low at 3.7 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.

Returns on capital are thin or negative - ROIC 2.3%, ROE 5.5%, ROA 0.4% - with debt at 1.40 times equity and negative free cash flow.

The dividend yield is 3.18% at a payout ratio of 34%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Noninsurance Contracts 79%, Remarketing Activities 10%, Brokerage Commissions and Other 6% (quarter Q2 FY2026).

Institutional ownership scores 10/10, insider activity 3/10 and Congressional trading 10/10 on the GLS smart-money scales; the last recorded insider buy was on 30 Sep 2026.

Wheel Score 86: Prime

ALLY scores 86 out of 100 on the Wheel Score, in the Prime band (80 and above), which fewer than one stock in twenty reaches on any night. The score blends five things a wheel trader checks before selling a cash-secured put: the margin of safety (Value, 25/25), Piotroski health (16/20), the GLS moat (6/15), the option premium on offer (20/20) and how easily the stock trades (20/20).

Implied volatility is 37% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. The option chain is deep: 81,614 contracts of open interest across all expiries, which means tight fills at most strikes.

Volume runs at 4.0M shares a day on a market cap of $11.5B, with a beta of 1.10; the Stability part of the Wheel Score gives that 20 of 20.

The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.

Upcoming events

Ally Financial Inc. reports earnings on 16 Oct 2026 (before the open) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.

Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.

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The 12 companies below are the closest to Ally Financial Inc. by market cap within the Financial - Credit Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.

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