Ally Financial Inc (ALLY, Financial) has experienced a notable fluctuation in its stock price recently. With a current market capitalization of $11.87 billion, the stock is trading at $39.04. Over the past week, the company's stock price has seen a decline of 4.28%. However, looking at a broader time frame, Ally Financial has gained 12.33% over the past three months. According to GuruFocus' valuation metrics, the stock is currently fairly valued, with a GF Value of $37.31. This is a shift from three months ago when the stock was considered modestly undervalued with a past GF Value of $44.18.
Introduction to Ally Financial Inc
Ally Financial Inc, operating within the credit services industry, is a diversified financial services company with a strong emphasis on auto lending. Since its separation from General Motors in 2014, Ally Financial has grown to become one of the largest consumer auto lenders in the United States. Over 70% of its loan portfolio is dedicated to consumer auto loans and dealer financing. Additionally, Ally offers a suite of services including auto insurance, commercial loans, credit cards, and a collection of mortgage debt. The company's diversified business model also encompasses brokerage services. 
Assessing Profitability
Ally Financial's Profitability Rank stands at 5/10, indicating a moderate level of profitability within the industry. The company's ROE is 7.69%, which is better than 55.75% of its competitors. Its ROA is 0.52%, surpassing 34.94% of competitors. Impressively, Ally Financial has maintained profitability for the past 10 years, a feat better than 99.81% of its peers. 
Growth Prospects of Ally Financial
The company's Growth Rank is 6/10, reflecting a solid trajectory in revenue and profitability. Ally Financial's 3-Year Revenue Growth Rate per Share is 14.40%, outperforming 67.69% of its industry counterparts. The 5-Year Revenue Growth Rate per Share is also strong at 14.30%, better than 73.79% of competitors. However, the estimated Total Revenue Growth Rate for the next 3 to 5 years is a modest 1.30%, which is still better than 14.14% of competitors. The 3-Year EPS without NRI Growth Rate shows a decline of -1.50%, yet this is better than 33.84% of competitors. The 5-Year EPS without NRI Growth Rate is more positive at 4.60%, surpassing 45.3% of competitors. The future EPS Growth Rate for the next 3 to 5 years is projected at -3.60%, which is still better than 17.39% of competitors. 
Notable Shareholders in Ally Financial
Ally Financial's shareholder base includes some prominent investors. Warren Buffett (Trades, Portfolio) is the leading holder with 29,000,000 shares, representing a 9.59% share percentage. Bill Nygren (Trades, Portfolio) follows with 11,959,100 shares, accounting for 3.93% of shares. Louis Moore Bacon (Trades, Portfolio) also holds a significant stake with 3,554,231 shares, equating to 1.18% of the company.
Competitive Landscape
When compared to its competitors, Ally Financial holds a strong market position. SoFi Technologies Inc (SOFI, Financial) has a market cap of $7.54 billion, Blue Owl Capital Corp (OBDC, Financial) is valued at $5.99 billion, and Credit Acceptance Corp (CACC, Financial) stands at $6.6 billion. Ally Financial's larger market cap suggests a more dominant presence in the industry relative to these competitors.
Conclusion
In summary, Ally Financial Inc's stock has demonstrated resilience with a significant 12.33% gain over the past three months, despite a recent weekly dip. The company is currently fairly valued according to the GF Value, and its profitability and growth metrics suggest a stable financial standing. The investments by major holders like Warren Buffett (Trades, Portfolio) underscore confidence in the company's prospects. Compared to its competitors, Ally Financial maintains a strong market position, which may continue to attract investor interest and potentially drive further stock performance.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
