Ally Financial (XSWX:ALLY) Beneish M-Score: -3.00 (As of Jun. 25, 2026)


XSWX:ALLY Ally Financial Inc XSWX:ALLY
68 GF Score
Price CHF37.15
GF Value CHF31.58
! 8 Warning Signs
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What is Ally Financial Beneish M-Score?

Ally Financial XSWX:ALLY +1.01% 68 Beneish M-Score is -3.00 as of Jun. 25, 2026. GuruFocus rates XSWX:ALLY with a GF Score™ of 68/100 and a GF Value™ of CHF31.58. The stock has 8 warning signs investors should review. Among 483 Credit Services companies, Ally Financial ranks better than 85.3% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -3 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Ally Financial's Beneish M-Score or its related term are showing as below:

XSWX:ALLY' s Beneish M-Score Range Over the Past 10 Years
Min: -3   Med: -2.42   Max: 0.58
Current: -3

During the past 13 years, the highest Beneish M-Score of Ally Financial was 0.58. The lowest was -3.00. And the median was -2.42.

XSWX:ALLY
68GF Score
Ally Financial Inc XSWX:ALLY
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Ally Financial Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Ally Financial for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.3881+0.528 * 1+0.404 * 0.9971+0.892 * 1.007+0.115 * 0.9458
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8896+4.679 * -0.014175-0.327 * 1.0332
=-3.10

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was CHF898 Mil.
Revenue was 1852.517 + 1882.278 + 1886.757 + 1856.536 = CHF7,478 Mil.
Gross Profit was 1852.517 + 1882.278 + 1886.757 + 1856.536 = CHF7,478 Mil.
Total Current Assets was CHF0 Mil.
Total Assets was CHF155,310 Mil.
Property, Plant and Equipment(Net PPE) was CHF7,819 Mil.
Depreciation, Depletion and Amortization(DDA) was CHF1,128 Mil.
Selling, General, & Admin. Expense(SGA) was CHF2,632 Mil.
Total Current Liabilities was CHF0 Mil.
Long-Term Debt & Capital Lease Obligation was CHF13,754 Mil.
Net Income was 251.149 + 260.586 + 316.848 + 286.246 = CHF1,115 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = CHF0 Mil.
Cash Flow from Operations was 1079.388 + 510.016 + 956.912 + 770.1 = CHF3,316 Mil.
 Total Receivables was CHF2,296 Mil.
Revenue was 1550.718 + 1997.184 + 1943.477 + 1935.077 = CHF7,426 Mil.
Gross Profit was 1550.718 + 1997.184 + 1943.477 + 1935.077 = CHF7,426 Mil.
Total Current Assets was CHF0 Mil.
Total Assets was CHF170,827 Mil.
Property, Plant and Equipment(Net PPE) was CHF8,120 Mil.
Depreciation, Depletion and Amortization(DDA) was CHF1,100 Mil.
Selling, General, & Admin. Expense(SGA) was CHF2,938 Mil.
Total Current Liabilities was CHF0 Mil.
Long-Term Debt & Capital Lease Obligation was CHF14,642 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(897.522 / 7478.088) / (2296.476 / 7426.456)
=0.12002 / 0.309229
=0.3881

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(7426.456 / 7426.456) / (7478.088 / 7478.088)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 7818.676) / 155309.884) / (1 - (0 + 8120.284) / 170827.272)
=0.949658 / 0.952465
=0.9971

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=7478.088 / 7426.456
=1.007

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(1099.69 / (1099.69 + 8120.284)) / (1128.28 / (1128.28 + 7818.676))
=0.119273 / 0.126108
=0.9458

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(2631.927 / 7478.088) / (2937.977 / 7426.456)
=0.351952 / 0.39561
=0.8896

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((13754.131 + 0) / 155309.884) / ((14642.136 + 0) / 170827.272)
=0.088559 / 0.085713
=1.0332

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(1114.829 - 0 - 3316.416) / 155309.884
=-0.014175

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Ally Financial has a M-score of -3.10 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -3.00 mean?
Ally Financial (XSWX:ALLY) has a Beneish M-Score of -3.00 as of Jun. 25, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Ally Financial and its competitors. According to the industry distribution chart, Ally Financial ranks #71 out of 483 companies in the Credit Services industry, placing it in the top 14.7%.
Is Ally Financial's Beneish M-Score too high?
Ally Financial's current Beneish M-Score is -3.00. Based on the distribution chart, Ally Financial ranks #71 out of 483 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, Ally Financial has a GF Score™ of 68/100, reflecting its overall financial health beyond just this single metric.
How does Ally Financial's Beneish M-Score compare to FCFS and KLAR?
According to the Credit Services industry distribution chart, Ally Financial ranks #71 out of 483 companies for Beneish M-Score. This places Ally Financial in the top 15% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Credit Services company?
A good Beneish M-Score depends on the Credit Services industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Ally Financial and its competitors. Ally Financial's current Beneish M-Score is -3.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ally Financial stock overvalued right now?
Ally Financial (XSWX:ALLY) has a current Beneish M-Score of -3.00. The stock's GF Value™ is CHF31.58, compared to a current price of CHF37.15 — trading 17.6% above its estimated fair value. The current Beneish M-Score is -3.00. Ally Financial's overall GF Score™ is 68/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Ally Financial (XSWX:ALLY), the current Beneish M-Score is -3.00 as of Jun. 25, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Ally Financial (XSWX:ALLY) Overvalued in 2026?

Based on GuruFocus' analysis, Ally Financial stock appears to be overvalued. The current stock price of CHF37.15 is trading 17.6% above its estimated GF Value™ of CHF31.58.

Key valuation signals for XSWX:ALLY:

  • Beneish M-Score: -3.00
  • GF Value™: CHF31.58 vs. price of CHF37.15 (17.6% above fair value)
  • GF Score™: 68/100 with 8 warning signs

No single metric tells the full story. See the XSWX:ALLY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Ally Financial Business Description

Address 500 Woodward Avenue, Floor 10, Ally Detroit Center, Detroit, MI, USA, 48226
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. While the firm has expanded its product offerings over time, it remains primarily focused on auto lending, with more than 70% of its loan book in consumer auto loans and dealer financing. Ally also offers auto insurance, commercial loans, credit cards, and holds a portfolio of mortgage debt, giving the bank a diversified business model that includes brokerage services.
68GF Score

Get the complete analysis for XSWX:ALLY

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF37.15
Price
CHF31.58
GF Value