Ally FinancialXSWX:ALLY +1.01%68 Return-on-Tangible-Equity is 8.26% as of Mar. 2026, which is 5% above its 10-year median of 7.88. 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 525 Credit Services companies, Ally Financial ranks better than 58.48% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Ally Financial's annualized net income for the quarter that ended in Mar. 2026 was CHF1,005 Mil. Ally Financial's average shareholder tangible equity for the quarter that ended in Mar. 2026 was CHF12,169 Mil. Therefore, Ally Financial's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 8.26%.
The historical rank and industry rank for Ally Financial's Return-on-Tangible-Equity or its related term are showing as below:
XSWX:ALLY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 5.09 Med: 7.88 Max: 20.13
Current: 9.43
During the past 13 years, Ally Financial's highest Return-on-Tangible-Equity was 20.13%. The lowest was 5.09%. And the median was 7.88%.
XSWX:ALLY's Return-on-Tangible-Equity is ranked better than 58.48% of 525
companies
in the Credit Services industry
Industry Median: 7.01
vs XSWX:ALLY: 9.43
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Ally Financial Return-on-Tangible-Equity Related Terms
Ally Financial Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Ally Financial's Return-on-Tangible-Equity can be seen below:
* 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.
XSWX:ALLY vs FCFS, KLAR, OMF: Return-on-Tangible-Equity Comparison
For the Credit Services subindustry, Ally Financial's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ally Financial Return-on-Tangible-Equity vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Ally Financial's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Ally Financial's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 8.26% mean?
Ally Financial (XSWX:ALLY) has a Return-on-Tangible-Equity of 8.26% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Ally Financial and its competitors. This is near median its historical median of 7.88. Over the past decade, Ally Financial's Return-on-Tangible-Equity has ranged from 5.09 to 20.13. According to the industry distribution chart, Ally Financial ranks #218 out of 525 companies in the Credit Services industry, placing it in the top 41.5%.
Is Ally Financial's Return-on-Tangible-Equity too high?
Ally Financial's current Return-on-Tangible-Equity of 8.26% is near median its 10-year median of 7.88. Over the past 10 years, this metric has ranged from a low of 5.09 to a high of 20.13. The Credit Services industry median Return-on-Tangible-Equity is 7.01. Ally Financial's value of 8.26% is 17.8% above this industry median. Based on the distribution chart, Ally Financial ranks #218 out of 525 companies in the Credit Services industry, which is above the industry midpoint. 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 Return-on-Tangible-Equity compare to FCFS and KLAR?
According to the Credit Services industry distribution chart, Ally Financial ranks #218 out of 525 companies for Return-on-Tangible-Equity. This puts Ally Financial in the upper half of its industry. The industry median Return-on-Tangible-Equity is 7.01. Ally Financial's value of 8.26% is 17.8% above this benchmark. Historically, Ally Financial's own Return-on-Tangible-Equity has ranged from 5.09 to 20.13 over the past decade. While the company's 10-year median is 7.88 vs. the industry median of 7.01, Ally Financial has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Credit Services company?
The median Return-on-Tangible-Equity among Credit Services companies is 7.01, based on 525 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ally Financial's current Return-on-Tangible-Equity of 8.26% is 17.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Ally Financial and its competitors. For the Credit Services industry, the median Return-on-Tangible-Equity is 7.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ally Financial's current Return-on-Tangible-Equity is 8.26%, which is near median its own 10-year median of 7.88. 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 Return-on-Tangible-Equity of 8.26%. 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 Return-on-Tangible-Equity is 8.26%, which is near median its 10-year median of 7.88 and 17.8% above the Credit Services industry median of 7.01. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Ally Financial (XSWX:ALLY), the current Return-on-Tangible-Equity is 8.26% as of Mar. 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:
Return-on-Tangible-Equity: 8.26% (near median its 10-year median of 7.88)
GF Value™: CHF31.58 vs. price of CHF37.15 (17.6% above fair value)
Industry Position: 17.8% above the Credit Services median (#218 of 525)
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.
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
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