SYNCHRONY FINANCIAL (SYF)
US87165B1035 - Common Stock
Overall SYF gets a fundamental rating of 4 out of 10. We evaluated SYF against 51 industry peers in the Consumer Finance industry. While SYF seems to be doing ok healthwise, there are quite some concerns on its profitability. SYF has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
SYF had positive earnings in the past year.
SYF had a positive operating cash flow in the past year.
SYF had positive earnings in each of the past 5 years.
Each year in the past 5 years SYF had a positive operating cash flow.
1.2 Ratios
The Return On Assets of SYF (1.87%) is comparable to the rest of the industry.
SYF has a better Return On Equity (15.80%) than 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.87% | ||
| ROE | 15.8% | ||
| ROIC | N/A |
ROA(3y)3.03%
ROA(5y)2.81%
ROE(3y)23.17%
ROE(5y)20.98%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
SYF has a better Profit Margin (12.70%) than 60.78% of its industry peers.
In the last couple of years the Profit Margin of SYF has declined.
The Operating Margin and Gross Margin are not available for SYF so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 12.7% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y11.88%
PM growth 5Y-5.69%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
SYF does not have a ROIC to compare to the WACC, probably because it is not profitable.
SYF has less shares outstanding than it did 1 year ago.
SYF has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SYF has a worse debt to assets ratio.
2.2 Solvency
SYF has a debt to FCF ratio of 1.86. This is a very positive value and a sign of high solvency as it would only need 1.86 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.86, SYF belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
A Debt/Equity ratio of 1.15 is on the high side and indicates that SYF has dependencies on debt financing.
SYF has a Debt to Equity ratio (1.15) which is comparable to the rest of the industry.
Even though the debt/equity ratio score it not favorable for SYF, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | 1.86 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC14.45%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for SYF have decreased strongly by -15.08% in the last year.
Measured over the past 5 years, SYF shows a small growth in Earnings Per Share. The EPS has been growing by 6.67% on average per year.
The Revenue has grown by 8.02% in the past year. This is quite good.
Measured over the past years, SYF shows a small growth in Revenue. The Revenue has been growing by 1.08% on average per year.
EPS 1Y (TTM)-15.08%
EPS 3Y29.59%
EPS 5Y6.67%
EPS growth Q2Q-18.25%
Revenue 1Y (TTM)8.02%
Revenue growth 3Y5.3%
Revenue growth 5Y1.08%
Revenue growth Q2Q9.7%
3.2 Future
The Earnings Per Share is expected to grow by 1.34% on average over the next years.
Based on estimates for the next years, SYF will show a decrease in Revenue. The Revenue will decrease by -1.94% on average per year.
EPS Next Y9.4%
EPS Next 2Y8.03%
EPS Next 3Y10.88%
EPS Next 5Y1.34%
Revenue Next Year7.98%
Revenue Next 2Y6.95%
Revenue Next 3Y2.23%
Revenue Next 5Y-1.94%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 7.96, the valuation of SYF can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of SYF indicates a somewhat cheap valuation: SYF is cheaper than 66.67% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SYF to the average of the S&P500 Index (24.83), we can say SYF is valued rather cheaply.
The Price/Forward Earnings ratio is 7.28, which indicates a rather cheap valuation of SYF.
Based on the Price/Forward Earnings ratio, SYF is valued a bit cheaper than the industry average as 74.51% of the companies are valued more expensively.
SYF is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.96 | ||
| Fwd PE | 7.28 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of SYF indicates a somewhat cheap valuation: SYF is cheaper than 74.51% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 1.95 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
SYF's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.85
PEG (5Y)1.19
EPS Next 2Y8.03%
EPS Next 3Y10.88%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.42%, SYF has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.20, SYF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, SYF has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
5.2 History
The dividend of SYF is nicely growing with an annual growth rate of 8.15%!
SYF has been paying a dividend for over 5 years, so it has already some track record.
SYF has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)8.15%
Div Incr Years2
Div Non Decr Years7
5.3 Sustainability
20.40% of the earnings are spent on dividend by SYF. This is a low number and sustainable payout ratio.
The dividend of SYF is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP20.4%
EPS Next 2Y8.03%
EPS Next 3Y10.88%
SYNCHRONY FINANCIAL
NYSE:SYF (4/18/2024, 11:32:09 AM)
41.25
+1.57 (+3.96%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap16.78B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.42% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.96 | ||
| Fwd PE | 7.28 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.85
PEG (5Y)1.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.87% | ||
| ROE | 15.8% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | 12.7% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.15 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-15.08%
EPS 3Y29.59%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.4%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.02%
Revenue growth 3Y5.3%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y