SYF Fundamental Analysis - SYNCHRONY FINANCIAL

Fundamental Rating

Taking everything into account, SYF scores 4 out of 10 in our fundamental rating. SYF was compared to 52 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 it does not seem to be growing.

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1. Profitability

1.1 Basic Checks

In the past year SYF was profitable.

SYF had a positive operating cash flow in the past year.

Each year in the past 5 years SYF has been profitable.

Each year in the past 5 years SYF had a positive operating cash flow.

1.2 Ratios

The Return On Assets of SYF (2.36%) is comparable to the rest of the industry.

The Return On Equity of SYF (17.38%) is better than 76.92% of its industry peers.

		Industry Rank	Sector Rank
ROA	2.36%
ROE	17.38%
ROIC	N/A

ROA(3y)2.53%

ROA(5y)2.67%

ROE(3y)19.86%

ROE(5y)20.15%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

SYF's Profit Margin of 15.50% is fine compared to the rest of the industry. SYF outperforms 69.23% 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)	15.5%
GM	N/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3Y-14.82%

PM growth 5Y-4.27%

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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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.

The debt/assets ratio for SYF has been reduced compared to a year ago.

2.2 Solvency

SYF has a debt to FCF ratio of 1.74. This is a very positive value and a sign of high solvency as it would only need 1.74 years to pay back of all of its debts.

Looking at the Debt to FCF ratio, with a value of 1.74, SYF belongs to the top of the industry, outperforming 86.54% of the companies in the same industry.

A Debt/Equity ratio of 1.03 is on the high side and indicates that SYF has dependencies on debt financing.

SYF has a Debt to Equity ratio of 1.03. This is in the better half of the industry: SYF outperforms 61.54% of its industry peers.

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	1.03
Debt/FCF	1.74
Altman-Z	N/A

ROIC/WACCN/A

WACC15.13%

2.3 Liquidity

		Industry Rank	Sector Rank
Current Ratio	N/A
Quick Ratio	N/A

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

SYF shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.59%.

Measured over the past years, SYF shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.76% on average per year.

Looking at the last year, SYF shows a decrease in Revenue. The Revenue has decreased by -0.81% in the last year.

The Revenue has been growing slightly by 2.61% on average over the past years.

EPS 1Y (TTM)4.59%

EPS 3Y5.22%

EPS 5Y14.76%

EPS Q2Q%-39.81%

Revenue 1Y (TTM)-0.81%

Revenue growth 3Y9.89%

Revenue growth 5Y2.61%

Sales Q2Q%1.34%

3.2 Future

The Earnings Per Share is expected to decrease by -3.90% on average over the next years.

SYF is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.35% yearly.

EPS Next Y-9.19%

EPS Next 2Y0.75%

EPS Next 3Y5.08%

EPS Next 5Y-3.9%

Revenue Next Year4.35%

Revenue Next 2Y4.79%

Revenue Next 3Y5.94%

Revenue Next 5Y-0.35%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 9.35, which indicates a very decent valuation of SYF.

Compared to the rest of the industry, the Price/Earnings ratio of SYF indicates a somewhat cheap valuation: SYF is cheaper than 65.38% of the companies listed in the same industry.

SYF is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.

With a Price/Forward Earnings ratio of 7.86, the valuation of SYF can be described as very cheap.

SYF's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. SYF is cheaper than 67.31% of the companies in the same industry.

The average S&P500 Price/Forward Earnings ratio is at 21.70. SYF is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	9.35
Fwd PE	7.86

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, SYF is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	2.65
EV/EBITDA	N/A

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)0.63

EPS Next 2Y0.75%

EPS Next 3Y5.08%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.82%, SYF has a reasonable but not impressive dividend return.

Compared to an average industry Dividend Yield of 3.66, SYF pays a bit more dividend than its industry peers.

SYF's Dividend Yield is slightly below the S&P500 average, which is at 2.42.

		Industry Rank	Sector Rank
Dividend Yield	1.82%

5.2 History

The dividend of SYF is nicely growing with an annual growth rate of 6.31%!

SYF has been paying a dividend for at least 10 years, so it has a reliable track record.

SYF has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.

Dividend Growth(5Y)6.31%

Div Incr Years3

Div Non Decr Years8

5.3 Sustainability

SYF pays out 16.49% of its income as dividend. This is a sustainable payout ratio.

DP16.49%

EPS Next 2Y0.75%

EPS Next 3Y5.08%

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SYNCHRONY FINANCIAL

NYSE:SYF (7/1/2025, 9:10:34 PM)

Premarket: 68.5 +0.33 (+0.48%)

68.17

+1.43 (+2.14%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupFinancial Services

GICS IndustryConsumer Finance

Earnings (Last)04-22 2025-04-22/bmo

Earnings (Next)07-22 2025-07-22/amc

Inst Owners102.18%

Inst Owner Change0.39%

Ins Owners0.28%

Ins Owner Change1.77%

Market Cap25.95B

Analysts77.69

Price Target66.03 (-3.14%)

Short Float %4.09%

Short Ratio4.11

Dividend

		Industry Rank	Sector Rank
Dividend Yield	1.82%

Yearly Dividend1.18

Dividend Growth(5Y)6.31%

DP16.49%

Div Incr Years3

Div Non Decr Years8

Ex-Date05-05 2025-05-05 (0.3)

Surprises & Revisions

EPS beat(2)1

Avg EPS beat(2)4.93%

Min EPS beat(2)-2.01%

Max EPS beat(2)11.87%

EPS beat(4)3

Avg EPS beat(4)7.68%

Min EPS beat(4)-2.01%

Max EPS beat(4)13.72%

EPS beat(8)7

Avg EPS beat(8)22.24%

EPS beat(12)10

Avg EPS beat(12)16.55%

EPS beat(16)13

Avg EPS beat(16)18.05%

Revenue beat(2)1

Avg Revenue beat(2)-1.12%

Min Revenue beat(2)-3.08%

Max Revenue beat(2)0.83%

Revenue beat(4)2

Avg Revenue beat(4)-0.32%

Min Revenue beat(4)-3.08%

Max Revenue beat(4)1.63%

Revenue beat(8)2

Avg Revenue beat(8)-0.89%

Revenue beat(12)5

Avg Revenue beat(12)0.2%

Revenue beat(16)8

Avg Revenue beat(16)1%

PT rev (1m)4.18%

PT rev (3m)-15.47%

EPS NQ rev (1m)-1.51%

EPS NQ rev (3m)-11.81%

EPS NY rev (1m)-0.64%

EPS NY rev (3m)0.49%

Revenue NQ rev (1m)0.31%

Revenue NQ rev (3m)-2.49%

Revenue NY rev (1m)1.33%

Revenue NY rev (3m)-1.29%

Valuation

		Industry Rank	Sector Rank
PE	9.35
Fwd PE	7.86
P/S	1.4
P/FCF	2.65
P/OCF	2.65
P/B	1.57
P/tB	1.79
EV/EBITDA	N/A

EPS(TTM)7.29

EY10.69%

EPS(NY)8.67

Fwd EY12.72%

FCF(TTM)25.74

FCFY37.77%

OCF(TTM)25.74

OCFY37.77%

SpS48.82

BVpS43.56

TBVpS37.99

PEG (NY)N/A

PEG (5Y)0.63

Profitability

		Industry Rank	Sector Rank
ROA	2.36%
ROE	17.38%
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	N/A
PM (TTM)	15.5%
GM	N/A
FCFM	52.74%

ROA(3y)2.53%

ROA(5y)2.67%

ROE(3y)19.86%

ROE(5y)20.15%

ROIC(3y)N/A

ROIC(5y)N/A

ROICexc(3y)N/A

ROICexc(5y)N/A

ROICexgc(3y)N/A

ROICexgc(5y)N/A

ROCE(3y)N/A

ROCE(5y)N/A

ROICexcg growth 3YN/A

ROICexcg growth 5YN/A

ROICexc growth 3YN/A

ROICexc growth 5YN/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3Y-14.82%

PM growth 5Y-4.27%

GM growth 3YN/A

GM growth 5YN/A

F-Score6

Asset Turnover0.15

Health

		Industry Rank	Sector Rank
Debt/Equity	1.03
Debt/FCF	1.74
Debt/EBITDA	N/A
Cap/Depr	N/A
Cap/Sales	N/A
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	340.16%
Current Ratio	N/A
Quick Ratio	N/A
Altman-Z	N/A

F-Score6

WACC15.13%

ROIC/WACCN/A

Cap/Depr(3y)N/A

Cap/Depr(5y)N/A

Cap/Sales(3y)N/A

Cap/Sales(5y)N/A

Profit Quality(3y)301.25%

Profit Quality(5y)326.22%

High Growth Momentum

Growth

EPS 1Y (TTM)4.59%

EPS 3Y5.22%

EPS 5Y14.76%

EPS Q2Q%-39.81%

EPS Next Y-9.19%

EPS Next 2Y0.75%

EPS Next 3Y5.08%

EPS Next 5Y-3.9%

Revenue 1Y (TTM)-0.81%

Revenue growth 3Y9.89%

Revenue growth 5Y2.61%

Sales Q2Q%1.34%

Revenue Next Year4.35%

Revenue Next 2Y4.79%

Revenue Next 3Y5.94%

Revenue Next 5Y-0.35%

EBIT growth 1YN/A

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next Year-70.28%

EBIT Next 3YN/A

EBIT Next 5YN/A

FCF growth 1Y36.41%

FCF growth 3Y11.53%

FCF growth 5Y1.84%

OCF growth 1Y36.41%

OCF growth 3Y11.53%

OCF growth 5Y1.84%

SYNCHRONY FINANCIAL (SYF) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens