SYNCHRONY FINANCIAL (SYF) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:SYF - US87165B1035 - Common Stock
86.01 USD
-0.05 (-0.06%)
86.01 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to SYF. SYF was compared to 56 industry peers in the Consumer Finance industry. SYF has only an average score on both its financial health and 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
In the past year SYF was profitable.
In the past year SYF had a positive cash flow from operations.
In the past 5 years SYF has always been profitable.
Each year in the past 5 years SYF had a positive operating cash flow.
1.2 Ratios
SYF has a better Return On Assets (2.99%) than 62.50% of its industry peers.
With a decent Return On Equity value of 20.46%, SYF is doing good in the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.99% | ||
| ROE | 20.46% | ||
| 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
With a decent Profit Margin value of 18.56%, SYF is doing good in the industry, outperforming 73.21% of the companies in the same industry.
SYF's Profit Margin has declined in the last couple of years.
SYF does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | 18.56% | ||
| 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
2. Health
2.1 Basic Checks
SYF does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, SYF has less shares outstanding
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 1.48. This is a very positive value and a sign of high solvency as it would only need 1.48 years to pay back of all of its debts.
SYF's Debt to FCF ratio of 1.48 is amongst the best of the industry. SYF outperforms 89.29% of its industry peers.
SYF has a Debt/Equity ratio of 0.85. This is a neutral value indicating SYF is somewhat dependend on debt financing.
SYF has a better Debt to Equity ratio (0.85) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 1.48 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC15.58%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
SYF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.58%, which is quite good.
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 -2.74% in the last year.
Measured over the past years, SYF shows a small growth in Revenue. The Revenue has been growing by 2.61% on average per year.
EPS 1Y (TTM)19.58%
EPS 3Y5.22%
EPS 5Y14.76%
EPS Q2Q%47.42%
Revenue 1Y (TTM)-2.74%
Revenue growth 3Y9.89%
Revenue growth 5Y2.61%
Sales Q2Q%2.41%
3.2 Future
The Earnings Per Share is expected to decrease by -3.90% on average over the next years.
The Revenue is expected to decrease by -0.35% on average over the next years.
EPS Next Y10.23%
EPS Next 2Y4.71%
EPS Next 3Y6.93%
EPS Next 5Y-3.9%
Revenue Next Year0.83%
Revenue Next 2Y2.78%
Revenue Next 3Y1.89%
Revenue Next 5Y-0.35%
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
Based on the Price/Earnings ratio of 9.39, the valuation of SYF can be described as reasonable.
Based on the Price/Earnings ratio, SYF is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
SYF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.57.
With a Price/Forward Earnings ratio of 9.19, the valuation of SYF can be described as very reasonable.
Based on the Price/Forward Earnings ratio, SYF is valued a bit cheaper than 60.71% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of SYF to the average of the S&P500 Index (24.04), we can say SYF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 9.19 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, SYF is valued a bit cheaper than 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.18 | ||
| 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)0.92
PEG (5Y)0.64
EPS Next 2Y4.71%
EPS Next 3Y6.93%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.39%, SYF has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.35, SYF pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 1.88, SYF is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
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.
As SYF did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)6.31%
Div Incr Years3
Div Non Decr Years8
5.3 Sustainability
SYF pays out 14.35% of its income as dividend. This is a sustainable payout ratio.
DP14.35%
EPS Next 2Y4.71%
EPS Next 3Y6.93%
86.01
-0.05 (-0.06%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners106.13%
Inst Owner Change-2.48%
Ins Owners0.28%
Ins Owner Change-0.46%
Market Cap30.98B
Revenue(TTM)18.82B
Net Income(TTM)3.49B
Analysts78.52
Price Target88.55 (2.95%)
Short Float %5.33%
Short Ratio5.42
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend1.18
Dividend Growth(5Y)6.31%
DP14.35%
Div Incr Years3
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)34.51%
Min EPS beat(2)27.28%
Max EPS beat(2)41.74%
EPS beat(4)3
Avg EPS beat(4)19.72%
Min EPS beat(4)-2.01%
Max EPS beat(4)41.74%
EPS beat(8)7
Avg EPS beat(8)29.91%
EPS beat(12)10
Avg EPS beat(12)20.91%
EPS beat(16)13
Avg EPS beat(16)17.52%
Revenue beat(2)1
Avg Revenue beat(2)0.12%
Min Revenue beat(2)-0.4%
Max Revenue beat(2)0.65%
Revenue beat(4)2
Avg Revenue beat(4)-0.47%
Min Revenue beat(4)-2.98%
Max Revenue beat(4)0.83%
Revenue beat(8)3
Avg Revenue beat(8)-0.5%
Revenue beat(12)4
Avg Revenue beat(12)-0.37%
Revenue beat(16)8
Avg Revenue beat(16)0.97%
PT rev (1m)0.44%
PT rev (3m)3.48%
EPS NQ rev (1m)-0.73%
EPS NQ rev (3m)-2.68%
EPS NY rev (1m)0.11%
EPS NY rev (3m)7.85%
Revenue NQ rev (1m)-0.19%
Revenue NQ rev (3m)-3.16%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 9.19 | ||
| P/S | 1.65 | ||
| P/FCF | 3.18 | ||
| P/OCF | 3.18 | ||
| P/B | 1.82 | ||
| P/tB | 2.08 | ||
| EV/EBITDA | N/A |
EPS(TTM)9.16
EY10.65%
EPS(NY)9.36
Fwd EY10.89%
FCF(TTM)27.07
FCFY31.47%
OCF(TTM)27.07
OCFY31.47%
SpS52.25
BVpS47.38
TBVpS41.32
PEG (NY)0.92
PEG (5Y)0.64
Graham Number98.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.99% | ||
| ROE | 20.46% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 18.56% | ||
| GM | N/A | ||
| FCFM | 51.81% |
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
ROICexgc growth 3YN/A
ROICexgc 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-Score8
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | 1.48 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 279.21% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC15.58%
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)19.58%
EPS 3Y5.22%
EPS 5Y14.76%
EPS Q2Q%47.42%
EPS Next Y10.23%
EPS Next 2Y4.71%
EPS Next 3Y6.93%
EPS Next 5Y-3.9%
Revenue 1Y (TTM)-2.74%
Revenue growth 3Y9.89%
Revenue growth 5Y2.61%
Sales Q2Q%2.41%
Revenue Next Year0.83%
Revenue Next 2Y2.78%
Revenue Next 3Y1.89%
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 1Y20.03%
FCF growth 3Y11.53%
FCF growth 5Y1.84%
OCF growth 1Y20.03%
OCF growth 3Y11.53%
OCF growth 5Y1.84%
SYNCHRONY FINANCIAL / SYF FAQ
What is the fundamental rating for SYF stock?
ChartMill assigns a fundamental rating of 4 / 10 to SYF.
What is the valuation status of SYNCHRONY FINANCIAL (SYF) stock?
ChartMill assigns a valuation rating of 6 / 10 to SYNCHRONY FINANCIAL (SYF). This can be considered as Fairly Valued.
Can you provide the profitability details for SYNCHRONY FINANCIAL?
SYNCHRONY FINANCIAL (SYF) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for SYF stock?
The Price/Earnings (PE) ratio for SYNCHRONY FINANCIAL (SYF) is 9.39 and the Price/Book (PB) ratio is 1.82.
Can you provide the financial health for SYF stock?
The financial health rating of SYNCHRONY FINANCIAL (SYF) is 4 / 10.