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SYNCHRONY FINANCIAL (SYF) Stock Fundamental Analysis

NYSE:SYF - New York Stock Exchange, Inc. - US87165B1035 - Common Stock - Currency: USD

61.45  +1.17 (+1.94%)

After market: 61.5 +0.05 (+0.08%)

Fundamental Rating

4

SYF gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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3

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.
SYF Yearly Net Income VS EBIT VS OCF VS FCFSYF Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

1.2 Ratios

SYF has a Return On Assets (2.36%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 17.38%, SYF is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
Industry RankSector 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
SYF Yearly ROA, ROE, ROICSYF Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

With a decent Profit Margin value of 15.50%, SYF is doing good in the industry, outperforming 69.23% 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 RankSector 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
SYF Yearly Profit, Operating, Gross MarginsSYF Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

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4

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.
Compared to 1 year ago, SYF has an improved debt to assets ratio.
SYF Yearly Shares OutstandingSYF Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M
SYF Yearly Total Debt VS Total AssetsSYF Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

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 84.62% of the companies in the same industry.
SYF has a Debt/Equity ratio of 1.03. This is a high value indicating a heavy dependency on external financing.
With a decent Debt to Equity ratio value of 1.03, SYF is doing good in the industry, outperforming 61.54% of the companies in the same 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 RankSector Rank
Debt/Equity 1.03
Debt/FCF 1.74
Altman-Z N/A
ROIC/WACCN/A
WACC15.44%
SYF Yearly LT Debt VS Equity VS FCFSYF Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
SYF Yearly Current Assets VS Current LiabilitesSYF Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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2

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 4.59% over the past year.
The Earnings Per Share has been growing by 14.76% on average over the past years. This is quite good.
The Revenue has decreased by -0.81% in the past year.
SYF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.61% yearly.
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-8.6%
EPS Next 2Y1.32%
EPS Next 3Y6.83%
EPS Next 5Y-3.9%
Revenue Next Year4.35%
Revenue Next 2Y4.82%
Revenue Next 3Y6.37%
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.
SYF Yearly Revenue VS EstimatesSYF Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5B 10B 15B 20B
SYF Yearly EPS VS EstimatesSYF Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6 8 10

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5

4. Valuation

4.1 Price/Earnings Ratio

SYF is valuated reasonably with a Price/Earnings ratio of 8.43.
Based on the Price/Earnings ratio, SYF is valued a bit cheaper than 67.31% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.34, SYF is valued rather cheaply.
The Price/Forward Earnings ratio is 7.01, which indicates a rather cheap valuation of SYF.
65.38% of the companies in the same industry are more expensive than SYF, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, SYF is valued rather cheaply.
Industry RankSector Rank
PE 8.43
Fwd PE 7.01
SYF Price Earnings VS Forward Price EarningsSYF Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

SYF's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SYF is cheaper than 76.92% of the companies in the same industry.
Industry RankSector Rank
P/FCF 2.39
EV/EBITDA N/A
SYF Per share dataSYF EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)0.57
EPS Next 2Y1.32%
EPS Next 3Y6.83%

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6

5. Dividend

5.1 Amount

SYF has a Yearly Dividend Yield of 1.95%.
Compared to an average industry Dividend Yield of 3.90, SYF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, SYF has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.95%

5.2 History

On average, the dividend of SYF grows each year by 6.31%, which is quite nice.
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
SYF Yearly Dividends per shareSYF Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.2 0.4 0.6 0.8

5.3 Sustainability

SYF pays out 16.49% of its income as dividend. This is a sustainable payout ratio.
DP16.49%
EPS Next 2Y1.32%
EPS Next 3Y6.83%
SYF Yearly Income VS Free CF VS DividendSYF Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B
SYF Dividend Payout.SYF Dividend Payout, showing the Payout Ratio.SYF Dividend Payout.PayoutRetained Earnings

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SYNCHRONY FINANCIAL

NYSE:SYF (6/18/2025, 8:04:00 PM)

After market: 61.5 +0.05 (+0.08%)

61.45

+1.17 (+1.94%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)04-22 2025-04-22/bmo
Earnings (Next)07-15 2025-07-15/amc
Inst Owners102.18%
Inst Owner Change0.39%
Ins Owners0.28%
Ins Owner Change2.06%
Market Cap23.39B
Analysts77.69
Price Target65.78 (7.05%)
Short Float %4.08%
Short Ratio3.57
Dividend
Industry RankSector Rank
Dividend Yield 1.95%
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)3.78%
PT rev (3m)-16.99%
EPS NQ rev (1m)-1.23%
EPS NQ rev (3m)-11.99%
EPS NY rev (1m)0%
EPS NY rev (3m)1.8%
Revenue NQ rev (1m)0.31%
Revenue NQ rev (3m)-2.18%
Revenue NY rev (1m)1.33%
Revenue NY rev (3m)-1.29%
Valuation
Industry RankSector Rank
PE 8.43
Fwd PE 7.01
P/S 1.26
P/FCF 2.39
P/OCF 2.39
P/B 1.41
P/tB 1.62
EV/EBITDA N/A
EPS(TTM)7.29
EY11.86%
EPS(NY)8.77
Fwd EY14.27%
FCF(TTM)25.74
FCFY41.9%
OCF(TTM)25.74
OCFY41.9%
SpS48.82
BVpS43.56
TBVpS37.99
PEG (NY)N/A
PEG (5Y)0.57
Profitability
Industry RankSector 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 RankSector 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
WACC15.44%
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-8.6%
EPS Next 2Y1.32%
EPS Next 3Y6.83%
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 2Y4.82%
Revenue Next 3Y6.37%
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%