SYNCHRONY FINANCIAL (SYF) Stock Fundamental Analysis
USA - NYSE:SYF - US87165B1035 - Common Stock
73.59 USD
+0.38 (+0.52%)
73.59 USD
0 (0%)
Taking everything into account, SYF scores 4 out of 10 in our fundamental rating. SYF was compared to 55 industry peers in the Consumer Finance industry. SYF scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. SYF has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
SYF had positive earnings in the past year.
In the past year SYF had a positive cash flow from operations.
SYF had positive earnings in each of the past 5 years.
In the past 5 years SYF always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.66%, SYF perfoms like the industry average, outperforming 58.18% of the companies in the same industry.
With a decent Return On Equity value of 18.89%, SYF is doing good in the industry, outperforming 74.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 18.89% | ||
| 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 17.13%, SYF is doing good in the industry, outperforming 74.55% of the companies in the same industry.
SYF's Profit Margin has declined in the last couple of years.
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) | 17.13% | ||
| 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.
SYF has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, SYF has less shares outstanding
SYF has a better debt/assets ratio than last year.
2.2 Solvency
SYF has a debt to FCF ratio of 1.62. This is a very positive value and a sign of high solvency as it would only need 1.62 years to pay back of all of its debts.
The Debt to FCF ratio of SYF (1.62) is better than 89.09% of its industry peers.
A Debt/Equity ratio of 0.94 indicates that SYF is somewhat dependend on debt financing.
With a decent Debt to Equity ratio value of 0.94, SYF is doing good in the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 1.62 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC16.95%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.58% over the past year.
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.
The Revenue has decreased by -2.74% in the past 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
SYF is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.90% yearly.
The Revenue is expected to decrease by -0.35% on average over the next years.
EPS Next Y7.63%
EPS Next 2Y4.01%
EPS Next 3Y6.29%
EPS Next 5Y-3.9%
Revenue Next Year1.29%
Revenue Next 2Y3.01%
Revenue Next 3Y2.91%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.03 indicates a reasonable valuation of SYF.
69.09% of the companies in the same industry are more expensive than SYF, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.76, SYF is valued rather cheaply.
A Price/Forward Earnings ratio of 7.97 indicates a rather cheap valuation of SYF.
65.45% of the companies in the same industry are more expensive than SYF, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SYF to the average of the S&P500 Index (22.63), we can say SYF is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.03 | ||
| Fwd PE | 7.97 |
4.2 Price Multiples
SYF's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SYF is cheaper than 74.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.68 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.05
PEG (5Y)0.54
EPS Next 2Y4.01%
EPS Next 3Y6.29%
5. Dividend
5.1 Amount
SYF has a Yearly Dividend Yield of 1.64%.
Compared to an average industry Dividend Yield of 4.69, SYF has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.31, SYF is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
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 15.33% of its income as dividend. This is a sustainable payout ratio.
DP15.33%
EPS Next 2Y4.01%
EPS Next 3Y6.29%
73.59
+0.38 (+0.52%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners104.86%
Inst Owner Change0.61%
Ins Owners0.28%
Ins Owner Change-0.44%
Market Cap26.50B
Revenue(TTM)18.82B
Net Income(TTM)3.20B
Analysts78.52
Price Target83.11 (12.94%)
Short Float %4.83%
Short Ratio5.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
Yearly Dividend1.18
Dividend Growth(5Y)6.31%
DP15.33%
Div Incr Years3
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.81%
Min EPS beat(2)11.87%
Max EPS beat(2)41.74%
EPS beat(4)3
Avg EPS beat(4)14.69%
Min EPS beat(4)-2.01%
Max EPS beat(4)41.74%
EPS beat(8)7
Avg EPS beat(8)26.82%
EPS beat(12)10
Avg EPS beat(12)19.11%
EPS beat(16)13
Avg EPS beat(16)17.76%
Revenue beat(2)1
Avg Revenue beat(2)-1.17%
Min Revenue beat(2)-2.98%
Max Revenue beat(2)0.65%
Revenue beat(4)3
Avg Revenue beat(4)0.03%
Min Revenue beat(4)-2.98%
Max Revenue beat(4)1.63%
Revenue beat(8)3
Avg Revenue beat(8)-0.66%
Revenue beat(12)5
Avg Revenue beat(12)-0.25%
Revenue beat(16)9
Avg Revenue beat(16)1.24%
PT rev (1m)0.65%
PT rev (3m)11.13%
EPS NQ rev (1m)1.5%
EPS NQ rev (3m)3.06%
EPS NY rev (1m)5.11%
EPS NY rev (3m)17.65%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)1.02%
Revenue NY rev (3m)-2.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.03 | ||
| Fwd PE | 7.97 | ||
| P/S | 1.42 | ||
| P/FCF | 2.68 | ||
| P/OCF | 2.68 | ||
| P/B | 1.56 | ||
| P/tB | 1.79 | ||
| EV/EBITDA | N/A |
EPS(TTM)9.16
EY12.45%
EPS(NY)9.24
Fwd EY12.55%
FCF(TTM)27.43
FCFY37.27%
OCF(TTM)27.43
OCFY37.27%
SpS51.93
BVpS47.08
TBVpS41.14
PEG (NY)1.05
PEG (5Y)0.54
Graham Number98.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 18.89% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 17.13% | ||
| GM | N/A | ||
| FCFM | 52.81% |
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-Score7
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.94 | ||
| Debt/FCF | 1.62 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 308.34% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC16.95%
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 Y7.63%
EPS Next 2Y4.01%
EPS Next 3Y6.29%
EPS Next 5Y-3.9%
Revenue 1Y (TTM)-2.74%
Revenue growth 3Y9.89%
Revenue growth 5Y2.61%
Sales Q2Q%2.41%
Revenue Next Year1.29%
Revenue Next 2Y3.01%
Revenue Next 3Y2.91%
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 1Y35.75%
FCF growth 3Y11.53%
FCF growth 5Y1.84%
OCF growth 1Y35.75%
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 3 / 10.
Can you provide the PE and PB ratios for SYF stock?
The Price/Earnings (PE) ratio for SYNCHRONY FINANCIAL (SYF) is 8.03 and the Price/Book (PB) ratio is 1.56.
Can you provide the financial health for SYF stock?
The financial health rating of SYNCHRONY FINANCIAL (SYF) is 4 / 10.