SYF Fundamental Analysis - SYNCHRONY FINANCIAL

Fundamental Rating

We assign a fundamental rating of 4 out of 10 to SYF. SYF was compared to 55 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.

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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.

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

SYF has a Return On Assets (2.66%) which is comparable to the rest of the industry.

SYF has a Return On Equity of 18.89%. This is in the better half of the industry: SYF outperforms 78.18% of its industry peers.

		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

SYF has a Profit Margin of 17.13%. This is in the better half of the industry: SYF outperforms 74.55% of its industry peers.

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)	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

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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.

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.

2.2 Solvency

The Debt to FCF ratio of SYF is 1.62, which is an excellent value as it means it would take SYF, only 1.62 years of fcf income to pay off all of its debts.

Looking at the Debt to FCF ratio, with a value of 1.62, SYF belongs to the top of the industry, outperforming 89.09% of the companies in the same industry.

A Debt/Equity ratio of 0.94 indicates that SYF is somewhat dependend on debt financing.

The Debt to Equity ratio of SYF (0.94) is better than 63.64% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.94
Debt/FCF	1.62
Altman-Z	N/A

ROIC/WACCN/A

WACC17.14%

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 strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.44%, 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.

The Revenue has decreased by -1.97% 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)14.44%

EPS 3Y5.22%

EPS 5Y14.76%

EPS Q2Q%61.29%

Revenue 1Y (TTM)-1.97%

Revenue growth 3Y9.89%

Revenue growth 5Y2.61%

Sales Q2Q%2.63%

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.

Based on estimates for the next years, SYF will show a decrease in Revenue. The Revenue will decrease by -0.35% on average per year.

EPS Next Y2.4%

EPS Next 2Y4.11%

EPS Next 3Y6.85%

EPS Next 5Y-3.9%

Revenue Next Year0.1%

Revenue Next 2Y3.05%

Revenue Next 3Y2.08%

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

Based on the Price/Earnings ratio of 8.64, the valuation of SYF can be described as reasonable.

Compared to the rest of the industry, the Price/Earnings ratio of SYF indicates a somewhat cheap valuation: SYF is cheaper than 69.09% of the companies listed in the same industry.

The average S&P500 Price/Earnings ratio is at 27.86. SYF is valued rather cheaply when compared to this.

The Price/Forward Earnings ratio is 7.70, 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 67.27% of the companies are valued more expensively.

Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, SYF is valued rather cheaply.

		Industry Rank	Sector Rank
PE	8.64
Fwd PE	7.7

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of SYF indicates a rather cheap valuation: SYF is cheaper than 81.82% of the companies listed in the same industry.

		Industry Rank	Sector Rank
P/FCF	2.68
EV/EBITDA	N/A

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.

PEG (NY)3.61

PEG (5Y)0.59

EPS Next 2Y4.11%

EPS Next 3Y6.85%

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5. Dividend

5.1 Amount

SYF has a Yearly Dividend Yield of 1.71%.

Compared to an average industry Dividend Yield of 4.39, SYF pays a bit more dividend than its industry peers.

Compared to the average S&P500 Dividend Yield of 2.44, SYF is paying slightly less dividend.

		Industry Rank	Sector Rank
Dividend Yield	1.71%

5.2 History

On average, the dividend of SYF grows each year by 6.31%, which is quite nice.

SYF has paid a dividend for at least 10 years, which is 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

15.33% of the earnings are spent on dividend by SYF. This is a low number and sustainable payout ratio.

DP15.33%

EPS Next 2Y4.11%

EPS Next 3Y6.85%

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SYNCHRONY FINANCIAL

NYSE:SYF (10/3/2025, 8:06:09 PM)

After market: 71.23 0 (0%)

71.23

+0.95 (+1.35%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupFinancial Services

GICS IndustryConsumer Finance

Earnings (Last)07-22 2025-07-22/bmo

Earnings (Next)10-15 2025-10-15/amc

Inst Owners104.86%

Inst Owner Change0%

Ins Owners0.28%

Ins Owner Change-0.44%

Market Cap26.50B

Analysts78.52

Price Target83.11 (16.68%)

Short Float %4.11%

Short Ratio4.64

Dividend

		Industry Rank	Sector Rank
Dividend Yield	1.71%

Yearly Dividend1.18

Dividend Growth(5Y)6.31%

DP15.33%

Div Incr Years3

Div Non Decr Years8

Ex-Date08-05 2025-08-05 (0.3)

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)1.72%

PT rev (3m)25.86%

EPS NQ rev (1m)0.22%

EPS NQ rev (3m)-0.07%

EPS NY rev (1m)0.19%

EPS NY rev (3m)12.76%

Revenue NQ rev (1m)-0.08%

Revenue NQ rev (3m)-0.02%

Revenue NY rev (1m)0.32%

Revenue NY rev (3m)-4.07%

Valuation

		Industry Rank	Sector Rank
PE	8.64
Fwd PE	7.7
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)8.24

EY11.57%

EPS(NY)9.26

Fwd EY12.99%

FCF(TTM)26.54

FCFY37.27%

OCF(TTM)26.54

OCFY37.27%

SpS50.26

BVpS45.56

TBVpS39.82

PEG (NY)3.61

PEG (5Y)0.59

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

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-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

WACC17.14%

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)14.44%

EPS 3Y5.22%

EPS 5Y14.76%

EPS Q2Q%61.29%

EPS Next Y2.4%

EPS Next 2Y4.11%

EPS Next 3Y6.85%

EPS Next 5Y-3.9%

Revenue 1Y (TTM)-1.97%

Revenue growth 3Y9.89%

Revenue growth 5Y2.61%

Sales Q2Q%2.63%

Revenue Next Year0.1%

Revenue Next 2Y3.05%

Revenue Next 3Y2.08%

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) 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

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