SYNCHRONY FINANCIAL(NYSE:SYF) stock Fundamental Analysis

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.

In the past 5 years SYF has always been profitable.

SYF had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

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

SYF has a Return On Equity of 17.38%. This is in the better half of the industry: SYF outperforms 73.08% 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 has a Profit Margin of 15.50%. This is in the better half of the industry: SYF outperforms 75.00% 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)	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.

Compared to 5 years ago, SYF has less shares outstanding

SYF has a better debt/assets ratio than last year.

2.2 Solvency

The Debt to FCF ratio of SYF is 1.74, which is an excellent value as it means it would take SYF, only 1.74 years of fcf income to pay off all of its debts.

With an excellent Debt to FCF ratio value of 1.74, SYF belongs to the best of the industry, outperforming 84.62% 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 (1.03) which is comparable to the rest of the 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 Rank	Sector Rank
Debt/Equity	1.03
Debt/FCF	1.74
Altman-Z	N/A

ROIC/WACCN/A

WACC15.58%

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

The Earnings Per Share has been growing slightly by 4.59% over the past year.

SYF shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.76% yearly.

SYF shows a decrease in Revenue. In the last year, the revenue decreased by -0.81%.

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

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 Y-8.6%

EPS Next 2Y1.32%

EPS Next 3Y6.83%

EPS Next 5Y-3.9%

Revenue Next Year2.98%

Revenue Next 2Y4.09%

Revenue Next 3Y6.37%

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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 7.98 indicates a rather cheap 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 73.08% of the companies listed in the same industry.

SYF is valuated cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.

With a Price/Forward Earnings ratio of 6.64, the valuation of SYF can be described as very cheap.

Compared to the rest of the industry, the Price/Forward Earnings ratio of SYF indicates a somewhat cheap valuation: SYF is cheaper than 69.23% of the companies listed in the same industry.

SYF is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.43, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	7.98
Fwd PE	6.64

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 Rank	Sector Rank
P/FCF	2.26
EV/EBITDA	N/A

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)0.54

EPS Next 2Y1.32%

EPS Next 3Y6.83%

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5. Dividend

5.1 Amount

SYF has a Yearly Dividend Yield of 1.98%.

SYF's Dividend Yield is a higher than the industry average which is at 4.27.

SYF's Dividend Yield is comparable with the S&P500 average which is at 2.36.

		Industry Rank	Sector Rank
Dividend Yield	1.98%

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

16.49% of the earnings are spent on dividend by SYF. This is a low number and sustainable payout ratio.

DP16.49%

EPS Next 2Y1.32%

EPS Next 3Y6.83%

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SYNCHRONY FINANCIAL

NYSE:SYF (5/21/2025, 1:18:01 PM)

58.18

-1.66 (-2.77%)

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 Owners99.71%

Inst Owner Change0.6%

Ins Owners0.36%

Ins Owner Change2.53%

Market Cap22.15B

Analysts76.92

Price Target63.38 (8.94%)

Short Float %4.5%

Short Ratio3.26

Dividend

		Industry Rank	Sector Rank
Dividend Yield	1.98%

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)-18.23%

PT rev (3m)-18.23%

EPS NQ rev (1m)-6.72%

EPS NQ rev (3m)-9.75%

EPS NY rev (1m)3.06%

EPS NY rev (3m)1.8%

Revenue NQ rev (1m)-1.91%

Revenue NQ rev (3m)-2.12%

Revenue NY rev (1m)-2%

Revenue NY rev (3m)-1.22%

Valuation

		Industry Rank	Sector Rank
PE	7.98
Fwd PE	6.64
P/S	1.19
P/FCF	2.26
P/OCF	2.26
P/B	1.34
P/tB	1.53
EV/EBITDA	N/A

EPS(TTM)7.29

EY12.53%

EPS(NY)8.77

Fwd EY15.07%

FCF(TTM)25.74

FCFY44.25%

OCF(TTM)25.74

OCFY44.25%

SpS48.82

BVpS43.56

TBVpS37.99

PEG (NY)N/A

PEG (5Y)0.54

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

WACC15.58%

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)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 Year2.98%

Revenue Next 2Y4.09%

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%

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