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 53 industry peers in the Consumer Finance industry. Both the profitability and the financial health of SYF get a neutral evaluation. Nothing too spectacular is happening here. 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.

In the past year SYF had a positive cash flow from operations.

In the past 5 years SYF has always been profitable.

In the past 5 years SYF always reported a positive cash flow from operatings.

1.2 Ratios

SYF's Return On Assets of 2.87% is fine compared to the rest of the industry. SYF outperforms 71.15% of its industry peers.

With an excellent Return On Equity value of 20.67%, SYF belongs to the best of the industry, outperforming 80.77% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	2.87%
ROE	20.67%
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's Profit Margin of 17.55% is amongst the best of the industry. SYF outperforms 80.77% of its industry peers.

In the last couple of years the Profit Margin of SYF has declined.

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)	17.55%
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.

The number of shares outstanding for SYF has been reduced compared to 1 year ago.

Compared to 5 years ago, SYF has less shares outstanding

Compared to 1 year ago, SYF has an improved debt to assets ratio.

2.2 Solvency

SYF has a debt to FCF ratio of 1.57. This is a very positive value and a sign of high solvency as it would only need 1.57 years to pay back of all of its debts.

Looking at the Debt to FCF ratio, with a value of 1.57, SYF belongs to the top of the industry, outperforming 82.69% of the companies in the same industry.

A Debt/Equity ratio of 0.93 indicates that SYF is somewhat dependend on debt financing.

SYF has a Debt to Equity ratio of 0.93. This is in the better half of the industry: SYF outperforms 61.54% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.93
Debt/FCF	1.57
Altman-Z	N/A

ROIC/WACCN/A

WACC15.24%

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 64.86%, which is quite impressive.

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 grown by 12.98% in the past year. This is quite good.

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)64.86%

EPS 3Y5.22%

EPS 5Y14.76%

EPS Q2Q%85.44%

Revenue 1Y (TTM)12.98%

Revenue growth 3Y9.89%

Revenue growth 5Y2.61%

Sales Q2Q%2.82%

3.2 Future

Based on estimates for the next years, SYF will show a decrease in Earnings Per Share. The EPS will decrease by -5.30% on average per year.

SYF is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.36% yearly.

EPS Next Y-10.22%

EPS Next 2Y1.24%

EPS Next 3Y6.12%

EPS Next 5Y-5.3%

Revenue Next Year4.86%

Revenue Next 2Y6.33%

Revenue Next 3Y7.86%

Revenue Next 5Y-0.36%

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

The Price/Earnings ratio is 7.19, which indicates a rather cheap valuation of SYF.

Based on the Price/Earnings ratio, SYF is valued cheaper than 84.62% of the companies in the same industry.

Compared to an average S&P500 Price/Earnings ratio of 29.63, SYF is valued rather cheaply.

A Price/Forward Earnings ratio of 8.01 indicates a reasonable valuation of SYF.

75.00% of the companies in the same industry are more expensive than SYF, based on the Price/Forward Earnings ratio.

SYF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.

		Industry Rank	Sector Rank
PE	7.19
Fwd PE	8.01

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, SYF is valued a bit cheaper than 75.00% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	2.42
EV/EBITDA	N/A

4.3 Compensation for Growth

PEG (NY)N/A

PEG (5Y)0.49

EPS Next 2Y1.24%

EPS Next 3Y6.12%

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5. Dividend

5.1 Amount

SYF has a Yearly Dividend Yield of 1.56%. Purely for dividend investing, there may be better candidates out there.

Compared to an average industry Dividend Yield of 4.09, SYF pays a bit more dividend than its industry peers.

SYF's Dividend Yield is slightly below the S&P500 average, which is at 2.29.

		Industry Rank	Sector Rank
Dividend Yield	1.56%

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

13.71% of the earnings are spent on dividend by SYF. This is a low number and sustainable payout ratio.

DP13.71%

EPS Next 2Y1.24%

EPS Next 3Y6.12%

More info and screens

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SYNCHRONY FINANCIAL

NYSE:SYF (2/21/2025, 8:04:00 PM)

After market: 61.42 +0.01 (+0.02%)

61.41

-2.44 (-3.82%)

Chartmill FA Rating

GICS SectorFinancials

GICS IndustryGroupFinancial Services

GICS IndustryConsumer Finance

Earnings (Last)01-28 2025-01-28/bmo

Earnings (Next)04-22 2025-04-22/amc

Inst Owners100.74%

Inst Owner Change-0.79%

Ins Owners0.28%

Ins Owner Change6.47%

Market Cap23.87B

Analysts77.04

Price Target77.51 (26.22%)

Short Float %2.41%

Short Ratio2.63

Dividend

		Industry Rank	Sector Rank
Dividend Yield	1.56%

Yearly Dividend1.18

Dividend Growth(5Y)6.31%

DP13.71%

Div Incr Years3

Div Non Decr Years8

Ex-Date02-03 2025-02-03 (0.25)

Surprises & Revisions

EPS beat(2)1

Avg EPS beat(2)2.57%

Min EPS beat(2)-2.01%

Max EPS beat(2)7.15%

EPS beat(4)3

Avg EPS beat(4)37.23%

Min EPS beat(4)-2.01%

Max EPS beat(4)130.05%

EPS beat(8)6

Avg EPS beat(8)19.7%

EPS beat(12)10

Avg EPS beat(12)16.73%

EPS beat(16)13

Avg EPS beat(16)18.81%

Revenue beat(2)2

Avg Revenue beat(2)1.78%

Min Revenue beat(2)1.63%

Max Revenue beat(2)1.93%

Revenue beat(4)2

Avg Revenue beat(4)0.21%

Min Revenue beat(4)-2.05%

Max Revenue beat(4)1.93%

Revenue beat(8)3

Avg Revenue beat(8)-0.05%

Revenue beat(12)6

Avg Revenue beat(12)1.12%

Revenue beat(16)8

Avg Revenue beat(16)1.12%

PT rev (1m)5.3%

PT rev (3m)26.89%

EPS NQ rev (1m)-2%

EPS NQ rev (3m)19.86%

EPS NY rev (1m)12.17%

EPS NY rev (3m)17.29%

Revenue NQ rev (1m)0.17%

Revenue NQ rev (3m)-2.12%

Revenue NY rev (1m)3.84%

Revenue NY rev (3m)0.67%

Valuation

		Industry Rank	Sector Rank
PE	7.19
Fwd PE	8.01
P/S	1.22
P/FCF	2.42
P/OCF	2.42
P/B	1.44
P/tB	1.65
EV/EBITDA	N/A

EPS(TTM)8.54

EY13.91%

EPS(NY)7.67

Fwd EY12.49%

FCF(TTM)25.33

FCFY41.25%

OCF(TTM)25.33

OCFY41.25%

SpS50.24

BVpS42.65

TBVpS37.18

PEG (NY)N/A

PEG (5Y)0.49

Profitability

		Industry Rank	Sector Rank
ROA	2.87%
ROE	20.67%
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	N/A
PM (TTM)	17.55%
GM	N/A
FCFM	50.42%

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-Score9

Asset Turnover0.16

Health

		Industry Rank	Sector Rank
Debt/Equity	0.93
Debt/FCF	1.57
Debt/EBITDA	N/A
Cap/Depr	N/A
Cap/Sales	N/A
Interest Coverage	N/A
Cash Conversion	N/A
Profit Quality	287.37%
Current Ratio	N/A
Quick Ratio	N/A
Altman-Z	N/A

F-Score9

WACC15.24%

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)64.86%

EPS 3Y5.22%

EPS 5Y14.76%

EPS Q2Q%85.44%

EPS Next Y-10.22%

EPS Next 2Y1.24%

EPS Next 3Y6.12%

EPS Next 5Y-5.3%

Revenue 1Y (TTM)12.98%

Revenue growth 3Y9.89%

Revenue growth 5Y2.61%

Sales Q2Q%2.82%

Revenue Next Year4.86%

Revenue Next 2Y6.33%

Revenue Next 3Y7.86%

Revenue Next 5Y-0.36%

EBIT growth 1YN/A

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next Year-67.07%

EBIT Next 3YN/A

EBIT Next 5YN/A

FCF growth 1Y14.6%

FCF growth 3Y11.53%

FCF growth 5Y1.84%

OCF growth 1Y14.6%

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