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SYNCHRONY FINANCIAL (SYF) Stock Fundamental Analysis

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

47.87  +1.11 (+2.37%)

After market: 47.8 -0.07 (-0.15%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to SYF. 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 on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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4

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.
Each year in the past 5 years SYF has been profitable.
SYF had a positive operating cash flow in each of the past 5 years.
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

The Return On Assets of SYF (2.87%) is better than 67.92% of its industry peers.
SYF's Return On Equity of 20.67% is fine compared to the rest of the industry. SYF outperforms 79.25% of its industry peers.
Industry RankSector 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
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

SYF has a better Profit Margin (17.55%) than 77.36% of its industry peers.
In the last couple of years the Profit Margin of SYF has declined.
The Operating Margin and Gross Margin are not available for SYF so they could not be analyzed.
Industry RankSector 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
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

The Debt to FCF ratio of SYF is 1.57, which is an excellent value as it means it would take SYF, only 1.57 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.57, SYF belongs to the best of the industry, outperforming 84.91% of the companies in the same industry.
SYF has a Debt/Equity ratio of 0.93. This is a neutral value indicating SYF is somewhat dependend on debt financing.
SYF has a better Debt to Equity ratio (0.93) than 60.38% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.93
Debt/FCF 1.57
Altman-Z N/A
ROIC/WACCN/A
WACC16.05%
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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3

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.
Looking at the last year, SYF shows a quite strong growth in Revenue. The Revenue has grown by 12.98% in the last 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)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 -3.90% on average per year.
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-9.63%
EPS Next 2Y1.59%
EPS Next 3Y6.12%
EPS Next 5Y-3.9%
Revenue Next Year5.08%
Revenue Next 2Y5.7%
Revenue Next 3Y7.02%
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.
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

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6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 5.61, the valuation of SYF can be described as very cheap.
84.91% 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 28.29, SYF is valued rather cheaply.
A Price/Forward Earnings ratio of 6.20 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 79.25% of the companies are valued more expensively.
SYF's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.08.
Industry RankSector Rank
PE 5.61
Fwd PE 6.2
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

Based on the Price/Free Cash Flow ratio, SYF is valued a bit cheaper than the industry average as 79.25% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 1.89
EV/EBITDA N/A
SYF Per share dataSYF EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)0.38
EPS Next 2Y1.59%
EPS Next 3Y6.12%

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6

5. Dividend

5.1 Amount

SYF has a Yearly Dividend Yield of 2.09%.
The stock price of SYF dropped by -30.37% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.87, SYF pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.52, SYF has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.09%

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
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

13.71% of the earnings are spent on dividend by SYF. This is a low number and sustainable payout ratio.
DP13.71%
EPS Next 2Y1.59%
EPS Next 3Y6.12%
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 (4/17/2025, 8:04:00 PM)

After market: 47.8 -0.07 (-0.15%)

47.87

+1.11 (+2.37%)

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/bmo
Inst Owners99.71%
Inst Owner Change0%
Ins Owners0.36%
Ins Owner Change1.49%
Market Cap18.61B
Analysts77.69
Price Target77.51 (61.92%)
Short Float %3.76%
Short Ratio3.51
Dividend
Industry RankSector Rank
Dividend Yield 2.09%
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)1.23%
Min Revenue beat(2)0.83%
Max Revenue beat(2)1.63%
Revenue beat(4)2
Avg Revenue beat(4)-0.06%
Min Revenue beat(4)-2.05%
Max Revenue beat(4)1.63%
Revenue beat(8)3
Avg Revenue beat(8)-0.19%
Revenue beat(12)6
Avg Revenue beat(12)1.03%
Revenue beat(16)8
Avg Revenue beat(16)1.05%
PT rev (1m)-2.19%
PT rev (3m)5.3%
EPS NQ rev (1m)3.57%
EPS NQ rev (3m)1.93%
EPS NY rev (1m)0.66%
EPS NY rev (3m)12.91%
Revenue NQ rev (1m)-0.45%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)4.67%
Valuation
Industry RankSector Rank
PE 5.61
Fwd PE 6.2
P/S 0.95
P/FCF 1.89
P/OCF 1.89
P/B 1.12
P/tB 1.29
EV/EBITDA N/A
EPS(TTM)8.54
EY17.84%
EPS(NY)7.72
Fwd EY16.12%
FCF(TTM)25.33
FCFY52.92%
OCF(TTM)25.33
OCFY52.92%
SpS50.24
BVpS42.65
TBVpS37.18
PEG (NY)N/A
PEG (5Y)0.38
Profitability
Industry RankSector 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 RankSector 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
WACC16.05%
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-9.63%
EPS Next 2Y1.59%
EPS Next 3Y6.12%
EPS Next 5Y-3.9%
Revenue 1Y (TTM)12.98%
Revenue growth 3Y9.89%
Revenue growth 5Y2.61%
Sales Q2Q%2.82%
Revenue Next Year5.08%
Revenue Next 2Y5.7%
Revenue Next 3Y7.02%
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 1Y14.6%
FCF growth 3Y11.53%
FCF growth 5Y1.84%
OCF growth 1Y14.6%
OCF growth 3Y11.53%
OCF growth 5Y1.84%