SYNCHRONY FINANCIAL (SYF)
US87165B1035 - Common Stock
Overall SYF gets a fundamental rating of 4 out of 10. We evaluated SYF against 52 industry peers in the Consumer Finance industry. SYF has an average financial health and profitability rating. SYF has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
SYF had positive earnings in the past year.
SYF had a positive operating cash flow in the past year.
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
The Return On Assets of SYF (2.60%) is better than 65.38% of its industry peers.
Looking at the Return On Equity, with a value of 19.42%, SYF is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.6% | ||
| ROE | 19.42% | ||
| ROIC | N/A |
ROA(3y)3.03%
ROA(5y)2.81%
ROE(3y)23.17%
ROE(5y)20.98%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of SYF (16.04%) is better than 78.85% 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) | 16.04% | ||
| GM | N/A |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y11.88%
PM growth 5Y-5.69%
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.
The number of shares outstanding for SYF has been reduced compared to 1 year ago.
SYF has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, SYF has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of SYF is 1.59, which is an excellent value as it means it would take SYF, only 1.59 years of fcf income to pay off all of its debts.
SYF has a better Debt to FCF ratio (1.59) than 84.62% of its industry peers.
A Debt/Equity ratio of 0.98 indicates that SYF is somewhat dependend on debt financing.
SYF has a Debt to Equity ratio (0.98) which is comparable to the rest of the industry.
Although SYF does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 1.59 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC13.01%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
SYF shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.59%, which is quite impressive.
SYF shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.67% yearly.
Looking at the last year, SYF shows a quite strong growth in Revenue. The Revenue has grown by 14.58% in the last year.
SYF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.08% yearly.
EPS 1Y (TTM)41.59%
EPS 3Y29.59%
EPS 5Y6.67%
EPS Q2Q%31.08%
Revenue 1Y (TTM)14.58%
Revenue growth 3Y5.3%
Revenue growth 5Y1.08%
Sales Q2Q%5.66%
3.2 Future
Based on estimates for the next years, SYF will show a small growth in Earnings Per Share. The EPS will grow by 5.80% on average per year.
SYF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.81% yearly.
EPS Next Y65.49%
EPS Next 2Y12.09%
EPS Next 3Y14.8%
EPS Next 5Y5.8%
Revenue Next Year6.94%
Revenue Next 2Y4.25%
Revenue Next 3Y4.75%
Revenue Next 5Y0.81%
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 stable.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.54 indicates a reasonable valuation of SYF.
Based on the Price/Earnings ratio, SYF is valued a bit cheaper than 73.08% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. SYF is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.06 indicates a reasonable valuation of SYF.
Compared to the rest of the industry, the Price/Forward Earnings ratio of SYF is on the same level as its industry peers.
SYF is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.54 | ||
| Fwd PE | 10.06 |
4.2 Price Multiples
SYF's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. SYF is cheaper than 71.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.6 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
SYF's earnings are expected to grow with 14.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.13
PEG (5Y)1.28
EPS Next 2Y12.09%
EPS Next 3Y14.8%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.56%, SYF has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.38, SYF has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.34, SYF is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
5.2 History
The dividend of SYF is nicely growing with an annual growth rate of 8.15%!
SYF has been paying a dividend for over 5 years, so it has already some track record.
SYF has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)8.15%
Div Incr Years3
Div Non Decr Years8
5.3 Sustainability
15.02% of the earnings are spent on dividend by SYF. This is a low number and sustainable payout ratio.
SYF's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP15.02%
EPS Next 2Y12.09%
EPS Next 3Y14.8%
SYNCHRONY FINANCIAL
NYSE:SYF (12/20/2024, 8:04:00 PM)
After market: 65.46 +0.01 (+0.02%)65.45
+1.18 (+1.84%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners100.74%
Inst Owner Change-1.86%
Ins Owners0.28%
Ins Owner Change-1.78%
Market Cap25.48B
Analysts75.38
Price Target65.6 (0.23%)
Short Float %3.28%
Short Ratio3.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Dividend Growth(5Y)8.15%
DP15.02%
Div Incr Years3
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.44%
Min EPS beat(2)7.15%
Max EPS beat(2)13.72%
EPS beat(4)4
Avg EPS beat(4)40.11%
Min EPS beat(4)7.15%
Max EPS beat(4)130.05%
EPS beat(8)7
Avg EPS beat(8)21.5%
EPS beat(12)10
Avg EPS beat(12)16.79%
EPS beat(16)14
Avg EPS beat(16)21.14%
Revenue beat(2)1
Avg Revenue beat(2)0.48%
Min Revenue beat(2)-0.68%
Max Revenue beat(2)1.63%
Revenue beat(4)1
Avg Revenue beat(4)-0.53%
Min Revenue beat(4)-2.05%
Max Revenue beat(4)1.63%
Revenue beat(8)2
Avg Revenue beat(8)-0.31%
Revenue beat(12)6
Avg Revenue beat(12)1.45%
Revenue beat(16)8
Avg Revenue beat(16)1.27%
PT rev (1m)7.39%
PT rev (3m)16.11%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)74.78%
EPS NY rev (1m)0.18%
EPS NY rev (3m)11.88%
Revenue NQ rev (1m)-1.22%
Revenue NQ rev (3m)-1.79%
Revenue NY rev (1m)-0.59%
Revenue NY rev (3m)2.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.54 | ||
| Fwd PE | 10.06 | ||
| P/S | 1.32 | ||
| P/FCF | 2.6 | ||
| P/OCF | 2.6 | ||
| P/B | 1.59 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.66
EY11.7%
EPS(NY)6.51
Fwd EY9.94%
FCF(TTM)25.2
FCFY38.51%
OCF(TTM)25.2
OCFY38.51%
SpS49.7
BVpS41.04
TBVpS35.81
PEG (NY)0.13
PEG (5Y)1.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.6% | ||
| ROE | 19.42% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | 16.04% | ||
| GM | N/A | ||
| FCFM | 50.71% |
ROA(3y)3.03%
ROA(5y)2.81%
ROE(3y)23.17%
ROE(5y)20.98%
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 3Y11.88%
PM growth 5Y-5.69%
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.98 | ||
| Debt/FCF | 1.59 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | 316.21% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC13.01%
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)262.09%
Profit Quality(5y)316.73%
High Growth Momentum
Growth
EPS 1Y (TTM)41.59%
EPS 3Y29.59%
EPS 5Y6.67%
EPS Q2Q%31.08%
EPS Next Y65.49%
EPS Next 2Y12.09%
EPS Next 3Y14.8%
EPS Next 5Y5.8%
Revenue 1Y (TTM)14.58%
Revenue growth 3Y5.3%
Revenue growth 5Y1.08%
Sales Q2Q%5.66%
Revenue Next Year6.94%
Revenue Next 2Y4.25%
Revenue Next 3Y4.75%
Revenue Next 5Y0.81%
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-65.69%
EBIT Next 3Y-26.77%
EBIT Next 5YN/A
FCF growth 1Y43.22%
FCF growth 3Y4.7%
FCF growth 5Y-1.66%
OCF growth 1Y43.22%
OCF growth 3Y4.7%
OCF growth 5Y-1.66%