SYNCHRONY FINANCIAL (SYF) Stock Fundamental Analysis
NYSE:SYF - New York Stock Exchange, Inc. - US87165B1035 - Common Stock
Overall SYF gets a fundamental rating of 4 out of 10. We evaluated SYF against 53 industry peers in the Consumer Finance industry. SYF has an average financial health and profitability rating. SYF has a correct valuation and a medium growth rate.
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.
SYF had positive earnings in each of the past 5 years.
In the past 5 years SYF always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 2.60%, SYF is doing good in the industry, outperforming 65.38% of the companies in the same industry.
SYF has a better Return On Equity (19.42%) than 75.00% of its industry peers.
| 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
Looking at the Profit Margin, with a value of 16.04%, SYF is in the better half of the industry, outperforming 78.85% of the companies in the same industry.
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.
The debt/assets ratio for SYF is higher compared to a year ago.
2.2 Solvency
SYF has a debt to FCF ratio of 1.59. This is a very positive value and a sign of high solvency as it would only need 1.59 years to pay back of all of its debts.
SYF has a Debt to FCF ratio of 1.59. This is amongst the best in the industry. SYF outperforms 82.69% of its industry peers.
A Debt/Equity ratio of 0.98 indicates that SYF is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.98, SYF is in line with its industry, outperforming 57.69% of the companies in the same 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 | 0.98 | ||
| Debt/FCF | 1.59 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC12.74%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 41.59% over the past year.
The Earnings Per Share has been growing slightly by 6.67% on average over the past years.
SYF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.58%.
Measured over the past years, SYF shows a small growth in Revenue. The Revenue has been growing by 1.08% on average per year.
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
SYF is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.80% yearly.
SYF is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.81% yearly.
EPS Next Y63.23%
EPS Next 2Y14.87%
EPS Next 3Y15.42%
EPS Next 5Y5.8%
Revenue Next Year5.08%
Revenue Next 2Y3.27%
Revenue Next 3Y3.79%
Revenue Next 5Y0.81%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.07 indicates a reasonable valuation of SYF.
71.15% of the companies in the same industry are more expensive than SYF, based on the Price/Earnings ratio.
SYF's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.29.
SYF is valuated reasonably with a Price/Forward Earnings ratio of 10.16.
63.46% of the companies in the same industry are more expensive than SYF, based on the Price/Forward Earnings ratio.
SYF is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.07 | ||
| Fwd PE | 10.16 |
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 | 2.76 | ||
| 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.
A more expensive valuation may be justified as SYF's earnings are expected to grow with 15.42% in the coming years.
PEG (NY)0.14
PEG (5Y)1.36
EPS Next 2Y14.87%
EPS Next 3Y15.42%
5. Dividend
5.1 Amount
SYF has a Yearly Dividend Yield of 1.47%.
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 2.28, SYF is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
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.
As SYF did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
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 2Y14.87%
EPS Next 3Y15.42%
SYNCHRONY FINANCIAL
NYSE:SYF (1/21/2025, 8:04:00 PM)
After market: 69.47 0 (0%)69.47
+0.72 (+1.05%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryConsumer Finance
Earnings (Last)
Earnings (Next)
Inst Owners100.74%
Inst Owner Change0.06%
Ins Owners0.28%
Ins Owner Change-1.8%
Market Cap27.05B
Analysts78.46
Price Target73.6 (5.95%)
Short Float %2.78%
Short Ratio2.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.47% |
Yearly Dividend1.06
Dividend Growth(5Y)8.15%
DP15.02%
Div Incr Years3
Div Non Decr Years8
Ex-DateN/A
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)12.21%
PT rev (3m)30.86%
EPS NQ rev (1m)0%
EPS NQ rev (3m)74.78%
EPS NY rev (1m)0%
EPS NY rev (3m)10.35%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.79%
Revenue NY rev (1m)-1.09%
Revenue NY rev (3m)-1.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.07 | ||
| Fwd PE | 10.16 | ||
| P/S | 1.4 | ||
| P/FCF | 2.76 | ||
| P/OCF | 2.76 | ||
| P/B | 1.69 | ||
| P/tB | 1.94 | ||
| EV/EBITDA | N/A |
EPS(TTM)7.66
EY11.03%
EPS(NY)6.84
Fwd EY9.84%
FCF(TTM)25.2
FCFY36.28%
OCF(TTM)25.2
OCFY36.28%
SpS49.7
BVpS41.04
TBVpS35.81
PEG (NY)0.14
PEG (5Y)1.36
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
WACC12.74%
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 Y63.23%
EPS Next 2Y14.87%
EPS Next 3Y15.42%
EPS Next 5Y5.8%
Revenue 1Y (TTM)14.58%
Revenue growth 3Y5.3%
Revenue growth 5Y1.08%
Sales Q2Q%5.66%
Revenue Next Year5.08%
Revenue Next 2Y3.27%
Revenue Next 3Y3.79%
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%