(SYF) Synchrony Financial - Overview
Sector: Financial Services | Industry: Credit Services | Exchange: NYSE (USA) | Market Cap: 24.219m USD | Total Return: 27.1% in 12m
Avg Turnover: 280M
EPS Trend: 94.3%
Qual. Beats: 0
Rev. Trend: 83.4%
Qual. Beats: 2
Warnings
Below Avwap Earnings
Tailwinds
No distinct edge detected
Synchrony Financial (SYF) is a specialized consumer financial services firm headquartered in Connecticut. The company focuses on private label credit cards, co-branded cards, and installment loans through partnerships with national retailers, healthcare providers, and manufacturers. Beyond credit, Synchrony operates a digital banking platform offering certificates of deposit, savings accounts, and money market accounts to diversify its funding sources.
The private label credit card model differs from traditional banking by relying on deep integration with partner brands to drive customer loyalty and transaction volume. As a major player in the consumer finance sector, Synchronys performance is closely tied to domestic retail spending trends and the credit quality of the U.S. consumer. Investors can further evaluate these industry drivers and valuation metrics at ValueRay.
The company maintains a broad footprint across diverse verticals, including health and wellness through its CareCredit brand, as well as the automotive, outdoor, and specialty retail industries. By providing debt cancellation products and mobile-integrated financing, Synchrony leverages technology to manage point-of-sale credit delivery for both local merchants and large-scale digital platforms.
- Consumer credit performance and net charge-off rates impact bottom-line profitability
- Interest rate fluctuations dictate net interest margin and funding cost efficiency
- Strategic retail partnerships and co-brand credit card volume drive loan growth
- CFPB late fee regulations present significant downside risk to fee income
- CareCredit healthcare financing expansion diversifies revenue beyond traditional retail cycles
| Net Income: 3.60b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.08 > 0.02 and ΔFCF/TA 0.06 > 1.0 |
| NWC/Revenue: 146.0% < 20% (prev -301.4%; Δ 447.4% < -1%) |
| CFO/TA 0.08 > 3% & CFO 9.83b > Net Income 3.60b |
| Net Debt (-4.13b) to EBITDA (5.08b): -0.81 < 3 |
| Current Ratio: 1.36 > 1.5 & < 3 |
| Outstanding Shares: last quarter (346.0m) vs 12m ago -11.15% < -2% |
| Gross Margin: 61.08% > 18% (prev 0.44%; Δ 6.06k% > 0.5%) |
| Asset Turnover: 16.36% > 50% (prev 16.06%; Δ 0.29% > 0%) |
| Interest Coverage Ratio: 1.13 > 6 (EBITDA TTM 5.08b / Interest Expense TTM 4.02b) |
| A: 0.24 (Total Current Assets 110b - Total Current Liabilities 81.1b) / Total Assets 122b |
| B: 0.21 (Retained Earnings 25.2b / Total Assets 122b) |
| C: 0.04 (EBIT TTM 4.55b / Avg Total Assets 122b) |
| D: 0.24 (Book Value of Equity 25.2b / Total Liabilities 105b) |
| Altman-Z'' = 2.75 = A |
As of May 23, 2026, the stock is trading at USD 72.00 with a total of 2,716,954 shares traded.
Over the past week, the price has changed by +0.63%,
over one month by -8.35%,
over three months by +4.71% and
over the past year by +27.10%.
Synchrony Financial has received a consensus analysts rating of 4.05. Therefore, it is recommended to buy SYF.
- StrongBuy: 9
- Buy: 5
- Hold: 8
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 89.6 | 24.4% |
P/E Forward = 7.8064
P/S = 2.4483
P/B = 1.5876
P/EG = 2.1094
Revenue TTM = 19.9b USD
EBIT TTM = 4.55b USD
EBITDA TTM = 5.08b USD
Long Term Debt = 16.4b USD (from longTermDebt, last quarter)
Short Term Debt = unknown (none)
Debt = 16.4b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -4.13b USD (calculated: Debt 16.4b - CCE 20.6b)
Enterprise Value = 20.1b USD (24.2b + Debt 16.4b - CCE 20.6b)
Interest Coverage Ratio = 1.13 (Ebit TTM 4.55b / Interest Expense TTM 4.02b)
EV/FCF = 2.04x (Enterprise Value 20.1b / FCF TTM 9.83b)
FCF Yield = 48.96% (FCF TTM 9.83b / Enterprise Value 20.1b)
FCF Margin = 49.38% (FCF TTM 9.83b / Revenue TTM 19.9b)
Net Margin = 18.08% (Net Income TTM 3.60b / Revenue TTM 19.9b)
Gross Margin = 61.08% ((Revenue TTM 19.9b - Cost of Revenue TTM 7.75b) / Revenue TTM)
Gross Margin QoQ = 82.72% (prev 49.33%)
Tobins Q-Ratio = 0.17 (Enterprise Value 20.1b / Total Assets 122b)
Interest Expense / Debt = 24.45% (Interest Expense 4.02b / Debt 16.4b)
Taxrate = 23.11% (242.0m / 1.05b)
NOPAT = 3.50b (EBIT 4.55b * (1 - 23.11%))
Current Ratio = 1.36 (Total Current Assets 110b / Total Current Liabilities 81.1b)
Debt / Equity = 1.00 (Debt 16.4b / totalStockholderEquity, last quarter 16.5b)
Debt / EBITDA = -0.81 (Net Debt -4.13b / EBITDA 5.08b)
Debt / FCF = -0.42 (Net Debt -4.13b / FCF TTM 9.83b)
Total Stockholder Equity = 16.8b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.96% (Net Income 3.60b / Total Assets 122b)
RoE = 21.41% (Net Income TTM 3.60b / Total Stockholder Equity 16.8b)
RoCE = 13.69% (EBIT 4.55b / Capital Employed (Equity 16.8b + L.T.Debt 16.4b))
RoIC = 8.68% (NOPAT 3.50b / Invested Capital 40.3b)
WACC = 14.51% (E(24.2b)/V(40.6b) * Re(11.60%) + D(16.4b)/V(40.6b) * Rd(24.45%) * (1-Tc(0.23)))
Discount Rate = 11.60% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -91.11 | Cagr: -6.95%
[DCF] Terminal Value 57.07% ; FCFF base≈9.82b ; Y1≈9.89b ; Y5≈10.5b
[DCF] Fair Price = 250.2 (EV 80.0b - Net Debt -4.13b = Equity 84.2b / Shares 336.4m; r=14.51% [WACC]; 5y FCF grow 0.35% → 2.50% )
EPS Correlation: 94.33 | EPS CAGR: 29.93% | SUE: 0.36 | # QB: 0
Revenue Correlation: 83.43 | Revenue CAGR: 7.06% | SUE: 1.02 | # QB: 2
EPS current Quarter (2026-06-30): EPS=2.11 | Chg30d=-5.26% | Revisions=-50% | Analysts=15
EPS next Quarter (2026-09-30): EPS=2.59 | Chg30d=-1.50% | Revisions=+0% | Analysts=15
EPS current Year (2026-12-31): EPS=9.28 | Chg30d=+0.81% | Revisions=+22% | GrowthEPS=-1.6% | GrowthRev=+2.3%
EPS next Year (2027-12-31): EPS=10.48 | Chg30d=+1.17% | Revisions=+41% | GrowthEPS=+13.0% | GrowthRev=+5.2%
[Analyst] Revisions Ratio: -50%