DB:SFE

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Executive Summary

Synchrony Financial operates as a consumer financial services company in the United States.


Snowflake Analysis

Flawless balance sheet, good value and pays a dividend.


Similar Companies

Share Price & News

How has Synchrony Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SFE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.2%

SFE

2.1%

DE Consumer Finance

-1.6%

DE Market


1 Year Return

-35.8%

SFE

-28.7%

DE Consumer Finance

8.3%

DE Market

Return vs Industry: SFE underperformed the German Consumer Finance industry which returned -30.9% over the past year.

Return vs Market: SFE underperformed the German Market which returned 3.7% over the past year.


Shareholder returns

SFEIndustryMarket
7 Day-4.2%2.1%-1.6%
30 Day-0.02%8.0%0.2%
90 Day18.2%12.6%12.8%
1 Year-33.6%-35.8%-27.3%-28.7%10.7%8.3%
3 Year-18.6%-24.9%-46.6%-54.9%3.8%-4.5%
5 Year-31.1%-37.9%-46.7%-60.6%9.6%-5.2%

Price Volatility Vs. Market

How volatile is Synchrony Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Synchrony Financial undervalued compared to its fair value and its price relative to the market?

26.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SFE (€18.81) is trading below our estimate of fair value (€25.1)

Significantly Below Fair Value: SFE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SFE's PE Ratio (6.7x) is in line with the XE Consumer Finance industry average.

PE vs Market: SFE is good value based on its PE Ratio (6.7x) compared to the German market (20.9x).


Price to Earnings Growth Ratio

PEG Ratio: SFE is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: SFE is overvalued based on its PB Ratio (1.2x) compared to the XE Consumer Finance industry average (0.9x).


Next Steps

Future Growth

How is Synchrony Financial forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

38.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SFE's forecast earnings growth (37.3% per year) is above the savings rate (0.2%).

Earnings vs Market: SFE's earnings (37.3% per year) are forecast to grow faster than the German market (23.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SFE's revenue (8.5% per year) is forecast to grow faster than the German market (5.8% per year).

High Growth Revenue: SFE's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SFE's Return on Equity is forecast to be low in 3 years time (15.3%).


Next Steps

Past Performance

How has Synchrony Financial performed over the past 5 years?

9.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SFE has high quality earnings.

Growing Profit Margin: SFE's current net profit margins (30.6%) are lower than last year (39.1%).


Past Earnings Growth Analysis

Earnings Trend: SFE's earnings have grown by 9.2% per year over the past 5 years.

Accelerating Growth: SFE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SFE had negative earnings growth (-38.6%) over the past year, making it difficult to compare to the Consumer Finance industry average (3.1%).


Return on Equity

High ROE: SFE's Return on Equity (17.8%) is considered low.


Next Steps

Financial Health

How is Synchrony Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: SFE's Assets to Equity ratio (8.1x) is low.

Allowance for Bad Loans: SFE has a sufficient allowance for bad loans (709%).

Low Risk Liabilities: 76% of SFE's liabilities are made up of primarily low risk sources of funding.

Loan Level: SFE has an appropriate level of Loans to Assets ratio (71%).

Low Risk Deposits: SFE's Loans to Deposits ratio (107%) is appropriate.

Level of Bad Loans: SFE has an appropriate level of bad loans (1.8%).


Next Steps

Dividend

What is Synchrony Financial current dividend yield, its reliability and sustainability?

3.89%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SFE's dividend (3.87%) is higher than the bottom 25% of dividend payers in the German market (1.25%).

High Dividend: SFE's dividend (3.87%) is in the top 25% of dividend payers in the German market (3.83%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, SFE has been paying a dividend for less than 10 years.

Growing Dividend: SFE's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26%), SFE's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SFE's dividends in 3 years are forecast to be well covered by earnings (26.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.5yrs

Average management tenure


CEO

Margaret Keane (61 yo)

6.5yrs

Tenure

US$12,169,308

Compensation

Ms. Margaret M. Keane serves as Director of The Allstate Corp. (formerly known as Allstate Corporation). since January 1, 2018 and has been Chief Executive Officer of Synchrony Financial since February 201 ...


CEO Compensation Analysis

Compensation vs Market: Margaret's total compensation ($USD12.17M) is above average for companies of similar size in the German market ($USD5.26M).

Compensation vs Earnings: Margaret's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Margaret Keane
CEO & Director6.5yrsUS$12.17m0.057%
$ 6.4m
Brian Doubles
President1.25yrsUS$4.62m0.018%
$ 2.0m
Brian Wenzel
Senior EVP & CFO1.25yrsUS$2.59m0.0098%
$ 1.1m
Thomas Quindlen
Executive VP & CEO of Retail Card6.5yrsUS$3.40m0.014%
$ 1.6m
Neeraj Mehta
Executive VP & CEO of Payment Solutionsno dataUS$3.30m0.022%
$ 2.5m
Kurt Grossheim
Executive VP & COO6.58yrsno datano data
David Melito
Senior VP6.5yrsno data0.0033%
$ 374.1k
Carol Juel
Executive VP & Chief Information Officerno datano datano data
Gregory Ketron
Senior VP & MD of Investor Relationsno datano datano data
Jonathan Mothner
Executive VP6.5yrsUS$2.68m0.015%
$ 1.7m
Bart Schaller
Executive VP & Chief Marketing Officerno datano datano data
Trish Mosconi
EVP, Chief Strategy Officer & Corporate Development Leaderno datano datano data

6.5yrs

Average Tenure

54yo

Average Age

Experienced Management: SFE's management team is seasoned and experienced (6.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Margaret Keane
CEO & Director6.5yrsUS$12.17m0.057%
$ 6.4m
Paget Alves
Independent Director4.75yrsUS$242.08k0.0030%
$ 341.4k
Richard Hartnack
Independent Non Executive Chairman of the Board6yrsUS$477.13k0.0077%
$ 872.2k
Arthur Coviello
Independent Director4.75yrsUS$241.69k0.0037%
$ 421.4k
Roy Guthrie
Independent Director6.08yrsUS$257.08k0.0063%
$ 708.8k
Ellen Zane
Independent Director1.5yrsUS$208.22k0.00029%
$ 32.7k
Jeffrey Naylor
Independent Director6.08yrsUS$279.08k0.0091%
$ 1.0m
William Graylin
Independent Director4.75yrsUS$226.08k0.0078%
$ 881.2k
Fernando Aguirre
Independent Director1.08yrsUS$97.92k0.0026%
$ 295.2k
P. Parker
Director0.083yrno data0.0017%
$ 192.7k
Laurel Richie
Independent Director4.75yrsUS$234.08k0.0032%
$ 362.8k
Olympia Snowe
Independent Director4.75yrsUS$264.08k0.0032%
$ 360.6k

4.8yrs

Average Tenure

64yo

Average Age

Experienced Board: SFE's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SFE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Synchrony Financial's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Synchrony Financial
  • Ticker: SFE
  • Exchange: DB
  • Founded: 2003
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$13.263b
  • Listing Market Cap: US$11.268b
  • Shares outstanding: 583.76m
  • Website: https://www.synchrony.com

Number of Employees


Location

  • Synchrony Financial
  • 777 Long Ridge Road
  • Stamford
  • Connecticut
  • 6902
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SYFNYSE (New York Stock Exchange)YesCommon StockUSUSDAug 2014
SFEDB (Deutsche Boerse AG)YesCommon StockDEEURAug 2014
SFEXTRA (XETRA Trading Platform)YesCommon StockDEEURAug 2014
SYF *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNAug 2014
0LC3LSE (London Stock Exchange)YesCommon StockGBUSDAug 2014
SFEMUN (Boerse Muenchen)YesCommon StockDEEURAug 2014
SYF.PRANYSE (New York Stock Exchange)5.625 DPSH PF AUSUSDNov 2019
S1YF34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 2019

Biography

Synchrony Financial operates as a consumer financial services company in the United States. It delivers a range of specialized financing programs and consumer banking products to digital, retail, home, aut ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/04 22:19
End of Day Share Price2020/08/04 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.