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Synchrony Financial

DB:SFE
Snowflake Description

Good value with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SFE
DB
$24B
Market Cap
  1. Home
  2. DE
  3. Diversified Financials
Company description

Synchrony Financial operates as a consumer financial services company in the United States. The last earnings update was 5 days ago. More info.


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SFE Share Price and Events
7 Day Returns
-1.6%
DB:SFE
-1.4%
Europe Consumer Finance
-0.9%
DE Market
1 Year Returns
8.7%
DB:SFE
-18.7%
Europe Consumer Finance
-7.4%
DE Market
SFE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Synchrony Financial (SFE) -1.6% 5.1% 4.1% 8.7% 21.5% -
Europe Consumer Finance -1.4% -2.6% -9.8% -18.7% -38.4% -35.7%
DE Market -0.9% -0.4% -3.7% -7.4% 8.1% 12%
1 Year Return vs Industry and Market
  • SFE outperformed the Consumer Finance industry which returned -18.7% over the past year.
  • SFE outperformed the Market in Germany which returned -7.4% over the past year.
Price Volatility
SFE
Industry
5yr Volatility vs Market

SFE Value

 Is Synchrony Financial undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Synchrony Financial to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Synchrony Financial.

DB:SFE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 14 analysts.
= Stable Book Value * Return on Equity
= $23.12 * 21.7%
$5.02
Book Value of Equity per Share Weighted future Book Value estimates from 11 analysts. $23.12
Discount Rate (Cost of Equity) See below 7%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:SFE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Consumer Finance Unlevered Beta Simply Wall St/ S&P Global 0.7
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.699 (1 + (1- 21%) (89.87%))
1.131
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.13
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.131 * 5.96%)
6.97%

Discounted Cash Flow Calculation for DB:SFE using Excess Returns Model Model

The calculations below outline how an intrinsic value for Synchrony Financial is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:SFE Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (21.7% – 6.97%) * $23.12)
$3.41
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $3.41 / (6.97% - 0.23%)
$50.59
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $23.12 + $50.59
$73.72
DB:SFE Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:SFE represents 0.86544x of NYSE:SYF
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.86544x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 73.72 x 0.86544
€63.80
Value per share (EUR) From above. €63.80
Current discount Discount to share price of €31.23
= -1 x (€31.23 - €63.80) / €63.80
51.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Synchrony Financial is available for.
Intrinsic value
>50%
Share price is €31.23 vs Future cash flow value of €63.8
Current Discount Checks
For Synchrony Financial to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Synchrony Financial's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Synchrony Financial's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Synchrony Financial's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Synchrony Financial's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:SFE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in USD $4.80
NYSE:SYF Share Price ** NYSE (2019-07-22) in USD $36.08
Europe Consumer Finance Industry PE Ratio Median Figure of 29 Publicly-Listed Consumer Finance Companies 10.58x
Germany Market PE Ratio Median Figure of 422 Publicly-Listed Companies 19.71x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Synchrony Financial.

DB:SFE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:SYF Share Price ÷ EPS (both in USD)

= 36.08 ÷ 4.80

7.51x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Synchrony Financial is good value based on earnings compared to the Europe Consumer Finance industry average.
  • Synchrony Financial is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Synchrony Financial's expected growth come at a high price?
Raw Data
DB:SFE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 7.51x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts
-15.2%per year
Europe Consumer Finance Industry PEG Ratio Median Figure of 18 Publicly-Listed Consumer Finance Companies 0.68x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.43x

*Line of best fit is calculated by linear regression .

DB:SFE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 7.51x ÷ -15.2%

-0.5x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Synchrony Financial earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Synchrony Financial's assets?
Raw Data
DB:SFE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in USD $22.03
NYSE:SYF Share Price * NYSE (2019-07-22) in USD $36.08
Europe Consumer Finance Industry PB Ratio Median Figure of 39 Publicly-Listed Consumer Finance Companies 1.15x
Germany Market PB Ratio Median Figure of 570 Publicly-Listed Companies 1.72x
DB:SFE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:SYF Share Price ÷ Book Value per Share (both in USD)

= 36.08 ÷ 22.03

1.64x

* Primary Listing of Synchrony Financial.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Synchrony Financial is overvalued based on assets compared to the Europe Consumer Finance industry average.
X
Value checks
We assess Synchrony Financial's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Finance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Finance industry average (and greater than 0)? (1 check)
  5. Synchrony Financial has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

SFE Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-15.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Synchrony Financial expected to grow at an attractive rate?
  • Synchrony Financial's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Synchrony Financial's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.
  • Synchrony Financial's revenue growth is positive but not above the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:SFE Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:SFE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 14 Analysts -15.2%
DB:SFE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 14 Analysts 4.8%
Europe Consumer Finance Industry Earnings Growth Rate Market Cap Weighted Average 14.6%
Europe Consumer Finance Industry Revenue Growth Rate Market Cap Weighted Average 10.6%
Germany Market Earnings Growth Rate Market Cap Weighted Average 12.5%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:SFE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 weeks ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:SFE Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 14,150 2,683 5
2020-12-31 13,387 2,725 10
2019-12-31 13,544 3,560 10
DB:SFE Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-06-30 8,730 3,414
2019-03-31 8,409 9,716 3,257
2018-12-31 7,739 9,342 2,790
2018-09-30 7,494 9,576 2,392
2018-06-30 7,384 9,793 2,276
2018-03-31 7,216 9,010 2,076
2017-12-31 7,071 8,575 1,935
2017-09-30 7,052 8,142 2,126
2017-06-30 7,037 7,055 2,175
2017-03-31 6,948 6,803 2,168
2016-12-31 6,986 6,511 2,251
2016-09-30 6,898 6,676 2,222

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Synchrony Financial's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Synchrony Financial's revenue is expected to grow by 4.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:SFE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 weeks ago) See Below
Future Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below

All data from Synchrony Financial Company Filings, last reported 3 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:SFE Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 5.17 5.36 5.01 6.00
2020-12-31 4.65 4.97 4.34 13.00
2019-12-31 5.22 5.48 4.22 12.00
DB:SFE Past Financials Data
Date (Data in USD Millions) EPS *
2019-06-30 4.80
2019-03-31 4.47
2018-12-31 3.76
2018-09-30 3.16
2018-06-30 2.95
2018-03-31 2.65
2017-12-31 2.43
2017-09-30 2.64
2017-06-30 2.66
2017-03-31 2.63
2016-12-31 2.71
2016-09-30 2.67

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Synchrony Financial is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Synchrony Financial's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Synchrony Financial has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

SFE Past Performance

  How has Synchrony Financial performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Synchrony Financial's growth in the last year to its industry (Consumer Finance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Synchrony Financial's year on year earnings growth rate has been positive over the past 5 years.
  • Synchrony Financial's 1-year earnings growth exceeds its 5-year average (50% vs 6.8%)
  • Synchrony Financial's earnings growth has exceeded the Europe Consumer Finance industry average in the past year (50% vs 7.4%).
Earnings and Revenue History
Synchrony Financial's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Synchrony Financial Company Filings, last reported 3 weeks ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:SFE Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 8,730.00 3,414.00 3,369.00
2019-03-31 8,409.00 3,257.00 3,259.00
2018-12-31 7,739.00 2,790.00 3,187.00
2018-09-30 7,494.00 2,392.00 3,073.00
2018-06-30 7,384.00 2,276.00 2,954.00
2018-03-31 7,216.00 2,076.00 2,895.00
2017-12-31 7,071.00 1,935.00 2,804.00
2017-09-30 7,052.00 2,126.00 2,757.00
2017-06-30 7,037.00 2,175.00 2,707.00
2017-03-31 6,948.00 2,168.00 2,662.00
2016-12-31 6,986.00 2,251.00 2,597.00
2016-09-30 6,898.00 2,222.00 2,570.00
2016-06-30 6,838.00 2,192.00 2,528.00
2016-03-31 6,894.00 2,244.00 2,473.00
2015-12-31 6,795.00 2,214.00 2,417.00
2015-09-30 6,702.00 2,198.00 2,347.00
2015-06-30 6,547.00 2,172.00 2,275.00
2015-03-31 6,442.00 2,103.00 2,189.00
2014-12-31 6,313.00 2,109.00 2,101.00
2014-09-30 6,167.00 2,021.00 2,026.00
2014-06-30 6,156.00 2,114.00 1,870.00
2014-03-31 6,014.00 2,178.00 1,749.00
2013-12-31 5,626.00 1,979.00 1,609.00
2012-12-31 5,499.00 2,119.00 1,444.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst Synchrony Financial has efficiently used shareholders’ funds last year (Return on Equity greater than 20%), this is metric is skewed due to its high level of debt.
  • Synchrony Financial used its assets less efficiently than the Europe Consumer Finance industry average last year based on Return on Assets.
  • Unable to establish if Synchrony Financial improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Synchrony Financial's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Finance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Synchrony Financial has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

SFE Health

 How is Synchrony Financial's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Synchrony Financial's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Synchrony Financial's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Synchrony Financial's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Synchrony Financial's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is not covered by short term assets, assets are 0.9x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Synchrony Financial Company Filings, last reported 3 weeks ago.

DB:SFE Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 14,734.00 21,244.00 11,755.00
2019-03-31 14,709.00 21,891.00 12,963.00
2018-12-31 14,678.00 23,996.00 9,396.00
2018-09-30 13,996.00 23,741.00 12,068.00
2018-06-30 14,458.00 21,721.00 15,675.00
2018-03-31 14,356.00 21,015.00 13,044.00
2017-12-31 14,234.00 20,799.00 11,602.00
2017-09-30 14,402.00 19,899.00 13,915.00
2017-06-30 14,332.00 20,709.00 12,020.00
2017-03-31 14,363.00 20,194.00 11,392.00
2016-12-31 14,196.00 20,147.00 9,321.00
2016-09-30 13,981.00 20,167.00 13,588.00
2016-06-30 13,715.00 19,295.00 11,787.00
2016-03-31 13,204.00 20,476.00 12,500.00
2015-12-31 12,604.00 24,279.00 12,325.00
2015-09-30 12,158.00 23,881.00 12,271.00
2015-06-30 11,578.00 23,692.00 10,621.00
2015-03-31 11,036.00 24,060.00 11,218.00
2014-12-31 10,478.00 27,460.00 11,828.00
2014-09-30 9,941.00 27,584.00 14,808.00
2014-06-30 6,393.00 22,973.00 6,782.00
2014-03-31 6,042.00 22,704.00 5,331.00
2013-12-31 5,960.00 24,321.00 2,319.00
2012-12-31 4,582.00 27,815.00 1,334.00
  • Synchrony Financial's level of debt (144.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (358% vs 144.2% today).
  • Debt is well covered by operating cash flow (45.7%, greater than 20% of total debt).
  • Unable to confirm if the interest payments on Synchrony Financial's debt are well covered by earnings due to lack of past financial data.
X
Financial health checks
We assess Synchrony Financial's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Synchrony Financial has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

SFE Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.44%
Current annual income from Synchrony Financial dividends. Estimated to be 2.6% next year.
If you bought €2,000 of Synchrony Financial shares you are expected to receive €49 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Synchrony Financial's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.46%).
  • Synchrony Financial's dividend is below the markets top 25% of dividend payers in Germany (3.9%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:SFE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 14 Analyst Estimates (S&P Global) See Below
Europe Consumer Finance Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 4.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3.2%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:SFE Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 1.04 7.00
2020-12-31 0.95 14.00
2019-12-31 0.87 13.00
DB:SFE Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-07-19 0.880 2.500
2019-04-24 0.840 2.430
2019-01-22 0.840 2.655
2018-10-24 0.840 3.279
2018-07-26 0.840 2.712
2018-04-25 0.600 1.762
2018-01-23 0.600 1.675
2017-10-25 0.600 1.670
2017-07-31 0.600 1.973
2017-07-28 0.600 1.991
2017-07-21 0.600 1.964
2017-04-26 0.520 1.817
2017-01-25 0.520 1.487
2016-10-27 0.520 1.520
2016-07-07 0.520 1.890

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Synchrony Financial has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Synchrony Financial only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of Synchrony Financial's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.9x coverage).
X
Income/ dividend checks
We assess Synchrony Financial's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Synchrony Financial afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Synchrony Financial has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

SFE Management

 What is the CEO of Synchrony Financial's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Margaret Keane
COMPENSATION $12,449,138
AGE 60
TENURE AS CEO 5.4 years
CEO Bio

Ms. Margaret M. Keane serves as Director of Allstate Corp. since January 1, 2018 and has been Chief Executive Officer of Synchrony Financial since February 2014. Ms. Keane served as President of Synchrony Financial since February 2014 until May 02, 2019. Ms. Keane has been the Chief Executive Officer and President of Retail Consumer Finance of Americas Operations at General Electric Company since November 29, 2005. Ms. Keane serves as Chief Executive Officer of Retail Finance and President of Retail Finance GE Money Bank (Stamford, CT). Ms. Keane served as Chief Executive Officer at GE Capital Retail Bank. From June 2004 to April 2011, Ms. Keane served as President and Chief Executive Officer of the Retail Card platform of GE’s North American retail finance business since April 2011. She served as Chief Executive Officer of Retail Finance and President of Retail Finance at General Electric Capital Corporation. She served as Chief Executive Officer and President of GE’s North American retail finance business since April 2011. From January 2000 to December 2001, Ms. Keane served as Chief Quality Leader of GECC. She was named a GE officer in 2005. In May 2004, she joined GE Capital Retail Consumer Finance where she led the retail credit card business. She joined GE Consumer Finance-Americas in 2002 served as Senior Vice President of operations for GE Money-Americas and was responsible for all Customer Service, Sourcing, Real Estate, Facilities and Technology. She joined GE in 1996 as Quality Leader for GE Capital's Vendor Financial Services (VFS) business. She went on to serve in a variety of roles at VFS, including Global Operations Leader and Shared Services Leader of the Mid-Market Leasing Businesses from October 1999 to December 1999. In 1999, she was named Chief Quality Officer for GE Capital and later, Six Sigma Leader for GE Commercial Finance. Prior to GE, she worked for Citibank in New York City. Ms. Keane serves as a member of the board of directors of Synchrony Bank (the “Bank”) since 2009. From January 2002 to May 2004, Ms. Keane served as Senior Vice President of Operations of the Retail Card platform of GE’s North American retail finance business. She began her professional career at CitiCorp. where she held leadership roles in Sales, Marketing and Operations over the course of 16 years. She has been a Director at Synchrony Financial since 2013. Ms. Keane holds a BA in Government/politics and an MBA from St. John's University in Queens, NY.

CEO Compensation
  • Margaret's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Margaret's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Synchrony Financial management team in years:

5.4
Average Tenure
54.5
Average Age
  • The average tenure for the Synchrony Financial management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Margaret Keane

TITLE
CEO & Director
COMPENSATION
$12M
AGE
60
TENURE
5.4 yrs

Brian Doubles

TITLE
President
COMPENSATION
$4M
AGE
43
TENURE
0.2 yrs

Henry Greig

TITLE
Executive VP
COMPENSATION
$3M
AGE
56
TENURE
1.4 yrs

Tom Quindlen

TITLE
Executive VP & CEO of Retail Card
COMPENSATION
$3M
AGE
56
TENURE
5.4 yrs

Neeraj Mehta

TITLE
Executive VP
COMPENSATION
$3M
AGE
48

Brian Wenzel

TITLE
Executive VP & CFO
TENURE
0.2 yrs

Kurt Grossheim

TITLE
Executive VP & COO
TENURE
5.5 yrs

David Melito

TITLE
Senior VP
AGE
53
TENURE
5.4 yrs

Carol Juel

TITLE
Executive VP & Chief Information Officer

Greg Ketron

TITLE
Senior VP & MD of Investor Relations
Board of Directors Tenure

Average tenure and age of the Synchrony Financial board of directors in years:

3.7
Average Tenure
64.5
Average Age
  • The tenure for the Synchrony Financial board of directors is about average.
Board of Directors

Rick Hartnack

TITLE
Non Executive Chairman of the Board
COMPENSATION
$479K
AGE
73
TENURE
4.9 yrs

Margaret Keane

TITLE
CEO & Director
COMPENSATION
$12M
AGE
60
TENURE
6.5 yrs

Roy Guthrie

TITLE
Director
COMPENSATION
$261K
AGE
65
TENURE
5 yrs

Jeff Naylor

TITLE
Director
COMPENSATION
$279K
AGE
60
TENURE
5 yrs

Olympia Snowe

TITLE
Independent Director
COMPENSATION
$264K
AGE
72
TENURE
3.7 yrs

Paget Alves

TITLE
Director
COMPENSATION
$246K
AGE
64
TENURE
3.7 yrs

Art Coviello

TITLE
Independent Director
COMPENSATION
$226K
AGE
66
TENURE
3.7 yrs

Will Graylin

TITLE
Director
COMPENSATION
$226K
AGE
50
TENURE
3.7 yrs

Laurel Richie

TITLE
Director
COMPENSATION
$240K
AGE
60
TENURE
3.7 yrs

Ellen Zane

TITLE
Director
AGE
67
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
05. Mar 19 Sell Neeraj Mehta Individual 01. Mar 19 01. Mar 19 -6,896 €28.85 €-198,979
29. Jan 19 Buy Laurel Richie Individual 28. Jan 19 28. Jan 19 500 €26.40 €13,202
31. Jul 18 Buy William Graylin Individual 30. Jul 18 30. Jul 18 10,000 €25.19 €251,927
31. Jul 18 Buy Jeffrey Naylor Individual 30. Jul 18 30. Jul 18 5,000 €25.24 €126,220
31. Jul 18 Buy Roy Guthrie Individual 30. Jul 18 30. Jul 18 10,000 €25.21 €252,098
X
Management checks
We assess Synchrony Financial's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Synchrony Financial has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

SFE News

Simply Wall St News

SFE Company Info

Description

Synchrony Financial operates as a consumer financial services company in the United States. The company offers private label credit cards, dual cards, general purpose co-branded credit cards, and small and medium-sized business credit products; and promotional financing for consumer purchases, such as private label credit cards and installment loans. It also provides promotional financing to consumers for health, veterinary and personal care procedures, and services and products, such as dental, vision, audiology, and cosmetic; debt cancellation products; and deposit products, including certificates of deposit, individual retirement accounts, money market accounts, and savings accounts to retail and commercial customers, as well as accepts deposits through third-party securities brokerage firms. The company offers its credit products through programs established with a group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations, and healthcare service providers; and deposit products through various channels, such as digital and print. Synchrony Financial was incorporated in 2003 and is headquartered in Stamford, Connecticut.

Details
Name: Synchrony Financial
SFE
Exchange: DB
Founded: 2003
$21,189,933,266
668,900,000
Website: http://www.synchrony.com
Address: Synchrony Financial
777 Long Ridge Road,
Stamford,
Connecticut, 06902,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE SYF Common Stock New York Stock Exchange US USD 01. Aug 2014
DB SFE Common Stock Deutsche Boerse AG DE EUR 01. Aug 2014
MUN SFE Common Stock Boerse Muenchen DE EUR 01. Aug 2014
LSE 0LC3 Common Stock London Stock Exchange GB USD 01. Aug 2014
BMV SYF * Common Stock Bolsa Mexicana de Valores MX MXN 01. Aug 2014
Number of employees
Current staff
Staff numbers
16,500
Synchrony Financial employees.
Industry
Consumer Finance
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/24 00:52
End of day share price update: 2019/07/22 00:00
Last estimates confirmation: 2019/07/23
Last earnings filing: 2019/07/19
Last earnings reported: 2019/06/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.