Stock Analysis Report

Executive Summary

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

Snowflake Analysis

Undervalued with solid track record.

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: 0LC3 has not had significant price volatility in the past 3 months.

Market Performance

7 Day Return




GB Consumer Finance


GB Market

1 Year Return




GB Consumer Finance


GB Market

Return vs Industry: 0LC3 exceeded the UK Consumer Finance industry which returned -37.3% over the past year.

Return vs Market: 0LC3 underperformed the UK Market which returned 6% over the past year.

Shareholder returns

7 Day-2.6%0.4%-0.5%
30 Day-9.1%0.3%-1.8%
90 Day-11.9%8.5%2.4%
1 Year3.5%1.0%-34.2%-37.3%11.5%6.0%
3 Yearn/a-53.7%-66.8%18.2%3.5%
5 Yearn/a-53.8%-69.0%34.3%3.5%

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


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


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: 0LC3 ($32.51) is trading below our estimate of fair value ($69.62)

Significantly Below Fair Value: 0LC3 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: 0LC3 is good value based on its PE Ratio (5.8x) compared to the Consumer Finance industry average (12.4x).

PE vs Market: 0LC3 is good value based on its PE Ratio (5.8x) compared to the UK market (18.6x).

Price to Earnings Growth Ratio

PEG Ratio: 0LC3's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

Price to Book Ratio

PB vs Industry: 0LC3 is good value based on its PB Ratio (1.4x) compared to the GB Consumer Finance industry average (1.6x).

Next Steps

Future Growth

How is Synchrony Financial forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0LC3's earnings are forecast to decline over the next 3 years (-19.5% per year).

Earnings vs Market: 0LC3's earnings are forecast to decline over the next 3 years (-19.5% per year).

High Growth Earnings: 0LC3's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 0LC3's revenue (16% per year) is forecast to grow faster than the UK market (3.8% per year).

High Growth Revenue: 0LC3's revenue (16% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: 0LC3's Return on Equity is forecast to be low in 3 years time (19.9%).

Next Steps

Past Performance

How has Synchrony Financial performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: 0LC3 has high quality earnings.

Growing Profit Margin: 0LC3's current net profit margins (41%) are higher than last year (36.1%).

Past Earnings Growth Analysis

Earnings Trend: 0LC3's earnings have grown by 11% per year over the past 5 years.

Accelerating Growth: 0LC3's earnings growth over the past year (34.3%) exceeds its 5-year average (11% per year).

Earnings vs Industry: 0LC3 earnings growth over the past year (34.3%) exceeded the Consumer Finance industry 9.2%.

Return on Equity

High ROE: Whilst 0LC3's Return on Equity (24.83%) is high, this metric is skewed due to their high level of debt.

Return on Assets

Return on Capital Employed

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

Inventory Level: 0LC3 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0LC3's debt is not covered by short term assets (assets are 0.7x debt).

Financial Institutions Analysis

Asset Level: 0LC3's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if 0LC3 has a sufficient allowance for bad loans.

Low Risk Liabilities: 0LC3 reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if 0LC3 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0LC3 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if 0LC3 has an appropriate level of bad loans.

Next Steps


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


Current Dividend Yield

Dividend Yield vs Market


Current dividend yield vs market & industry

Notable Dividend: 0LC3's dividend (2.73%) is higher than the bottom 25% of dividend payers in the UK market (1.8%).

High Dividend: 0LC3's dividend (2.73%) is low compared to the top 25% of dividend payers in the UK market (5.03%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 0LC3 has been paying a dividend for less than 10 years.

Growing Dividend: 0LC3's dividend payments have increased, but the company has only paid a dividend for 4 years.

Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.4%), 0LC3's dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: 0LC3's dividends in 3 years are forecast to be well covered by earnings (22.4% payout ratio).

Next Steps


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


Average management tenure


Margaret Keane (60yo)





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  ...

CEO Compensation Analysis

Compensation vs Market: Margaret's total compensation ($USD12.45M) is above average for companies of similar size in the UK market ($USD4.67M).

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

Leadership Team

Margaret Keane
CEO & Director6yrsUS$12.45m0.047% $9.5m
Brian Doubles
President0.8yrsUS$3.88m0.019% $4.0m
Henry Greig
Executive VP2yrsUS$2.76m0.016% $3.4m
Thomas Quindlen
Executive VP & CEO of Retail Card6yrsUS$3.47m0.012% $2.5m
Neeraj Mehta
Executive VP0yrsUS$3.34m0.018% $3.6m
Brian Wenzel
Executive VP & CFO0.8yrsno data0.0055% $1.1m
Kurt Grossheim
Executive VP & COO6.1yrsno datano data
David Melito
Senior VP6yrsno data0.00096% $196.3k
Carol Juel
Executive VP & Chief Information Officer0yrsno datano data
Gregory Ketron
Senior VP & MD of Investor Relations0yrsno datano data


Average Tenure


Average Age

Experienced Management: 0LC3's management team is seasoned and experienced (6 years average tenure).

Board Members

Margaret Keane
CEO & Director6yrsUS$12.45m0.047% $9.5m
Paget Alves
Independent Director4.3yrsUS$246.06k0.0020% $402.8k
Richard Hartnack
Non Executive Chairman of the Board5.5yrsUS$479.16k0.0062% $1.3m
Arthur Coviello
Independent Director4.3yrsUS$226.06k0.0013% $269.9k
Roy Guthrie
Independent Director5.6yrsUS$261.06k0.0054% $1.1m
Ellen Zane
Independent Director1yrsno datano data
Jeffrey Naylor
Independent Director5.6yrsUS$279.06k0.0077% $1.6m
William Graylin
Independent Director4.3yrsUS$226.06k0.0085% $1.7m
Laurel Richie
Independent Director4.3yrsUS$240.06k0.0018% $357.8k
Olympia Snowe
Independent Director4.3yrsUS$264.06k0.0021% $435.5k


Average Tenure


Average Age

Experienced Board: 0LC3's board of directors are considered experienced (4.3 years average tenure).


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

Insider Trading Volume

Insider Buying: Insufficient data to determine if 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: 0LC3
  • Exchange: LSE
  • Founded: 2003
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$20.447b
  • Shares outstanding: 613.48m
  • Website:

Number of Employees


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


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


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, auto, travel, health, and pet industries. The company also 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. In addition, it 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. 

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 23:03
End of Day Share Price2020/02/24 00:00
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.