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SYF

Synchrony Financial BMV:SYF * Stock Report

Last Price

Mex$653.00

Market Cap

Mex$323.5b

7D

4.7%

1Y

-28.0%

Updated

24 Jul, 2022

Data

Company Financials +
SYF * fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends3/6

SYF * Stock Overview

Synchrony Financial, together with its subsidiaries, operates as a consumer financial services company in the United States.

Synchrony Financial Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Synchrony Financial
Historical stock prices
Current Share PriceUS$653.00
52 Week HighUS$1,065.10
52 Week LowUS$606.00
Beta1.53
1 Month Change6.57%
3 Month Change-20.10%
1 Year Change-28.02%
3 Year Change-5.44%
5 Year Change18.81%
Change since IPO-16.65%

Recent News & Updates

Shareholder Returns

SYF *MX Consumer FinanceMX Market
7D4.7%0.9%0.6%
1Y-28.0%-7.2%0.5%

Return vs Industry: SYF * underperformed the MX Consumer Finance industry which returned -7.2% over the past year.

Return vs Market: SYF * underperformed the MX Market which returned 0.9% over the past year.

Price Volatility

Is SYF *'s price volatile compared to industry and market?
SYF * volatility
SYF * Average Weekly Movementn/a
Consumer Finance Industry Average Movement6.4%
Market Average Movement4.6%
10% most volatile stocks in MX Market7.5%
10% least volatile stocks in MX Market2.9%

Stable Share Price: Insufficient data to determine SYF *'s volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine SYF *'s volatility change over the past year.

About the Company

FoundedEmployeesCEOWebsite
193218,000Brian Doubleshttps://www.synchrony.com

Synchrony Financial, together with its subsidiaries, operates as a consumer financial services company in the United States. It provides credit products, such as credit cards, commercial credit products, and consumer installment loans. The company also offers private label credit cards, dual cards, co-brand and general purpose credit cards, short- and long-term installment loans, and consumer banking 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.

Synchrony Financial Fundamentals Summary

How do Synchrony Financial's earnings and revenue compare to its market cap?
SYF * fundamental statistics
Market CapUS$15.74b
Earnings (TTM)US$3.65b
Revenue (TTM)US$9.05b

4.3x

P/E Ratio

1.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SYF * income statement (TTM)
RevenueUS$9.05b
Cost of RevenueUS$0
Gross ProfitUS$9.05b
Other ExpensesUS$5.40b
EarningsUS$3.65b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)7.57
Gross Margin100.00%
Net Profit Margin40.30%
Debt/Equity Ratio90.8%

How did SYF * perform over the long term?

See historical performance and comparison

Dividends

2.7%

Current Dividend Yield

13%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is SYF * undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SYF *?

Other financial metrics that can be useful for relative valuation.

SYF * key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDAn/a
PEG Ratio-0.3x

Price to Earnings Ratio vs Peers

How does SYF *'s PE Ratio compare to its peers?

SYF * PE Ratio vs Peers
The above table shows the PE ratio for SYF * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average6x
GENTERA * Gentera. de
8.3x15.7%Mex$26.4b
MONEX B Monex. de
5.5xn/aMex$9.3b
UNIFIN A Unifin Financiera S. A. B. de C. V
5.2xn/aMex$8.5b
FINDEP * Financiera Independencia. de SOFOM E.N.R
4.8xn/aMex$2.5b
SYF * Synchrony Financial
4.3x-15.5%Mex$15.7b

Price-To-Earnings vs Peers: SYF * is good value based on its Price-To-Earnings Ratio (4.3x) compared to the peer average (6x).


Price to Earnings Ratio vs Industry

How does SYF *'s PE Ratio compare vs other companies in the Global Consumer Finance Industry?

Price-To-Earnings vs Industry: SYF * is good value based on its Price-To-Earnings Ratio (4.3x) compared to the MX Consumer Finance industry average (5.2x)


Price to Earnings Ratio vs Fair Ratio

What is SYF *'s PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SYF * PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.3x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate SYF *'s Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of SYF * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SYF * (MX$653) is trading below our estimate of fair value (MX$1333.24)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Synchrony Financial forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-15.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SYF *'s earnings are forecast to decline over the next 3 years (-15.5% per year).

Earnings vs Market: SYF *'s earnings are forecast to decline over the next 3 years (-15.5% per year).

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

Revenue vs Market: SYF *'s revenue (7.4% per year) is forecast to grow faster than the MX market (6.1% per year).

High Growth Revenue: SYF *'s revenue (7.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SYF *'s Return on Equity is forecast to be low in 3 years time (16.1%).


Discover growth companies

Past Performance

How has Synchrony Financial performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


10.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SYF * has high quality earnings.

Growing Profit Margin: SYF *'s current net profit margins (40.3%) are higher than last year (39.7%).


Past Earnings Growth Analysis

Earnings Trend: SYF *'s earnings have grown by 10% per year over the past 5 years.

Accelerating Growth: SYF *'s earnings growth over the past year (11.3%) exceeds its 5-year average (10% per year).

Earnings vs Industry: SYF * earnings growth over the past year (11.3%) underperformed the Consumer Finance industry 29.2%.


Return on Equity

High ROE: SYF *'s Return on Equity (27.6%) is considered high.


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Financial Health

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

Financial Health Score

6/6

Financial Health Score 6/6

  • Asset Level

  • Allowance for Bad Loans

  • Low Risk Liabilities

  • Loan Level

  • Low Risk Deposits

  • Level of Bad Loans

Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: SYF *'s Assets to Equity ratio (7.1x) is low.

Allowance for Bad Loans: SYF * has a sufficient allowance for bad loans (876%).

Low Risk Liabilities: 79% of SYF *'s liabilities are made up of primarily low risk sources of funding.

Loan Level: SYF * has an appropriate level of Loans to Assets ratio (78%).

Low Risk Deposits: SYF *'s Loans to Deposits ratio (114%) is appropriate.

Level of Bad Loans: SYF * has an appropriate level of bad loans (1.2%).


Discover healthy companies

Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.69%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SYF *'s dividend (2.69%) is higher than the bottom 25% of dividend payers in the MX market (2.09%).

High Dividend: SYF *'s dividend (2.69%) is low compared to the top 25% of dividend payers in the MX market (5.92%).


Stability and Growth of Payments

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

Growing Dividend: SYF *'s dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Earnings Coverage: With its low payout ratio (12.7%), SYF *'s dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SYF *'s dividends in 3 years are forecast to be well covered by earnings (18.4% payout ratio).


Discover strong dividend paying companies

Management

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

4.0yrs

Average management tenure


CEO

Brian Doubles (46 yo)

3.17yrs

Tenure

US$8,880,347

Compensation

Mr. Brian D. Doubles serves as President, CEO & Director of Synchrony Bank. Mr. Doubles serves as President of Synchrony Financial since May 02, 2019 and serves as Chief Executive Officer and Director sinc...


CEO Compensation Analysis

Compensation vs Market: Brian's total compensation ($USD8.88M) is above average for companies of similar size in the MX market ($USD5.87M).

Compensation vs Earnings: Brian's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: SYF *'s management team is considered experienced (4 years average tenure).


Board Members

Experienced Board: SYF *'s board of directors are considered experienced (6.7 years average tenure).


Ownership

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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Synchrony Financial
  • Ticker: SYF *
  • Exchange: BMV
  • Founded: 1932
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Implied Market Cap: US$15.744b
  • Listing Market Cap: US$323.499b
  • Shares outstanding: 481.76m
  • Website: https://www.synchrony.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/24 00:00
End of Day Share Price2022/07/18 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.