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SYF

Synchrony FinancialNYSE:SYF Stock Report

Market Cap

US$28.6b

7D

3.7%

1Y

99.8%

Updated

25 Sep, 2021

Data

Company Financials +
SYF fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance5/6
Financial Health6/6
Dividends3/6

SYF Overview

Synchrony Financial 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$50.23
52 Week HighUS$24.47
52 Week LowUS$52.14
Beta1.8
1 Month Change-1.06%
3 Month Change0.86%
1 Year Change99.80%
3 Year Change61.61%
5 Year Change79.39%
Change since IPO118.39%

Recent News & Updates

Shareholder Returns

SYFUS Consumer FinanceUS Market
7D3.7%4.3%0.1%
1Y99.8%95.9%35.3%

Return vs Industry: SYF exceeded the US Consumer Finance industry which returned 95.9% over the past year.

Return vs Market: SYF exceeded the US Market which returned 35.3% over the past year.

Price Volatility

Is SYF's price volatile compared to industry and market?
SYF volatility
SYF Beta1.8
Industry Beta1.5
Market Beta1

Stable Share Price: SYF is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SYF's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
200316,500Brian Doubleshttps://www.synchrony.com

Synchrony Financial operates as a consumer financial services company in the United States. It provides 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, dual cards, and installment loans.

Synchrony Financial Fundamentals Summary

How do Synchrony Financial's earnings and revenue compare to its market cap?
SYF fundamental statistics
Market CapUS$28.62b
Earnings (TTM)US$3.28b
Revenue (TTM)US$8.26b

8.7x

P/E Ratio

3.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SYF income statement (TTM)
RevenueUS$8.26b
Cost of RevenueUS$0
Gross ProfitUS$8.26b
ExpensesUS$4.98b
EarningsUS$3.28b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Oct 19, 2021

Earnings per share (EPS)5.75
Gross Margin100.00%
Net Profit Margin39.68%
Debt/Equity Ratio94.8%

How did SYF perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

16%

Payout Ratio

Valuation

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

47.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SYF ($50.23) is trading below our estimate of fair value ($95.98)

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


Price To Earnings Ratio

PE vs Industry: SYF is poor value based on its PE Ratio (8.7x) compared to the US Consumer Finance industry average (7.9x).

PE vs Market: SYF is good value based on its PE Ratio (8.7x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SYF is overvalued based on its PB Ratio (2.1x) compared to the US Consumer Finance industry average (1.7x).


Future Growth

How is Synchrony Financial forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

-18.4%

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 (-18.4% per year).

Earnings vs Market: SYF's earnings are forecast to decline over the next 3 years (-18.4% per year).

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

Revenue vs Market: SYF's revenue (14.4% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: SYF's revenue (14.4% 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 high in 3 years time (21.9%)


Past Performance

How has Synchrony Financial performed over the past 5 years?

3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SYF has high quality earnings.

Growing Profit Margin: SYF's current net profit margins (39.7%) are higher than last year (30.6%).


Past Earnings Growth Analysis

Earnings Trend: SYF's earnings have grown by 3.3% per year over the past 5 years.

Accelerating Growth: SYF's earnings growth over the past year (56.1%) exceeds its 5-year average (3.3% per year).

Earnings vs Industry: SYF earnings growth over the past year (56.1%) underperformed the Consumer Finance industry 126.5%.


Return on Equity

High ROE: SYF's Return on Equity (23.4%) is considered high.


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: SYF's Assets to Equity ratio (6.5x) is low.

Allowance for Bad Loans: SYF has a sufficient allowance for bad loans (1151%).

Low Risk Liabilities: 77% 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 (75%).

Low Risk Deposits: SYF's Loans to Deposits ratio (116%) is appropriate.

Level of Bad Loans: SYF has an appropriate level of bad loans (1%).


Dividend

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

1.75%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SYF's dividend (1.75%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: SYF's dividend (1.75%) is low compared to the top 25% of dividend payers in the US market (3.6%).


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 5 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (15.6%), SYF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SYF's dividends in 3 years are forecast to be well covered by earnings (18.1% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Brian Doubles (45 yo)

0.42

Tenure

US$5,181,711

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 ($USD5.18M) is below average for companies of similar size in the US market ($USD11.36M).

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


Leadership Team

Experienced Management: SYF's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: SYF's board of directors are considered experienced (4.2 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.


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 employee growth, exchange listings and data sources


Key Information

  • Name: Synchrony Financial
  • Ticker: SYF
  • Exchange: NYSE
  • Founded: 2003
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$28.616b
  • Shares outstanding: 569.70m
  • 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 Analysis2021/09/25 22:19
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.