Synchrony Financial operates as a consumer financial services company in the United States. More Details
Exceptional growth potential with flawless balance sheet.
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: SYF is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: SYF's weekly volatility (6%) has been stable over the past year.
7 Day Return
US Consumer Finance
1 Year Return
US Consumer Finance
Return vs Industry: SYF exceeded the US Consumer Finance industry which returned 86.4% over the past year.
Return vs Market: SYF exceeded the US Market which returned 56.3% over the past year.
Long-Term 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
1 month ago | Simply Wall StWould Synchrony Financial (NYSE:SYF) Be Valuable To Income Investors?
2 months ago | Simply Wall StInterested In Synchrony Financial's (NYSE:SYF) Upcoming US$0.22 Dividend? You Have Two Days Left
2 months ago | Simply Wall StHave Insiders Been Buying Synchrony Financial (NYSE:SYF) Shares?
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: SYF ($42.8) is trading below our estimate of fair value ($67.69)
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 (18.8x) compared to the US Consumer Finance industry average (11.9x).
PE vs Market: SYF is good value based on its PE Ratio (18.8x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: SYF is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: SYF's PB Ratio (2.1x) is in line with the US Consumer Finance industry average.
How is Synchrony Financial forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: SYF's forecast earnings growth (21.1% per year) is above the savings rate (2%).
Earnings vs Market: SYF's earnings (21.1% per year) are forecast to grow faster than the US market (18.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: SYF's revenue (23.9% per year) is forecast to grow faster than the US market (9.9% per year).
High Growth Revenue: SYF's revenue (23.9% per year) is forecast to grow faster 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 (22.5%)
How has Synchrony Financial performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: SYF has high quality earnings.
Growing Profit Margin: SYF's current net profit margins (22.9%) are lower than last year (41%).
Past Earnings Growth Analysis
Earnings Trend: SYF's earnings have grown by 3.2% per year over the past 5 years.
Accelerating Growth: SYF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: SYF had negative earnings growth (-64.1%) over the past year, making it difficult to compare to the Consumer Finance industry average (-21.4%).
Return on Equity
High ROE: SYF's Return on Equity (10.9%) is considered low.
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
Financial Institutions Analysis
Asset Level: SYF's Assets to Equity ratio (7.6x) is low.
Allowance for Bad Loans: SYF has a sufficient allowance for bad loans (898%).
Low Risk Liabilities: 75% 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 (114%) is appropriate.
Level of Bad Loans: SYF has an appropriate level of bad loans (1.4%).
What is Synchrony Financial current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: SYF's dividend (2.06%) is higher than the bottom 25% of dividend payers in the US market (1.26%).
High Dividend: SYF's dividend (2.06%) is low compared to the top 25% of dividend payers in the US market (3.5%).
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 reasonably low payout ratio (38.6%), 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 (18.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Brian Doubles (44 yo)
Mr. Brian D. Doubles serves as President of Synchrony Financial since May 02, 2019 and serves as Chief Executive Officer and Director since April 1, 2021. Mr. Doubles served as Chief Financial Officer and ...
CEO Compensation Analysis
Compensation vs Market: Brian's total compensation ($USD4.62M) is below average for companies of similar size in the US market ($USD10.98M).
Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.
Experienced Management: SYF's management team is seasoned and experienced (7.2 years average tenure).
Experienced Board: SYF's board of directors are considered experienced (5.4 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: SYF insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Synchrony Financial's company bio, employee growth, exchange listings and data sources
- Name: Synchrony Financial
- Ticker: SYF
- Exchange: NYSE
- Founded: 2003
- Industry: Consumer Finance
- Sector: Diversified Financials
- Market Cap: US$24.890b
- Shares outstanding: 581.53m
- Website: https://www.synchrony.com
Number of Employees
- Synchrony Financial
- 777 Long Ridge Road
- United States
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, aut...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/11 22:23|
|End of Day Share Price||2021/04/09 00:00|
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.