NYSE:SYF

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Flawless balance sheet and fair value.


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


Market Performance


7 Day Return

-8.3%

SYF

-8.6%

US Consumer Finance

-4.1%

US Market


1 Year Return

-28.8%

SYF

-21.6%

US Consumer Finance

12.0%

US Market

Return vs Industry: SYF underperformed the US Consumer Finance industry which returned -21.6% over the past year.

Return vs Market: SYF underperformed the US Market which returned 12% over the past year.


Shareholder returns

SYFIndustryMarket
7 Day-8.3%-8.6%-4.1%
30 Day-2.7%0.4%-0.2%
90 Day15.0%4.9%2.8%
1 Year-26.2%-28.8%-19.8%-21.6%14.6%12.0%
3 Year-16.3%-23.1%-7.8%-12.5%35.8%26.8%
5 Year-16.3%-25.1%17.4%7.8%75.2%55.6%

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

Valuation

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

14.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SYF ($25.46) is trading below our estimate of fair value ($29.84)

Significantly Below Fair Value: SYF is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: SYF's PE Ratio (11.4x) is in line with the US Consumer Finance industry average.

PE vs Market: SYF is good value based on its PE Ratio (11.4x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: SYF is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: SYF is overvalued based on its PB Ratio (1.3x) compared to the US Consumer Finance industry average (1x).


Next Steps

Future Growth

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

26.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SYF's forecast earnings growth (26% per year) is above the savings rate (2.2%).

Earnings vs Market: SYF's earnings (26% per year) are forecast to grow faster than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SYF's revenue (9.4% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: SYF's revenue (9.4% 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 (11.6%).


Next Steps

Past Performance

How has Synchrony Financial performed over the past 5 years?

6.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SYF has high quality earnings.

Growing Profit Margin: SYF's current net profit margins (22.8%) are lower than last year (41.2%).


Past Earnings Growth Analysis

Earnings Trend: SYF's earnings have grown by 6.1% 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 (-64.6%) over the past year, making it difficult to compare to the Consumer Finance industry average (-25.8%).


Return on Equity

High ROE: SYF's Return on Equity (11.4%) is considered low.


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


Financial Institutions Analysis

Asset Level: SYF's Assets to Equity ratio (7.9x) is low.

Allowance for Bad Loans: SYF has a sufficient allowance for bad loans (1055%).

Low Risk Liabilities: 76% 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 (71%).

Low Risk Deposits: SYF's Loans to Deposits ratio (108%) is appropriate.

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


Next Steps

Dividend

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

3.46%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SYF's dividend (3.46%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: SYF's dividend (3.46%) is low compared to the top 25% of dividend payers in the US market (4.78%).


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 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (39.3%), 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 (35.7% payout ratio).


Next Steps

Management

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

6.6yrs

Average management tenure


CEO

Margaret Keane (61 yo)

6.58yrs

Tenure

US$12,169,308

Compensation

Ms. Margaret M. Keane serves as Director of The Allstate Corp. (formerly known as Allstate Corporation). since January 1, 2018 and has been Chief Executive Officer of Synchrony Financial since February 201 ...


CEO Compensation Analysis

Compensation vs Market: Margaret's total compensation ($USD12.17M) is about average for companies of similar size in the US market ($USD11.21M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Margaret Keane
CEO & Director6.58yrsUS$12.17m0.12%
$ 17.3m
Brian Doubles
President1.42yrsUS$4.62m0.037%
$ 5.4m
Brian Wenzel
Senior EVP & CFO1.42yrsUS$2.59m0.0099%
$ 1.5m
Henry Greig
Executive VP2.58yrsUS$2.77m0.028%
$ 4.2m
Thomas Quindlen
Executive VP & CEO of Retail Card6.58yrsUS$3.40m0.027%
$ 4.0m
Neeraj Mehta
Executive VP & CEO of Payment Solutionsno dataUS$3.30m0.022%
$ 3.3m
Kurt Grossheim
Executive VP & COO6.75yrsno datano data
David Melito
Senior VP6.58yrsno data0.0034%
$ 497.9k
Carol Juel
Executive VP & Chief Information Officerno datano datano data
Gregory Ketron
Senior VP & MD of Investor Relationsno datano datano data
Jonathan Mothner
Executive VP6.58yrsUS$2.68m0.024%
$ 3.5m
Bart Schaller
Executive VP & Chief Marketing Officerno datano datano data

6.6yrs

Average Tenure

55yo

Average Age

Experienced Management: SYF's management team is seasoned and experienced (6.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Margaret Keane
CEO & Director6.58yrsUS$12.17m0.12%
$ 17.3m
Paget Alves
Independent Director4.92yrsUS$242.08k0.0032%
$ 475.6k
Richard Hartnack
Independent Non Executive Chairman of the Board6.17yrsUS$477.13k0.0082%
$ 1.2m
Arthur Coviello
Independent Director4.92yrsUS$241.69k0.0050%
$ 738.7k
Roy Guthrie
Independent Director6.25yrsUS$257.08k0.0065%
$ 970.6k
Ellen Zane
Independent Director1.58yrsUS$208.22k0.00046%
$ 68.4k
Jeffrey Naylor
Independent Director6.25yrsUS$279.08k0.0092%
$ 1.4m
William Graylin
Independent Director4.92yrsUS$226.08k0.0080%
$ 1.2m
Fernando Aguirre
Independent Director1.25yrsUS$97.92k0.0031%
$ 462.3k
P. Parker
Director0.25yrno data0.0017%
$ 254.2k
Laurel Richie
Independent Director4.92yrsUS$234.08k0.0034%
$ 503.9k
Olympia Snowe
Independent Director4.92yrsUS$264.08k0.0034%
$ 500.9k

4.9yrs

Average Tenure

64yo

Average Age

Experienced Board: SYF's board of directors are considered experienced (4.9 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 company bio, 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$14.863b
  • Shares outstanding: 583.79m
  • Website: https://www.synchrony.com

Number of Employees


Location

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

Listings

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

Biography

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, aut ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 04:02
End of Day Share Price2020/10/29 00:00
Earnings2020/09/30
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.