Synchrony Financial (SYF) AI Stock Analysis

• Market Cap: $22.65B
• Dividend Yield: 1.34%
• Average Volume (3M): 4.56M
• Price to Earnings (P/E): 8.4
• Beta (1Y): 1.48
• Revenue Growth: -6.38%
• EPS Growth: 19.65%
• Country: US
• Employees: 20,000
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 2.04
• Shares Outstanding: 347,596,280
• 10 Day Avg. Volume: 3,903,960
• 30 Day Avg. Volume: 4,564,095
• PEG Ratio: 1.02
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 1.56
• P/FCF Ratio: 3.03
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 1.24
• Enterprise Value/Gross Profit: 2.44
• Enterprise Value/Ebitda: 4.63
• 1Y Price Target: $91.50
• Price Target Upside: 40.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): 9.26
• Revenue Forecast (FY): $15.56B

• Rating: 67 Neutral
• Price Target: $71.00 ▲(8.98% Upside)
• Action: Reiterated Date: 03/11/26
• Date: Action: Reiterated 03/11/26

Score is led by solid financial fundamentals (strong margins, cash generation, and improving leverage) and attractive valuation (low P/E). Offsetting the positives are weak technicals (price below major moving averages with negative MACD) and credit-cycle/regulatory risks highlighted by rising delinquencies and earnings-call cautions.

Positive Factors

Cash generation

Synchrony consistently generates substantial operating and free cash flow (~$9.85B), with free cash flow closely tracking net income. That durable cash conversion supports shareholder returns, investment in new programs, reserve build or debt servicing and provides funding flexibility through economic cycles.

Profitability & returns

High margins and elevated returns on equity/tangible equity reflect efficient core economics in private-label and co-brand lending. Sustainable profitability enhances capacity to absorb credit losses, finance growth initiatives and maintain returns to shareholders across a multi-month horizon.

Partner ecosystem & product momentum

Deep, long-tenor retail partnerships and multi-product adoption (co-brands, dual cards, Pay Later, digital wallets) create durable distribution and cross-sell advantages. High renewal rates and growing digital wallet usage support sustained purchase volume and sticky deposit/funding relationships.

Negative Factors

Rising delinquencies & charge-offs

Modestly increasing delinquencies and persistently elevated net charge-offs signal asset-quality pressure in the consumer book. Over several months this trend can force higher provisions, weigh on capital buffers and constrain earnings power if charge-off rates fail to stabilize.

Regulatory risk to credit economics

Legislative or regulatory caps on APRs would structurally compress yield and could materially alter pricing, underwriting and merchant economics. Such policy shifts would reduce net interest income potential and could limit product availability to higher-risk consumers over the medium term.

Receivables growth & payment-rate headwinds

Elevated payment rates and a modest decline in ending receivables reduce the interest-earning asset base and visibility on top-line growth. Combined with higher RSAs and near-term investment spending, this constrains NII and revenue momentum over the coming months absent offsetting volume gains.

Synchrony Financial Business Overview & Revenue Model

Company Description

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. In addition, it provides debt cancellation products to its credit card customers through online, mobile, and direct mail; healthcare payments and financing solutions under the CareCredit, Pets Best, and Walgreens brands; payments and financing solutions in the apparel, specialty retail, outdoor, music, and luxury industries; and point-of-sale consumer financing for audiology products and dental services. 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. It serves digital, health and wellness, retail, home, auto, powersports, jewelry, pets, and other industries. Synchrony Financial was founded in 1932 and is headquartered in Stamford, Connecticut.

How the Company Makes Money

Synchrony Financial generates revenue primarily through interest income from the credit products it offers. This includes interest charged on outstanding balances of credit cards and other financing products. Additionally, the company earns fees from retailers and merchants for providing financing solutions, which can include a percentage of sales made using their cards. Synchrony also collects late fees and other ancillary charges from cardholders. Significant partnerships with major retailers allow Synchrony to expand its customer base and enhance transaction volume, which directly contributes to its earnings. The company also benefits from its strategic initiatives in digital banking, offering savings programs that attract deposits and contribute to its interest income.

Synchrony Financial Financial Statement Overview

Summary

Strong profitability (net margin ~18.6%, EBIT margin ~24.2%), improving leverage (debt-to-equity ~0.91) and strong returns (~21% ROE) supported by robust operating/free cash flow (~$9.85B). Main risk is the sharp 2025 revenue decline (down ~79% per provided growth rate), which reduces growth visibility despite solid margins and cash generation.

Income Statement

Profitability is solid, with 2025 net margin around 18.6% and EBIT margin around 24.2%, and earnings have been relatively steady vs. 2024. However, revenue momentum is the key concern: after strong growth in 2023–2024, 2025 shows a sharp revenue decline (down ~79% per the provided growth rate), which materially weakens the growth and visibility profile despite healthy margins.

Balance Sheet

Leverage looks manageable and improving: debt-to-equity is below 1.0 in 2024–2025 (about 0.91 in 2025), down from higher levels earlier in the period. Equity has also increased since 2023, supporting balance-sheet resilience. Returns on equity remain strong (~21% in 2024–2025), though total debt remains sizable (~$15B), keeping funding and credit-cycle sensitivity as ongoing risks for a credit services business.

Cash Flow

Cash generation is strong and consistent, with operating cash flow near $9.85B in both 2024 and 2025 and free cash flow matching operating cash flow in the provided data. Free cash flow growth is positive in 2023–2025 (including a sharp increase in 2025 per the provided growth figure), and free cash flow tracks net income closely (1.0x), indicating good cash conversion. A watch item is that operating cash flow coverage is relatively low (~0.12 in 2024–2025 as provided), suggesting cash flow is not large relative to the referenced obligation base used in that ratio.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.12B	20.76B	17.34B	13.20B	11.22B
Gross Profit	9.76B	9.39B	7.66B	8.30B	9.47B
EBITDA	5.13B	5.03B	3.36B	4.38B	5.89B
Net Income	3.55B	3.50B	2.24B	3.02B	4.22B
Balance Sheet
Total Assets	119.09B	119.46B	117.48B	104.56B	95.75B
Cash, Cash Equivalents and Short-Term Investments	17.32B	17.79B	18.06B	15.17B	13.62B
Total Debt	15.18B	15.46B	15.98B	14.19B	14.51B
Total Liabilities	102.33B	102.88B	103.58B	91.69B	82.09B
Stockholders Equity	16.77B	16.58B	13.90B	12.87B	13.65B
Cash Flow
Free Cash Flow	9.85B	9.85B	8.59B	6.69B	7.10B
Operating Cash Flow	9.85B	9.85B	8.59B	6.69B	7.10B
Investing Cash Flow	-4.85B	-8.90B	-14.23B	-10.23B	-4.81B
Financing Cash Flow	-4.74B	-611.00M	9.63B	5.28B	-5.20B

Synchrony Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 65.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SYF, the sentiment is Negative. The current price of 65.15 is below the 20-day moving average (MA) of 68.55, below the 50-day MA of 73.59, and below the 200-day MA of 72.47, indicating a bearish trend. The MACD of -2.64 indicates Positive momentum. The RSI at 36.15 is Neutral, neither overbought nor oversold. The STOCH value of 18.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SYF.

Synchrony Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YRD	73 Outperform	$307.61M	2.91	12.66%	10.37%	10.48%	-30.67%
OMF	68 Neutral	$5.91B	10.25	23.40%	6.07%	9.51%	29.38%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SYF	67 Neutral	$22.65B	8.41	21.09%	1.34%	-6.38%	19.65%
SLM	62 Neutral	$3.93B	6.01	31.14%	1.88%	0.59%	-1.11%
ALLY	51 Neutral	$11.55B	16.52	5.74%	2.58%	-6.89%	-33.20%
UPST	49 Neutral	$2.73B	78.35	7.29%	―	73.29%	―

Synchrony Financial Corporate Events

Synchrony Posts Monthly Credit Metrics Amid Rising Delinquencies

Synchrony Financial has reported unaudited monthly charge-off and delinquency statistics for its credit portfolio for each of the thirteen months ended Feb. 28, 2026, showing period-end loan receivables fluctuating around $100 billion and a 30+ day delinquency rate rising modestly to 4.7%. Net charge-off rates remained elevated in a 4.7%–6.8% range over the period, and the company plans to continue providing these credit quality metrics on a monthly basis, giving investors and other stakeholders more frequent visibility into consumer credit trends and portfolio risk.

The disclosure underscores a relatively stable but high-volume loan book with slowly increasing delinquencies, which may reflect broader consumer credit pressures and will be closely watched for signs of further deterioration or stabilization. By aligning quarterly month-end statistics with its earnings releases, Synchrony is integrating credit performance data more tightly into its financial reporting cadence, potentially aiding analysts in assessing the resilience of its lending operations and capital planning.

The most recent analyst rating on (SYF) stock is a Buy with a $90.00 price target. To see the full list of analyst forecasts on Synchrony Financial stock, see the SYF Stock Forecast page.

Synchrony Financial Prices $750 Million Senior Notes Offering

On February 18, 2026, Synchrony Financial entered into an underwriting agreement with a syndicate of banks led by BofA Securities, J.P. Morgan Securities and Mizuho Securities to issue and sell $750 million of 4.947% fixed-to-floating rate senior notes due 2032 in a registered public offering. The notes, issued under an existing indenture structure with The Bank of New York Mellon as trustee and supplemented by a new fifteenth supplemental indenture dated February 25, 2026, enhance the company’s long-term funding profile and reflect continued access to capital markets for its ongoing financial operations.

The transaction, supported by a legal opinion from Sidley Austin LLP on the validity of the securities, underscores Synchrony’s use of senior unsecured debt as a core funding tool within its capital structure. For investors and other stakeholders, the deal signals both the company’s confidence in its credit standing and its strategy of tapping public debt markets to finance growth and manage balance sheet needs over the medium term.

The most recent analyst rating on (SYF) stock is a Buy with a $83.00 price target. To see the full list of analyst forecasts on Synchrony Financial stock, see the SYF Stock Forecast page.

Synchrony Financial Reports Monthly Credit Performance Statistics

Synchrony Financial has released unaudited monthly charge-off and delinquency statistics covering the thirteen months ended Jan. 31, 2026, detailing period-end and average loan receivables along with key credit-quality ratios. The data show loan receivables hovering around $100 billion with 30-plus day delinquencies in the mid-4% range and net charge-off rates generally between about 4.7% and 6.8%, offering investors granular transparency into evolving consumer credit trends and portfolio risk.

The company said it will continue furnishing these performance statistics on a monthly basis, aligning the final month of each quarter with its quarterly earnings release. By committing to this regular disclosure, Synchrony enhances visibility into its credit performance for bondholders, equity investors and other stakeholders, aiding assessment of asset quality and potential impacts on funding costs and capital planning.

The most recent analyst rating on (SYF) stock is a Hold with a $82.00 price target. To see the full list of analyst forecasts on Synchrony Financial stock, see the SYF Stock Forecast page.

Synchrony Financial Releases December 2025 Credit Performance Metrics

Synchrony Financial furnished unaudited monthly charge-off and delinquency statistics covering the thirteen months ended December 31, 2025, detailing trends in loan receivables, delinquency rates and net charge-off rates across its consumer credit portfolio. The data show period-end loan receivables fluctuating in a range of roughly $99 billion to $105 billion over the period, with 30-plus day delinquency rates remaining in the mid-4% range and net charge-off rates generally between about 5% and 7%, metrics that provide stakeholders with a granular view of credit performance and loss dynamics ahead of and alongside the company’s regular quarterly results; Synchrony also stated that it will continue to release these portfolio credit statistics on a monthly basis, reinforcing its disclosure practices around asset quality and portfolio risk.

The most recent analyst rating on (SYF) stock is a Buy with a $95.00 price target. To see the full list of analyst forecasts on Synchrony Financial stock, see the SYF Stock Forecast page.