Synchrony Financial (SYF) AI Stock Analysis

• Market Cap: $26.53B
• Dividend Yield: 1.51%
• Average Volume (3M): 3.38M
• Price to Earnings (P/E): 8.7
• Beta (1Y): 1.34
• Revenue Growth: -3.16%
• EPS Growth: 14.60%
• Country: US
• Employees: 20,000
• Sector: Financial
• Sector Strength: 72
• Industry: Financial - Credit Services
• EPS (TTM): 2.50
• Shares Outstanding: 372,057,560
• 10 Day Avg. Volume: 3,785,491
• 30 Day Avg. Volume: 3,381,770
• PEG Ratio: 0.64
• Price to Book (P/B): 1.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.80
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 2.64
• Enterprise Value/Ebitda: 0.65
• 1Y Price Target: $79.53
• Price Target Upside: 14.15% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

• Rating: 77 Outperform
• Price Target: $80.00 ▲(14.83%Upside)

Synchrony Financial's strong technical performance and undervaluation relative to peers are major positives. While financial performance is robust, high debt levels and inconsistent cash flow growth are concerns. Strategic partnerships and initiatives highlight potential for future growth.

Positive Factors

Credit Performance

Credit discipline was highlighted by better credit metrics that are now better than pre-pandemic levels.

Net Interest Margin

Net interest margin was strong at 14.78%, exceeding consensus expectations.

Partnerships

Synchrony is expected to continue winning large merchant partnerships, such as the Buy Now Pay Later product with Amazon and the credit card partnership with Walmart.

Negative Factors

Asset Growth Forecast

SYF lowered its forecasted asset growth due to higher payment rates.

Guidance

Guidance was lowered primarily due to tighter underwriting, which will temper some of the bull case benefits.

Operating Expenses

OpEx was above consensus expectations, which, along with higher RSAs, drove PPNR below consensus estimates.

Synchrony Financial Business Overview & Revenue Model

Company Description

Synchrony Financial (SYF) is a premier consumer financial services company that offers a range of credit products, primarily through its retail credit card business. The company is headquartered in Stamford, Connecticut, and provides financial solutions to both consumers and businesses. Synchrony partners with retailers, healthcare providers, and manufacturers to offer private label credit cards, promotional financing, and installment lending. The company's core products and services include retail credit cards, consumer financing, and savings products.

How the Company Makes Money

Synchrony Financial makes money primarily through its retail credit card and promotional financing services. The company generates revenue from interest income on credit card loans and fees charged to merchants and cardholders. These fees include interchange fees, late fees, and annual fees. Synchrony also earns interest from its savings products, such as deposit accounts, which are part of its consumer banking operations. Key partnerships with major retailers and service providers enable Synchrony to expand its customer base and enhance its revenue streams. Additionally, the company leverages data analytics to optimize its credit offerings and manage risk, further contributing to its profitability.

Synchrony Financial Financial Statement Overview

Summary

Synchrony Financial shows strong revenue growth and profitability, with a commendable return on equity. However, the balance sheet indicates a high level of debt which could be risky in volatile markets, and cash flow growth is inconsistent.

Income Statement

Synchrony Financial demonstrates strong gross profit margins and a consistent increase in total revenue, indicating healthy revenue growth. The net profit margin shows some volatility but remains robust, signaling profitability. However, the EBIT margin has shown slight fluctuations, reflecting operational costs that need monitoring.

Balance Sheet

The company's debt-to-equity ratio is moderately high, reflecting a substantial reliance on debt financing, which could pose risks in volatile market conditions. However, the return on equity is commendable, indicating effective use of equity to generate profits. The equity ratio suggests a solid capital structure with sufficient equity backing.

Cash Flow

Operating cash flow is strong, supporting net income effectively, and the company maintains a healthy free cash flow. While free cash flow growth has been inconsistent, the overall cash flow position remains solid, providing flexibility for future investments and debt repayment.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	24.17B	7.66B	16.00B	10.19B	11.16B
Gross Profit	12.80B	7.66B	14.63B	9.29B	9.74B
EBITDA	9.67B	4.12B	4.89B	6.36B	2.84B
Net Income	3.50B	2.24B	3.02B	4.22B	1.39B
Balance Sheet
Total Assets	119.46B	117.48B	104.56B	95.75B	95.95B
Cash, Cash Equivalents and Short-Term Investments	17.79B	18.06B	15.17B	13.62B	18.99B
Total Debt	15.46B	15.98B	14.19B	14.51B	15.78B
Total Liabilities	102.88B	103.58B	91.69B	82.09B	83.25B
Stockholders Equity	16.58B	13.90B	12.87B	13.65B	12.70B
Cash Flow
Free Cash Flow	9.85B	8.59B	6.69B	7.10B	7.49B
Operating Cash Flow	9.85B	8.59B	6.69B	7.10B	7.49B
Investing Cash Flow	-8.90B	-14.23B	-10.23B	-4.81B	-498.00M
Financing Cash Flow	-611.00M	9.63B	5.28B	-5.20B	-8.03B

Synchrony Financial Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 69.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SYF, the sentiment is Neutral. The current price of 69.67 is below the 20-day moving average (MA) of 70.55, above the 50-day MA of 64.93, and above the 200-day MA of 60.84, indicating a neutral trend. The MACD of 1.71 indicates Positive momentum. The RSI at 53.70 is Neutral, neither overbought nor oversold. The STOCH value of 39.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SYF.

Synchrony Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OMF	78 Outperform	$6.93B	10.54	20.47%	7.21%	9.41%	13.98%
SYF	77 Outperform	$26.53B	8.66	20.23%	1.51%	-3.16%	14.60%
IX	69 Neutral	$24.25B	11.13	8.65%	2.88%	0.31%	34.40%
SOFI	68 Neutral	$24.76B	44.33	8.80%	―	22.60%	―
ALLY	68 Neutral	$11.83B	28.30	4.18%	3.15%	-2.99%	-43.64%
Sector *	64 Neutral	€12.83B	12.53	6.83%	3.88%	14.73%	10.24%

Synchrony Financial Corporate Events

Synchrony Financial Announces $1 Billion Senior Notes Sale

On July 24, 2025, Synchrony Financial announced an agreement to issue and sell $1 billion in senior notes, split equally between notes due in 2029 and 2036, as part of a public offering. This move is likely to impact the company’s financial strategy and market positioning by raising significant capital, potentially affecting stakeholders and the company’s competitive stance in the financial services industry.

The most recent analyst rating on (SYF) stock is a Buy with a $58.00 price target. To see the full list of analyst forecasts on Synchrony Financial stock, see the SYF Stock Forecast page.

Synchrony Financial Enhances Transparency with Monthly Updates

Synchrony Financial has released its monthly charge-off and delinquency statistics for the thirteen months ending June 30, 2025. The company plans to continue providing these statistics monthly, aligning quarterly updates with financial results announcements. This initiative aims to enhance transparency for stakeholders by regularly disclosing financial health indicators, potentially impacting investor confidence and market perceptions.

The most recent analyst rating on (SYF) stock is a Buy with a $58.00 price target. To see the full list of analyst forecasts on Synchrony Financial stock, see the SYF Stock Forecast page.

Synchrony Financial Holds Annual Stockholders Meeting

On June 17, 2025, Synchrony Financial held its Annual Meeting of Stockholders, where all directors named in the Proxy Statement were elected for the coming year. The stockholders also ratified KPMG LLP as the independent registered public accounting firm for 2025 and approved the compensation of the company’s named executive officers in an advisory vote. These decisions reflect continued shareholder support for the company’s leadership and strategic direction.

The most recent analyst rating on (SYF) stock is a Buy with a $58.00 price target. To see the full list of analyst forecasts on Synchrony Financial stock, see the SYF Stock Forecast page.

Synchrony Financial Releases May 2025 Charge-Off Data

Synchrony Financial has released its monthly charge-off and delinquency statistics for the thirteen months ending May 31, 2025. The company plans to continue providing these statistics monthly, aligning quarterly figures with financial results announcements. This transparency in reporting could impact stakeholders by offering consistent insights into the company’s financial health and operational performance.

The most recent analyst rating on (SYF) stock is a Buy with a $58.00 price target. To see the full list of analyst forecasts on Synchrony Financial stock, see the SYF Stock Forecast page.

Synchrony Financial Partners with OnePay for Walmart Credit Card

On June 9, 2025, Synchrony Financial announced a strategic partnership with OnePay to launch a new credit card program with Walmart, expected to go live in fall 2025. This program will allow Synchrony to become the exclusive issuer of OnePay credit cards at Walmart, integrating the credit card experience within the OnePay app and leveraging Mastercard’s global payments network. The initiative aims to enhance consumer experience by providing a transparent, rewarding, and easy-to-use financial service, expected to drive loyalty and sales with attractive risk-adjusted returns, contributing positively to Synchrony’s long-term financial performance.

The most recent analyst rating on (SYF) stock is a Buy with a $58.00 price target. To see the full list of analyst forecasts on Synchrony Financial stock, see the SYF Stock Forecast page.

Synchrony Financial Releases April 2025 Charge-Off Data

Synchrony Financial has released its monthly charge-off and delinquency statistics for the thirteen months ending April 30, 2025. The company plans to continue providing these statistics monthly, aligning quarterly updates with financial results announcements. This initiative reflects Synchrony Financial’s commitment to transparency and could impact stakeholders by offering insights into the company’s financial health and operational performance over time.

The most recent analyst rating on (SYF) stock is a Buy with a $58.00 price target. To see the full list of analyst forecasts on Synchrony Financial stock, see the SYF Stock Forecast page.