Synchrony Financial (SYF)
NYSE:SYF
Top Page
Synchrony Financial
(NYSE:SYF)
Select Model
Select Model
Rating:67Neutral
Price Target:
$79.00
▲(7.06% Upside)
Action:ReiteratedDate: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
Strong cash generation & conversion
Consistent operating cash flow (~$9.85B) with free cash flow tracking operating cash flow indicates durable internal funding. This supports reinvestment, buybacks and cushion for reserves, reducing reliance on external funding and enhancing financial flexibility over the medium term.
Negative Factors
Rising delinquencies
A drift higher in delinquencies and persistently elevated net charge‑offs increases provisioning needs and can erode earnings and capital over time. For a credit‑centric franchise, sustained asset‑quality weakness pressures reserves and constrains growth and dividend/share‑repurchase capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation & conversion
Consistent operating cash flow (~$9.85B) with free cash flow tracking operating cash flow indicates durable internal funding. This supports reinvestment, buybacks and cushion for reserves, reducing reliance on external funding and enhancing financial flexibility over the medium term.
Read all positive factors
Synchrony Financial (SYF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.17B
Dividend Yield1.34%
Average Volume (3M)3.64M
Price to Earnings (P/E)8.4
Beta (1Y)1.45
Revenue Growth-6.38%
EPS Growth19.65%
CountryUS
Employees20,000
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)2.04
Shares Outstanding347,596,280
10 Day Avg. Volume2,852,625
30 Day Avg. Volume3,635,110
Financial Highlights & Ratios
PEG Ratio1.02
Price to Book (P/B)1.78
Price to Sales (P/S)1.56
P/FCF Ratio3.03
Enterprise Value/Market Cap1.09
Enterprise Value/Revenue1.43
Enterprise Value/Gross Profit2.81
Enterprise Value/Ebitda5.34
Forecast
1Y Price Target
$84.54Price Target Upside14.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)9.23
Revenue Forecast (FY)$15.48B
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...
How the Company Makes Money
Synchrony primarily makes money by originating and servicing consumer credit card and other consumer financing receivables through programs offered in partnership with merchants and brands. Its core earnings engine is net interest income: it colle...
Synchrony Financial Earnings Call Summary
Earnings Call Date:Jan 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 21, 2026
Earnings Call Sentiment Positive
The call emphasized multiple operational and financial strengths: record fourth-quarter purchase volume, margin expansion, improved credit metrics, broad partner wins, and strong digital/product adoption. Management provided a constructive 2026 outlook (mid-single-digit receivables growth, NII growth, EPS guidance $9.10–$9.50) while acknowledging near-term headwinds — elevated payment rates, higher RSAs and expenses, a modest decline in ending receivables, and regulatory risk. On balance, the positives (revenue and margin gains, credit improvement, partnership momentum, product traction and shareholder returns) outweigh the near-term challenges and investments.Positive Updates
Record Purchase Volume and Yearly Sales
Fourth-quarter purchase volume reached a record $49.0 billion, up 3% year-over-year. For full-year 2025 Synchrony generated more than $182 billion of sales for partners, and connected nearly 70 million customers.
Negative Updates
Ending Receivables and Segment Weakness
Ending loan receivables decreased 1% in Q4 to $104 billion, reflecting higher payment rates and lower average active accounts. Home and Auto purchase volume declined 2% YoY, and some platforms saw lower average active accounts.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Purchase Volume and Yearly Sales
Fourth-quarter purchase volume reached a record $49.0 billion, up 3% year-over-year. For full-year 2025 Synchrony generated more than $182 billion of sales for partners, and connected nearly 70 million customers.
Read all positive updates
Company Guidance
For 2026 management guided net earnings per diluted share of $9.10–$9.50, with mid‑single‑digit ending loan receivables growth (accelerating into the back half of the year and reflecting launches like Walmart One Pay, Lowe’s commercial co‑brand transferring in Q2, and Versatile), portfolio net charge‑offs expected to be in line with their long‑term target of 5.5%–6.0%, RSAs rising but staying within a 4.0%–4.5% of average receivables target, no additional broad‑based credit refinements assumed, baseline macro assumptions of full‑year GDP +2%, year‑end unemployment 4.8%, year‑end fed funds 3.25%, and a full‑year deposit base of ~65%; they expect net interest income to grow (partly from PPPC benefits and lower funding costs), other expenses (excluding $98M of 2025 notable items) to grow in line with receivables, payment rates to remain elevated, and that receivables growth will be driven by average active account and purchase volume trends.Synchrony Financial Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
72
Positive
Cash Flow
76
Positive
| 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
Positive
73.79
Price Trends
69.59
Positive
74.76
Negative
73.23
Positive
Market Momentum
0.93
Negative
68.84
Neutral
96.35
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SYF, the sentiment is Positive. The current price of 73.79 is above the 20-day moving average (MA) of 67.96, above the 50-day MA of 69.59, and above the 200-day MA of 73.23, indicating a bullish trend. The MACD of 0.93 indicates Negative momentum. The RSI at 68.84 is Neutral, neither overbought nor oversold. The STOCH value of 96.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SYF.
Synchrony Financial Risk Analysis
Synchrony Financial disclosed 36 risk factors in its most recent earnings report. Synchrony Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Synchrony Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $153.80M | 28.48 | 0.54% | 10.37% | 10.48% | -30.67% | |
68 Neutral | $6.56B | 10.25 | 23.40% | 6.07% | 9.51% | 29.38% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $25.17B | 8.41 | 21.09% | 1.34% | -6.38% | 19.65% | |
62 Neutral | $4.25B | 7.53 | 31.14% | 1.88% | 0.59% | -1.11% | |
51 Neutral | $12.71B | 16.52 | 5.74% | 2.58% | -6.89% | -33.20% | |
49 Neutral | $2.67B | 57.25 | 7.29% | ― | 73.29% | ― |
* Financial Sector Average
SYF
Synchrony Financial
73.79
27.13
58.15%
SLM
SLM
21.95
-4.19
-16.04%
ALLY
Ally Financial
41.94
10.63
33.94%
OMF
OneMain Holdings
56.85
15.41
37.17%
YRD
Yiren Digital
1.87
-3.47
-64.98%
UPST
Upstart Holdings
28.06
-12.39
-30.63%
Synchrony Financial Corporate Events
Business Operations and StrategyFinancial Disclosures
Synchrony Posts Monthly Credit Metrics Amid Rising Delinquencies
Negative
Mar 10, 2026
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+ da...
Business Operations and StrategyPrivate Placements and Financing
Synchrony Financial Prices $750 Million Senior Notes Offering
Positive
Feb 25, 2026
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 ...
Business Operations and StrategyFinancial Disclosures
Synchrony Financial Reports Monthly Credit Performance Statistics
Neutral
Feb 10, 2026
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 r...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Synchrony Financial Releases December 2025 Credit Performance Metrics
Neutral
Jan 27, 2026
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...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.