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Synchrony Financial (SYF)
NYSE:SYF
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Synchrony Financial
(NYSE:SYF)
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Rating:66Neutral
Price Target:
$84.00
▲(14.49% Upside)
The score is driven primarily by solid underlying financial strength and an attractive valuation (low P/E with a dividend). These positives are tempered by weak technical momentum and mixed near-term growth signals (declining revenue and slightly negative free cash flow growth), while the earnings call guidance and credit improvement provide an additional supportive but smaller lift.
Positive Factors
Strong Financial Performance
The company's robust earnings and high return on equity demonstrate effective management and strong profitability, supporting long-term growth potential.
Digital Platform Success
Growth in digital platform spending indicates successful adaptation to digital trends, enhancing customer engagement and future revenue streams.
Credit Performance and Risk Management
Improved credit performance reflects effective risk management, reducing potential losses and strengthening financial stability.
Negative Factors
Decline in Receivables
A decline in loan receivables suggests reduced lending activity, which could impact future interest income and revenue growth.
Flat Net Revenue
Flat net revenue indicates challenges in growing top-line sales, potentially limiting profitability and shareholder returns in the long term.
Challenges in Specific Segments
Decreased purchase volumes in key segments highlight potential weaknesses in market demand, affecting overall business performance.
Synchrony Financial (SYF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.44B
Dividend Yield1.34%
Average Volume (3M)3.65M
Price to Earnings (P/E)7.9
Beta (1Y)1.42
Revenue Growth-6.38%
EPS Growth19.65%
CountryUS
Employees20,000
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)2.04
Shares Outstanding360,171,100
10 Day Avg. Volume5,279,669
30 Day Avg. Volume3,650,419
Financial Highlights & Ratios
PEG Ratio0.11
Price to Book (P/B)1.55
Price to Sales (P/S)1.24
P/FCF Ratio2.62
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue1.37
Enterprise Value/Gross Profit2.73
Enterprise Value/Ebitda5.13
Forecast
1Y Price Target
$92.29Price Target Upside25.79% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Synchrony Financial Business Overview & Revenue Model
Company DescriptionSynchrony 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 MoneySynchrony 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 Earnings Call Summary
Earnings Call Date:Jan 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 28, 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.Q4-2025 Updates
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.
Strong Earnings and Returns
Q4 net earnings of $751 million ($2.40 per diluted share) (included a $0.14 per-share restructuring charge). Full-year net earnings were $3.6 billion ($9.28 per diluted share). Q4 return on average assets was 2.5% and return on tangible common equity was 21.8%; full-year ROA 3.0% and ROTCE 25.8%.
Net Interest Income and Margin Expansion
Net interest income increased 4% year-over-year to $4.8 billion. Net interest margin rose 82 basis points versus prior year to 15.83%, driven by a 53-basis-point increase in loan receivables yield and a 51-basis-point decline in interest-bearing liability costs.
Improved Credit Metrics
Credit trends improved: 30+ delinquency rate 4.49% (down 21 bps YoY), 90+ delinquency 2.17% (down 23 bps YoY), and Q4 net charge-off rate 5.37% (down 108 bps YoY). Provision for credit losses decreased $118 million to $1.4 billion, driven by a $294 million decrease in net charge-offs.
Digital and Product Momentum
Digital platform purchase volume increased 6% YoY. Total site visits rose 18% and sales through digital channels grew 17% in 2025. Unique provisioned accounts and digital wallet sales more than doubled YoY, driving a 400-basis-point gain in dual and co-branded cards wallet penetration.
Multi-Product Strategy and Pay Later Traction
Dual and co-branded cards accounted for 50% of total purchase volume and grew 16% YoY. Synchrony Pay Later is now offered at more than 6,200 merchants and when Pay Later and revolving products are offered together, Synchrony observes at least a 10% average increase in sales.
Business Development and Partner Renewals
Added/renewed more than 25 partners in Q4 (e.g., Bob's Discount Furniture, RH, Polaris) and more than 75 partners over the past year; approximately 97% of interest and fees from top 25 partners renewed through 2028 and top five partners renewed through 2030+.
Capital Return and Funding Mix
Returned $1.1 billion to shareholders in Q4 ($952 million share repurchases and $106 million dividends) and $3.3 billion for the full year. At December 31, deposits represented 84% of total funding; issued a $750 million three-year secured bond at a 4.06% coupon.
2026 Financial Outlook
Guidance for 2026 includes mid-single-digit ending receivables growth (with acceleration in back half of year), continued net interest income growth, an expected portfolio net charge-off rate in line with the 5.5%–6% long-term target, and EPS between $9.10 and $9.50.
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.
Elevated Payment Rates and Receivables Turn
Payment rate rose ~45 basis points YoY to 16.3% (about 155 bps above pre-pandemic Q4 average), which contributed to lower receivables balances and can temper near-term loan growth despite improving purchase volume.
Higher RSAs and Impact on Net Revenue
RSAs totaled $1.1 billion (4.3% of average loan receivables) in Q4, up $175 million versus prior year. Net revenue was flat at $3.8 billion as higher net interest income was offset by higher RSAs driven by program performance.
Rising Expenses and Lower Efficiency
Other expenses increased 10% to $1.4 billion, reflecting higher employee costs, technology investments and a $67 million restructuring charge. The efficiency ratio rose to 36.9%, ~360 basis points higher YoY (excluding the restructuring item the increase would be ~180 bps).
Allowance and Capital Trends
Allowance for credit losses was 10.06% of loan receivables (declined modestly q/q), and key capital ratios declined ~70 basis points YoY (CET1 12.6%, Tier 1 13.8%, total capital 15.8%). Total liquid assets decreased 3% to $16.6 billion (13.9% of assets).
Regulatory and Policy Risk
Management highlighted potential regulatory risks such as proposed APR caps (e.g., 10% cap discussed publicly) that could materially reduce credit availability for lower-income consumers and materially affect merchants and program economics.
J-Curve/Investment Drag from New Programs
Near-term investments for growth (new program launches, marketing, staffing, technology such as AI and cloud) and CECL reserving dynamics create a J-curve effect that pressures early period EPS and increases reserve dollars as new portfolios ramp.
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
Solid profitability and operations (strong gross margin and healthy EBIT/EBITDA margins) and a stable balance sheet (manageable debt-to-equity and strong ROE). Offsetting this, revenue growth is negative and free cash flow growth is slightly negative, signaling near-term growth/cash generation pressure.Income Statement
Synchrony Financial's income statement shows a mixed performance. The TTM gross profit margin of 58.94% is strong, indicating efficient cost management. However, the net profit margin of 17.63% has decreased compared to previous years, reflecting reduced profitability. Revenue growth has been negative at -6.56% TTM, indicating a decline in sales. Despite this, the EBIT and EBITDA margins remain healthy at 39.31% and 40.96%, respectively, suggesting operational efficiency.65
Positive
Balance Sheet
The balance sheet reveals a stable financial position with a debt-to-equity ratio of 0.85, showing a manageable level of debt relative to equity. The return on equity (ROE) is strong at 21.16%, indicating effective use of equity to generate profits. The equity ratio stands at 14.58%, suggesting a solid capital structure with a reasonable proportion of equity financing.70
Positive
Cash Flow
Cash flow analysis shows a slight decline in free cash flow growth at -1.68% TTM, indicating potential challenges in cash generation. However, the operating cash flow to net income ratio of 1.74 suggests strong cash generation relative to net income. The free cash flow to net income ratio remains stable at 1.0, indicating that the company is generating sufficient cash to cover its net income.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.27B | 20.76B | 17.34B | 13.20B | 11.22B | 12.83B |
| Gross Profit | 9.64B | 9.39B | 7.66B | 8.30B | 9.47B | 5.85B |
| EBITDA | 5.14B | 5.03B | 3.36B | 4.38B | 5.89B | 2.18B |
| Net Income | 3.58B | 3.50B | 2.24B | 3.02B | 4.22B | 1.39B |
Balance Sheet | ||||||
| Total Assets | 116.98B | 119.46B | 117.48B | 104.56B | 95.75B | 95.95B |
| Cash, Cash Equivalents and Short-Term Investments | 18.96B | 17.79B | 18.06B | 15.17B | 13.62B | 18.99B |
| Total Debt | 14.43B | 15.46B | 15.98B | 14.19B | 14.51B | 15.78B |
| Total Liabilities | 99.92B | 102.88B | 103.58B | 91.69B | 82.09B | 83.25B |
| Stockholders Equity | 17.07B | 16.58B | 13.90B | 12.87B | 13.65B | 12.70B |
Cash Flow | ||||||
| Free Cash Flow | 9.75B | 9.85B | 8.59B | 6.69B | 7.10B | 7.49B |
| Operating Cash Flow | 9.75B | 9.85B | 8.59B | 6.69B | 7.10B | 7.49B |
| Investing Cash Flow | -5.17B | -8.90B | -14.23B | -10.23B | -4.81B | -498.00M |
| Financing Cash Flow | -6.27B | -611.00M | 9.63B | 5.28B | -5.20B | -8.03B |
Synchrony Financial Technical Analysis
Negative
73.37
Price Trends
80.26
Negative
76.74
Negative
70.11
Positive
Market Momentum
-2.21
Positive
34.60
Neutral
11.85
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 73.37 is below the 20-day moving average (MA) of 80.20, below the 50-day MA of 80.26, and above the 200-day MA of 70.11, indicating a neutral trend. The MACD of -2.21 indicates Positive momentum. The RSI at 34.60 is Neutral, neither overbought nor oversold. The STOCH value of 11.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $7.66B | 11.04 | 21.41% | 6.07% | 9.51% | 29.38% | |
73 Outperform | $367.23M | 2.13 | 12.53% | 10.37% | 10.48% | -30.67% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $26.44B | 7.91 | 21.18% | 1.34% | -6.38% | 19.65% | |
62 Neutral | $5.35B | 7.62 | 32.31% | 1.88% | 0.59% | -1.11% | |
60 Neutral | $13.03B | 17.85 | 5.80% | 2.58% | -6.89% | -33.20% | |
55 Neutral | $4.20B | 182.31 | 4.81% | ― | 73.29% | ― |
* Financial Sector Average
SYF
Synchrony Financial
73.37
5.60
8.26%
SLM
SLM
26.92
-0.52
-1.88%
ALLY
Ally Financial
42.96
4.95
13.02%
OMF
OneMain Holdings
66.10
14.61
28.37%
YRD
Yiren Digital
4.18
-1.14
-21.43%
UPST
Upstart Holdings
41.53
-23.21
-35.85%
Synchrony Financial Corporate Events
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 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.
Business Operations and StrategyFinancial Disclosures
Synchrony Financial Releases November 2025 Charge-Off Data
Neutral
Dec 9, 2025
Synchrony Financial has released its monthly charge-off and delinquency statistics for the thirteen months ending November 30, 2025. The company plans to continue providing these statistics monthly, aligning quarterly data releases with financial results announcements. This initiative aims to enhance transparency and provide stakeholders with timely insights into the company’s financial health and operational performance.
The most recent analyst rating on (SYF) stock is a Buy with a $92.00 price target. To see the full list of analyst forecasts on Synchrony Financial stock, see the SYF Stock Forecast page.
Financial Disclosures
Synchrony Financial Reports October 2025 Financial Metrics
Neutral
Nov 12, 2025
Synchrony Financial has released its monthly charge-off and delinquency statistics for the period ending October 31, 2025. These statistics, which the company plans to continue providing monthly, highlight the financial health and operational metrics of the company, offering stakeholders insights into its performance and potential future trends.
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.
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.