Synchrony Financial (SYF) AI Stock Analysis

• Market Cap: $26.37B
• Dividend Yield: 1.5%
• Average Volume (3M): 3.67M
• Price to Earnings (P/E): 8.2
• Beta (1Y): 1.39
• Revenue Growth: -6.38%
• EPS Growth: 19.65%
• Country: US
• Employees: 20,000
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 2.86
• Shares Outstanding: 360,171,100
• 10 Day Avg. Volume: 4,009,008
• 30 Day Avg. Volume: 3,674,249
• PEG Ratio: 0.11
• Price to Book (P/B): 1.55
• Price to Sales (P/S): 1.07
• P/FCF Ratio: 2.62
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 1.69
• Enterprise Value/Gross Profit: 2.34
• Enterprise Value/Ebitda: 3.58
• 1Y Price Target: $84.14
• Price Target Upside: 14.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17

• Rating: 72 Outperform
• Price Target: $83.00 ▲(13.37% Upside)

Synchrony Financial's overall stock score of 72 reflects a strong valuation and positive technical indicators, which are slightly offset by challenges in financial performance and mixed earnings call insights. The company's solid balance sheet and strategic initiatives provide a foundation for future growth, despite current revenue and cash flow challenges.

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 Business Overview & Revenue Model

Company Description

Synchrony Financial (SYF) is a premier consumer financial services company headquartered in Stamford, Connecticut. It specializes in providing a range of financial products and services, primarily through its private label credit cards, promotional financing, and installment loans. The company operates across various sectors, including retail, healthcare, and automotive, partnering with numerous brands to offer tailored financing solutions that enhance customer purchasing power and drive sales for its partners.

How the Company Makes Money

Synchrony Financial generates revenue primarily through interest income and fees associated with its credit products. The company earns interest on outstanding balances from credit card accounts, which is a significant revenue stream. Additionally, Synchrony collects fees from merchants for providing financing options to their customers, including transaction fees and account management fees. The company has established partnerships with major retailers and service providers, which not only enhances its market reach but also drives customer acquisition and usage of its financial products. Furthermore, Synchrony benefits from ancillary services such as insurance and promotional financing, contributing to its overall earnings.

Synchrony Financial Financial Statement Overview

Summary

Synchrony Financial demonstrates a solid financial foundation with strong profitability and efficient operations. However, declining revenue growth and free cash flow indicate potential challenges ahead. The company maintains a healthy balance sheet with manageable debt levels and strong equity returns, positioning it well for future opportunities.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	15.24B	24.17B	17.34B	13.20B	11.22B	12.83B
Gross Profit	11.00B	12.80B	7.66B	8.30B	9.47B	5.85B
EBITDA	7.17B	9.67B	4.12B	4.84B	6.31B	2.78B
Net Income	2.78B	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	16.25B	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	7.40B	9.85B	8.59B	6.69B	7.10B	7.49B
Operating Cash Flow	7.40B	9.85B	8.59B	6.69B	7.10B	7.49B
Investing Cash Flow	-212.00M	-8.90B	-14.23B	-10.23B	-4.81B	-498.00M
Financing Cash Flow	-5.65B	-611.00M	9.63B	5.28B	-5.20B	-8.03B

Synchrony Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 73.21
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 73.21 is above the 20-day moving average (MA) of 72.05, below the 50-day MA of 73.65, and above the 200-day MA of 64.00, indicating a neutral trend. The MACD of 0.34 indicates Negative momentum. The RSI at 51.12 is Neutral, neither overbought nor oversold. The STOCH value of 74.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SYF.

Synchrony Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YRD	―	$458.82M	2.68	13.64%	8.29%	12.69%	-35.36%
SYF	―	$26.37B	8.17	21.64%	1.50%	-6.38%	19.65%
OMF	―	$6.66B	10.46	20.47%	7.43%	9.41%	13.98%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SLM	―	$5.74B	9.95	27.85%	1.95%	0.59%	-1.11%
ALLY	―	$12.57B	24.62	4.24%	3.00%	-6.58%	-33.20%
UPST	―	$4.88B	―	-0.96%	―	60.62%	96.91%

Synchrony Financial Corporate Events

Synchrony Financial Reports Strong Q3 Earnings Growth

Synchrony Financial is a leading consumer financing company that provides credit and banking products to support financial health for individuals and businesses across various sectors, including health, home, auto, and retail. In its third-quarter 2025 earnings report, Synchrony Financial reported a significant increase in net earnings, reaching $1.1 billion, up from $789 million in the same quarter of the previous year. The company also announced an additional $1.0 billion share repurchase authorization, reflecting its strong capital generation and commitment to shareholder returns.

Synchrony Financial’s Earnings Call: Resilience Amid Challenges

The recent earnings call of Synchrony Financial painted a picture of resilience amidst challenges. The company demonstrated a strong financial performance and strategic partnerships, yet faced hurdles such as flat net revenue and declines in specific segments. Despite these challenges, Synchrony showcased effective risk management and capital returns, reflecting a balanced sentiment of optimism and caution.

Synchrony Financial Releases September 2025 Charge-Off Data

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

The most recent analyst rating on (SYF) stock is a Buy with a $81.00 price target. To see the full list of analyst forecasts on Synchrony Financial stock, see the SYF Stock Forecast page.

Synchrony Financial Elects Deborah Ellinger to Board

On September 26, 2025, Synchrony Financial announced the election of Deborah Ellinger to its Board of Directors, effective October 1, 2025. Ms. Ellinger, a seasoned leader with experience in health, wellness, and retail sectors, will enhance the board’s expertise in these areas. Her appointment reflects Synchrony’s strategic priorities and commitment to stakeholder outcomes, as emphasized by CEO Brian Doubles. With her addition, the board now comprises twelve members.

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 August 2025 Charge-Off Data

Synchrony Financial has released its monthly charge-off and delinquency statistics for the thirteen months ending August 31, 2025. The company plans to continue providing these statistics monthly, aligning quarterly reports with financial results announcements. This initiative reflects Synchrony Financial’s commitment to transparency in its financial operations, potentially impacting stakeholder confidence and market positioning.

The most recent analyst rating on (SYF) stock is a Buy 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 July 2025 Charge-Off Data

Synchrony Financial has released its monthly charge-off and delinquency statistics for the thirteen months ending July 31, 2025. The company plans to continue providing these statistics monthly, aligning the quarterly data release with their 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 $58.00 price target. To see the full list of analyst forecasts on Synchrony Financial stock, see the SYF Stock Forecast page.

Synchrony Financial to Acquire Lowe’s Credit Portfolio

On August 4, 2025, Synchrony Financial announced its agreement to acquire Lowe’s commercial co-branded credit card portfolio, which includes loan receivables of approximately $0.8 billion. This acquisition, expected to complete in the first half of 2026, will position Synchrony as the issuer of the portfolio, with an anticipated reserve of up to $50 million to be recorded in the third quarter of 2025.

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 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.