Synchrony Financial (SYF) AI Stock Analysis

• Market Cap: $28.73B
• Dividend Yield: 1.42%
• Average Volume (3M): 3.33M
• Price to Earnings (P/E): 8.7
• Beta (1Y): 1.38
• 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: 2,415,033
• 30 Day Avg. Volume: 3,332,601
• 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: 0.89
• Enterprise Value/Revenue: 1.33
• Enterprise Value/Gross Profit: 2.66
• Enterprise Value/Ebitda: 5.00
• 1Y Price Target: $85.25
• Price Target Upside: 0.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $83.00 ▼(-1.83% Downside)

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, 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

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	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

• Technical Analysis Sentiment: Positive
• Last Price: 84.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 84.55 is above the 20-day moving average (MA) of 76.55, above the 50-day MA of 74.00, and above the 200-day MA of 65.20, indicating a bullish trend. The MACD of 2.29 indicates Negative momentum. The RSI at 77.43 is Negative, neither overbought nor oversold. The STOCH value of 89.57 is Negative, 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
OMF	81 Outperform	$7.58B	10.92	21.41%	6.20%	9.51%	29.38%
SYF	72 Outperform	$28.73B	8.72	21.64%	1.42%	-6.38%	19.65%
YRD	70 Outperform	$380.19M	2.20	12.53%	9.63%	10.48%	-30.67%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ALLY	67 Neutral	$13.14B	25.68	4.25%	2.70%	-6.89%	-33.20%
SLM	67 Neutral	$6.26B	10.87	27.85%	1.98%	0.59%	-1.11%
UPST	55 Neutral	$4.56B	204.13	4.81%	―	73.29%	―

Synchrony Financial Corporate Events

Synchrony Financial Reports October 2025 Financial Metrics

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.

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.

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.

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.