Synchrony Financial (SYF) AI Stock Analysis

• Market Cap: $28.03B
• Dividend Yield: 1.44%
• Average Volume (3M): 3.44M
• Price to Earnings (P/E): 9.2
• Beta (1Y): 1.37
• Revenue Growth: -3.16%
• EPS Growth: 14.60%
• Country: US
• Employees: 20,000
• Sector: Financial
• Sector Strength: 73
• Industry: Financial - Credit Services
• EPS (TTM): 2.50
• Shares Outstanding: 372,057,560
• 10 Day Avg. Volume: 2,742,375
• 30 Day Avg. Volume: 3,439,646
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: 1.33
• Enterprise Value/Gross Profit: 2.54
• Enterprise Value/Ebitda: 2.54
• 1Y Price Target: $80.57
• Price Target Upside: 5.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 78 Outperform
• Price Target: $82.00 ▲(7.08% Upside)

Synchrony Financial's strong technical indicators and attractive valuation are the most significant factors driving the score. The company's solid financial performance and strategic corporate events further support a positive outlook, despite some challenges in purchase volume and debt levels.

Positive Factors

Acquisition

Synchrony entered into an agreement to acquire Lowe's ~$0.8 billion commercial co-branded credit card portfolio and become the new issuer of the co-brand program.

Financial Performance

Synchrony reported 2Q EPS of $2.50, above the estimate of $1.91 and consensus of $1.81.

Partnership Expansion

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

Guidance

Guidance for 2025 is weaker due to slower revenue and loan growth, attributed to elevated payment rates and changes in portfolio mix.

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 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 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: Positive
• Last Price: 76.58
• 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 76.58 is above the 20-day moving average (MA) of 71.67, above the 50-day MA of 69.77, and above the 200-day MA of 62.19, indicating a bullish trend. The MACD of 1.70 indicates Negative momentum. The RSI at 72.11 is Negative, neither overbought nor oversold. The STOCH value of 95.76 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
SYF	78 Outperform	$28.03B	9.15	20.23%	1.44%	-3.16%	14.60%
YRD	76 Outperform	$519.30M	3.00	13.64%	6.67%	12.69%	-35.36%
OMF	76 Outperform	$7.27B	11.05	20.47%	6.75%	9.41%	13.98%
Sector *	68 Neutral	$17.89B	12.03	10.28%	3.73%	9.80%	1.66%
SLM	62 Neutral	$6.64B	15.91	18.99%	1.60%	-4.34%	-38.01%
ALLY	52 Neutral	$12.55B	26.45	4.18%	2.92%	-5.33%	-32.99%
UPST	49 Neutral	$6.63B	―	-0.96%	―	60.62%	96.91%

Synchrony Financial Corporate Events

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.

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.

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.

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.

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.

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.

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.