Synchrony Financial (SYF)
NYSE:SYF
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Synchrony Financial
(NYSE:SYF)
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Rating:77Outperform
Price Target:
$87.00
▲(11.05% Upside)
Action:ReiteratedDate:04/24/26
SYF scores well due to strong profitability and returns with revenue growth resuming, plus an attractive low P/E valuation. Technicals are supportive with positive momentum, while the score is tempered by declining TTM free cash flow, ongoing credit-cycle sensitivity/leverage, and near-term credit-cost seasonality flagged in guidance.
Positive Factors
Strong profitability & ROE
Sustained net margin and a TTM ROE near 21% indicate efficient underwriting and capital use. That durable earnings quality supports internal capital generation, buybacks/dividends capacity and resilience across credit cycles, helping preserve shareholder returns over months.
Negative Factors
Elevated net charge‑offs & delinquencies
Persistently high NCOs and rising delinquencies materially amplify earnings volatility and consume provisioning and capital over time. For a consumer lender, elevated loss rates can reduce ROE, constrain capital returns and require pricing or underwriting shifts to sustain long‑term profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong profitability & ROE
Sustained net margin and a TTM ROE near 21% indicate efficient underwriting and capital use. That durable earnings quality supports internal capital generation, buybacks/dividends capacity and resilience across credit cycles, helping preserve shareholder returns over months.
Read all positive factors
Synchrony Financial (SYF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$25.32B
Dividend Yield1.34%
Average Volume (3M)3.55M
Price to Earnings (P/E)7.2
Beta (1Y)1.49
Revenue Growth-3.18%
EPS Growth32.55%
CountryUS
Employees20,000
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)9.76
Shares Outstanding336,951,320
10 Day Avg. Volume3,276,144
30 Day Avg. Volume3,546,041
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 Cap0.84
Enterprise Value/Revenue1.06
Enterprise Value/Gross Profit1.74
Enterprise Value/Ebitda4.29
Forecast
1Y Price Target
$86.10Price Target Upside9.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering12
EPS Forecast (FY)9.29
Revenue Forecast (FY)$15.35B
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:Apr 21, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 21, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and financial picture: record purchase volumes, strong co-brand performance, improving credit metrics (notably a 96-basis-point reduction in net charge-offs), margin expansion, solid profitability and meaningful shareholder returns. Offsetting items include flat year-over-year receivables, modest declines in liquidity and capital ratios, higher operating expenses and a seasonal expectation of Q2 net charge-off peaking. Management provided an optimistic outlook for mid-single-digit receivables growth by year-end, NII growth, and an EPS guide of $9.10–$9.50, signaling confidence in continued momentum despite near-term headwinds.Positive Updates
Record First-Quarter Purchase Volume
Synchrony generated a record Q1 purchase volume of $43.0 billion, up 6% year-over-year, driven by multi-product engagement and higher spend per account across platforms.
Negative Updates
Ending Loan Receivables Flat
Ending loan receivables were flat year-over-year at $100.0 billion, with only a modest quarter-end increase of approximately $477 million, indicating slower receivables growth despite rising purchase volume.
Read all updates
Q1-2026 Updates
Positive
Negative
Record First-Quarter Purchase Volume
Synchrony generated a record Q1 purchase volume of $43.0 billion, up 6% year-over-year, driven by multi-product engagement and higher spend per account across platforms.
Read all positive updates
Company Guidance
Synchrony expects mid‑single‑digit growth in ending loan receivables by year‑end (seasonally accelerating into the back half of 2026), driven by higher purchase volume and average active accounts and new program additions (including ~ $725M of Lowe’s commercial co‑brand receivables added in April); net interest income is expected to grow in 2026 as PPPCs build and funding costs decline (partially offset by lower late‑fee incidence); net charge‑offs are expected to be less than 5.5% for the full year with NCOs peaking in Q2; RSAs should increase but remain within the long‑term 4.0%–4.5% of average receivables (Q1 RSA was $1.1B, 4.31%); other expense growth is expected to trend in line with loan receivables; management reaffirmed no further broad‑based credit refinements and provided an EPS guide of $9.10–$9.50 while remaining positioned to return excess capital (new share buyback authorization up to $6.5B).Synchrony Financial Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
66
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 19.91B | 19.12B | 20.76B | 17.34B | 13.20B | 11.22B |
| Gross Profit | 12.16B | 9.76B | 9.39B | 7.66B | 8.30B | 9.47B |
| EBITDA | 4.94B | 5.13B | 5.03B | 3.36B | 4.38B | 5.89B |
| Net Income | 3.60B | 3.55B | 3.50B | 2.24B | 3.02B | 4.22B |
Balance Sheet | ||||||
| Total Assets | 121.50B | 119.09B | 119.46B | 117.48B | 104.56B | 95.75B |
| Cash, Cash Equivalents and Short-Term Investments | 20.56B | 17.32B | 17.79B | 18.06B | 15.17B | 13.62B |
| Total Debt | 16.43B | 15.18B | 15.46B | 15.98B | 14.19B | 14.51B |
| Total Liabilities | 105.02B | 102.33B | 102.88B | 103.58B | 91.69B | 82.09B |
| Stockholders Equity | 16.48B | 16.77B | 16.58B | 13.90B | 12.87B | 13.65B |
Cash Flow | ||||||
| Free Cash Flow | 9.83B | 9.85B | 9.85B | 8.59B | 6.69B | 7.10B |
| Operating Cash Flow | 9.83B | 9.85B | 9.85B | 8.59B | 6.69B | 7.10B |
| Investing Cash Flow | -6.93B | -4.85B | -8.90B | -14.23B | -10.23B | -4.81B |
| Financing Cash Flow | -4.97B | -4.74B | -611.00M | 9.63B | 5.28B | -5.20B |
Synchrony Financial Technical Analysis
Positive
78.34
Price Trends
69.81
Positive
74.96
Positive
73.44
Positive
Market Momentum
2.10
Negative
75.47
Negative
89.94
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 78.34 is above the 20-day moving average (MA) of 70.22, above the 50-day MA of 69.81, and above the 200-day MA of 73.44, indicating a bullish trend. The MACD of 2.10 indicates Negative momentum. The RSI at 75.47 is Negative, neither overbought nor oversold. The STOCH value of 89.94 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $25.32B | 7.23 | 21.41% | 1.34% | -3.18% | 32.55% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $4.25B | 3.40 | 31.16% | 1.88% | 1.73% | 28.93% | |
64 Neutral | $6.46B | 6.91 | 23.62% | 6.07% | 7.80% | 42.28% | |
62 Neutral | $185.16M | 28.48 | 0.54% | 10.37% | -1.41% | -98.13% | |
57 Neutral | $2.75B | -93.50 | 6.59% | ― | 57.69% | ― | |
56 Neutral | $13.58B | 9.56 | 9.19% | 2.58% | -0.72% | 198.95% |
* Financial Sector Average
SYF
Synchrony Financial
75.15
22.26
42.10%
SLM
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22.53
-8.39
-27.13%
ALLY
Ally Financial
44.30
12.74
40.35%
OMF
OneMain Holdings
55.90
10.76
23.83%
YRD
Yiren Digital
2.12
-3.94
-65.02%
UPST
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28.70
-17.74
-38.20%
Synchrony Financial Corporate Events
Business Operations and StrategyFinancial Disclosures
Synchrony Financial Posts Monthly Credit Performance Metrics Update
Positive
Apr 21, 2026
Synchrony Financial has reported unaudited monthly charge-off and delinquency statistics for its loan portfolio for the thirteen months ended March 31, 2026, providing detailed data on period-end and average loan receivables, delinquency rates, an...
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.