Synchrony Financial (SYF) AI Stock Analysis

• Market Cap: $24.60B
• Dividend Yield: 1.34%
• Average Volume (3M): 5.17M
• Price to Earnings (P/E): 7.6
• Beta (1Y): 1.45
• Revenue Growth: -6.38%
• EPS Growth: 19.65%
• Country: US
• Employees: 20,000
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 2.04
• Shares Outstanding: 347,596,280
• 10 Day Avg. Volume: 4,684,787
• 30 Day Avg. Volume: 5,167,677
• PEG Ratio: 1.02
• Price to Book (P/B): 1.78
• Price to Sales (P/S): 1.56
• P/FCF Ratio: 3.03
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 1.38
• Enterprise Value/Gross Profit: 2.71
• Enterprise Value/Ebitda: 5.15
• 1Y Price Target: $91.60
• Price Target Upside: 25.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 17
• EPS Forecast (FY): 9.24
• Revenue Forecast (FY): $15.56B

• Rating: 68 Neutral
• Price Target: $77.00 ▲(5.75% Upside)
• Action: Downgraded Date: 02/26/26
• Date: Action: Downgraded 02/26/26

The score is driven primarily by solid underlying financial quality (profitability, cash generation, improving leverage) and a notably low valuation, supported by constructive 2026 guidance and improving credit trends. These positives are tempered by weak technical momentum and the revenue-growth concern highlighted in the financial statement analysis, plus ongoing credit/regulatory sensitivity.

Positive Factors

Strong cash generation

Consistent operating cash flow (~$9.85B) and free cash flow parity with net income indicate durable cash conversion. This supports ongoing partner financing, investment in digital/product growth, and capital returns while providing buffers through credit cycles and funding variability.

High returns on capital

Very high ROTCE (~25.8%) and solid ROA reflect efficient capital use in a lending model. Persistent high returns enable sustainable shareholder distributions and reinvestment, and provide resilience against moderate credit volatility while supporting strategic partnership investments.

Durable partner network & product traction

Large, sticky retail partnerships and multi-product adoption (co‑brands, Pay Later) diversify revenue sources and deepen customer engagement. High renewal rates and merchant distribution create structural volume resilience and recurring fee/interest streams across economic cycles.

Negative Factors

Sharp 2025 revenue decline

A pronounced revenue drop in 2025 materially reduces near-term growth visibility and raises questions about portfolio mix and sustainable origination trends. Even with healthy margins, persistent top-line weakness can limit reinvestment capacity and long-term earnings expansion.

Regulatory risk to product economics

Proposed APR caps or similar regulatory changes could structurally compress yields, reduce credit availability for lower‑income customers, and impair merchant economics for private‑label programs. Such policy shifts would erode net interest income and the unit economics of core retail partnerships.

Funding & capital sensitivity

Material debt balances and modest declines in capital ratios increase sensitivity to funding costs and credit shocks. In a credit‑sensitive lending model, reduced capital headroom or tighter funding could constrain receivables growth, limit buybacks/dividends, and force more conservative underwriting.

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

Strong profitability/returns and solid cash generation with improving leverage (debt-to-equity below 1.0) support a good core financial profile. The key offset is the sharp 2025 revenue decline noted in the provided income-statement analysis, which lowers near-term growth visibility despite healthy margins.

Income Statement

Profitability is solid, with 2025 net margin around 18.6% and EBIT margin around 24.2%, and earnings have been relatively steady vs. 2024. However, revenue momentum is the key concern: after strong growth in 2023–2024, 2025 shows a sharp revenue decline (down ~79% per the provided growth rate), which materially weakens the growth and visibility profile despite healthy margins.

Balance Sheet

Leverage looks manageable and improving: debt-to-equity is below 1.0 in 2024–2025 (about 0.91 in 2025), down from higher levels earlier in the period. Equity has also increased since 2023, supporting balance-sheet resilience. Returns on equity remain strong (~21% in 2024–2025), though total debt remains sizable (~$15B), keeping funding and credit-cycle sensitivity as ongoing risks for a credit services business.

Cash Flow

Cash generation is strong and consistent, with operating cash flow near $9.85B in both 2024 and 2025 and free cash flow matching operating cash flow in the provided data. Free cash flow growth is positive in 2023–2025 (including a sharp increase in 2025 per the provided growth figure), and free cash flow tracks net income closely (1.0x), indicating good cash conversion. A watch item is that operating cash flow coverage is relatively low (~0.12 in 2024–2025 as provided), suggesting cash flow is not large relative to the referenced obligation base used in that ratio.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	19.12B	20.76B	17.34B	13.20B	11.22B
Gross Profit	9.76B	9.39B	7.66B	8.30B	9.47B
EBITDA	5.13B	5.03B	3.36B	4.38B	5.89B
Net Income	3.55B	3.50B	2.24B	3.02B	4.22B
Balance Sheet
Total Assets	119.09B	119.46B	117.48B	104.56B	95.75B
Cash, Cash Equivalents and Short-Term Investments	17.32B	17.79B	18.06B	15.17B	13.62B
Total Debt	15.18B	15.46B	15.98B	14.19B	14.51B
Total Liabilities	102.33B	102.88B	103.58B	91.69B	82.09B
Stockholders Equity	16.77B	16.58B	13.90B	12.87B	13.65B
Cash Flow
Free Cash Flow	9.85B	9.85B	8.59B	6.69B	7.10B
Operating Cash Flow	9.85B	9.85B	8.59B	6.69B	7.10B
Investing Cash Flow	-4.85B	-8.90B	-14.23B	-10.23B	-4.81B
Financing Cash Flow	-4.74B	-611.00M	9.63B	5.28B	-5.20B

Synchrony Financial Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 72.81
• 50DMA: Negative
• 100DMA: Negative
• 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 Neutral. The current price of 72.81 is above the 20-day moving average (MA) of 72.78, below the 50-day MA of 78.35, and above the 200-day MA of 71.86, indicating a neutral trend. The MACD of -1.69 indicates Negative momentum. The RSI at 46.42 is Neutral, neither overbought nor oversold. The STOCH value of 40.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SYF.

Synchrony Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YRD	73 Outperform	$325.75M	1.89	12.53%	10.37%	10.48%	-30.67%
SYF	68 Neutral	$24.60B	7.63	21.30%	1.34%	-6.38%	19.65%
OMF	68 Neutral	$6.47B	8.41	23.76%	6.07%	9.51%	29.38%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SLM	63 Neutral	$3.93B	5.74	32.31%	1.88%	0.59%	-1.11%
ALLY	51 Neutral	$12.48B	17.09	5.80%	2.58%	-6.89%	-33.20%
UPST	50 Neutral	$2.76B	66.14	7.49%	―	73.29%	―

Synchrony Financial Corporate Events

Synchrony Financial Prices $750 Million Senior Notes Offering

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 notes due 2032 in a registered public offering. The notes, issued under an existing indenture structure with The Bank of New York Mellon as trustee and supplemented by a new fifteenth supplemental indenture dated February 25, 2026, enhance the company’s long-term funding profile and reflect continued access to capital markets for its ongoing financial operations.

The transaction, supported by a legal opinion from Sidley Austin LLP on the validity of the securities, underscores Synchrony’s use of senior unsecured debt as a core funding tool within its capital structure. For investors and other stakeholders, the deal signals both the company’s confidence in its credit standing and its strategy of tapping public debt markets to finance growth and manage balance sheet needs over the medium term.

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.

Synchrony Financial Reports Monthly Credit Performance Statistics

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 receivables hovering around $100 billion with 30-plus day delinquencies in the mid-4% range and net charge-off rates generally between about 4.7% and 6.8%, offering investors granular transparency into evolving consumer credit trends and portfolio risk.

The company said it will continue furnishing these performance statistics on a monthly basis, aligning the final month of each quarter with its quarterly earnings release. By committing to this regular disclosure, Synchrony enhances visibility into its credit performance for bondholders, equity investors and other stakeholders, aiding assessment of asset quality and potential impacts on funding costs and capital planning.

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 December 2025 Credit Performance Metrics

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.

Synchrony Financial Releases November 2025 Charge-Off Data

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.