Synchrony Financial (SYF) AI Stock Analysis

• Market Cap: $26.14B
• Dividend Yield: 1.54%
• Average Volume (3M): 3.57M
• Price to Earnings (P/E): 7.7
• Beta (1Y): 1.37
• 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: 372,057,560
• 10 Day Avg. Volume: 4,125,431
• 30 Day Avg. Volume: 3,572,646
• 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: 0.98
• Enterprise Value/Revenue: 1.57
• Enterprise Value/Gross Profit: 2.54
• Enterprise Value/Ebitda: 3.27
• 1Y Price Target: $84.19
• Price Target Upside: 17.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18

• Rating: 73 Outperform
• Price Target: $80.00 ▲(11.87% Upside)

Synchrony Financial's strong financial performance and undervaluation are significant positives. However, technical indicators suggest caution, and challenges in revenue growth and specific segments temper the outlook.

Positive Factors

Strong Financial Performance

Strong financial performance with high net earnings and return on equity indicates effective management and profitability, supporting long-term growth.

Digital Platform Success

Growth in digital platform spend reflects successful adaptation to digital trends, enhancing customer engagement and competitive positioning.

Strategic Partnerships

Expanding partnerships with major brands strengthens market presence and diversifies revenue streams, supporting sustainable business growth.

Negative Factors

Flat Net Revenue

Flat net revenue growth suggests challenges in expanding income streams, potentially impacting long-term financial performance and growth.

Decline in Receivables

A decline in loan receivables indicates reduced lending activity, which can limit future interest income and affect revenue growth.

Challenges in Specific Segments

Decreased purchase volumes in key segments highlight potential market challenges, which could hinder growth and profitability in these areas.

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 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 exhibits strong revenue growth and profitability, with a commendable return on equity. However, the high debt-to-equity ratio poses a risk, 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.32B	24.17B	7.66B	16.00B	10.19B	11.16B
Gross Profit	10.11B	12.80B	7.66B	14.63B	9.29B	9.74B
EBITDA	7.86B	9.67B	4.12B	4.89B	6.36B	2.84B
Net Income	2.49B	3.50B	2.24B	3.02B	4.22B	1.39B
Balance Sheet
Total Assets	120.50B	119.46B	117.48B	104.56B	95.75B	95.95B
Cash, Cash Equivalents and Short-Term Investments	22.36B	17.79B	18.06B	15.17B	13.62B	18.99B
Total Debt	16.01B	15.46B	15.98B	14.19B	14.51B	15.78B
Total Liabilities	103.55B	102.88B	103.58B	91.69B	82.09B	83.25B
Stockholders Equity	16.95B	16.58B	13.90B	12.87B	13.65B	12.70B
Cash Flow
Free Cash Flow	7.52B	9.85B	8.59B	6.69B	7.10B	7.49B
Operating Cash Flow	7.52B	9.85B	8.59B	6.69B	7.10B	7.49B
Investing Cash Flow	-869.00M	-8.90B	-14.23B	-10.23B	-4.81B	-498.00M
Financing Cash Flow	-1.93B	-611.00M	9.63B	5.28B	-5.20B	-8.03B

Synchrony Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 71.51
• 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 71.51 is below the 20-day moving average (MA) of 71.94, below the 50-day MA of 73.28, and above the 200-day MA of 63.64, indicating a neutral trend. The MACD of -0.75 indicates Negative momentum. The RSI at 47.81 is Neutral, neither overbought nor oversold. The STOCH value of 47.76 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	74 Outperform	$498.57M	2.81	13.64%	7.45%	12.69%	-35.36%
SYF	73 Outperform	$26.14B	7.68	21.52%	1.54%	-6.38%	19.65%
OMF	68 Neutral	$6.33B	9.63	20.47%	7.69%	9.41%	13.98%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SLM	58 Neutral	$5.25B	12.72	18.99%	2.02%	-4.34%	-38.01%
ALLY	56 Neutral	$11.84B	24.98	4.18%	3.01%	-5.33%	-32.99%
UPST	45 Neutral	$4.60B	―	-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.