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Synchrony Financial
(NYSE:SYF)
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Rating:69Neutral
Price Target:
$75.00
▼(-4.26% Downside)
Action:Downgraded
Date:07/09/26
The score is supported by strong financial profitability/ROE and attractive valuation (low P/E), reinforced by constructive guidance and improving credit trends from the latest earnings call. These positives are partially offset by weak technicals (stock in a downtrend and oversold) and some fundamental watch items including declining free cash flow momentum, expense pressure, and near-term charge-off seasonality risk.
Positive Factors
Partner & Co‑brand Platform
A large, growing partner and co‑brand base drives durable customer acquisition, higher card spend, and recurring interchange and promotional financing revenue. Scale across retailers and verticals creates distribution stickiness and lowers customer acquisition costs, supporting long‑term revenue stability.
Negative Factors
Flat Receivables Growth
A stagnant loan receivables base limits the principal driver of net interest income over time. Higher payment rates and modest account reactivation mean growth depends on new partner programs and reengagement, so sustained receivables stagnation would cap NII expansion and earnings leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Partner & Co‑brand Platform
A large, growing partner and co‑brand base drives durable customer acquisition, higher card spend, and recurring interchange and promotional financing revenue. Scale across retailers and verticals creates distribution stickiness and lowers customer acquisition costs, supporting long‑term revenue stability.
Read all positive factors
Synchrony Financial Key Performance Indicators (KPIs)
Synchrony Financial (SYF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$24.99B
Dividend Yield1.34%
Average Volume (3M)3.56M
Price to Earnings (P/E)7.5
Beta (1Y)1.42
Revenue Growth-3.18%
EPS Growth32.55%
CountryUS
Employees20,000
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)9.76
Shares Outstanding336,370,240
10 Day Avg. Volume3,637,117
30 Day Avg. Volume3,559,236
Financial Highlights & Ratios
PEG Ratio1.09
Price to Book (P/B)1.78
Price to Sales (P/S)1.56
P/FCF Ratio3.03
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$86.92Price Target Upside10.95% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)9.3
Revenue Forecast (FY)$15.32B
Synchrony Financial Business Overview & Revenue Model
Company Description
Synchrony Financial, along with its various subsidiaries, functions as a leading provider of consumer financial services across the United States. The company offers a comprehensive range of credit products, encompassing diverse credit card option...
How the Company Makes Money
Synchrony primarily makes money by originating and servicing consumer credit it extends through its partner programs and direct channels. Its core earnings are driven by: (1) Net interest income: Synchrony earns interest and finance charges on rev...
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 | 5.08B | 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
Neutral
78.34
Price Trends
73.08
Positive
71.75
Positive
73.79
Negative
Market Momentum
-0.06
Positive
48.90
Neutral
60.88
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 78.34 is above the 20-day moving average (MA) of 75.04, above the 50-day MA of 73.08, and above the 200-day MA of 73.79, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 48.90 is Neutral, neither overbought nor oversold. The STOCH value of 60.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
69 Neutral | $24.99B | 7.54 | 21.41% | 1.34% | -3.18% | 32.55% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $7.08B | 8.93 | 23.62% | 6.07% | 7.80% | 42.28% | |
65 Neutral | $4.83B | 6.94 | 31.16% | 1.88% | 1.73% | 28.93% | |
61 Neutral | $14.35B | 11.00 | 9.19% | 2.58% | -0.72% | 198.95% | |
56 Neutral | $2.96B | 57.85 | 6.59% | ― | 57.69% | ― | |
54 Neutral | $108.30M | -0.36 | 0.54% | 10.37% | -13.83% | -154.13% |
* Financial Sector Average
SYF
Synchrony Financial
73.62
4.73
6.87%
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Synchrony Financial Corporate Events
Business Operations and StrategyExecutive/Board Changes
Synchrony Financial reshapes leadership to drive digital growth
Positive
Jun 29, 2026
On June 29, 2026, Synchrony announced significant executive leadership changes aimed at strengthening its digital platform, technology strategy and operations. Carol Juel, previously Executive Vice President, Chief Technology and Operating Officer...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Synchrony Financial Shareholders Back Board, Auditor and Pay
Positive
Jun 25, 2026
Synchrony Financial held its 2026 Annual Meeting of Stockholders on June 24, 2026, where shareholders elected all nominated directors to the board for the coming year, underscoring continuity in the company’s governance. The meeting also saw...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Synchrony Financial Updates Monthly Credit Performance Disclosures
Positive
Jun 9, 2026
Synchrony Financial reported unaudited monthly charge-off and delinquency statistics for its loan receivables for each of the thirteen months ended May 31, 2026, detailing period-end and average receivables, 30-plus day delinquency rates and net c...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Synchrony Financial Issues New Series C Preferred Stock
Positive
Jun 5, 2026
On June 5, 2026, Synchrony Financial issued and sold 500,000 depositary shares in a public offering, each representing a 1/100th interest in a share of its 7.250% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series C. The preferred s...
Business Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Synchrony Financial Enhances Transparency With Monthly Credit Metrics
Positive
May 15, 2026
Synchrony Financial reported unaudited monthly charge-off and delinquency statistics for its credit portfolio for each of the thirteen months ended April 30, 2026, showing period-end loan receivables hovering around $100 billion and 30-plus-day de...
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...
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.