Synchrony Financial (SYF) AI Stock Analysis

• Market Cap: $23.39B
• Dividend Yield: 1.95%
• Average Volume (3M): 3.35M
• Price to Earnings (P/E): 8.4
• Beta (1Y): 1.32
• Revenue Growth: 1.22%
• EPS Growth: 4.96%
• Country: US
• Employees: 20,000
• Sector: Financial
• Sector Strength: 74
• Industry: Financial - Credit Services
• EPS (TTM): 1.89
• Shares Outstanding: 380,650,700
• 10 Day Avg. Volume: 3,323,666
• 30 Day Avg. Volume: 3,350,547
• PEG Ratio: -0.32
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 2.36
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 1.36
• Enterprise Value/Ebitda: 2.19
• 1Y Price Target: $65.25
• Price Target Upside: 6.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 77 Outperform
• Price Target: $70.00 ▲(13.91%Upside)

The strong financial performance and undervalued valuation are the most significant factors driving the score. Technical indicators support a bullish outlook, while the earnings call and corporate events provide additional confidence in future prospects. The high debt level is a risk to monitor.

Positive Factors

Credit Management

The May net charge-off rate was significantly lower than both monthly and yearly averages, showcasing effective credit management.

Financial Performance

Analyst believes SYF’s pricing actions will lead to enhanced near-term earnings power.

Strategic Partnerships

The strategic partnership with OnePay to issue a new Walmart credit card program is expected to boost organic loan growth and enhance financial performance.

Negative Factors

Loan Growth

Loan growth remains weak due to tighter underwriting, which may limit the company's expansion potential.

Partnership Risks

Walmart is viewed as being tough on their vendors, raising questions about what will prevent Synchrony from facing the same issues that Capital One had with the relationship.

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 makes money primarily through its retail credit card and promotional financing services. The company generates revenue from interest income on credit card loans and fees charged to merchants and cardholders. These fees include interchange fees, late fees, and annual fees. Synchrony also earns interest from its savings products, such as deposit accounts, which are part of its consumer banking operations. Key partnerships with major retailers and service providers enable Synchrony to expand its customer base and enhance its revenue streams. Additionally, the company leverages data analytics to optimize its credit offerings and manage risk, further contributing to its profitability.

Synchrony Financial Financial Statement Overview

Summary

Synchrony Financial shows a strong financial position with robust revenue growth and profitability. The company manages a healthy cash flow, though it faces high debt levels, which necessitate careful management to ensure sustainable growth.

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
18.05B	9.39B	7.66B	16.00B	10.19B	11.16B
	Gross Profit
14.45B	9.39B	7.66B	14.63B	9.29B	9.74B
	EBIT
10.17B	5.26B	3.66B	5.44B	5.50B	1.80B
	EBITDA
2.41B	0.00	0.00	4.89B	6.36B	2.84B
	Net Income Common Stockholders
2.96B	3.50B	2.24B	3.02B	4.22B	1.39B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
24.35B	17.79B	18.06B	15.17B	13.62B	18.99B
	Total Assets
122.03B	119.46B	117.48B	104.56B	95.75B	95.95B
	Total Debt
17.01B	15.46B	15.98B	14.19B	14.51B	15.78B
	Net Debt
-4.62B	751.00M	1.72B	3.90B	6.17B	4.25B
	Total Liabilities
105.44B	102.88B	103.58B	91.69B	82.09B	83.25B
	Stockholders Equity
16.58B	16.58B	13.90B	12.87B	13.65B	12.70B
Cash Flow		Free Cash Flow
9.80B	9.85B	8.59B	6.69B	7.10B	7.49B
	Operating Cash Flow
9.80B	9.85B	8.59B	6.69B	7.10B	7.49B
	Investing Cash Flow
-6.10B	-8.90B	-14.23B	-10.23B	-4.81B	-498.00M
	Financing Cash Flow
-1.10B	-611.00M	9.63B	5.28B	-5.20B	-8.03B

Synchrony Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 61.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 61.45 is above the 20-day moving average (MA) of 59.20, above the 50-day MA of 55.28, and above the 200-day MA of 57.87, indicating a bullish trend. The MACD of 1.35 indicates Positive momentum. The RSI at 60.04 is Neutral, neither overbought nor oversold. The STOCH value of 71.25 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
DFS	78 Outperform	$50.34B	10.69	28.29%	1.40%	9.42%	128.55%
SYF	77 Outperform	$23.39B	8.44	18.60%	1.95%	1.22%	4.96%
SOFI	73 Outperform	$16.98B	36.50	7.51%	―	21.24%	―
IX	69 Neutral	$23.01B	10.56	8.65%	2.83%	0.31%	34.40%
OMF	68 Neutral	$6.25B	11.12	17.46%	7.75%	9.07%	―
Sector *	64 Neutral	$12.77B	9.78	7.84%	78.83%	12.06%	-7.99%
ALLY	63 Neutral	$11.32B	27.07	3.84%	3.26%	-2.99%	-43.64%

Synchrony Financial Corporate Events

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.

The most recent analyst rating on (SYF) stock is a Buy with a $58.00 price target. To see the full list of analyst forecasts on Synchrony Financial stock, see the SYF Stock Forecast page.

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.

The most recent analyst rating on (SYF) stock is a Buy with a $58.00 price target. To see the full list of analyst forecasts on Synchrony Financial stock, see the SYF Stock Forecast page.

Synchrony Financial Releases April 2025 Charge-Off Data

Synchrony Financial has released its monthly charge-off and delinquency statistics for the thirteen months ending April 30, 2025. The company plans to continue providing these statistics monthly, aligning quarterly updates with financial results announcements. This initiative reflects Synchrony Financial’s commitment to transparency and could impact stakeholders by offering insights into the company’s financial health and operational performance over time.

The most recent analyst rating on (SYF) stock is a Buy with a $58.00 price target. To see the full list of analyst forecasts on Synchrony Financial stock, see the SYF Stock Forecast page.

Synchrony Financial Releases March 2025 Charge-Off Data

Synchrony Financial has released its monthly charge-off and delinquency statistics for the thirteen months ending March 31, 2025. The company plans to continue providing these statistics on a monthly basis, aligning the release of quarterly statistics with their financial results announcements. This initiative aims to enhance transparency in financial reporting and provide stakeholders with timely insights into the company’s financial health.