Synchrony Financial
Exchange: NYSESector: Financial ServicesIndustry: Credit Services
Synchrony is a premier consumer financial services company. We deliver a wide range of specialized financing programs, as well as innovative consumer banking products, across key industries including digital, retail, home, auto, travel, health and pet. Synchrony enables our partners to grow sales and loyalty with consumers. We are one of the largest issuers of private label credit cards in the United States ; we also offer co-branded products, installment loans and consumer financing products for small- and medium-sized businesses, as well as healthcare providers. Synchrony is changing what's possible through our digital capabilities, deep industry expertise, actionable data insights, frictionless customer experience and customized financing solutions.
Did you know?
Carries 1.0x more debt than cash on its balance sheet.
Current Price
$68.85
-0.59%GoodMoat Value
$438.98
537.6% undervaluedProfile
Valuation (TTM)
Market Cap$24.80B
P/E7.15
EV$24.18B
P/B1.48
Shares Out360.17M
P/Sales2.54
Revenue$9.76B
EV/EBITDA4.95
Synchrony Financial (SYF) Stock Analysis
GoodMoat Analysis
Synchrony Financial is a credit services company with a strong moat in a niche market, trading at a valuation that appears deeply undervalued according to a DCF model. Its high profitability and cash flow generation are compelling, but the financial services sector requires specific analytical checks.
Read full analysis
Synchrony Financial operates as a consumer financial services company, primarily providing private-label credit cards, co-branded cards, and installment loans for a network of retail partners. Applying the GoodMoat framework, the company demonstrates a potentially durable competitive advantage. It scores highly on Moat criteria such as Niche Dominance, as it is a dominant provider of store-branded credit in specific retail verticals, and Strategic Partnerships, evidenced by its long-term, exclusive agreements with major retailers. Its founder-led history and significant insider ownership also contribute to a strong Moat Score, likely exceeding the 5+ threshold for a durable advantage. The business exhibits high quality, with an ROE of 20.7% exceeding the 15-20% benchmark, a robust operating margin of 47.4%, and a remarkably high free cash flow yield of 40.4%. The valuation is the most striking feature: with a P/E of just over 7 and a GoodMoat Target price of $438.98 derived from a DCF model, the current price suggests a margin of safety far exceeding the 40% threshold for 'Deeply Undervalued.' However, per the Decision Framework, a final assessment requires passing the sector-specific gate for financials, which involves analyzing Price-to-Book value, loan loss provisions, and net interest margins—data not provided here. The company warrants a very close look, but the extreme valuation signal must be reconciled with fundamental banking metrics.
Market Cap$24.80B
Current Price$68.85
P/E Ratio7.15
Forward P/E—
PEG Ratio0.86
EPS$9.28
Book Value$46.55
P/B Ratio1.48
SYF Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 1.5% FCF growth (CAGR)
Cash vs Debt
Net Debt: 209M
Revenue
9.1B
FY19
5.9B
FY20
9.5B
FY21
8.3B
FY22
7.7B
FY23
9.4B
FY24
9.8B
FY25
Net Income
3.7B
FY19
1.3B
FY20
4.2B
FY21
3.0B
FY22
2.2B
FY23
3.4B
FY24
3.5B
FY25
SYF 52-Week Range
$43.06
$88.12
50-Day MA: $69.70200-Day MA: $73.05
Did you know?
Profit margin of 35.6% — that's well above average.
Synchrony Financial (SYF) Financial Summary
Synchrony Financial (SYF) is a Financial Services company in the Credit Services industry, listed on NYSE. The stock currently trades at $68.85 with a market capitalization of $24.80B.
Key valuation metrics include a P/E ratio of 7.15, price-to-book ratio of 1.48, and EPS of $9.28. The company reports a profit margin of 35.6% and return on equity of 20.7%.
SYF Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $24.80B |
| P/E Ratio | 7.15 |
| EPS | $9.28 |
| P/B Ratio | 1.48 |
| P/S Ratio | 2.54 |
| EV/EBITDA | 4.95 |
| Dividend Yield | 1.72% |
| Profit Margin | 35.6% |
| Return on Equity | 20.7% |
| Debt/Equity | 0.91 |
SYF Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $9.13B | $3.75B |
| FY20 | $5.85B | $1.34B |
| FY21 | $9.47B | $4.18B |
| FY22 | $8.30B | $2.97B |
| FY23 | $7.66B | $2.20B |
| FY24 | $9.39B | $3.43B |
| FY25 | $9.76B | $3.47B |
Synchrony Financial (SYF) Valuation
Based on GoodMoat's DCF model, Synchrony Financial has a fair value estimate of $438.98. At the current price of $68.85, the stock appears 84.3% undervalued relative to our intrinsic value estimate.
SYF Quality Indicators
Synchrony Financial maintains a profit margin of 35.6% and an operating margin of 47.4%. Return on equity stands at 20.7%. Debt-to-equity ratio is 0.91.
About Synchrony Financial
Synchrony is a premier consumer financial services company. We deliver a wide range of specialized financing programs, as well as innovative consumer banking products, across key industries including digital, retail, home, auto, travel, health and pet. Synchrony enables our partners to grow sales and loyalty with consumers. We are one of the largest issuers of private label credit cards in the United States ; we also offer co-branded products, installment loans and consumer financing products for small- and medium-sized businesses, as well as healthcare providers. Synchrony is changing what's possible through our digital capabilities, deep industry expertise, actionable data insights, frictionless customer experience and customized financing solutions.
SYF Free Cash Flow
Synchrony Financial generated $9.85B in trailing twelve-month free cash flow, representing an FCF yield of 39.73%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
SYF Shares Outstanding
Synchrony Financial has 0.36 billion shares outstanding at a share price of $68.85, giving it a market capitalization of $24.80B.
SYF Recent Insider Trades
Recent insider transactions at Synchrony Financial include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Gentleman Courtney (See remarks) | SELL | 4,338 | $293725.98 |
| Schaller Bart (See remarks) | SELL | 12,980 | $878875.80 |
| Juel Carol (See remarks) | SELL | 16,859 | $1.14M |