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Synchrony Financial SYF

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Stock XNYS Rating as of
$43.49 +0.40 (0.92%)
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As of Cboe BZX Real-Time Price Open
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Company Report

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Synchrony Is Enjoying Solid Loan Growth, but Credit Card Charge-Offs Will Continue to Rise

Michael Miller

Synchrony Financial partners with retailers and medical providers to offer promotional financing as well as private-label and co-branded general-purpose credit cards. While the company’s CareCredit cards and installment loans have consistently performed well, its private-label and co-branded credit cards, co-marketed through partnerships with retailers, can often face material headwinds when retail sales suffer.

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Price vs Fair Value

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SYF is trading at a 35% premium.
Price
$43.09
Fair Value
$42.00
Uncertainty
High
1-Star Price
$15.70
5-Star Price
$28.30
Economic Moat
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Capital Allocation
Xxtdsggw

Bulls Say, Bears Say

Bulls

Synchrony enjoys long-term contracts with several successful digital retailers such as Amazon and PayPal. These partnerships provide Synchrony with a source of receivables growth even if its brick-and-mortar retailer partners struggle.

Bears

Losing Walmart and Gap were serious losses and may be a sign that Synchrony’s largest partners are becoming more demanding during negotiations.

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Trading Information

Previous Close Price
$43.10
Day Range
$42.99–43.65
52-Week Range
$27.30–46.72
Bid/Ask
$43.49 / $43.50
Market Cap
$17.46 Bil
Volume/Avg
1.6 Mil / 4.1 Mil

Key Statistics

Price/Earnings (Normalized)
8.60
Price/Sales
1.18
Dividend Yield (Trailing)
2.32%
Dividend Yield (Forward)
2.32%
Total Yield
8.15%

Company Profile

Synchrony Financial, originally a spinoff of GE Capital's retail financing business, is the largest provider of private-label credit cards in the United States by both outstanding receivables and purchasing volume. Synchrony partners with other firms to market its credit products in their physical stores as well as on their websites and mobile applications. Synchrony operates through three segments: retail card (private-label and co-branded general-purpose credit cards), payment solutions (promotional financing for large ticket purchases), and CareCredit (financing for elective healthcare procedures).
Sector
Financial Services
Industry
Credit Services
Stock Style Box
Mid Value
Total Number of Employees
20,000
Website
https://www.synchronyfinancial.com

Competitors

Valuation

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Metric
SYF
BFH
DFS
Price/Earnings (Normalized)
 8.604.4411.12
Price/Book Value
 1.230.662.31
Price/Sales
 1.180.511.93
Price/Cash Flow
 1.941.003.91
Price/Earnings
SYF
BFH
DFS

Financial Strength

Metric
SYF
BFH
DFS
Quick Ratio
 ———
Current Ratio
 ———
Interest Coverage
 ———
Quick Ratio
SYF
BFH
DFS

Profitability

Metric
SYF
BFH
DFS
Return on Assets (Normalized)
 2.61%2.06%1.60%
Return on Equity (Normalized)
 22.66%15.99%17.20%
Return on Invested Capital (Normalized)
 ———
Return on Assets
SYF
BFH
DFS
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