Skip to Content

Synchrony Financial SYF

Rating as of

Morningstar’s Analysis

Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price


5-Star Price


Economic Moat


Capital Allocation


Fiscal Stimulus Proves to Be a Mixed Blessing for Synchrony's First-Quarter Results

Michael Miller Equity Analyst

Analyst Note

| Michael Miller |

Synchrony reported a decent quarter, with earnings of $1.73 per diluted share beating the FactSet consensus of $1.37. The EPS beat was driven by strong credit results, which saw the company’s net charge-offs fall to 3.62% of total average loan receivables compared with 5.36% in the prior year's quarter. As unemployment continues to fall and credit losses remain low, it appears that fiscal stimulus programs have forestalled any major credit consequences from the pandemic. We do expect credit costs to normalize in the second half of the year, but we are raising our fair value estimate for Synchrony to $35 from $32 as we lower our expectations for charge-offs as the United States enters the second half of the COVID-19 vaccine rollout with credit conditions intact.

Read Full Analysis

Company Profile

Business Description

Synchrony Financial, originally a spin-off 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).

777 Long Ridge Road
Stamford, CT, 06902
T +1 203 585-2400
Sector Financial Services
Industry Credit Services
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 16,500