Synchrony Financial (SYF)
Financials · $22.8B market cap · SEC CIK 0001601712
ahead of 40% of the S&P 500 · #53 of 76 in Financials
Next reports on Jan 25, 2027, after the close, with analysts expecting $1.99 in earnings per share.
52-week range $63.08 to $88.77. 19% below its 52-week high and 14% above its low.
The case for SYF
- Revenue up 20.5% on the year.
- Cheap for its growth: 6.8× earnings, where 10%+ a year of growth plus a 3.4% dividend would justify about 28×.
- Pays a 3.4% dividend while you wait.
- Return on equity of 20%.
- Price/sales of 0.7× is lower than 99% of Financials companies.
The case against
- Growth is weak (41/100): revenue +20.5%, EPS +5.1%, +0.9% a year over five years.
- The price trend is weak (39/100): 0.0% over a year, −6.4% over three months, 19% below its 52-week high.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Financials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 84 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 41 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 51 |
| Momentumhow the price has behaved lately | 39 |
| Stabilityhow violently it moves, what it owes and what it pays you | 46 |
- Its debt and cash flow are not scored, as for every company in the Financials sector: for banks, insurers and brokers, borrowing is the business.
- Each factor except momentum is half fixed thresholds, half rank among the 76 Financials companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +20.5% |
|---|---|
| Over 5 years | +0.9% a year |
| FY2025 revenue | $19.0B (−3%) |
Free cash flow
Is it generating real cash? Not meaningful for a financial company
Profit margins
Is profitability improving? No, slipping
| Gross margin | n/a |
|---|---|
| Operating margin | 18% |
| Net margin, FY24 → FY25 → now | 17.9% → 18.7% → 14.1% |
Debt vs. cash
Is the balance sheet healthy? Not judged for a financial company
| Cash | $15.0B |
|---|---|
| Long-term debt | $15.2B |
| Net debt | $209M |
Valuation
Is the stock price reasonable? Yes, it looks cheap
| P/E | 6.8× |
|---|---|
| Fair P/E for its growth | 28× |
| Price / book | 1.34× |
| Fair P/B for its ROE | 2.0× |
| Forward P/E | 7.3× |
At 6.8× earnings it trades well below the 28× that 10%+ a year of growth plus a 3.4% dividend would justify. At 1.34× book it trades below the 2.0× that its 20% return on equity would justify; for a financial company that counts for more than earnings.
The financials, five years deep
Pulled from Synchrony Financial's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $19.0B | $19.5B | $17.3B | $16.0B | $14.7B |
| Change on the year | −3% | +13% | +8% | +9% | — |
| Profit margins | |||||
| Net margin | 18.7% | 17.9% | 12.9% | 18.8% | 28.7% |
| Debt vs. cash | |||||
| Cash | $15.0B | $14.7B | $14.3B | $10.3B | $8.3B |
| Long-term debt | $15.2B | $15.5B | $16.0B | $14.2B | $14.5B |
| Net cash (debt) | −$209M | −$751M | −$1.7B | −$3.9B | −$6.2B |
Filings
The text of this 10-K could not be read automatically. The original is linked below.