Synchrony Financial

NYSE: SYF

Stock price

73.72 USD

(+49.86%) 5 years

Financial Performance

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5Y price score: 73

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The price score is a basic measure of the stock's performance against the S&P 500 Index over a five-year period.

A score of 100 indicates that the stock did as well as the S&P 500 Index.

A score below 100 means the stock underperformed the index, while a score above 100 means it outperformed the S&P 500.

10Y return: 190.1%

DATE RANGE:

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63.0

52-week range

88.7

73.715

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Required return / cost of capital
%
FCFF terminal growth rate
%

Your fair value & Margin of safety

To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.

Forecast:

Valuation

Free Cash Flow Yield

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FCF Yield TTM = Trailing Twelve Months free cash flow per share / current market price per shareLearn more

38.2 %

Dividend Yield TTM

1.7 %

Market cap $

$ 23,985

Price / Earnings TTM

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P/E TTM = current market price per share / Trailing Twelve Months diluted earnings per shareLearn more

7.7

Price / Book TTM

1.4

PEG TTM

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Price/Earnings-to-Growth ratio = P/E TTM divided by most recent annual diluted earnings per share growth rateLearn more

0.9

Earnings growth and return

LTM

5YR

10YR

Total return (price & dividends)

2.5 %

59.8 %

190.1 %

Free cash flow per share growth

11.5 %

117.2 %

271.9 %

Earnings per share growth

(6.3) %

309.3 %

250.6 %

Founded: 2,003

Employees: 20,000

Business Summary:Synchrony Financial, along with its various subsidiaries, functions as a leading provider of consumer financial services across the United States. The company offers a comprehensive range of credit products, encompassing diverse credit card options such as private label, co-branded, and general-purpose cards, alongside commercial credit solutions and consumer installment loans for both short and long durations. Additionally, Synchrony provides consumer banking services, including a variety of deposit products like certificates of deposit, individual retirement accounts, money market accounts, and savings accounts. These are made available to both individual consumers and commercial entities, with deposits also accepted via external securities brokerage firms. Beyond core credit and banking, Synchrony extends debt cancellation programs to its credit card clientele through online, mobile, and direct mail channels. It is also a significant player in specialized financing, offering healthcare payment and funding solutions under its CareCredit, Pets Best, and Walgreens brands. The firm further provides payment and financing options to industries like apparel, specialty retail, outdoor, music, and luxury, as well as point-of-sale consumer financing for audiology products and dental services. Synchrony delivers its credit offerings through collaborative programs established with a broad network of national and regional retailers, local merchants, manufacturers, buying groups, industry associations, and healthcare service providers. Its deposit products reach customers through various avenues, including digital and print media. The company's services cater to a wide array of sectors, including digital, health and wellness, retail, home, auto, powersports, jewelry, and pet industries, among others. Established in 1932, Synchrony Financial's corporate headquarters are located in Stamford, Connecticut.

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Fair Value Reference Estimate

Latest Earnings Call Takeaways

2026 Q3 (Oct 20, 2026)

1) Strong Purchase Volume Growth - Synchrony reported record third quarter purchase volume of nearly $50 billion, an 8% increase YoY. - Growth was broad-based across all five sales platforms, with notable increases in the Diversified and Value platform (13%), Home and Auto (9%), and Lifestyle (6%). - Co-branded card spend surged by 23%, driven by new programs and enhanced value propositions. - Younger demographics, particularly Gen Z and millennials, showed the fastest growth in spending.

2) Solid Financial Performance - Net earnings reached $892 million, translating to $2.68 per diluted share, with a return on average assets of 2.9% and return on tangible common equity of 25.2%. - Ending loan receivables grew 3% to $103 billion, despite elevated payment rates of 16.9%. - Net interest income increased by 2% to $4.8 billion, although net interest margin decreased by 12 basis points to 15.5% due to various factors including a decline in loan receivable yield.

3) Operational Challenges and Strategic Initiatives - The efficiency ratio rose to 35.9%, driven by increased operational losses and technology investments. - Synchrony is investing in AI and digital wallet capabilities, including partnerships with Stripe and Vetspire, to enhance customer experience and streamline payment processes. - The introduction of CareCredit Pay Later aims to provide more financing options in the health and wellness sector.

4) Guidance and Market Outlook - For 2026, Synchrony expects diluted earnings per share to reach approximately $9.50, reflecting strong performance despite macroeconomic challenges. - The company anticipates mid-single-digit growth in loan receivables and net interest income increases, with net charge-offs expected to remain below 5.5%. - The holiday shopping season is projected to be robust, with retailers gearing up for increased promotional activities.

5) Missing Information - The transcript lacks specific details on competitive pressures and the impact of macroeconomic factors on consumer behavior, which could provide deeper insights into future performance.

Bottom line: Synchrony Financial is demonstrating strong growth across its platforms and maintaining solid financial performance, positioning itself well for future earnings growth despite operational challenges and a dynamic consumer landscape. Shareholders can expect continued investment in technology and strategic partnerships to drive long-term value.

Annual Reports, Presentations And IR Contacts

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Synchrony Financial — Financial Overview, Stock Price, Market Cap

Synchrony Financial is a company. Founded in 2003. As of October 23, 2026, the company's market capitalization is $23984711471 with a current stock price of $73.72.