Synchrony Financial Fundamental Analysis (XETRA: SFE.DE)
Synchrony Financial Fundamental Analysis (XETRA: SFE.DE)
Synchrony Financial (XETRA: SFE.DE) shows moderate financial fundamentals with a PE ratio of 7.68, profit margin of 17.62%, and ROE of 20.18%. The company generates $22.0B in annual revenue with weak year-over-year growth of -7.91%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SFE.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakSFE.DE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentSFE.DE trades at attractive valuation levels.
Growth Score
WeakSFE.DE faces weak or negative growth trends.
Financial Health Score
WeakSFE.DE carries high financial risk with limited liquidity.
Profitability Score
ExcellentSFE.DE achieves industry-leading margins.
Key Financial Metrics
Is SFE.DE Expensive or Cheap?
P/E Ratio
SFE.DE trades at 7.68 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SFE.DE's PEG of 1.08 indicates fair valuation.
Price to Book
The market values Synchrony Financial at 1.29 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 4.46 times EBITDA. This is generally considered low.
How Well Does SFE.DE Make Money?
Net Profit Margin
For every $100 in sales, Synchrony Financial keeps $17.62 as profit after all expenses.
Operating Margin
Core operations generate 26.36 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $20.18 in profit for every $100 of shareholder equity.
ROA
Synchrony Financial generates $2.77 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Synchrony Financial generates strong operating cash flow of $11.20B, reflecting robust business health.
Free Cash Flow
Synchrony Financial generates strong free cash flow of $11.20B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $34.43 in free cash annually.
FCF Yield
SFE.DE converts 39.71% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.68
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.08
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.29
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.28
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.03
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How SFE.DE Stacks Against Its Sector Peers
| Metric | SFE.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.68 | 20.40 | Better (Cheaper) |
| ROE | 20.18% | 638.00% | Weak |
| Net Margin | 17.62% | -568.00% (disorted) | Strong |
| Debt/Equity | 1.03 | 0.84 | Weak (High Leverage) |
| Current Ratio | 0.00 | 818.60 | Weak Liquidity |
| ROA | 2.77% | 60.00% | Weak |
SFE.DE outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Synchrony Financial's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
145.30%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
322.13%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
116.57%
Industry Style: Value, Dividend, Cyclical
High Growth