Synchrony Financial
Synchrony Financial Fundamental Analysis
Synchrony Financial (SYF-PB) shows moderate financial fundamentals with a PE ratio of 7.34, profit margin of 18.58%, and ROE of 21.09%. The company generates $19.8B in annual revenue with weak year-over-year growth of -2.64%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 58.3/100 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 SYF-PB's fundamental strength across five key dimensions:
Efficiency Score
WeakSYF-PB struggles to generate sufficient returns from assets.
Valuation Score
ModerateSYF-PB shows balanced valuation metrics.
Growth Score
ModerateSYF-PB shows steady but slowing expansion.
Financial Health Score
ModerateSYF-PB shows balanced financial health with some risks.
Profitability Score
ExcellentSYF-PB achieves industry-leading margins.
Key Financial Metrics
Is SYF-PB Expensive or Cheap?
P/E Ratio
SYF-PB trades at 7.34 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SYF-PB's PEG of 4.84 indicates potential overvaluation.
Price to Book
The market values Synchrony Financial at 1.56 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.07 times EBITDA. This is generally considered low.
How Well Does SYF-PB Make Money?
Net Profit Margin
For every $100 in sales, Synchrony Financial keeps $18.58 as profit after all expenses.
Operating Margin
Core operations generate 24.17 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.09 in profit for every $100 of shareholder equity.
ROA
Synchrony Financial generates $2.98 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 $10.18B, reflecting robust business health.
Free Cash Flow
Synchrony Financial generates strong free cash flow of $10.18B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $27.53 in free cash annually.
FCF Yield
SYF-PB converts 37.43% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.34
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
4.84
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.56
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.37
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.91
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.21
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How SYF-PB Stacks Against Its Sector Peers
| Metric | SYF-PB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.34 | 18.86 | Better (Cheaper) |
| ROE | 21.09% | 847.00% | Weak |
| Net Margin | 18.58% | 4202.00% | Weak |
| Debt/Equity | 0.91 | 0.91 | Neutral |
| Current Ratio | 0.21 | 667.17 | Weak Liquidity |
| ROA | 2.98% | -21543.00% (disorted) | Weak |
SYF-PB outperforms its industry in 1 out of 6 key metrics, 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
205.10%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
396.62%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-100.00%
Industry Style: Value, Dividend, Cyclical
Declining