0.95%
7.89%
27.19%
38.08%
80.42%
64.66%
116.38%
AI Spotlight on SYF
Company Description
Synchrony Financial, together with its subsidiaries, operates as a consumer financial services company in the United States.It provides credit products, such as credit cards, commercial credit products, and consumer installment loans.The company also offers private label credit cards, dual cards, co-brand and general purpose credit cards, short- and long-term installment loans, and consumer banking products; and deposit products, including certificates of deposit, individual retirement accounts, money market accounts, and savings accounts to retail and commercial customers, as well as accepts deposits through third-party securities brokerage firms.
In addition, it provides debt cancellation products to its credit card customers through online, mobile, and direct mail; healthcare payments and financing solutions under the CareCredit, Pets Best, and Walgreens brands; payments and financing solutions in the apparel, specialty retail, outdoor, music, and luxury industries; and point-of-sale consumer financing for audiology products and dental services.The company offers its credit products through programs established with a group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations, and healthcare service providers; and deposit products through various channels, such as digital and print.It serves digital, health and wellness, retail, home, auto, powersports, jewelry, pets, and other industries.
Synchrony Financial was founded in 1932 and is headquartered in Stamford, Connecticut.
Market Data
| Last Price | 70.13 |
| Change Percentage | 0.95% |
| Open | 69.27 |
| Previous Close | 69.47 |
| Market Cap ( Millions) | 27305 |
| Volume | 117972 |
| Year High | 70.93 |
| Year Low | 37.99 |
| M A 50 | 66.79 |
| M A 200 | 52.96 |
Financial Ratios
| FCF Yield | 35.88% |
| Dividend Yield | 1.42% |
| ROE | 20.85% |
| Debt / Equity | 97.82% |
| Net Debt / EBIDTA | -105.55% |
| Price To Book | 1.72 |
| Price Earnings Ratio | 8.71 |
| Price To FCF | 2.79 |
| Price To sales | 1.49 |
| EV / EBITDA | 11.48 |
News
- Jan -30 - Did Synchrony Financial Mislead Investors? Shareholder Rights Advocates at Levi & Korsinsky Investigate - SYF
- Jan -30 - SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Synchrony Financial - SYF
- Jan -29 - SYF ACTIVE INVESTIGATION: Contact Levi & Korsinsky if you lost money on your Synchrony Financial investment
- Jan -29 - Synchrony Financial: Don't Fear Tighter Credit Standards
- Jan -29 - SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Synchrony Financial - SYF
- Jan -28 - Synchrony Q4 Earnings Beat Estimates on Improved Efficiency
- Jan -28 - Synchrony Financial (SYF) Q4 2024 Earnings Call Transcript
- Jan -28 - Synchrony Looks to Best Rate Cut Environment With Innovation Mix
- Jan -28 - Synchrony Financial Stock Sinks as Charge-Offs Surge
- Jan -28 - Synchrony (SYF) Q4 Earnings Top Estimates
- Jan -28 - Synchrony Reports Fourth Quarter 2024 Results
- Jan -23 - Can Synchrony Beat Q4 Earnings Estimates on Improving Efficiency?
- Jan -23 - Countdown to Synchrony (SYF) Q4 Earnings: Wall Street Forecasts for Key Metrics
- Jan -23 - Synchrony Renews 30-Year Relationship Dedicated to Enhancing Credit and Shopping Experiences with Sam's Club
- Jan -22 - KnitWell Group, Synchrony and Mastercard Partner to Offer Shoppers More Ways to Pay for Apparel and Accessories at Chico's, WHBM and Soma
- Jan -21 - Synchrony Announces Quarterly Common Stock Dividend of $0.25 Per Share
- Jan -21 - Should You Buy, Sell, or Hold Synchrony Financial Stock at a 10.26X P/E?
- Jan -17 - SYF Offers Greater Flexibility With Apple Pay's Pay Later Feature
- Jan -16 - Eligible Synchrony Mastercard Customers Now Have Access to the Pay Later Feature of Apple Pay
- Jan -16 - Synchrony Collaborates With Pet Paradise, Expands CareCredit Offering
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Credit Cards
Expected Growth : 7.88 %
What the company do ?
Synchrony Financial offers a range of credit cards with rewards, cashback, and low interest rates, partnering with popular brands like Walmart, Lowe's, and PayPal.
Why we expect these perspectives ?
Synchrony Financial's 7.88% credit card growth is driven by increasing consumer spending, rising e-commerce adoption, and strategic partnerships with popular retailers. Additionally, the company's focus on digital transformation, innovative payment solutions, and targeted marketing efforts have contributed to its growth momentum.
Segment n°2 -> Consumer Installment Loans
Expected Growth : 7.88 %
What the company do ?
Consumer Installment Loans from Synchrony Financial offer fixed-rate, fixed-term loans for purchases or debt consolidation, with flexible repayment terms and competitive rates.
Why we expect these perspectives ?
Synchrony Financial's 7.88% growth in Consumer Installment Loans is driven by increasing consumer spending, low unemployment rates, and rising credit scores. Additionally, the company's strategic partnerships with retailers and its digital platform expansion have improved loan accessibility and convenience, contributing to the growth.
Segment n°3 -> Commercial Credit Products
Expected Growth : 9.08 %
What the company do ?
Commercial Credit Products from Synchrony Financial offer financing solutions for businesses, enabling them to provide credit to customers, manage cash flow, and drive sales growth.
Why we expect these perspectives ?
Synchrony Financial's 9.08% growth in Commercial Credit Products is driven by increasing demand for payment solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital transformation, innovative products, and customer-centric approach have contributed to its growth. Furthermore, the rise of e-commerce and online transactions has also fueled the demand for commercial credit products.
Segment n°4 -> Other
Expected Growth : 7.88 %
What the company do ?
Other from Synchrony Financial refers to the interest charges, fees, and other miscellaneous expenses associated with a Synchrony Bank account or credit product.
Why we expect these perspectives ?
Synchrony Financial's 7.88% growth is driven by increasing demand for consumer financing, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital transformation, investment in technology, and diversification of its revenue streams have contributed to its growth.
Synchrony Financial Products
| Product Range | What is it ? |
|---|---|
| CareCredit | A credit card designed for health and wellness expenses, offering promotional financing options for medical, dental, and veterinary care. |
| Synchrony Bank Deposits | A range of deposit products, including CDs, IRAs, and savings accounts, offering competitive rates and online banking capabilities. |
| Synchrony Credit Cards | A suite of credit cards, including cashback, rewards, and low-interest cards, offered through partnerships with retailers and merchants. |
| Payment Solutions | Customized payment plans and financing options for businesses, enabling customers to pay for goods and services over time. |
| Digital Platforms | A range of digital platforms and tools, including online banking, mobile apps, and APIs, enabling seamless customer experiences. |
Synchrony Financial's Porter Forces
Threat Of Substitutes
Synchrony Financial operates in a highly competitive industry, and customers have various alternatives to choose from. However, the company's strong brand recognition and diversified product offerings mitigate the threat of substitutes.
Bargaining Power Of Customers
Synchrony Financial's customers are primarily individual consumers and small businesses, which have limited bargaining power. The company's large customer base and diversified product offerings also reduce the bargaining power of individual customers.
Bargaining Power Of Suppliers
Synchrony Financial's suppliers are primarily technology and infrastructure providers, which have limited bargaining power. The company's large scale of operations and diversified supplier base also reduce the bargaining power of individual suppliers.
Threat Of New Entrants
The financial services industry has high barriers to entry, including regulatory requirements and significant capital investments. Additionally, Synchrony Financial's strong brand recognition and established relationships with partners create a high barrier to entry for new entrants.
Intensity Of Rivalry
The financial services industry is highly competitive, with many established players competing for market share. Synchrony Financial faces intense competition from traditional banks, fintech companies, and other financial institutions, which increases the intensity of rivalry.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 59.24% |
| Debt Cost | 11.79% |
| Equity Weight | 40.76% |
| Equity Cost | 11.79% |
| WACC | 11.79% |
| Leverage | 145.34% |
Synchrony Financial : Quality Control
Synchrony Financial passed 5 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| ALLY | Ally Financial Inc., a digital financial-services company, provides various digital financial products and services to consumer, commercial, and corporate customers primarily in the United States and Canada. It operates through … |
| FCFS | FirstCash Holdings, Inc, together with its subsidiaries, operates retail pawn stores in the United States, Mexico, and rest of Latin America. Its pawn stores lend money on the collateral of … |
| OMF | OneMain Holdings, Inc., a financial service holding company, engages in the consumer finance and insurance businesses. The company originates, underwrites, and services personal loans secured by automobiles, other titled collateral, … |
| WU | The Western Union Company provides money movement and payment services worldwide. The company operates in two segments, Consumer-to-Consumer and Business Solutions. The Consumer-to-Consumer segment facilitates money transfers between two consumers, … |
| SLM | SLM Corporation, through its subsidiaries, originates and services private education loans to students and their families to finance the cost of their education in the United States. It also offers … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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OneMain Holdings
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Synchrony
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SLM
A-Score
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4
Western Union
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1-Year Total Return ->
5
Ally Financial
A-Score
1-Year Total Return ->
6
