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Synchrony Financial (SYF) Stock Analysis

This is a peer-relative look at Synchrony Financial (SYF): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Financial Services peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Synchrony Financial (SYF)
Profile ItemSYF
NameSynchrony Financial
Country/RegionUnited States
GICS SectorFinancials
GICS Industry GroupFinancial Services
GICS IndustryConsumer Finance
GICS Sub-IndustryConsumer Finance
Market Capitalization23.99 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateJuly 31, 2014
Security TypeCommon Stock

Price Performance

Cumulative Growth

SYF
GSPC
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Synchrony Financial (SYF) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Synchrony Financial (SYF) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Synchrony Financial (SYF) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Synchrony Financial (SYF) metric values compared with Financial Services industry-group medians
MetricCurrent stock: SYFIndustry group median
Total Return (1Y)2.84%1.90%
Total Return (3Y, Annualized)39.02%12.71%
Total Return (5Y, Annualized)10.89%2.81%

Risk Profile

Drawdown History

SYF
GSPC
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Synchrony Financial (SYF) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Synchrony Financial (SYF) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Synchrony Financial (SYF) metric values compared with Financial Services industry-group medians
MetricCurrent stock: SYFIndustry group median
Volatility (1Y, Annualized)31.32%36.24%
Beta (5Y)1.401.04
Max Drawdown (5Y)-44.60%-48.56%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. SYF is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Synchrony Financial (SYF) metric values compared with Financial Services industry-group medians
MetricCurrent stock: SYFIndustry group median
Sharpe Ratio (1Y)-0.05-0.09
Sortino Ratio (1Y)-0.06-0.13

Profitability

ROE (TTM)

Synchrony Financial (SYF) posts ROE of 19.83%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.

SYF

Financial Services industry group

19.83%

Group distribution
Max
44.78%
Q3
21.85%
SYF
19.83%
Median
12.91%
Q1
4.48%
Min
-18.71%
Largest peers
MA
231.37%
V
63.51%
SYF
19.83%
MS
18.04%
GS
17.71%
BRK.A
12.12%
BRK.B
12.12%
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Where Synchrony Financial (SYF) stands on ROE within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Synchrony Financial (SYF) keeps 34.07% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

SYF

Financial Services industry group

34.07%

Group distribution
Max
62.84%
SYF
34.07%
Q3
28.05%
Median
15.36%
Q1
4.82%
Min
-28.52%
Largest peers
V
51.20%
MA
46.73%
SYF
34.07%
GS
31.21%
MS
25.63%
BRK.A
22.30%
BRK.B
22.30%
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Where Synchrony Financial (SYF) stands on net margin within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Synchrony Financial (SYF) turns 49.84% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.

SYF

Financial Services industry group

49.84%

Group distribution
Max
107.33%
Q3
55.90%
SYF
49.84%
Median
30.09%
Q1
14.60%
Min
-44.34%
Largest peers
V
63.73%
MA
60.53%
SYF
49.84%
MS
39.00%
GS
38.37%
BRK.A
32.56%
BRK.B
32.56%
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Where Synchrony Financial (SYF) stands on operating margin within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Synchrony Financial (SYF) metric values compared with Financial Services industry-group medians
MetricCurrent stock: SYFIndustry group median
ROE (TTM)19.83%12.91%
ROA (TTM)2.78%3.60%
Net Margin (TTM)34.07%15.36%
Operating Margin (TTM)49.84%30.09%
Gross Margin (TTM)----

Growth

Revenue Growth

Synchrony Financial (SYF) grew revenue -0.50%, in the lower peer quartile. The top line is expanding more slowly than at most peers, which can reflect softer demand, lost share, or weaker pricing.

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Synchrony Financial (SYF): Revenue Growth across different time periods, set against Financial Services industry-group medians.

EPS Growth

Synchrony Financial (SYF) grew earnings per share 8.54%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

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Synchrony Financial (SYF): EPS Growth across different time periods, set against Financial Services industry-group medians.

Growth Metrics

Synchrony Financial (SYF) metric values compared with Financial Services industry-group medians
MetricCurrent stock: SYFIndustry group median
Revenue Growth (YoY)-0.50%9.46%
Revenue Growth (3Y CAGR)8.67%10.90%
EPS Growth (YoY)8.54%7.46%
EPS Growth (3Y CAGR)14.70%13.04%

Financial Strength

Current Ratio (MRQ)

current ratio is set aside for Synchrony Financial (SYF) in Financial Services: these balance sheets are not best read through a current/non-current split, so regulatory, funding, or liquidity-coverage measures usually matter more.

Debt / Equity (MRQ)

debt-to-equity ratio is set aside for Synchrony Financial (SYF) in Financial Services: leverage is part of the business model itself, so capital adequacy, funding mix, and regulatory measures are usually better risk gauges.

Financial Strength Metrics

Synchrony Financial (SYF) metric values compared with Financial Services industry-group medians
MetricCurrent stock: SYFIndustry group median
Current Ratio (MRQ)----
Debt / Equity (MRQ)----
Net Debt / EBITDA----

Dividends

Dividend Yield (TTM)

Synchrony Financial (SYF) has dividend yield of 1.67%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

SYF

Financial Services industry group

1.67%

Group distribution
Max
9.77%
Q3
3.92%
SYF
1.67%
Median
1.09%
Q1
0.00%
Min
0.00%
Largest peers
MS
2.40%
GS
2.07%
SYF
1.67%
V
0.66%
MA
0.53%
BRK.A
0.00%
BRK.B
0.00%
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Where Synchrony Financial (SYF) stands on dividend yield within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Synchrony Financial (SYF) has payout ratio of 12.94%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

SYF

Financial Services industry group

12.94%

Group distribution
Max
241.07%
Q3
97.36%
Median
25.77%
SYF
12.94%
Q1
0.00%
Min
0.00%
Largest peers
MS
32.91%
GS
25.88%
V
21.75%
MA
17.63%
SYF
12.94%
BRK.A
0.00%
BRK.B
0.00%
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Where Synchrony Financial (SYF) stands on payout ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Synchrony Financial (SYF) metric values compared with Financial Services industry-group medians
MetricCurrent stock: SYFIndustry group median
Dividend Yield (TTM)1.67%1.09%
Dividend Payout Ratio (TTM)12.94%25.77%

Valuation

P/E Ratio (TTM)

Synchrony Financial (SYF) trades at P/E ratio of 7.70, in the cheaper earnings-multiple quartile for its industry. Investors are paying less for each dollar of TTM earnings than they usually pay for comparable businesses.

SYF

Financial Services industry group

7.70

Group distribution
Max
45.85
Q3
24.64
Median
15.37
Q1
9.68
SYF
7.70
Min
0.16
Largest peers
V
34.31
MA
34.15
MS
14.39
BRK.A
14.36
BRK.B
14.36
GS
12.45
SYF
7.70
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Where Synchrony Financial (SYF) stands on P/E ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Synchrony Financial (SYF) trades at 2.45 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.

SYF

Financial Services industry group

2.45

Group distribution
Max
9.23
Q3
4.57
Median
2.72
SYF
2.45
Q1
1.28
Min
-0.55
Largest peers
V
17.18
MA
15.67
MS
3.55
GS
3.52
BRK.A
3.18
BRK.B
3.18
SYF
2.45
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Where Synchrony Financial (SYF) stands on P/S ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Synchrony Financial (SYF) trades at 1.55 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

SYF

Financial Services industry group

1.55

Group distribution
Max
7.79
Q3
3.63
Median
1.57
SYF
1.55
Q1
0.81
Min
-0.39
Largest peers
MA
84.30
V
22.05
MS
2.65
GS
2.36
BRK.A
1.72
SYF
1.55
BRK.B
0.00
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Where Synchrony Financial (SYF) stands on P/B ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Synchrony Financial (SYF) metric values compared with Financial Services industry-group medians
MetricCurrent stock: SYFIndustry group median
P/E Ratio (TTM)7.7015.37
P/S Ratio (TTM)2.452.72
P/B Ratio (MRQ)1.551.57
Free Cash Flow Yield (TTM)----