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Synchrony Financial (SYF.PA) stock analysis

SYF.PANYSEFinance ServicesFiscal year ends December 31Also trades as SYF, SYF.PB
Financials through Q2 FY2026, quarter ended Jun 30, 2026Last filing: 10-Q on Oct 22, 2026Score 15/3048% below fair value
$17.48−0.12 (-0.68%)

Close on Oct 30, 2026Market cap $24.52BP/E 7.7Yield 1.53%

StockData Score

Prices as of Oct 30, 2026How the score works

Value3Growth1Performance4Health4Dividend3

Solid15 of 30 checks passed

Synchrony Financial passes 15 of the 30 checks behind our score; 6 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
3/6
Growth
1/6
Past performance
4/6
Financial health
4/6
Dividend
3/6

What stands out

  • Margin of safety over 20%

    The price is 48.3% below fair value, more than the 20% cushion we look for.

  • Trading below fair value

    The share price of $75.35 is below our fair value estimate of $145.84.

  • Return on equity over 15%

    Return on equity was 20.8% over the last twelve months and averaged 23.1% over five years.

  • No debt

    Synchrony Financial has no borrowings on its latest balance sheet.

What to watch

  • Revenue growing under 10% a year

    Revenue grew 5.9% a year over the last three fiscal years, short of the 10% we look for.

  • Earnings growth not accelerating

    Net income grew 7.0% over the last twelve months, against a 5-year average of 20.7% a year.

  • Elevated bankruptcy risk

    The Altman Z-score is 0.60; above 3 is the safe zone and below 1.8 the distress zone.

  • P/E above its 5-year median

    Synchrony Financial's P/E of 7.7 is above its own 5-year median of 6.8.

Valuation3/6

  • P/E above its 5-year median

    Synchrony Financial's P/E of 7.7 is above its own 5-year median of 6.8.

  • P/E below the industry

    Synchrony Financial's P/E of 7.7 is below the Finance services median of 18.8.

  • EV/EBITDA against its history

    Needs positive EBITDA and price history.

  • P/B above the industry

    Synchrony Financial's price-to-book of 1.45 is above the Finance services median of 1.04.

  • Trading below fair value

    The share price of $75.35 is below our fair value estimate of $145.84.

  • Margin of safety over 20%

    The price is 48.3% below fair value, more than the 20% cushion we look for.

Growth1/6

  • Revenue growing under 10% a year

    Revenue grew 5.9% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growing 10%+ a year

    Diluted EPS grew 14.7% a year over the last three fiscal years.

  • Earnings growth not accelerating

    Net income grew 7.0% over the last twelve months, against a 5-year average of 20.7% a year.

  • Growing slower than the industry

    Revenue grew 2.9% over the last twelve months; the Finance services median is 15.9%.

  • Company guidance

    No outlook found in earnings releases from the last twelve months.

  • Gross margin trend

    This company does not report gross profit.

Past performance4/6

  • Return on equity over 15%

    Return on equity was 20.8% over the last twelve months and averaged 23.1% over five years.

  • Return on invested capital

    Needs operating income and invested capital.

  • Return on equity above the industry

    Synchrony Financial's return on equity of 20.8% is above the Finance services median of -34.6%.

  • Earnings grew over 5 years

    Net income grew 20.7% a year on average over the last five fiscal years.

  • Net margin below its 5-year average

    Net margin was 18.3% over the last twelve months, against a 5-year average of 19.4%.

  • Net margin above the industry

    Synchrony Financial's net margin of 18.3% is above the Finance services median of -68.3%.

Financial health4/6

  • No debt

    Synchrony Financial has no borrowings on its latest balance sheet.

  • Debt not rising

    With no debt today, leverage cannot have risen.

  • Debt covered by cash flow

    There is no debt to cover.

  • Interest well covered

    No meaningful interest expense to cover.

  • Short-term liquidity

    The balance sheet is not split into current and non-current items.

  • Elevated bankruptcy risk

    The Altman Z-score is 0.60; above 3 is the safe zone and below 1.8 the distress zone.

Dividend3/6

  • Pays a dividend

    Synchrony Financial paid dividends worth 1.6% of the share price over the last twelve months.

  • Yield below Treasuries

    The 1.6% yield is below the 4.4% on a 1-year Treasury.

  • Yield below the top quarter

    The top quarter of US dividend payers yield 4.0% or more; Synchrony Financial yields 1.6%.

  • Dividend not cut

    The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

  • Covered by earnings

    Dividends take 11.9% of net income.

  • Cash-flow cover

    Needs dividends paid and free cash flow.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$145.84

The share price is 48% below this estimate.

20%+ below
Near fair value
20%+ above
$75.35Price$145.84Fair value
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/E12.8×6.8×18.8×$124.7162%
P/B1.2×1.3×1.0×$61.3815%
Earnings power11.2% cost of equity––$258.5023%
Fair value$145.84100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Own 5-year median 6.8
  • Finance services median 18.8

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Low risk

Average value traded per day
$231.75M
Value traded per 1% price move
$194.83M

Downside

Low risk

Typical loss in a bad month
14.0%
Volatility (annualized)
31%
Sharpe ratio, 1 year
-0.05
Beta to the S&P 500 (5Y)
1.25

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2011 to 2025

Net margin

18.7%+9.4 pts over 5 years