A Business at a Glance
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Synchrony Financial
SYF
$27.3B
Mkt Cap
$72.90
+1.57%
Synchrony Financial (SYF) has a current P/E ratio of 7.9, compared to its historical median P/E of 7.3. The stock is currently considered Fair based on its historical valuation range.
Synchrony Financial (SYF) has a 5-year average return on invested capital (ROIC) of 11.0%. This indicates solid capital allocation.
Synchrony Financial (SYF) has a market capitalization of $24.6B. It is classified as a large-cap stock.
Yes, Synchrony Financial (SYF) pays a dividend with a trailing twelve-month yield of 1.77%. The company also returns capital through share buybacks, with a buyback yield of 13.17%.
Based on historical P/E analysis, Synchrony Financial (SYF) appears fair. The current P/E of 7.9 is 7% above its historical median of 7.3. The estimated fair value CAGR (P/E method) is 12.7%.
Synchrony Financial (SYF) operates in the Finance Services industry, within the Financials sector.
Synchrony Financial (SYF) reported annual revenue of $19.0 billion in its most recent fiscal year, based on SEC EDGAR filings.
Synchrony Financial is a premier consumer financial services company delivering a digitally-enabled product suite across a broad spectrum of industries including retail, healthcare, telecommunications, home, auto, and outdoor. The company operates through five sales platforms—Home & Auto, Digital, Diversified & Value, Health & Wellness, and Lifestyle—each organized by partner type and measured on interest and fees on loans, loan receivables, and active accounts. Synchrony earns revenue primarily through interest and fees on loan receivables, including merchant discounts from promotional financing arrangements (deferred interest, no interest, and reduced interest offerings), and operates a capital-light model where partners promote credit products to drive sales and customer loyalty while customers benefit from instant credit access and rewards. The company distributes its offerings through multiple omnichannel channels including mobile apps, websites, online marketplaces, and point-of-sale platforms, with approximately 60% of consumer revolving credit applications processed digitally in 2025. Synchrony's competitive moat derives from deep industry expertise, a long history of consumer lending, innovative digital capabilities, and longstanding relationships with leading national and regional retailers and manufacturers such as Lowe's (46-year relationship), Amazon, PayPal, Sam's Club, and Walmart, as well as a diverse network exceeding 290,000 health and wellness provider locations. The company funds its credit activities through a wholly-owned bank subsidiary offering FDIC-insured deposit products, with deposits representing 84% of total funding sources at year-end 2025, and serves millions of consumers across the United States through 70.7 million active accounts and $103.8 billion in loan receivables as of December 31, 2025.
【Disciplined growth with credit outperformance】 Management expects accelerated growth in purchase volume and average active accounts throughout 2026 without further broad-based credit refinements, driving mid-single-digit ending loan receivables growth despite elevated payment rates. Net interest income is projected to grow as higher loan receivables, continued PPPC fee buildup, and reduced funding liability costs offset lower late fee incidence, with net charge-offs expected to remain below 5.5% for the full year and follow normal seasonality. RSAs are anticipated to increase from stronger program performance but remain within the long-term target range of 4.0%–4.5% of average receivables, while other expense growth is expected to track loan receivables growth as the company continues investing in long-term business potential and strategic initiatives including the Walmart OnePay program, Lowe's Commercial Co-Brand acquisition, and Versatile Credit integration. The company remains focused on disciplined underwriting and operating expense discipline while executing key strategic priorities to deliver consistent risk-adjusted growth and strong capital generation.
| Metric | Target | Period |
|---|---|---|
| Diluted earnings per share | $9.10–$9.50 | FY2026 |
| Net charge-off rate | less than 5.5% | FY2026 |
| RSAs (Revenue Sharing Arrangements) | 4.0%–4.5% of average receivables | FY2026 |
Diluted earnings per share (FY2026): “Synchrony remains on track to deliver between $9.10 and $9.50 in diluted earnings per share”
Net charge-off rate (FY2026): “We expect our net charge-offs to be less than 5.5% for the full year”
RSAs (Revenue Sharing Arrangements) (FY2026): “we continue to expect RSAs to increase but remain within our long-term range of 4%-4.5% of average receivables”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 19.1B | 19.0B | 19.5B | 17.3B | 16.0B | 14.7B |
| Net Income | 3.5B | 3.5B | 3.4B | 2.2B | 3.0B | 4.2B |
| EPS | $9.91 | $9.28 | $8.55 | $5.19 | $6.15 | $7.34 |
| Free Cash Flow | 0 | 9.9B | 9.8B | 8.6B | 6.7B | 7.1B |
| ROIC | 10.7% | 10.8% | 11.1% | 7.7% | 10.8% | 14.8% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 1.00 | 0.91 | 0.93 | 1.15 | 1.10 | 1.06 |
| Dividends/Share | $1.29 | $1.15 | $1.00 | $0.96 | $0.90 | $0.88 |
| Operating Income | 289M | 295M | 1.3B | 118M | 268M | 309M |
| Operating Margin | 1.5% | 1.6% | 6.7% | 0.7% | 1.7% | 2.1% |
| ROE | 21.3% | 20.8% | 22.5% | 16.4% | 22.4% | 31.7% |
| Shares Outstanding | 337M | 374M | 401M | 423M | 484M | 569M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 11.8B | 12.5B | 13.9B | 15.3B | 16.4B | 17.2B | 14.8B | 14.7B | 16.0B | 17.3B | 19.5B | 19.0B | 19.1B |
| Gross Margin | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 866M | 1.0B | 1.2B | 1.3B | 1.4B | 1.5B | 1.4B | 1.5B | 1.7B | 1.9B | 1.9B | 2.1B | 2.1B |
| EBIT | 3.4B | 3.5B | 3.6B | 3.3B | 3.6B | 4.9B | 124M | 309M | 268M | 118M | 1.3B | 295M | 289M |
| Op. Margin | 28.7% | 28.3% | 25.7% | 21.7% | 22.2% | 28.5% | 0.8% | 2.1% | 1.7% | 0.7% | 6.7% | 1.6% | 1.5% |
| Net Income | 2.1B | 2.2B | 2.3B | 1.9B | 2.8B | 3.7B | 1.3B | 4.2B | 3.0B | 2.2B | 3.4B | 3.5B | 3.5B |
| Net Margin | 17.9% | 17.7% | 16.2% | 12.6% | 17.0% | 21.8% | 9.1% | 28.4% | 18.6% | 12.7% | 17.5% | 18.3% | 18.4% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 0 | 87M | 0 | 0 | 0 | 1.1B | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | 25.7% | 9.3% | 6.3% | 5.6% | 7.6% | 10.2% | 4.2% | 14.8% | 10.8% | 7.7% | 11.1% | 10.8% | 10.7% |
| ROE | 25.7% | 19.2% | 16.8% | 13.6% | 19.3% | 25.2% | 9.7% | 31.7% | 22.4% | 16.4% | 22.5% | 20.8% | 21.3% |
| ROA | 3.1% | 2.8% | 2.6% | 2.1% | 2.8% | 3.5% | 1.3% | 4.4% | 3.0% | 2.0% | 2.9% | 2.9% | 2.9% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 5.3B | 6.2B | 6.5B | 8.6B | 9.3B | 9.0B | 7.5B | 7.1B | 6.7B | 8.6B | 9.8B | 9.9B | 9.8B |
| Free Cash Flow | 5.3B | 6.2B | 6.5B | 8.6B | 9.3B | 9.0B | 7.5B | 7.1B | 6.7B | 8.6B | 9.8B | 9.9B | 0 |
| Owner Earnings | 5.2B | 6.0B | 6.2B | 8.3B | 9.0B | 8.5B | 7.1B | 6.5B | 6.2B | 8.1B | 9.2B | 9.3B | 9.2B |
| CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Maint. CapEx | 131M | 174M | 219M | 254M | 302M | 367M | 383M | 390M | 419M | 458M | 481M | 514M | 532M |
| Growth CapEx | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0 |
| D&A | 131M | 174M | 219M | 254M | 302M | 367M | 383M | 390M | 419M | 458M | 481M | 514M | 532M |
| CapEx/OCF | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 214M | 446M | 534M | 581M | 520M | 500M | 434M | 406M | 398M | 427M | 434M |
| Dividend Yield | N/A | N/A | 1.1% | 2.1% | 2.7% | 3.0% | 3.9% | 2.2% | 2.7% | 3.2% | 2.1% | 1.7% | 1.8% |
| Share Buybacks | 0 | 0 | 476M | 1.5B | 1.9B | 3.6B | 985M | 2.9B | 3.3B | 1.1B | 1.0B | 2.9B | 3.2B |
| Buyback Yield | N/A | N/A | 2.0% | 5.9% | 12.8% | 17.3% | 5.5% | 12.0% | 23.0% | 7.2% | 3.9% | 9.2% | 13.2% |
| Stock-Based Comp | 12M | 34M | 43M | 57M | 51M | 111M | 44M | 169M | 54M | 73M | 159M | 74M | 89M |
| Debt Repayment | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | -8.2B | 11.4B | 10.8B | 9.2B | 14.6B | 7.7B | -3.2B | 887M | -982M | -2.1B | -2.3B | -2.1B | -7.2B |
| Cash & Equiv. | 11.8B | 12.3B | 9.3B | 11.6B | 9.4B | 12.1B | 11.5B | 8.3B | 10.3B | 14.3B | 14.7B | 15.0B | 23.6B |
| Long-Term Debt | N/A | 24.3B | 20.1B | 20.8B | 24.0B | 19.9B | 15.8B | 14.5B | 14.2B | 16.0B | 15.5B | 15.2B | 16.4B |
| Debt/Equity | 0.34 | 1.93 | 1.42 | 1.46 | 1.63 | 1.32 | 1.24 | 1.06 | 1.10 | 1.15 | 0.93 | 0.91 | 1.00 |
| Interest Coverage | 3.7 | 3.1 | 2.9 | 2.4 | 1.9 | 2.1 | 0.1 | 0.3 | 0.2 | 0.0 | 0.3 | 0.1 | 0.1 |
| Equity | 10.5B | 12.6B | 14.2B | 14.2B | 14.7B | 15.1B | 12.7B | 13.7B | 12.9B | 13.9B | 16.6B | 16.8B | 16.5B |
| Total Assets | 75.7B | 84.0B | 90.2B | 95.8B | 106.8B | 104.8B | 95.9B | 95.7B | 104.6B | 117.5B | 119.5B | 119.1B | 121.5B |
| Total Liabilities | 65.2B | 71.4B | 76.0B | 81.6B | 92.1B | 89.7B | 83.2B | 82.1B | 91.7B | 103.6B | 102.9B | 102.3B | 105.0B |
| Intangibles | 519M | 701M | 712M | 749M | 1.1B | 1.3B | 1.1B | 1.2B | 742M | 815M | 854M | 1.3B | 1.2B |
| Retained Earnings | 1.1B | 3.3B | 5.3B | 6.8B | 9.0B | 12.1B | 10.6B | 14.2B | 16.7B | 18.7B | 21.6B | 24.6B | 25.2B |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | |||||||||||||
| EPS | 2.78 | 2.65 | 2.71 | 2.42 | 3.74 | 5.56 | 2.27 | 7.34 | 6.15 | 5.19 | 8.55 | 9.28 | 9.91 |
| Owner EPS | 6.85 | 7.15 | 7.52 | 10.34 | 12.05 | 12.63 | 11.93 | 11.49 | 12.86 | 19.05 | 22.97 | 24.78 | 27.34 |
| Book Value | 13.81 | 15.09 | 17.09 | 17.80 | 19.68 | 22.39 | 21.47 | 23.98 | 26.62 | 32.86 | 41.37 | 44.85 | 48.89 |
| Cash Flow/Share | 7.04 | 7.40 | 7.84 | 10.72 | 12.52 | 13.34 | 12.65 | 12.47 | 13.84 | 20.31 | 24.57 | 26.35 | 12.01 |
| Dividends/Share | 0.00 | 0.00 | 0.26 | 0.56 | 0.72 | 0.86 | 0.88 | 0.88 | 0.90 | 0.96 | 1.00 | 1.15 | 1.29 |
| Shares Out. | 758.6M | 835.5M | 830.6M | 799.6M | 746.0M | 673.9M | 591.6M | 569.3M | 483.6M | 423.1M | 400.8M | 373.8M | 337.0M |
| Valuation | |||||||||||||
| P/E Ratio | 8.7 | 9.0 | 10.7 | 13.1 | 5.2 | 5.6 | 13.3 | 5.7 | 4.8 | 7.1 | 7.5 | 9.2 | 7.4 |
| P/FCF | 3.4 | 3.2 | 3.7 | 3.0 | 1.6 | 2.3 | 2.4 | 3.4 | 2.2 | 1.8 | 2.6 | 3.3 | N/A |
| EV/EBIT | 5.2 | 4.2 | 5.3 | 4.9 | 3.6 | 2.3 | 117.9 | 80.5 | 50.1 | 114.1 | 17.9 | 101.3 | 60.2 |
| Price/Book | 1.8 | 1.6 | 1.7 | 1.8 | 1.0 | 1.4 | 1.4 | 1.8 | 1.1 | 1.1 | 1.6 | 1.9 | 1.5 |
| Price/Sales | 1.3 | 1.7 | 1.4 | 1.4 | 1.2 | 1.1 | 0.9 | 1.6 | 1.0 | 0.7 | 1.0 | 1.3 | 1.3 |
| FCF Yield | 29.0% | 30.9% | 27.0% | 33.7% | 63.8% | 42.9% | 42.0% | 29.6% | 46.4% | 55.3% | 38.1% | 30.8% | N/A |
| Market Cap | 18.4B | 20.0B | 24.1B | 25.4B | 14.6B | 21.0B | 17.8B | 24.0B | 14.4B | 15.5B | 25.9B | 32.0B | 24.6B |
| Avg. Price | 20.89 | 25.36 | 23.14 | 26.24 | 26.92 | 28.35 | 22.47 | 40.54 | 32.95 | 30.41 | 46.72 | 65.82 | 72.90 |
| Year-End Price | 24.24 | 23.98 | 29.07 | 31.82 | 19.63 | 31.10 | 30.16 | 42.12 | 29.81 | 36.72 | 64.51 | 85.66 | 72.90 |
Synchrony Financial passes 5 of 9 quality checks, suggesting mixed fundamentals.
Synchrony Financial trades at 7.9x trailing earnings, compared to its 15-year median P/E of 7.3x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 2.8x vs a median of 2.5x. The company's 5-year average ROIC is 11.0%. Total shareholder yield (dividends + buybacks) is 14.9%. At current prices, the estimated annualized return to fair value is +11.8%.
Synchrony Financial (SYF) has a net profit margin of 18.3%. This is a healthy margin.
Synchrony Financial (SYF) generated $9.9 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Synchrony Financial (SYF) has a debt-to-equity ratio of 0.91. This indicates moderate leverage.
Synchrony Financial (SYF) reported earnings per share (EPS) of $9.28 in its most recent fiscal year.
Synchrony Financial (SYF) has a return on equity (ROE) of 20.8%. This indicates the company generates strong returns for shareholders.
The Ledger Terminal provides 14 years of financial data for Synchrony Financial (SYF), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Synchrony Financial (SYF) has a book value per share of $44.85, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects accelerated growth in purchase volume and average active accounts throughout 2026 without further broad-based credit refinements, driving mid-single-digit ending loan receivables growth despite elevated payment rates. Net interest income is projected to grow as higher loan receivables, continued PPPC fee buildup, and reduced funding liability costs offset lower late fee incidence, with net charge-offs expected to remain below 5.5% for the full year and follow normal seasonality. RSAs are anticipated to increase from stronger program performance but remain within the long-term target range of 4.0%–4.5% of average receivables, while other expense growth is expected to track loan receivables growth as the company continues investing in long-term business potential and strategic initiatives including the Walmart OnePay program, Lowe's Commercial Co-Brand acquisition, and Versatile Credit integration. The company remains focused on disciplined underwriting and operating expense discipline while executing key strategic priorities to deliver consistent risk-adjusted growth and strong capital generation.
Based on recent SEC filings and earnings calls, Synchrony Financial (SYF) has provided the following forward guidance: Diluted earnings per share: $9.10–$9.50 (FY2026); Net charge-off rate: less than 5.5% (FY2026); RSAs (Revenue Sharing Arrangements): 4.0%–4.5% of average receivables (FY2026).