QualityDipStocks / Finance · Consumer finance
Synchrony Financial SYF
Outside our quality screen, so we don’t track its dips. It’s 15% below its 52-week high.
Outside our quality screen, trading well below our fair value estimate.
- Fair value est.
- $98.32+30%
- Market Value
- $74.70price +1%
- Off 52-wk high
- −15%
- Risk vs market
- Above marketbeta 1.17
5 bullish · 5 bearish See why
Key levels
Every level vs today’s $75.35
- 52-wk lowlowest close, 1 year$63.78−15.4%
- Market Valueavg paid since Oct 20$74.70−0.9%
- PriceFri Oct 30 close$75.35you are here
- 52-wk highhighest close, 1 year$88.47+17.4%
- Fair value est.base case$98.32+30.5%
Fair value estimate
How the range is computed
Financials model (residual income). Same residual-income model as the base: cost of equity 9.5% ±1 point and return on equity 22.7% ±2 points. Bear = 10.5% and 20.7%; bull = 8.5% and 24.7%. A model estimate from public filings, not a forecast of where the price will go.
Price is below even the bear case.
What the price implies To be worth today’s price, SYF would need a return on equity of about 17% a year; our estimate uses 23%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 30 to Oct 30, 252 sessions). Beta = how much SYF moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Swings more than the market, and its own price swings are 2.4× the S&P 500’s.
- Beta vs S&P 500
- 1.17
- Volatility
- 31% vs 13% SPY
- Correlation SPY
- 0.48
- Correlation QQQ
- 0.33
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
ValuationOur residual-income fair value estimate is $98.32, 30% above the price.
Cash returnsShare count down 12.8% in a year: $3.8B of buybacks over 12 months.
ValuationP/E of 7.2× vs a 13.5× median for the 151 Finance companies we cover.
ProfitabilityReturn on equity of 19% over the last 12 months, up 5 points in two years.
ValuationPrice / book of 1.4×, below the 1.8× median for the 143 Finance companies we cover.
Top bearish points 5 of 5
GrowthSales grew 2.6% over the last 12 months, below the 11% median for the 142 Finance companies we cover.
GrowthDiluted EPS grew 8.5% in the last fiscal year, below the 17% median for the 137 Finance companies we cover.
GrowthSales grew 5.9% a year over the last three fiscal years, below the 9.3% median for the 144 Finance companies we cover.
ProfitabilityNet margin of 17%, below the 21% median for the 142 Finance companies we cover.
QualityDoesn’t pass our quality screen: sales down vs the year-ago quarter.
Who’s talking about it
Notable investors, executives, analysts and public figures on Synchrony Financial in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 1, 9:09 PM ET.
Compare with peers
Closest in size in Consumer finance
All fundamentals
P/E 7.2 · ROE 19% · Sales +3%
Valuation
- P/E
- 7.2×Finance median 13.5×
- Price / FCF
- n/acash flow isn't a clean measure for a lender
- FCF yield
- n/acash flow isn't a clean measure for a lender
- EV / EBITDA
- n/anot meaningful for a lender
- Price / sales
- 1.21×
- Price / book
- 1.42×
- Market cap
- $23.5Bprice × diluted shares
- Enterprise value
- $24.6B
Growth
- Revenue, 12 months
- $19.3Bnet interest income + noninterest income
- Sales growth, 12 months
- +2.6%vs the 12 months before
- Sales growth, 3 yrs
- +5.9%/yrfrom FY2022
- Diluted EPS, 12 months
- $9.58
- EPS growth, last FY
- +8.5%
- Net income, 12 months
- $3.2B
- Net income growth
- −7%12 months vs before
Profitability
- Gross margin
- n/anot meaningful for a lender
- Operating margin
- n/anot reported in its SEC filings
- Net margin
- 16.8%
- FCF margin
- n/anot reported in its SEC filings
- Return on equity
- 19%
- Return on invested capital
- n/anot meaningful for a lender
Balance sheet
- Cash & short-term inv.
- $15.9B
- Total debt
- $17.0B
- Net cash
- n/anot meaningful for a lender
- Debt / equity
- n/adeposits/float make debt/equity not comparable for a lender
- Interest coverage
- n/anot meaningful for a lender
Cash flow & returns
- Free cash flow, 12 months
- n/anot reported in its SEC filings
- FCF growth, 12 months
- n/anot reported in its SEC filings
- Dividend yield
- 1.79%$420M paid
- Payout ratio
- 13%
- Buybacks, 12 months
- $3.8B16.4% of market cap
- Share count, 1 year
- −12.8%diluted shares vs a year ago
- Stock-based comp
- n/anot reported in its SEC filings
Trailing 12 months to Sep 30, 2026; balance sheet at Sep 30, 2026. From Synchrony Financial’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
Valuation details
DCF $98.32 · MV $74.70
Financials model (residual income): book value $47.64 a share on Sep 30, 2026 (preferred stock excluded), plus the earnings above a 9.5% cost of equity. ROE 22.7%, the average of 21.1% for the trailing 12 months to Sep 30, 2026 and 24.2% over fiscal 2021–2025, on average common equity; payout 100% of earnings (dividends 13% + net buybacks 118%; capped at 100%), so book grows by the retained rest; the return above 9.5% fades halfway toward 9.5% over 10 years, then grows at 3% (terminal value). From the 10-Q filed Oct 22, 2026.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
Momentum & 52-week range
RSI 54 · 5 days +2.3%
The business
FCF $9.6B · Sales 0%
- Free cash flow, 12 months$9.6B
- Free-cash-flow yield39.8%
- Return on equity20%
- Sales growth (latest quarter vs year-ago quarter)0%
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.
SYF is outside our quality screen
One text when a published rule fires on one of the 333 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.