Synchrony Financial
NYSE: SYF
Stock price
73.72 USD
(+47.59%) 5 years
Financial Performance
5Y price score: 61
The price score is a basic measure of the stock's performance against the S&P 500 Index over a five-year period.
A score of 100 indicates that the stock did as well as the S&P 500 Index.
A score below 100 means the stock underperformed the index, while a score above 100 means it outperformed the S&P 500.
10Y return: 207.1%
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63.0
52-week range
88.7
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Your fair value & Margin of safety
To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.
Forecast:
Valuation
Free Cash Flow Yield
37.1 %
Dividend Yield TTM
1.7 %
Market cap $
$ 23,986
Price / Earnings TTM
7.6
Price / Book TTM
1.4
PEG TTM
0.9
Earnings growth and return
LTM
5YR
10YR
Total return (price & dividends)
5.5 %
57.4 %
207 %
Free cash flow per share growth
7.3 %
117.2 %
271.9 %
Earnings per share growth
3.6 %
309.3 %
250.6 %
Founded: 2,003
Employees: 20,000
Business Summary:
Q&A
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Latest Earnings Call Takeaways
2026 Q2 (Jul 21, 2026)
1) Strategy & Leadership - Synchrony Financial reported strong momentum in Q2 2026, with significant growth in new accounts and purchase volume. - The company added or renewed over 15 partners, including notable names like Suzuki Motor and AmeriVet, enhancing its product offerings and customer engagement. - Synchrony emphasized its focus on providing financial flexibility through dynamic underwriting and a diversified product suite, aiming to meet evolving consumer needs.
2) Financial & Segment Results - Net earnings reached $885 million, translating to $2.59 per diluted share, with a return on average assets of 2.9% and a return on tangible common equity of 25.2%. - Purchase volume grew 8% year-over-year, hitting nearly $50 billion, with co-branded cards accounting for 52% of total volume and increasing by 23%. - Ending loan receivables grew 2% to $102 billion, while net interest income rose 2% to $4.6 billion, driven by higher interest and fees.
| Metric | Q2 2026 | YoY Change |
|---|---|---|
| Net Earnings | $885 million | N/A |
| EPS | $2.59 | N/A |
| Purchase Volume | ~$50 billion | +8% |
| Ending Loan Receivables | $102 billion | +2% |
| Net Interest Income | $4.6 billion | +2% |
3) Problems / Headwinds - The payment rate increased to 17%, reflecting higher consumer payment behavior, which could impact future loan growth. - Provision for credit losses rose by $55 million to $1.2 billion, indicating potential challenges in credit quality despite a decrease in net charge-offs. - Operational losses and technology investments contributed to a 7% increase in other expenses, impacting the efficiency ratio.
4) Operational or Product Plans - Synchrony plans to maintain its focus on enhancing customer experience and expanding its product suite, particularly in the health and wellness sector. - The company is investing in technology and AI to improve operational efficiency and customer engagement, with 90% of exempt employees actively using AI tools. - Guidance for the second half of 2026 includes expectations for mid-single-digit growth in ending loan receivables and net interest income growth driven by higher average loan receivables.
5) Guidance & Outlook / Investor Angle - Synchrony expects diluted earnings per share to range between $9.25 and $9.50 for the full year, reflecting confidence in continued growth despite elevated payment rates. - The company aims to maintain credit discipline while capitalizing on strong consumer demand and expanding its partner base. - The transcript lacks specific forward-looking metrics for Q3 and Q4, which could provide further clarity on growth expectations.
Bottom line: Synchrony Financial is positioned for continued growth with strong consumer engagement and a diversified product offering, despite facing challenges from elevated payment rates and operational expenses. The company's strategic focus on partnerships and technology investments supports its long-term growth outlook, making it an attractive prospect for shareholders.
Annual Reports, Presentations And IR Contacts
Go to the websiteSynchrony Financial — Financial Overview, Stock Price, Market Cap
Synchrony Financial is a company. Founded in 2003. As of October 9, 2026, the company's market capitalization is $23986338325 with a current stock price of $73.72.