Is Synchrony Financial Stock a Good Investment?
Synchrony Financial Investment Advice | SYF |
- Examine Synchrony Financial's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Synchrony Financial's leadership team and their track record. Good management can help Synchrony Financial navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Consumer Finance space and any emerging trends that could impact Synchrony Financial's business and its evolving consumer preferences.
- Compare Synchrony Financial's performance and market position to its competitors. Analyze how Synchrony Financial is positioned in terms of product offerings, innovation, and market share.
- Check if Synchrony Financial pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Synchrony Financial's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Synchrony Financial stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Synchrony Financial is a good investment.
Sell | Buy |
Buy
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Synchrony Financial Stock
Researching Synchrony Financial's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 99.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.7. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Synchrony Financial has Price/Earnings To Growth (PEG) ratio of 1.77. The entity recorded earning per share (EPS) of 7.7. The firm last dividend was issued on the 4th of November 2024.
To determine if Synchrony Financial is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Synchrony Financial's research are outlined below:
| Synchrony Financial appears to be risky and price may revert if volatility continues | |
| Over 99.0% of the company shares are owned by institutional investors | |
| On 15th of November 2024 Synchrony Financial paid $ 0.25 per share dividend to its current shareholders | |
| Latest headline from gurufocus.com: Synchrony Financial Releases Monthly Charge-Off and Delinquency Statistics |
Synchrony Financial Quarterly Good Will |
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Synchrony Financial uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Synchrony Financial. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Synchrony Financial's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 17th of April 2024 Upcoming Quarterly Report | View | |
| 16th of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 28th of January 2025 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 31st of December 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Synchrony Financial's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Synchrony Financial's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2018-01-19 | 2017-12-31 | 0.63 | 0.7 | 0.07 | 11 | ||
2018-04-20 | 2018-03-31 | 0.75 | 0.83 | 0.08 | 10 | ||
2020-10-20 | 2020-09-30 | 0.72 | 0.63 | -0.09 | 12 | ||
2020-07-21 | 2020-06-30 | 0.15 | 0.06 | -0.09 | 60 | ||
2024-01-23 | 2023-12-31 | 0.93 | 1.03 | 0.1 | 10 | ||
2018-07-27 | 2018-06-30 | 0.82 | 0.92 | 0.1 | 12 | ||
2018-10-19 | 2018-09-30 | 0.8 | 0.91 | 0.11 | 13 | ||
2017-04-28 | 2017-03-31 | 0.73 | 0.61 | -0.12 | 16 |
Know Synchrony Financial's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Synchrony Financial is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Synchrony Financial backward and forwards among themselves. Synchrony Financial's institutional investor refers to the entity that pools money to purchase Synchrony Financial's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Dimensional Fund Advisors, Inc. | 2024-09-30 | 6.5 M | Boston Partners Global Investors, Inc | 2024-06-30 | 6.3 M | Aqr Capital Management Llc | 2024-06-30 | 5.7 M | Norges Bank | 2024-06-30 | 5.2 M | Goldman Sachs Group Inc | 2024-06-30 | 5.2 M | Allianz Asset Management Ag | 2024-06-30 | 4.7 M | Ameriprise Financial Inc | 2024-06-30 | 4.6 M | Bank Of New York Mellon Corp | 2024-06-30 | 4.4 M | Jacobs Levy Equity Management, Inc. | 2024-06-30 | 4.3 M | Vanguard Group Inc | 2024-09-30 | 49.6 M | Capital World Investors | 2024-09-30 | 43.1 M |
Synchrony Financial's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 25.07 B.Market Cap |
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Synchrony Financial's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.02 | 0.03 | |
| Return On Capital Employed | 0.03 | 0.06 | |
| Return On Assets | 0.02 | 0.03 | |
| Return On Equity | 0.16 | 0.25 |
Determining Synchrony Financial's profitability involves analyzing its financial statements and using various financial metrics to determine if Synchrony Financial is a good buy. For example, gross profit margin measures Synchrony Financial's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Synchrony Financial's profitability and make more informed investment decisions.
Evaluate Synchrony Financial's management efficiency
Synchrony Financial has Return on Asset of 0.0273 % which means that on every $100 spent on assets, it made $0.0273 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.2128 %, implying that it generated $0.2128 on every 100 dollars invested. Synchrony Financial's management efficiency ratios could be used to measure how well Synchrony Financial manages its routine affairs as well as how well it operates its assets and liabilities. The Synchrony Financial's current Return On Tangible Assets is estimated to increase to 0.03. The Synchrony Financial's current Return On Capital Employed is estimated to increase to 0.06. At this time, Synchrony Financial's Net Tangible Assets are most likely to increase significantly in the upcoming years. The Synchrony Financial's current Return On Tangible Assets is estimated to increase to 0.03, while Non Current Assets Total are projected to decrease to roughly 1.7 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 33.01 | 34.66 | |
| Tangible Book Value Per Share | 28.66 | 30.09 | |
| Enterprise Value Over EBITDA | 4.32 | 4.11 | |
| Price Book Value Ratio | 1.16 | 2.24 | |
| Enterprise Value Multiple | 4.32 | 4.11 | |
| Price Fair Value | 1.16 | 2.24 |
The strategic vision of Synchrony Financial management plays a critical role in its financial performance. By evaluating this vision, we provide insights into the stock's growth potential.
Dividend Yield 0.0155 | Forward Dividend Yield 0.0155 | Forward Dividend Rate 1 | Beta 1.593 |
Basic technical analysis of Synchrony Stock
As of the 22nd of November, Synchrony Financial has the Coefficient Of Variation of 570.73, semi deviation of 1.19, and Risk Adjusted Performance of 0.1395. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Synchrony Financial, as well as the relationship between them. Please validate Synchrony Financial variance, value at risk, as well as the relationship between the Value At Risk and skewness to decide if Synchrony Financial is priced more or less accurately, providing market reflects its prevalent price of 65.14 per share. Given that Synchrony Financial has jensen alpha of 0.2527, we advise you to double-check Synchrony Financial's current market performance to make sure the company can sustain itself at a future point.Synchrony Financial's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Synchrony Financial insiders, such as employees or executives, is commonly permitted as long as it does not rely on Synchrony Financial's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Synchrony Financial insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Synchrony Financial's Outstanding Corporate Bonds
Synchrony Financial issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Synchrony Financial uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Synchrony bonds can be classified according to their maturity, which is the date when Synchrony Financial has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| SNV 5625 15 FEB 28 Corp BondUS87164DVJ61 | View | |
| SYNCHRONY FINL 45 Corp BondUS87165BAG86 | View | |
| SYNCHRONY FINL 395 Corp BondUS87165BAM54 | View | |
| SYNCHRONY FINL 37 Corp BondUS87165BAL71 | View | |
| SYF 4875 13 JUN 25 Corp BondUS87165BAS25 | View | |
| SYF 2875 28 OCT 31 Corp BondUS87165BAR42 | View |
Understand Synchrony Financial's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Synchrony Financial's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1395 | |||
| Market Risk Adjusted Performance | 0.1785 | |||
| Mean Deviation | 1.73 | |||
| Semi Deviation | 1.19 | |||
| Downside Deviation | 1.62 | |||
| Coefficient Of Variation | 570.73 | |||
| Standard Deviation | 2.98 | |||
| Variance | 8.89 | |||
| Information Ratio | 0.1432 | |||
| Jensen Alpha | 0.2527 | |||
| Total Risk Alpha | 0.1744 | |||
| Sortino Ratio | 0.2637 | |||
| Treynor Ratio | 0.1685 | |||
| Maximum Drawdown | 23.07 | |||
| Value At Risk | (2.58) | |||
| Potential Upside | 4.38 | |||
| Downside Variance | 2.62 | |||
| Semi Variance | 1.43 | |||
| Expected Short fall | (2.18) | |||
| Skewness | 3.67 | |||
| Kurtosis | 21.45 |
| Risk Adjusted Performance | 0.1395 | |||
| Market Risk Adjusted Performance | 0.1785 | |||
| Mean Deviation | 1.73 | |||
| Semi Deviation | 1.19 | |||
| Downside Deviation | 1.62 | |||
| Coefficient Of Variation | 570.73 | |||
| Standard Deviation | 2.98 | |||
| Variance | 8.89 | |||
| Information Ratio | 0.1432 | |||
| Jensen Alpha | 0.2527 | |||
| Total Risk Alpha | 0.1744 | |||
| Sortino Ratio | 0.2637 | |||
| Treynor Ratio | 0.1685 | |||
| Maximum Drawdown | 23.07 | |||
| Value At Risk | (2.58) | |||
| Potential Upside | 4.38 | |||
| Downside Variance | 2.62 | |||
| Semi Variance | 1.43 | |||
| Expected Short fall | (2.18) | |||
| Skewness | 3.67 | |||
| Kurtosis | 21.45 |
Consider Synchrony Financial's intraday indicators
Synchrony Financial intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Synchrony Financial stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Synchrony Financial Corporate Filings
F4 | 19th of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10Q | 23rd of October 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 16th of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F3 | 5th of August 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
Synchrony Stock media impact
Far too much social signal, news, headlines, and media speculation about Synchrony Financial that are available to investors today. That information is available publicly through Synchrony media outlets and privately through word of mouth or via Synchrony internal channels. However, regardless of the origin, that massive amount of Synchrony data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Synchrony Financial news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Synchrony Financial relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Synchrony Financial's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Synchrony Financial alpha.
Synchrony Financial Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Synchrony Financial can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Synchrony Financial Historical Investor Sentiment
Investor biases related to Synchrony Financial's public news can be used to forecast risks associated with an investment in Synchrony. The trend in average sentiment can be used to explain how an investor holding Synchrony can time the market purely based on public headlines and social activities around Synchrony Financial. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Synchrony Financial's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Synchrony Financial and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Synchrony Financial news discussions. The higher the estimate score, the more favorable the investor's outlook on Synchrony Financial.
Synchrony Financial Corporate Directors
| Roy Guthrie | Independent Director | Profile | |
| Arthur Coviello | Independent Director | Profile | |
| Fernando Aguirre | Independent Director | Profile | |
| Ellen Zane | Independent Director | Profile |
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Synchrony Financial. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in manufacturing. For more detail on how to invest in Synchrony Stock please use our How to Invest in Synchrony Financial guide.You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Is Consumer Finance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Synchrony Financial. If investors know Synchrony will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Synchrony Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.311 | Dividend Share 1 | Earnings Share 7.7 | Revenue Per Share 22.405 | Quarterly Revenue Growth 0.116 |
The market value of Synchrony Financial is measured differently than its book value, which is the value of Synchrony that is recorded on the company's balance sheet. Investors also form their own opinion of Synchrony Financial's value that differs from its market value or its book value, called intrinsic value, which is Synchrony Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Synchrony Financial's market value can be influenced by many factors that don't directly affect Synchrony Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Synchrony Financial's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Synchrony Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Synchrony Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.