Synchrony Financial (SYF) Stock

Synchrony Financial trades at a P/E ratio of 9.07, which is below the market average of approximately 20. This lower valuation could indicate the market has modest growth expectations, or it might represent an undervalued opportunity if the fundamentals are strong. Looking ahead, the forward P/E of 9.04 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.61 indicates reasonable value when growth is considered.

With a beta of 1.43, Synchrony Financial is roughly as volatile as the market, moving in line with broad market trends. This moderate beta suggests the stock offers market-level returns without excessive volatility. The price-to-book ratio of 1.64 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Synchrony Financial achieves a profit margin of 34.00%, meaning it retains $34.00 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 44.20% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 18.60% and ROA at 2.44%, the company generates strong returns on invested capital.

Synchrony Financial's revenue declined by 23.60% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings decreased by 39.80% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against FINANCE SERVICES industry averages for proper context.

Synchrony Financial offers a dividend yield of 1.81%, paying $1.00 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of 5/5/2025.

The dividend sustainability can be assessed through the payout ratio - Synchrony Financial pays $1.00 per share in dividends against earnings of $7.30 per share, resulting in a payout ratio of 13.70%. This conservative payout below 30% indicates excellent dividend safety with substantial room for future increases. The company retains most earnings for growth while still rewarding shareholders. The next dividend payment is scheduled for 5/15/2025.

Synchrony Financial has a market capitalization of $25.20B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 380.66M shares outstanding, the company's ownership is relatively concentrated. As a participant in the FINANCE SERVICES industry, it competes with other firms in this sector.

Synchrony Financial's book value per share is $40.36, while the current stock price is $72.92, resulting in a price-to-book (P/B) ratio of 1.81. This reasonable premium to book value suggests the market values the company's earnings power and intangible assets appropriately. Most profitable companies trade between 1-3x book value. As a common stock, this represents equity ownership with voting rights.

22 analysts cover SYF with 64% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $65.90 implies -9.6% downside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:5 Strong Buy, 9 Buy, 8 Hold, 00The bullish tilt suggests optimism about future prospects, though investors should conduct independent research.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

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MACD and moving average data are not available for this stock.