Synchrony Financial (SYF) Stock

Synchrony Financial trades at a P/E ratio of 9.06, 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 8.33 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 1.48, 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 1.76 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Synchrony Financial achieves a profit margin of 35.80%, meaning it retains $35.80 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 50.20% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 20.20% and ROA at 2.73%, the company generates strong returns on invested capital.

Synchrony Financial's revenue grew by 23.80% year-over-year, representing robust expansion that significantly outpaces typical market growth rates. This strong top-line performance suggests the company is successfully capturing market share or benefiting from favorable industry trends. Earnings increased by 61.30% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against CREDIT SERVICES industry averages for proper context.

Synchrony Financial offers a dividend yield of 1.41%, paying $1.05 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 Aug 5, 2025.

The dividend sustainability can be assessed through the payout ratio - Synchrony Financial pays $1.05 per share in dividends against earnings of $8.09 per share, resulting in a payout ratio of 12.98%. 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 Aug 15, 2025.

Synchrony Financial has a market capitalization of $27.7B, 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 372.06M shares outstanding, the company's ownership is relatively concentrated. As a participant in the CREDIT SERVICES industry, it competes with other firms in this sector.

Synchrony Financial's book value per share is $42.29, while the current stock price is $73.19, resulting in a price-to-book (P/B) ratio of 1.73. 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.

23 analysts cover SYF with 65% 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 $80.91 implies 10.5% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:4 Strong Buy, 11 Buy, 7 Hold, 01 Strong Sell. The 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.