Stock analysis · Bull Rankings model

SYF analysis

Synchrony FinancialCredit Services. Scored on the same transparent 7-signal model behind the daily rankings.

SYF
Synchrony Financial · Credit Services
FCF$9.8bB+
Rev-0.5%D+
D/E
P/E7.7xA
PEG0.93B+
72Financial strength
$74.04$24.9B
1Y Target$89.83Analyst consensus · 23 analysts
5Y Target$113.40Compound horizon
10Y Target$145.44Long-dated conviction
FCF$9.8bTTM · 03/26
B+
FCF $9.8b — strong cash profile, above most peers · TTM computed from 4 most-recent quarters (TTM · 03/26).
Rev-0.5%FY YoY
D+
Revenue -0.5% — shrinking; needs a catalyst to reverse · Computed from last two annual revenue figures (FY YoY).
D/E
D/E data unavailable — neutral default
P/E7.7x
A
P/E 7.7 — cheapest decile in Financial Services (≈10th pctile)
PEG0.93
B+
PEG 0.93 — near fair value, classic Lynch benchmark (1.0)

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Financial strength · 72 / 100
Profitability0.92
Value (P/B)0.60
Income0.50

A peer-relative read for financials on profitability (ROE), valuation, and covered income — the quality-growth (FCF/ROIC) screen doesn't apply to balance-sheet businesses. Not comparable to the 0–100 quality-growth score shown on other stocks.

Entry · Margin of safety
52-week rangeMid-range
17% off the 12-month high
vs DCF fair value83% belowest. fair value ~$435
What the price assumes: outright free-cash-flow decline for the next decade — vs the ~14% a year our model projects from current growth and analyst estimates.
Why now
Credit Services · market cap $24.9b. 17% off the 52-week high of $88.77. PEG 0.93 — paying under fair value for the growth rate. 23 sell-side analysts rate this a Buy with a mean 1-yr target of $89.83 (implying +21% upside).
Moat
Net margin 36% is exceptional — pricing-power territory rare outside premium software, branded staples, and specialty pharma. ROE 22% sits above Buffett's preferred 15% threshold — the equity base is compounding at a rate the market struggles to discount accurately. Free cash flow runs well ahead of reported net income — non-cash charges (depreciation, intangible amortization) are holding down GAAP earnings while cash generation stays strong.
Risk
Balance-sheet financial — book value, net interest margin, and credit loss provisions are the lever points; a rates regime change or a deterioration in the loan book moves the stock more than EPS does.
Horizon
1-3 yr $89.83 (23-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $113.40 at ~9% CAGR — dividend + buyback compounding. 10 yr $145.44 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

Not enough history yet — the model records SYF's score after each daily run, and the chart appears once a few days have accumulated.

Shares to buy
27
Position size
$1,999
4.0% of portfolio
Stop price
$55.53
25% below $74.04
$ at risk if stopped
$499.77
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Synchrony Financial (SYF): score, valuation & FAQ

Synchrony Financial (SYF) is a Credit Services company. As a bank, insurer or REIT it runs on a different financial model from the rest of the market, so Bull Rankings grades it on a sector-appropriate card — price-to-book, dividend yield, payout ratio and cash-flow coverage — rather than the 0–100 quality-growth score used elsewhere. The read below is a transparent screen, not a buy recommendation.

Its strongest graded signals are P/E (A), FCF (B+) and PEG (B+), while Rev (D+) rate weaker. On valuation, SYF sits about 83% below our discounted-cash-flow fair value (a margin of safety) — the current price implies outright free-cash-flow decline over the next decade.

Is SYF a good stock to buy?

Bull Rankings grades SYF on a sector-appropriate card — price-to-book, dividend yield, payout and cash-flow coverage — rather than a single quality-growth score. That is driven by P/E (A), FCF (B+) and PEG (B+). A score is a quantitative screen of Synchrony Financial's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

How does Bull Rankings grade SYF?

As a bank, insurer or REIT, SYF isn't given a quality-growth score — signals like free cash flow, debt-to-equity and P/E don't translate cleanly to a balance-sheet business. Instead it's graded on a sector-appropriate card: price-to-book, dividend yield, payout ratio and operating-cash-flow coverage, where it rates strongest on P/E (A), FCF (B+) and PEG (B+) and weakest on Rev (D+).

Is SYF overvalued or undervalued?

Based on $74.04, SYF sits about 83% below our discounted-cash-flow fair value (a margin of safety) — the current price implies outright free-cash-flow decline over the next decade. It trades at a 7.7x× P/E (graded A). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in SYF?

Balance-sheet financial — book value, net interest margin, and credit loss provisions are the lever points; a rates regime change or a deterioration in the loan book moves the stock more than EPS does.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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