Bull Rankings model

Synchrony Financial (SYF) stock analysis

Credit Services. Scored on the same transparent model behind the daily rankings.

★
SYF
Synchrony Financial · Credit Services
72.9Financial strength
$73.59Oct 13 close$23.9B
1Y Target$88.17Analyst consensus · 24 analysts
5Y Target$111.31Compound horizon
10Y Target$142.75Long-dated conviction
FCF$9.7bTTM · 06/26
B+
FCF $9.7b — strong cash profile, above most peers · Trailing twelve months to 06/26 (operating cash flow − capex).
Rev-0.5%FY YoY
D+
Revenue -0.5% — shrinking; needs a catalyst to reverse · Computed from the last two annual revenue figures (FY YoY).
D/E*—
—
No debt-to-equity ratio to show (see the note below the grades)
P/E7.5x
A
P/E 7.5 — cheapest decile in Financial Services (≈10th pctile)
PEG0.89
B+
PEG 0.89 — near fair value (1.0 is the usual benchmark)

* D/E omitted — equity is negative or tiny next to debt

Targets: 1-year is analyst consensus where covered, 5- and 10-year are model estimates; the DCF is a cross-check, not a target. Methodology

Financial strength · 72.9 / 100
Profitability90.8
Value (P/B)62.4
Income53.4

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

Model-generatedFrom reported fundamentals, checked against the figures above · Editorial standards

Why now
Credit Services · market cap $23.9b. 17% off the 52-week high of $88.77. PEG 0.89 — paying under fair value for the growth rate. 24 sell-side analysts rate this a Buy with a mean 1-yr target of $88.17 (implying +20% upside).
Moat
Net margin 36% is exceptional — pricing-power territory rare outside premium software, branded staples, and specialty pharma. ROE 21% is above 15% — the equity base is compounding at a rate the market struggles to discount accurately. Free cash flow runs well ahead of reported net income.
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 $88.17 (24-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $111.31 at ~9% CAGR — dividend + buyback compounding. 10 yr $142.75 if the moat survives secular pressure.
Score history · SYF

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

SYF at a glance

FINANCIAL STRENGTH · BANKPROFITABILITY91VALUE62COVERED INCOME5372.9/100 on our peer scale — not the quality-growth score.
PRICE IN ITS 52-WEEK RANGE$73.6LOW $63.1HIGH $88.8Trading at the 41st percentile of its 52-week range ($63.1–$88.8).
ONE-YEAR MOVE VS ITS BETAFLATThis stock+4%Trailing one-year price change. Price history is not an inputto the Bull Rankings score.

Same audited fundamentals as the score, unless a card says otherwise.

Analyst estimate revisions

30-day change-0.3%
90-day change-0.8%
Forward EPS estimate$10.46

Over the last 90 days, what analysts expect SYF to earn is essentially unchanged. The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

Estimates move both ways and are not part of the Bull Rankings score. Biggest movers →

Position sizing · SYF
Shares to buy
27
Position size
$1,987
4.0% of portfolio
Stop price
$55.19
25% below $73.59
$ at risk if stopped
$496.73
budget $500.00 · 1% of portfolio

Math only: excludes commissions, slippage and gap risk. Inputs stay in your browser.

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.

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?

We don't publish a discounted-cash-flow value for SYF, and not because the business is unprofitable. For a lender, insurer or property trust, "free cash flow" measures balance-sheet growth rather than owner earnings — loan originations and repayments run through operating cash flow — so discounting it would produce a confident-looking number with nothing behind it. SYF is judged on book value, return on equity and income cover instead, which is what the financial-strength card shows.

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? See the guides and the methodology.

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