Synchrony Financial (SYF) Stock Analysis

Analysis from 10-Q filed 2025-10-22. Data as of Q4 2025.

Overall Grade: F (Concerning)

Synchrony Financial faces challenges in financial performance that warrant careful analysis.

Metric	Value	Context
ROIC	N/A	Below expectations
FCF Margin	51.9%	Strong cash generation
Debt/Equity	0.0x	Conservative leverage

Investment Thesis: Healthy free cash flow margin of 51.9% provides financial flexibility for growth and shareholder returns.

Explore Synchrony Financial: Earnings History | Filing Intelligence | ROIC Analysis

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Profitability: Synchrony Financial earns N/A ROIC

Synchrony Financial's trailing-twelve-month ROIC of N/A (sector median: 4.3%). Source: 10-Q filed 2025-10-22.

Metric	SYF	Rating	Context
Return on Invested Capital (ROIC)	N/A	Red flag	Below sector median of 4.3%
Return on Equity (ROE)	20.6%	Excellent	Efficient use of shareholder equity

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Cash Flow: Synchrony Financial generates $9.9B FCF at 51.9% margin, positive NaN/8 quarters

Synchrony Financial generated $9.9B in free cash flow (TTM), a 51.9% FCF margin, a margin that ranks Top 5% in Other. Operating cash flow exceeds net income by 2.8x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-10-22.

Metric	SYF	Rating	Context
Free Cash Flow Margin	51.9%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$9.9B	Good	Positive cash generation
OCF/Net Income	2.8x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: Synchrony Financial at 0.0x leverage

Synchrony Financial's debt-to-equity ratio of 0.0x reflects conservative leverage. Source: 10-Q filed 2025-10-22.

Metric	SYF	Rating	Context
Debt to Equity	0.0x	Excellent	Conservative capital structure

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Valuation: Synchrony Financial trades at 8.9x earnings

Synchrony Financial trades at a P/E of 8.9x. Free cash flow yield of 31.9% offers attractive cash returns relative to price.

Metric	SYF	Rating	Context
P/E Ratio	8.9x	Adequate	Reasonable valuation
EV/Sales	0.8x	Excellent	Attractive revenue multiple
FCF Yield	31.9%	Excellent	Attractive cash return
Dividend Yield	1.7%	Adequate	Growth focus over income

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Capital Allocation: Synchrony Financial returns 11.2% shareholder yield

Synchrony Financial's total shareholder yield is 11.2% (dividends 1.7% + buybacks 9.5%). Source: 10-Q filed 2025-10-22.

Metric	SYF	Rating	Context
Total Shareholder Yield	11.2%	Excellent	Dividend + buyback yield combined
Buyback Yield	9.5%	Good	Active share repurchases
Total Capital Returned (TTM)	$3.5B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Free Cash Flow Margin	51.9%	Top 5%	-
Return on Equity (ROE)	20.6%	Top 25%	3.0x above
P/E Ratio	8.9x	N/A	-

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Financial Scorecard

Metric	SYF	Rating	Sector Context
Free Cash Flow Margin	51.9%	Excellent	Top 5% of sector (median: 0.0%)
Debt to Equity Ratio	0.0%	Excellent	Conservative capital structure
P/E Ratio (Price-to-Earnings)	887.6%	Adequate	Attractively valued
Free Cash Flow Yield	31.9%	Excellent	High cash return

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Frequently Asked Questions

Q: What is Synchrony Financial's Return on Invested Capital (ROIC)?

Synchrony Financial (SYF) has a trailing twelve-month Return on Invested Capital (ROIC) of N/A. This compares below the sector median of 4.3%. An ROIC below 8% suggests the company may be destroying shareholder value.

Q: What is Synchrony Financial's Free Cash Flow Margin?

Synchrony Financial (SYF) has a free cash flow margin of 51.9%, generating $9.9 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.

Q: Is Synchrony Financial stock overvalued or undervalued?

Synchrony Financial (SYF) trades at a P/E ratio of 8.9x, which is above the sector median of N/A. The EV/Sales multiple is 0.8x. Free cash flow yield is 31.9%, which represents an attractive cash return to investors.

Q: Does Synchrony Financial pay a dividend?

Synchrony Financial (SYF) currently pays a dividend yield of 1.7%. Including share buybacks, the total shareholder yield is 11.2%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.

Q: What is Synchrony Financial's revenue and earnings growth?

Synchrony Financial (SYF) declined revenue by 2.8% year-over-year. Earnings per share increased by 9.1% compared to the prior year. Revenue decline may indicate market challenges or industry headwinds.

Q: Is Synchrony Financial buying back stock?

Synchrony Financial (SYF) repurchased $2.9 billion of stock over the trailing twelve months. This represents a buyback yield of 9.5%.

Q: How does Synchrony Financial compare to competitors in Other?

Compared to other companies in Other, Synchrony Financial (SYF) shows: ROIC of N/A is below the sector median of 4.3% (NaNx median). FCF margin of 51.9% exceeds the sector median of 0.0% (Top 0% of sector). These rankings are based on MetricDuck's analysis of all Other companies with available SEC filings.

Q: What warning signs should I watch for with Synchrony Financial?

Synchrony Financial (SYF) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.

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Data Source: Data sourced from 10-Q filed 2025-10-22. TTM metrics as of Q4 2025.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.