This summary was created by AI, based on 1 opinions in the last 12 months.
Synchrony Financial (SYF) is a consumer finance company that emerged from a spin-off from GE in 2015. The company exhibits a strong Return on Equity (ROE) profile and has consistently engaged in share buybacks over the years, indicating a commitment to returning value to shareholders. Currently, SYF is trading at a Forward Price-to-Earnings (P/E) ratio of 1.8x, representing an increase from a historical average of about 1.2x, attributed to improving operating results. Despite appearing to be undervalued, experts caution that the company operates in a mature sector with limited growth prospects. Investors might expect an overall return of around 10%-12% over the long term, considering both price appreciation and dividends. Therefore, while SYF can generate reasonable returns, it may not be a high-growth investment.
A financial stock, and he likes financials. It has done very well. Closed at $39.76, and he has a model price of $49.45, 25% higher. Pays out $.60. Looks like they are going to earn $3.46 this year.
Believes this is a business that does something that is differentiated. They provide value to the client that has the card and provide value to the retailer. Looking at the economics that is providing their service, it is attractive. They earn higher gross yields, which means they can sustain a higher write-off, which is going to be the nature of the beast when they do store cards, which is the nature of their business. The ROE’s they can generate are attractive and believes that the capital return will accelerate over time. He likes this business.
Synchrony Financial is a American stock, trading under the symbol SYF-N on the New York Stock Exchange (SYF). It is usually referred to as NYSE:SYF or SYF-N
In the last year, 1 stock analyst published opinions about SYF-N. 1 analyst recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Synchrony Financial.
Synchrony Financial was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for Synchrony Financial.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
In the last year, there was no coverage of Synchrony Financial published on Stockchase.
On 2025-02-18, Synchrony Financial (SYF-N) stock closed at a price of $65.29.
SYF is a consumer finance company; the company was spun out of GE back in 2015. SYF has maintained an attractive Return on Equity (ROE) profile along with consistent share buybacks over the years. SYF is trading at 1.8x Forward P/E, an expansion compared to previous years of around 1.2x, given the recent improving operating results.
We think SYF still looks quite cheap, but the business is mature, and growth is quite limited, investors need an appropriate expectation for SYF that although it may not be a compounder, SYF can potentially do comfortably well around 10%-12% over the long term (price appreciation and dividends) for investors. Portfolio allocation is a personal decision, we tend not to recommend a precise allocation, depending on investors’ risk tolerance.
Unlock Premium - Try 5i Free