Synchrony Financial (SYF)

FairStock Score: 74/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Synchrony as a large consumer lender: private-label and co-branded cards plus installment loans, funded partly by deposits. The business has a durable niche because merchant relationships and cardholder data create switching costs, but this is still a cyclical credit business, not a wide-moat franchise. The filed record is profitable: in fiscal Q3 2026, the quarter ended 2026-09-30, net income was $892.0M and diluted EPS $2.68, versus net income $1.1B and diluted EPS $2.86 in fiscal Q3 2025. Full-year net income rose to $3.6B in FY2025 from $3.5B in FY2024 and $2.2B in FY2023, with diluted EPS of $9.28, $8.55 and $5.19. FairStock calls it a STALWART because five-year profit growth was 20.7% a year, but the latest quarter shows that record is under pressure. At the 2026-10-26 close of $74.83, FairStock calculations show P/E 7.81, P/B 1.57, ROE 19.83%, and FCF yield 41.0%. The Graham Number is $104.77, leaving a 29.71% margin of safety. Piotroski is 6/9 and Altman Z is 0.47, which reminds me to demand a margin of safety in a lender. The price looks statistically cheap, and the balance of profitability, book value and cash generation is attractive. The key question is whether credit costs are normalizing or deteriorating. I would want evidence that earnings stabilize before treating the low multiple as a bargain; otherwise the cheapness is compensation for risk, not a free lunch.

In plain English: Synchrony Financial provides store-branded and co-branded credit cards plus consumer installment loans, mainly in the United States. It is a profitable business with strong earnings compared with its accounting value, but recent filed results show lower profit than a year earlier. At the 2026-10-26 close of $74.83, the shares look inexpensive compared with earnings and accounting value, so the price appears cheap-to-fair rather than expensive, with consumer credit risk the main caveat.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-09-30) · fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer