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US Equities · Finance research note

SYF — Synchrony Financial

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2. Company Fundamentals

2.1 Competitiveness

Metric Value
Operating Margins 48.03%
Profit Margins 36.39%
Return on Equity 21.78%
Return on Assets 2.96%
Free Float 0.33B
Dividend Yield 1.53%
Short Int % Utilisation 8.98%

2.2 Growth

Metric Value
Revenue Growth 6.1%
EBITDA N/A (Ratio)
Enterprise Value 20.53B
EV/Revenue 2.08

Revenue growth of 6.1% indicates steady, moderate expansion.

2.3 Management

Role Metric
Consensus Rating N/A

2.4 Return

Metric Value
Expected Return (Ann.)* 21.26%
Risk / Std Dev (Ann.)* 31.36%
1-Year Price Return* 15.19%

Latest Market Data (as of 2026-08-14, US Eastern time):

Metric Value
Last Price $81.00
52-Week Range $63.08 – $88.77
Observation Count 250 trading days

The return and risk statistics use daily adjusted closes from the retrieved one-year series and annualise daily moments using 252 trading days. The last price is the latest regular-market price reported for the stated date. Source: Yahoo Finance market data.

DuPont Model Analysis

The DuPont model decomposes return on equity (ROE) into three operating and capital-structure drivers:

ROE = Net Margin × Asset Turnover × Equity Multiplier

The comparison uses the latest two comparable annual periods available for the issuer, with reported statement amounts shown in US$. Revenue and net income are income-statement flows; total assets and shareholders’ equity are year-end balance-sheet figures. This is a simplified year-end-balance DuPont comparison rather than an average-balance ROE calculation.

DuPont component Calculation FY2025 FY2024
Revenue Reported revenue $14.98B $15.06B
Net income Reported net income $3.47B $3.43B
Total assets Year-end reported balance $119.09B $119.46B
Shareholders’ equity Year-end reported balance $16.77B $16.58B
Net margin Net income ÷ revenue 23.16% 22.76%
Asset turnover Revenue ÷ total assets 0.1258x 0.1260x
Equity multiplier Total assets ÷ shareholders’ equity 7.1034x 7.2052x
ROE Net margin × asset turnover × equity multiplier 20.69% 20.67%

Source: Yahoo Finance annual statements. Values are based on the two latest comparable annual periods returned by the source; fiscal period labels use the statement period-end year.

2.5 FCFF DCF Valuation

FCFF DCF exception: FCFF DCF is not the primary valuation method for financial institutions or REITs. This post deliberately does not publish a mechanical enterprise value or implied per-share value on an unsuitable basis.

Available valuation input Value
Last market price $81.25
Market capitalisation $26.44B
Revenue $14.98B
EBIT NM
Reported free cash flow $9.85B
FCF yield 37.26%
Net debt / EBITDA NM

2.6 Investor-Style Research Screen

Educational screen Result
Buffett-inspired cash-quality checks not rated — FCFF DCF suitability or data-integrity condition not met
Lynch-inspired balance-and-growth checks not rated — FCFF DCF suitability or data-integrity condition not met

Data lineage: Yahoo Finance public market and reported-statement data; retrieval timestamp: 2026-08-18 17:49:50.590594 UTC; latest reported fiscal period: 2025-12-31 00:00:00. Financial institutions and REITs require sector-specific methods rather than a mechanical FCFF DCF. This is research and analysis only, not personalized financial advice.

2.7 Quantitative Factor Diagnostics

Model basis: Daily issuer USD excess returns are regressed in-sample using ordinary least squares on matching regional Fama–French factors. FF3 estimates market, size, and value loadings; FF5 adds profitability and investment. Coefficients are descriptive historical exposures, not predictions.

Estimation input Value
Regional factor set US
Factor-return currency USD
Issuer-return basis USD adjusted total return
Estimation window 2025-08-19 to 2026-06-30
Aligned daily observations 217
Minimum observation requirement 120
Currency conversion for HK listings not required

Fama–French Three-Factor and Five-Factor Results

Diagnostic FF3 FF5
Annualised alpha -26.08% -20.44%
Adjusted R² 0.40 0.41
Annualised residual volatility 23.24% 22.96%
Factor loading (t-statistic) FF3 FF5
Market excess return (Mkt-RF) 1.32 (9.65) 1.46 (9.40)
Size (SMB) 0.59 (3.17) 0.69 (3.51)
Value (HML) 0.70 (4.43) 0.68 (3.50)
Profitability (RMW) NM 0.38 (2.29)
Investment (CMA) NM -0.14 (-0.50)

Definitions: Mkt-RF is the market return less the risk-free rate; SMB is small minus big; HML is high minus low book-to-market; RMW is robust minus weak profitability; CMA is conservative minus aggressive investment. Factor returns are sourced from the Kenneth R. French Data Library; issuer adjusted-return history is sourced from Yahoo Finance. For Hong Kong listings, adjusted HKD prices are converted into USD with daily USD/HKD closes before return calculation to match the USD regional factor basis. This is an in-sample historical regression; coefficients and t-statistics do not establish causation or predict future returns. This is research and analysis only, not personalized financial advice.

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