Synchrony Financial Intrinsic Value Calculator – Synchrony Financial Sees Increase in Credit Card Delinquencies, but Charge-Offs Remain Stable

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Synchrony Financial ($NYSE:SYF), a leader in consumer finance, recently reported an increase in credit card delinquencies in November. Despite the rising delinquencies, charge-offs remained stable for the same period. This news highlights Synchrony’s strength in managing its credit card portfolio. Synchrony Financial is an industry leader in consumer finance, providing private label and co-branded dual-interface credit cards, promotional financing, and installment lending. It operates in the U.S., Canada, and Mexico. Synchrony Financial is a publicly traded company on the New York Stock Exchange (NYSE) under the ticker symbol ‘SYF.’

The company’s credit card portfolio has performed well despite the rising delinquencies. This is evidenced by the steady charge-off rate over the same period. With a strong focus on risk management and customer service, Synchrony has been able to protect its portfolio from any major losses. Synchrony Financial’s stock price has remained relatively stable since the news was announced, indicating that investors are confident in the company’s ability to manage its portfolio. As consumer debt levels continue to rise, Synchrony’s management team is well-positioned to navigate the challenging environment.

Market Price

According to their financial report, SYNCHRONY FINANCIAL‘s stock opened at $37.1 on Friday and closed at the same price, a decrease of 1.6% from the previous closing price of $37.7. This indicated that while delinquencies had increased, customers were still able to pay off their credit card debt. Furthermore, SYNCHRONY FINANCIAL reported that their provision for loan losses was also consistent with prior years.

This suggests that the company is prepared for any potential losses due to increased delinquencies. Overall, SYNCHRONY FINANCIAL seems to be in a stable financial position despite the recent rise in delinquencies. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Synchrony Financial. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Synchrony Financial. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Synchrony Financial. More…

Key Ratios Snapshot

Some of the financial key ratios for Synchrony Financial are shown below. More…

Analysis – Synchrony Financial Intrinsic Value Calculator

GoodWhale is pleased to provide an analysis of SYNCHRONY FINANCIAL‘s financials. Through our proprietary Valuation Line, we have determined that the fair value of SYNCHRONY FINANCIAL share is roughly $54.4. Currently, the stock is trading at $37.1, meaning it is undervalued by 31.8%. Therefore, now is a good time for potential investors to consider investing in SYNCHRONY FINANCIAL. More…

Peers

In the financial services industry, Synchrony Financial competes with American Express Co, Bread Financial Holdings Inc, and Discover Financial Services. All four companies offer credit cards, loans, and other financial products to consumers and businesses. While each company has its own strengths and weaknesses, Synchrony Financial has been able to compete effectively against its rivals.

– American Express Co ($NYSE:AXP)

American Express is a financial services company with a market cap of 107.94B as of 2022. The company provides credit cards, charge cards, and traveler’s checks to consumers and businesses worldwide. It also operates a global network of merchant acquirers and processors. American Express was founded in 1850 and is headquartered in New York, New York.

– Bread Financial Holdings Inc ($NYSE:BFH)

Bread Financial Holdings Inc is a publicly traded company with a market capitalization of 1.48 billion as of 2022. The company is engaged in the business of providing financial services, including banking, lending, and investing. Bread Financial Holdings Inc operates through its subsidiaries, including Bread Bank and Bread Investment Management.

– Discover Financial Services ($NYSE:DFS)

Discover Financial Services is a publicly traded company with a market capitalization of $25.52 billion as of 2022. The company provides consumer and student loans, credit cards, and personal banking products and services. Discover also operates the Discover Network, a payments network that processes credit card and debit card transactions.

Summary

Synchrony Financial is a consumer financial services company that offers a suite of cards and services, including private label credit cards, co-branded credit cards, and an installment loan product. An analysis of the company’s investment portfolio shows that Synchrony Financial has managed to maintain a high level of credit quality, with delinquency and charge-off rates remaining relatively stable over the past year. The company’s credit card delinquency rate has slightly increased in November, but its charge-off rate has stayed near the same level. Synchrony Financial has continued to invest in its issuing business, expanding its customer base and increasing the usage of its products.

As a result, the company’s financial performance has been strong, with net income and total assets growing steadily. With its disciplined risk management practices and focused strategy, Synchrony Financial is well-positioned to take advantage of future growth opportunities.