Synchrony Financial Intrinsic Value – Synchrony Financial Shares Edge Up Slightly Despite Market Downturn
August 10, 2023
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Despite a downturn in the stock market on Friday, Synchrony Financial ($NYSE:SYF) Inc. managed to edge up slightly with its share price increasing 0.17% to $34.36. Synchrony Financial is a premier consumer financial services company that provides a range of credit products through programs it has established with a diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers. It offers a range of digital, mobile and payment solutions to help consumers buy what they need when they want it with more flexible payment options. Its major business segments are Payment Solutions and CareCredit.
Payment Solutions focuses on consumer payments while CareCredit concentrates on healthcare financing solutions. Synchrony Financial’s mission is to help customers achieve their financial goals and make their lives easier.
Price History
The stock opened at $34.6 and closed at $34.8, up by 1.1% from its last closing price of 34.4. Although the increase was not significant, it did show that investors are confident in the company’s future growth prospects. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Synchrony Financial. More…
| Total Revenues | Net Income | Net Margin |
| 12.5k | 2.41k | 19.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Synchrony Financial. More…
| Operations | Investing | Financing |
| 7.18k | -10.23k | 5.28k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Synchrony Financial. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 108.7k | 95.32k | 32 |
Key Ratios Snapshot
Some of the financial key ratios for Synchrony Financial are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 0.4% | – | – |
| FCF Margin | ROE | ROA |
| 57.5% | 15.0% | 1.8% |
Analysis – Synchrony Financial Intrinsic Value
At GoodWhale, we have been analyzing the wellbeing of SYNCHRONY FINANCIAL and are happy to report that it is in a strong financial position. Our proprietary Valuation Line places the intrinsic value of each share at around $53.2. Currently, the stock is trading at $34.8, presenting investors with an opportunity to buy the shares at a 34.6% discount from its intrinsic value. This presents an attractive opportunity for investors to get in on this well-positioned stock at a lower price than its true value, making it a potentially lucrative investment. More…
Peers
In the financial services industry, Synchrony Financial competes with American Express Co, Bread Financial Holdings Inc, and Discover Financial Services. All four companies offer credit cards, loans, and other financial products to consumers and businesses. While each company has its own strengths and weaknesses, Synchrony Financial has been able to compete effectively against its rivals.
– American Express Co ($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‘s stock price rose slightly by 0.17% to $34.36 on Friday, a modest gain in an otherwise weak market. Investment analysts continue to view Synchrony Financial as a solid long-term investment opportunity, due to its resilient balance sheet and strong cash flow. Although the company recently experienced some volatility in its stock price, its underlying fundamentals remain strong. Investors are encouraged to keep an eye on Synchrony Financial in the coming months as it continues to navigate an uncertain economic climate.
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