Synchrony Financial Stock Fair Value Calculation – SYNCHRONY FINANCIAL Reports 14.7% Increase in Total Revenue for Q2 2023

☀️Earnings Overview

SYNCHRONY FINANCIAL ($NYSE:SYF) reported USD 3294.0 million in total revenue for the quarter ending June 30 2023, a 14.7% increase compared to the same period in FY2022. However, net income was USD 569.0 million, a 29.2% decrease from the previous year. The earnings results were announced on July 18 2023.

Analysis – Synchrony Financial Stock Fair Value Calculation

GoodWhale is an excellent tool for analyzing the fundamentals of SYNCHRONY FINANCIAL. With GoodWhale, investors can assess the company’s performance and get an accurate assessment of its intrinsic value. Our GoodWhale Valuation Line has determined that SYNCHRONY FINANCIAL’s intrinsic value is around $53.3. Currently, the stock is trading at $36.2, meaning it is undervalued by 32.0%. This presents a great opportunity for investors to purchase SYNCHRONY FINANCIAL’s undervalued shares. GoodWhale can also help investors measure the company’s performance over time and forecast future stock performance. With the help of GoodWhale, investors can make informed decisions and maximize returns when investing in SYNCHRONY FINANCIAL. More…

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…

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 reported total revenue of USD 3294.0 million for the second quarter of 2023, a 14.7% increase from the same period in FY2023. Net income was USD 569.0 million, a 29.2% decrease from the previous year. Investors may find this quarter’s strong revenue growth encouraging, but the decreased net income could be concerning. The company’s ability to manage costs and control expenses will be key to future performance and would be important factors for potential investors to consider.