Home Sectors Financial Services Up or Down: Synchrony Financial (NYSE: SYF)

Up or Down: Synchrony Financial (NYSE: SYF)

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Synchrony Financial is in the credit services industry and is part of the financial services sector. The company CEO is Margaret M. Keane. Synchrony Financial provides consumer financial products services to the diverse group of national and regional retailers, local merchants, manufacturers, buying groups, industry associations and healthcare service providers.

Previous Intraday Trading Performance:

The SYF stock showed a previous change of 0.26% with an open at 34.89 and a close of 35.00. It reached an intraday high of 35.25 and a low of 34.82.

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Liquidity:

The stock has a market cap of $24.1b with 689.3m shares outstanding, of which the float is 687.5m shares. Trading volume reached 4,479,070 shares compared to its average volume of 4,292,753 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Synchrony Financial shares returned 0.66% and in the past 30 trading days it returned 8.23%. Over three months, it changed 10.78%. In one year it has changed 0.71% and within that year its 52-week high was 36.32 and its 52-week low was 21.78. SYF stock is 60.73% above its 52 Week Low.

Our calculations show a 200 day moving average of 29.71 and a 50 day moving average of 33.12. Currently SYF stock is trading 17.79% above its 200 day moving average.

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Earnings:

The last annual fiscal EPS for the company was reported at 3.74 that ended on 31st of December 2018, which according to the previous close, that is a PE of 9.36. Based on 5 analyst estimates, the consensus EPS for the next quarter is 0.89. The TTM EPS is 3.75, which comes to a TTM PE of 9.33. Historically, the PE high was 18.70 and the PE low was 8.60. If the stock reached its PE low, that would represent a price of 32.26, which is a decrease of -7.82%.

The dividend per share is currently 0.84, which is a dividend yield of 2.40%. Also, the payout ratio is 22.40%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 61.73, which means it is possibly undervalued and has a margin of safety of 43.30%

Indicators to Watch:

Short-interest was 9,213,387, which was 1.34% of shares outstanding. The short-interest ratio or days-to-cover ratio was 1.80. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 1.26

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 22.41%, return on assets is 3.24%, profit margin is 17.31%, price-to-sales is 1.28 and price-to-book is 1.64.

Company Scores:

All scores are out of six:
 4  :Valuation Score
 4  :Past Performance Score
 2  :Financial Strength Score
 1  :Future Growth Score
 3  :Dividend Score
 2  :Overall Score

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John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.