Synchrony Financial cash flow to debt ratio of 64.89% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.

Synchrony Financial's free cash flow has increased 0.03% from $9.85B last year to $9.85B, signaling increasing performance

Synchrony Financial's debt to equity ratio is 0.97, which means that the company's assets are unhealthy financed, signaling financial risk.

Synchrony Financial's debt has increased relative to shareholder equity from 0.93 last year to 0.97 today, signaling weakened financials

Synchrony Financial has a net cash position, so leverage is healthy.

Synchrony Financial earns at least as much interest as it pays. Interest obligations are fully covered.

Synchrony Financial's profit margin has increased (4.90%) in the last year from 16.86% to 17.68%, signaling increasing performance

Synchrony Financial's short-term liabilities of $81.14B exceed its short-term assets of $17.32B, signaling financial risk

Synchrony Financial's return on assets of 2.89% is lower than the 5.00% threshold, indicating inefficient asset utilization

Synchrony Financial's return on equity of 20.94%, is higher than 15.00%, indicating good performance

Synchrony Financial's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Synchrony Financial had positive net income in 5 out of 5 years, indicating stable and consistent earnings

Synchrony Financial has positive free cash flow, indicating the company generates cash after capital expenditures

Synchrony Financial has a free cash flow yield of 38.72%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Synchrony Financial's yearly earnings has increased 1.51% since last year from $3.50B to $3.55B, signaling increasing performance

Synchrony Financial's yearly revenue has decreased 16.37% since last year from $24.17B to $20.21B, signaling decreasing performance

ROIC 2.93% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Synchrony Financial's 3-year revenue CAGR of 13.15% is positive, indicating growing revenue over the past 3 years

Synchrony Financial had revenue growth in 3 out of 5 years, indicating consistent revenue performance

Synchrony Financial had positive ROE in 5 out of 5 years, indicating consistent and reliable returns on equity

Synchrony Financial is undervalued relative to its fair value price of 405.66 based on Discounted Cash Flow model

Synchrony Financial has an earnings yield of 13.58%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Synchrony Financial is undervalued relative to its fair value price of 99.22 based on EBITDA multiple model

Synchrony Financial has an EV/EBITDA ratio of 4.54x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings

Synchrony Financial is undervalued relative to its fair value price of 243.14 based on Earnings Fair Value model

Synchrony Financial has a PEG-ratio under 1 which is considered undervalued

Synchrony Financial has a price-to-book ratio of 1.53x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Synchrony Financial has a price-to-sales ratio of 1.30x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue