SYF

Synchrony Financial

Finance/Real Estate


Presented:01/09/2019
Price:$25.99
Cap:$18.68B
Current Price:$53.29
Cap:$21.06B

Presented

Date01/09/2019
Price$25.99
Market Cap$18.68B
Ent Value$34.63B
P/E Ratio8.25x
Book Value$19.47
Div Yield3.23%
Shares O/S718.73M
Ave Daily Vol6,789,349
Short Int1.35%

Current

Price$53.29
Market Cap$21.06B
Synchrony Financial operates as a holding company, which engages in the provision of consumer financial services. It operates through three sales platforms: Retail Card, Payment Solutions, and CareCredit. The Retail Card platform is a provider of private label credit cards, and also provides Dual Cards and small-and medium-sized business credit products. The Payment Solutions platform is a provider of promotional financing for major consumer purchases, offering private label credit cards and installment loans. The CareCredit platform is a provider of promotional financing to consumers for elective healthcare procedures or services, such as dental, veterinary, cosmetic, vision and audiology. The company was founded on September 12, 2003 and is headquartered in Stamford, CT.

Publicly traded companies mentioned herein: Capital One Financial Corp (COF), Discover Financial Services (DFS), JC Penney Company Inc (JCP), PayPal Holdings Inc (PYPL), Synchrony Financial (SYF), Walmart Inc (WMT)

Highlights

Shares of Synchrony Financial (SYF) performed quite poorly in 2018, falling from $39 at the beginning of the year to the low $20s toward the end of Dec. A number of issues plagued the consumer finance/credit card company over the prior 12 months, including, but not limited to: the loss of Walmart as a partner (after 18 years), the related lawsuit, and concerns about the sustainability of earnings. With the stock trading in the mid-$20s (5.8x forward earnings estimates), the presenter is long and sees upside potential to $36 (8x a 2019 EPS estimate of $4.51, which is 12 cents ahead of the Street).

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Idea Discussion

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