SYF (Synchrony Financial) Beneish M-Score: -2.65 (As of Jun. 24, 2026)


SYF Synchrony Financial SYF
75 GF Score
Price $76.32
GF Value $65.56
Valuation Modestly Overvalued
! 2 Warning Signs
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What is Synchrony Financial Beneish M-Score?

Synchrony Financial SYF +1.71% 75 Beneish M-Score is -2.65 as of Jun. 24, 2026. GuruFocus rates SYF with a GF Score™ of 75/100 and a GF Value™ of $65.56 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 483 Credit Services companies, Synchrony Financial ranks better than 76.19% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.65 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Synchrony Financial's Beneish M-Score or its related term are showing as below:

SYF' s Beneish M-Score Range Over the Past 10 Years
Min: -2.91   Med: -2.66   Max: -2.47
Current: -2.65

During the past 13 years, the highest Beneish M-Score of Synchrony Financial was -2.47. The lowest was -2.91. And the median was -2.66.

SYF
75GF Score
Synchrony Financial SYF
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Synchrony Financial Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Synchrony Financial for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1+0.528 * 1+0.404 * 1+0.892 * 1.0705+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0176+4.679 * -0.051308-0.327 * 0.97
=-2.65

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was $0 Mil.
Revenue was 3698 + 3793 + 3823 + 3647 = $14,961 Mil.
Gross Profit was 3698 + 3793 + 3823 + 3647 = $14,961 Mil.
Total Current Assets was $0 Mil.
Total Assets was $121,501 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $532 Mil.
Selling, General, & Admin. Expense(SGA) was $2,611 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $16,428 Mil.
Net Income was 805 + 751 + 1077 + 967 = $3,600 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 2183 + 2454 + 2637 + 2560 = $9,834 Mil.
 Total Receivables was $0 Mil.
Revenue was 3718 + 2732 + 3814 + 3712 = $13,976 Mil.
Gross Profit was 3718 + 2732 + 3814 + 3712 = $13,976 Mil.
Total Current Assets was $0 Mil.
Total Assets was $122,026 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $487 Mil.
Selling, General, & Admin. Expense(SGA) was $2,397 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $17,009 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(0 / 14961) / (0 / 13976)
=0 / 0
=1

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(13976 / 13976) / (14961 / 14961)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 0) / 121501) / (1 - (0 + 0) / 122026)
=1 / 1
=1

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=14961 / 13976
=1.0705

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(487 / (487 + 0)) / (532 / (532 + 0))
=1 / 1
=1

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(2611 / 14961) / (2397 / 13976)
=0.17452 / 0.171508
=1.0176

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((16428 + 0) / 121501) / ((17009 + 0) / 122026)
=0.135209 / 0.139388
=0.97

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(3600 - 0 - 9834) / 121501
=-0.051308

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Synchrony Financial has a M-score of -2.65 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.65 mean?
Synchrony Financial (SYF) has a Beneish M-Score of -2.65 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Synchrony Financial and its competitors. According to the industry distribution chart, Synchrony Financial ranks #115 out of 483 companies in the Credit Services industry, placing it in the top 23.8%.
Is Synchrony Financial's Beneish M-Score too high?
Synchrony Financial's current Beneish M-Score is -2.65. Based on the distribution chart, Synchrony Financial ranks #115 out of 483 companies in the Credit Services industry, which is in the top quartile — a strong position relative to peers. Overall, Synchrony Financial has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Synchrony Financial's Beneish M-Score compare to AFRM and SOFI?
According to the Credit Services industry distribution chart, Synchrony Financial ranks #115 out of 483 companies for Beneish M-Score. This places Synchrony Financial in the top 24% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Credit Services company?
A good Beneish M-Score depends on the Credit Services industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Synchrony Financial and its competitors. Synchrony Financial's current Beneish M-Score is -2.65. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Synchrony Financial stock overvalued right now?
Based on GuruFocus' analysis, Synchrony Financial (SYF) is currently considered Modestly Overvalued. The stock's GF Value™ is $65.56, compared to a current price of $76.32 — trading 16.4% above its estimated fair value. The current Beneish M-Score is -2.65. Synchrony Financial's overall GF Score™ is 75/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Synchrony Financial (SYF), the current Beneish M-Score is -2.65 as of Jun. 24, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Synchrony Financial (SYF) Overvalued in 2026?

Based on GuruFocus' analysis, Synchrony Financial stock appears to be overvalued. The current stock price of $76.32 is trading 16.4% above its estimated GF Value™ of $65.56. GuruFocus considers Synchrony Financial to be Modestly Overvalued.

Key valuation signals for SYF:

  • Beneish M-Score: -2.65
  • GF Value™: $65.56 vs. price of $76.32 (16.4% above fair value)
  • GF Score™: 75/100 with 2 warning signs

No single metric tells the full story. See the SYF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Synchrony Financial Business Description

Address 777 Long Ridge Road, Stamford, CT, USA, 06902
Synchrony Financial, originally a spinoff of GE Capital's retail financing business, is the largest provider of private-label credit cards in the United States by both outstanding receivables and purchasing volume. Synchrony partners with other firms to market its credit products in their physical stores as well as on their websites and mobile applications. Synchrony operates through three segments: retail card (private-label and co-branded general-purpose credit cards), payment solutions (promotional financing for large ticket purchases), and CareCredit (financing for elective healthcare procedures).
75GF Score

Get the complete analysis for SYF

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$76.32
Price
$65.56
GF Value