Synchrony FinancialSYF +1.49%75 Pretax Margin % is 28.31% as of Mar. 2026, which is 7% below its 10-year median of 30.55. 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 534 Credit Services companies, Synchrony Financial ranks better than 64.79% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Synchrony Financial Pretax Margin % Related Terms
Synchrony Financial Pretax Margin % Historical Data
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The historical data trend for Synchrony Financial's Pretax Margin % can be seen below:
* 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.
SYF vs AFRM, SOFI, ALLY: Pretax Margin % Comparison
For the Credit Services subindustry, Synchrony Financial's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Synchrony Financial Pretax Margin % vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Synchrony Financial's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Synchrony Financial's Pretax Margin % falls into.
* 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.
Synchrony Financial (SYF) has a Pretax Margin % of 28.31% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Synchrony Financial and its competitors. This is near median its historical median of 30.55. Over the past decade, Synchrony Financial's Pretax Margin % has ranged from 16.10 to 53.99. According to the industry distribution chart, Synchrony Financial ranks #188 out of 534 companies in the Credit Services industry, placing it in the top 35.2%.
Is Synchrony Financial's Pretax Margin % too high?
Synchrony Financial's current Pretax Margin % of 28.31% is near median its 10-year median of 30.55. Over the past 10 years, this metric has ranged from a low of 16.10 to a high of 53.99. The Credit Services industry median Pretax Margin % is 19.87. Synchrony Financial's value of 28.31% is 42.5% above this industry median. Based on the distribution chart, Synchrony Financial ranks #188 out of 534 companies in the Credit Services industry, which is above the industry midpoint. 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 Pretax Margin % compare to AFRM and SOFI?
According to the Credit Services industry distribution chart, Synchrony Financial ranks #188 out of 534 companies for Pretax Margin %. This puts Synchrony Financial in the upper half of its industry. The industry median Pretax Margin % is 19.87. Synchrony Financial's value of 28.31% is 42.5% above this benchmark. Historically, Synchrony Financial's own Pretax Margin % has ranged from 16.10 to 53.99 over the past decade. While the company's 10-year median is 30.55 vs. the industry median of 19.87, Synchrony Financial has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Credit Services company?
The median Pretax Margin % among Credit Services companies is 19.87, based on 534 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Synchrony Financial's current Pretax Margin % of 28.31% is 42.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Synchrony Financial and its competitors. For the Credit Services industry, the median Pretax Margin % is 19.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Synchrony Financial's current Pretax Margin % is 28.31%, which is near median its own 10-year median of 30.55. 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 $76.16 — trading 16.2% above its estimated fair value. The current Pretax Margin % is 28.31%, which is near median its 10-year median of 30.55 and 42.5% above the Credit Services industry median of 19.87. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Synchrony Financial (SYF), the current Pretax Margin % is 28.31% as of Mar. 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 $76.16 is trading 16.2% above its estimated GF Value™ of $65.56.
GuruFocus considers Synchrony Financial to be Modestly Overvalued.
Key valuation signals for SYF:
Pretax Margin %: 28.31% (near median its 10-year median of 30.55)
GF Value™: $65.56 vs. price of $76.16 (16.2% above fair value)
Industry Position: 42.5% above the Credit Services median (#188 of 534)
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, 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
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