Synchrony FinancialSYF 75 Return-on-Tangible-Equity is 22.97% as of Mar. 2026, which is 3% below its 10-year median of 23.58. GuruFocus rates SYF with a GF Score™ of 75/100 and a GF Value™ of $66.02 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 525 Credit Services companies, Synchrony Financial ranks better than 89.33% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Synchrony Financial's annualized net income for the quarter that ended in Mar. 2026 was $3,220 Mil. Synchrony Financial's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $14,020 Mil. Therefore, Synchrony Financial's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 22.97%.
The historical rank and industry rank for Synchrony Financial's Return-on-Tangible-Equity or its related term are showing as below:
SYF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 11.92 Med: 23.58 Max: 38.58
Current: 24.93
During the past 13 years, Synchrony Financial's highest Return-on-Tangible-Equity was 38.58%. The lowest was 11.92%. And the median was 23.58%.
SYF's Return-on-Tangible-Equity is ranked better than 89.33% of 525
companies
in the Credit Services industry
Industry Median: 7.01
vs SYF: 24.93
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Synchrony Financial Return-on-Tangible-Equity Related Terms
Synchrony Financial Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Synchrony Financial's Return-on-Tangible-Equity 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: Return-on-Tangible-Equity Comparison
For the Credit Services subindustry, Synchrony Financial's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Credit Services Industry
For the Credit Services industry and Financial Services sector, Synchrony Financial's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Synchrony Financial's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 22.97% mean?
Synchrony Financial (SYF) has a Return-on-Tangible-Equity of 22.97% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Synchrony Financial and its competitors. This is near median its historical median of 23.58. Over the past decade, Synchrony Financial's Return-on-Tangible-Equity has ranged from 11.92 to 38.58. According to the industry distribution chart, Synchrony Financial ranks #56 out of 525 companies in the Credit Services industry, placing it in the top 10.7%.
Is Synchrony Financial's Return-on-Tangible-Equity too high?
Synchrony Financial's current Return-on-Tangible-Equity of 22.97% is near median its 10-year median of 23.58. Over the past 10 years, this metric has ranged from a low of 11.92 to a high of 38.58. The Credit Services industry median Return-on-Tangible-Equity is 7.01. Synchrony Financial's value of 22.97% is 227.7% above this industry median. Based on the distribution chart, Synchrony Financial ranks #56 out of 525 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 Return-on-Tangible-Equity compare to AFRM and SOFI?
According to the Credit Services industry distribution chart, Synchrony Financial ranks #56 out of 525 companies for Return-on-Tangible-Equity. This places Synchrony Financial in the top 11% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.01. Synchrony Financial's value of 22.97% is 227.7% above this benchmark. Historically, Synchrony Financial's own Return-on-Tangible-Equity has ranged from 11.92 to 38.58 over the past decade. While the company's 10-year median is 23.58 vs. the industry median of 7.01, 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 Return-on-Tangible-Equity for a Credit Services company?
The median Return-on-Tangible-Equity among Credit Services companies is 7.01, based on 525 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Synchrony Financial's current Return-on-Tangible-Equity of 22.97% is 227.7% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Synchrony Financial and its competitors. For the Credit Services industry, the median Return-on-Tangible-Equity is 7.01 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Synchrony Financial's current Return-on-Tangible-Equity is 22.97%, which is near median its own 10-year median of 23.58. 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 $66.02, compared to a current price of $76.05 — trading 15.2% above its estimated fair value. The current Return-on-Tangible-Equity is 22.97%, which is near median its 10-year median of 23.58 and 227.7% above the Credit Services industry median of 7.01. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Synchrony Financial (SYF), the current Return-on-Tangible-Equity is 22.97% 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 $76.05 is trading 15.2% above its estimated GF Value™ of $66.02.
GuruFocus considers Synchrony Financial to be Modestly Overvalued.
Key valuation signals for SYF:
Return-on-Tangible-Equity: 22.97% (near median its 10-year median of 23.58)
GF Value™: $66.02 vs. price of $76.05 (15.2% above fair value)
Industry Position: 227.7% above the Credit Services median (#56 of 525)
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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