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Is this Large Market Cap Stock target price reasonable for Synchrony Financial (NYSE:SYF)?

The company in question is, Synchrony Financial (NYSE:SYF) currently with a stock price of 27.01 (-0.41% today). The market cap for Synchrony Financial is 22526.34, and is in the sector Financial, and Credit Services industry. The target price for Synchrony Financial is 35.08. Currently Synchrony Financial is trading with a P/E of 10.31, and a forward P/E of 8.99. Average volume for Synchrony Financial is 9066.37 and so far today it is 3220100.

Performance in the last year for Synchrony Financial has been -16.94%. For EPS growth, Synchrony Financial has seen a growth of -4.80%, and is looking to grow in the next year to 13.92%. More long term stats show that EPS growth has been 11.60% over the last five years and could be 6.10% for the next five years. Synchrony Financial has seen sales growth quarter over quarter at 10.60%, with EPS growth quarter over quarter at -9.70%. The 20-day simple moving average is 0.34%, with the 200-day simple moving average coming to -5.60%.

Since the IPO date for Synchrony Financial on the 7/31/2014, Synchrony Financial has seen performance year to date to be -10.76%. With Synchrony Financial trading at 27.01, the dividend yield is 1.93%, and the EPS is 2.62.

So could Synchrony Financial, be undervalued? Well as said before P/E is 10.31. The PEG is 1.69, P/S is 1.62 and the P/B is at 1.64. The P/cash is 1.91, with P/free cash flow at 3.65.

Synchrony Financial ability to deal with debt shows that the current ratio is *TBA, and the quick ratio is *TBA. This is with long term debt/equity at 1.41, and total debt/equity at 0.

In terms of margins, Synchrony Financial has a gross margin of *TBA, an operating margin of 66.60% and a profit margin of 15.70%.Payout ratio for Synchrony Financial is 4.90%. Return on assets come to 2.70% with return on investment coming to 21.20%.

Insider ownership for Synchrony Financial, is at 0.20% and institutional ownership comes to 95.80%. Outstanding shares are at 834. While shares float is 833.48. The float short is currently 1.85%, and short ratio is 1.7.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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