Synovus (SNV) AI Stock Analysis

• Market Cap: $6.04B
• Dividend Yield: 4%
• Average Volume (3M): 1.97M
• Price to Earnings (P/E): 14.1
• Beta (1Y): 1.85
• Revenue Growth: 0.83%
• EPS Growth: -11.72%
• Country: US
• Employees: 4,775
• Sector: Financial
• Sector Strength: 79
• Industry: Banks - Regional
• EPS (TTM): 3.05
• Shares Outstanding: 140,968,660
• 10 Day Avg. Volume: 1,751,718
• 30 Day Avg. Volume: 1,968,424
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.62
• Price to Cash Flow (P/CF): 6.40
• P/FCF Ratio: 3.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $57.60
• Price Target Upside: 34.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12

Synovus shows strong revenue growth and operational efficiencies but faces challenges in profit margins and cash flow management. The technical analysis suggests potential downward trends, while valuation metrics indicate moderate attractiveness. Positive earnings call sentiment and strategic initiatives support future prospects, balancing the risks and underpinning a moderate overall score.

Positive Factors

Earnings

Synovus Financial shares reported a 4Q24 adjusted EPS beat driven by net interest margin expansion and lower provisions.

Loan Growth

Synovus is well-positioned to deliver stronger loan growth, assuming a pick-up in industry-wide lending demand materializes.

Negative Factors

Expense Growth

Expense commentary was the largest incremental negative from the conference call, with a faster growth potentially negating positive operating leverage in 2025.

Profit-Taking

The stock weakness is attributed to profit-taking on an as-expected update and management's hesitation towards committing to positive operating leverage.

Synovus Business Overview & Revenue Model

Company Description

Synovus Financial Corp. operates as the bank holding company for Synovus Bank that provides commercial and retail banking products and services. It operates through three segments: Community Banking, Wholesale Banking, and Financial Management Services. The company's commercial banking services include treasury management, asset management, capital market, and institutional trust services, as well as commercial, financial, and real estate loans. Its retail banking services comprise accepting customary types of demand and savings deposits accounts; mortgage, installment, and other consumer loans; investment and brokerage services; safe deposit services; automated banking services; automated fund transfers; Internet-based banking services; and bank credit and debit card services. The company also offers various other financial services, including portfolio management for fixed-income securities, investment banking, execution of securities transactions as a broker/dealer, and financial planning services, as well as provides individual investment advice on equity and other securities. As of December 31, 2020, it operated through 289 branches and 389 ATMs in Alabama, Florida, Georgia, South Carolina, and Tennessee. The company was founded in 1888 and is headquartered in Columbus, Georgia.

How the Company Makes Money

Synovus generates revenue primarily through interest income from loans and investment securities, as well as from fees and service charges related to its banking operations. The company's key revenue streams include interest earned on commercial and consumer loans, interest from investment securities, and non-interest income from fees for services such as asset management, deposit account services, and transaction processing. Synovus also benefits from strategic partnerships and collaborations with financial technology providers to enhance its product offerings and service delivery, further contributing to its revenue.

Synovus Financial Statement Overview

Summary

Synovus shows robust revenue growth and operational efficiency improvements, but faces challenges with declining net profit margins and increased leverage. The balance sheet reflects a stable capital structure, but lower returns on equity. Cash flow management remains a concern due to decreased operating cash flows, impacting financial flexibility.

Income Statement

Synovus has demonstrated strong revenue growth, with Total Revenue increasing significantly from $2.03 billion in 2023 to $3.19 billion in 2024. The Gross Profit Margin remained consistent at 100% due to the nature of banking operations. However, the Net Profit Margin decreased to 15.1% in 2024 from 26.7% in 2023, indicating increased expenses or lower profitability. EBIT Margin improved considerably, reflecting better operational efficiency.

Balance Sheet

The company's Debt-to-Equity ratio increased, indicating higher leverage. However, Synovus maintains a solid Equity Ratio of 8.7%, suggesting stable capital structure but relatively low equity compared to total assets. The Return on Equity (ROE) decreased to 9.2% in 2024 from 10.6% in 2023, suggesting lowered returns to shareholders.

Cash Flow

Operating Cash Flow decreased significantly from $1.28 billion in 2023 to $419.9 million in 2024, impacting overall cash flow stability. The Free Cash Flow to Net Income Ratio was favorable at 0.87, indicating efficient cash generation relative to net income. However, the Free Cash Flow Growth Rate was negative, reflecting declining free cash flow over the period.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.19B	2.03B	2.21B	1.98B	2.02B
	Gross Profit
3.19B	1.72B	1.88B	1.68B	1.71B
	EBIT
3.15B	998.21M	1.24B	989.36M	484.67M
	EBITDA
0.00	0.00	1.03B	1.10B	554.29M
	Net Income Common Stockholders
482.46M	543.71M	757.90M	760.47M	373.69M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.56B	12.20B	11.62B	13.86B	12.10B
	Total Assets
60.23B	59.81B	59.73B	57.32B	54.37B
	Total Debt
1.86B	1.23B	4.71B	1.20B	1.21B
	Net Debt
-1.11B	-1.18B	2.77B	-1.73B	-2.93B
	Total Liabilities
54.97B	54.67B	55.26B	52.02B	49.20B
	Stockholders Equity
5.24B	5.12B	4.48B	5.30B	5.16B
Cash Flow		Free Cash Flow
419.94M	1.25B	1.16B	768.06M	-13.07M
	Operating Cash Flow
419.94M	1.28B	1.19B	794.02M	17.03M
	Investing Cash Flow
-101.63M	323.97M	-4.86B	-4.38B	-2.35B
	Financing Cash Flow
-36.38M	-1.13B	2.63B	2.35B	5.40B

Synovus Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 42.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNV, the sentiment is Negative. The current price of 42.82 is below the 20-day moving average (MA) of 45.03, below the 50-day MA of 49.20, and below the 200-day MA of 47.77, indicating a bearish trend. The MACD of -0.96 indicates Negative momentum. The RSI at 39.07 is Neutral, neither overbought nor oversold. The STOCH value of 18.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNV.

Synovus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HOMB	76 Outperform	$4.99B	12.49	10.38%	3.05%	8.83%	3.77%
CADE	71 Outperform	$5.28B	10.42	9.75%	3.88%	26.65%	-3.60%
BOKF	68 Neutral	$5.93B	11.34	9.70%	2.51%	11.17%	1.47%
ONB	67 Neutral	$6.29B	11.71	9.06%	3.12%	16.39%	-13.25%
SNV	67 Neutral	$6.04B	14.13	9.31%	4.00%	0.83%	-11.72%
BPOP	65 Neutral	$6.03B	10.16	11.42%	3.23%	13.68%	13.73%
Sector *	64 Neutral	$13.44B	9.41	9.19%	4.92%	16.30%	-8.66%

Synovus Corporate Events

Synovus Reports Strong Q4 2024 Earnings Growth

On January 15, 2025, Synovus announced its financial results for Q4 2024 and the full year. The company reported a significant increase in diluted earnings per share to $1.25 from $0.41 in the same quarter of the previous year, driven by relationship-building strategies and strict cost control. Despite a decline in net income and net interest income for the year, Synovus saw an improvement in credit quality and maintained a robust CET1 ratio. The company also experienced growth in core deposits and adjusted non-interest revenue, positioning itself for continued success in 2025.