Synovus (SNV) AI Stock Analysis

• Market Cap: $7.19B
• Dividend Yield: 3.02%
• Average Volume (3M): 880.28K
• Price to Earnings (P/E): 14.5
• Beta (1Y): 1.65
• Revenue Growth: -1.56%
• EPS Growth: 22.50%
• Country: US
• Employees: 4,720
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Regional
• EPS (TTM): 1.30
• Shares Outstanding: 139,013,030
• 10 Day Avg. Volume: 1,075,241
• 30 Day Avg. Volume: 880,283
• PEG Ratio: 0.72
• Price to Book (P/B): 1.27
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.44
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: 3.28
• Enterprise Value/Ebitda: 2.63
• 1Y Price Target: $54.57
• Price Target Upside: 5.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 74 Outperform
• Price Target: $54.00 ▲(4.35%Upside)

Synovus shows strong financial performance with robust earnings growth and efficient cost management. The earnings call provided positive guidance, despite some economic uncertainties. However, valuation metrics suggest limited upside, and technical indicators show a neutral trend.

Positive Factors

Earnings

1Q25 EPS of $1.30 beat Consensus estimates of $1.12 driven by lower provision, higher NII and lower expenses.

Loan Growth

Loan production levels accelerated through the course of 1Q25, with wholesale loan production at the strongest level in two years.

Stock Valuation

The stock valuation is seen as attractive with shares trading at a lower P/E ratio compared to SMID-cap peers.

Negative Factors

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.

Stock Performance

Shares underperformed after reporting a 4Q24 adj EPS beat, but weaker than expected loan growth.

Synovus Business Overview & Revenue Model

Company Description

Synovus Financial Corp. (SNV) is a financial services company based in Columbus, Georgia. It operates primarily in the banking sector, offering a wide range of products and services designed to meet the needs of both individual and business clients. Synovus provides retail and commercial banking services, including deposit accounts, loans, mortgage services, and wealth management solutions. The company serves its customers through a network of branches and ATMs across several states in the southeastern United States.

How the Company Makes Money

Synovus generates revenue primarily through interest income from loans and advances to customers, such as commercial and residential mortgages, personal loans, and credit cards. Additionally, the company earns non-interest income from sources like service charges on deposit accounts, fees for wealth management and financial advisory services, and card fees. Synovus also benefits from strategic partnerships and collaborations that enhance its service offerings, such as alliances with technology providers to improve digital banking capabilities. The company's earnings are influenced by factors including prevailing interest rates, the economic environment of its operating regions, and regulatory changes affecting the banking industry.

Synovus Financial Statement Overview

Summary

Synovus is financially sound with strong cash flow and profitability metrics. The company manages leverage well, maintaining a low debt profile. While there are challenges in revenue growth, operational efficiency remains a key strength, supporting a stable financial outlook.

Income Statement

Synovus demonstrates strong profitability with a consistent gross profit margin and a healthy net profit margin, though there is a notable decline in revenue from the previous year. The EBIT margin is solid, indicating efficient cost management despite revenue fluctuations.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio, indicating low leverage. The equity ratio is decent, and return on equity shows moderate profitability. Stability is evident, though growth in equity is moderate.

Cash Flow

Cash flow is strong with a positive free cash flow position and robust operating cash flow relative to net income, demonstrating effective cash management. Free cash flow growth is positive, indicating improved cash-generating efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.40B	3.42B	3.39B	2.48B	2.10B	2.31B
Gross Profit	1.92B	1.84B	1.98B	2.12B	2.09B	1.66B
EBITDA	749.93M	665.36M	789.62M	1.03B	1.10B	554.29M
Net Income	552.97M	482.46M	543.71M	757.90M	760.47M	373.69M
Balance Sheet
Total Assets	60.34B	60.23B	59.81B	59.73B	57.32B	54.39B
Cash, Cash Equivalents and Short-Term Investments	10.55B	10.53B	12.20B	11.62B	13.86B	12.10B
Total Debt	2.18B	1.86B	1.42B	1.58B	1.47B	1.43B
Total Liabilities	54.93B	54.97B	54.67B	55.26B	52.02B	49.23B
Stockholders Equity	5.39B	5.24B	5.12B	4.48B	5.30B	5.16B
Cash Flow
Free Cash Flow	803.04M	764.88M	1.25B	1.16B	768.06M	-13.07M
Operating Cash Flow	848.86M	821.03M	1.28B	1.19B	794.02M	17.03M
Investing Cash Flow	74.17M	177.57M	323.97M	-4.86B	-4.38B	-2.35B
Financing Cash Flow	-640.30M	-456.04M	-1.13B	2.63B	2.35B	5.40B

Synovus Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 51.75
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNV, the sentiment is Positive. The current price of 51.75 is above the 20-day moving average (MA) of 48.80, above the 50-day MA of 46.84, and above the 200-day MA of 48.61, indicating a bullish trend. The MACD of 1.18 indicates Negative momentum. The RSI at 68.85 is Neutral, neither overbought nor oversold. The STOCH value of 93.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SNV.

Synovus Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BPOP	78 Outperform	$7.57B	11.41	12.54%	2.53%	9.33%	43.64%
BOKF	77 Outperform	$6.24B	11.14	10.17%	2.35%	6.58%	26.56%
HOMB	76 Outperform	$5.64B	13.65	10.63%	2.80%	6.67%	8.50%
ONB	75 Outperform	$7.91B	12.43	9.29%	2.62%	13.68%	-6.57%
SNV	74 Outperform	$7.19B	14.51	10.63%	3.02%	-1.56%	22.50%
CADE	73 Outperform	$5.87B	11.26	9.90%	3.42%	19.04%	―
Sector *	67 Neutral	$16.67B	11.44	9.71%	3.91%	11.61%	-9.60%

Synovus Corporate Events

Synovus Reports 67% EPS Growth in Q1 2025

On April 16, 2025, Synovus Financial Corp. announced its financial results for the first quarter of 2025, reporting a significant 67% year-over-year growth in diluted earnings per share, reaching $1.30. This growth was driven by net interest margin expansion, reduced credit losses, and effective expense management. Despite economic uncertainties, Synovus expressed confidence in its financial trajectory and resilience, supported by strong loan production and improved credit loss metrics.