Synovus (SNV) AI Stock Analysis

• Market Cap: $7.31B
• Dividend Yield: 2.96%
• Average Volume (3M): 861.24K
• Price to Earnings (P/E): 9.8
• Beta (1Y): 1.42
• Revenue Growth: 8.90%
• EPS Growth: 142.83%
• Country: US
• Employees: 4,720
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 1.46
• Shares Outstanding: 138,817,290
• 10 Day Avg. Volume: 996,172
• 30 Day Avg. Volume: 861,237
• PEG Ratio: -1.24
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 2.16
• P/FCF Ratio: 9.66
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 2.47
• Enterprise Value/Gross Profit: 3.58
• Enterprise Value/Ebitda: 7.79
• 1Y Price Target: $57.33
• Price Target Upside: 8.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 5.62
• Revenue Forecast (FY): $2.39B

• Rating: 74 Outperform
• Price Target: $57.00 ▲(8.28% Upside)

Synovus receives a strong overall score driven by its solid financial performance and attractive valuation. The technical indicators suggest bullish momentum, although caution is advised due to the nearing overbought RSI. The merger with Pinnacle Financial Partners is a strategic move that could significantly enhance the company's growth and profitability, despite some legal challenges.

Positive Factors

Regulatory Approval for Merger

Regulatory approval for the merger with Pinnacle Financial Partners positions Synovus for enhanced growth and market presence, creating a larger regional bank with improved operational synergies.

Strong Profitability

High profitability margins indicate efficient operations and strong pricing power, supporting long-term financial health and the ability to reinvest in growth opportunities.

Efficient Cash Flow Management

Strong cash flow management ensures Synovus can meet its financial obligations, invest in growth, and return capital to shareholders, bolstering its financial stability.

Negative Factors

Decline in Revenue Growth

A decline in revenue growth suggests potential challenges in maintaining market share or pricing power, which could impact long-term earnings potential and competitive positioning.

Increasing Debt Levels

Rising debt levels may strain Synovus's balance sheet, limiting financial flexibility and increasing vulnerability to interest rate hikes or economic downturns.

Legal Challenges in Merger Process

Legal challenges related to the merger could delay integration efforts and increase costs, potentially impacting the anticipated benefits and strategic goals of the merger.

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 through several key streams, primarily from interest income on loans, which constitutes a significant portion of its earnings. The company provides various types of loans, including commercial loans, consumer loans, and residential mortgages. Additionally, Synovus earns non-interest income through service fees, investment management fees, and other financial services. The bank also benefits from wealth management services and asset management fees. Strategic partnerships with financial technology firms enable Synovus to enhance its digital offerings, attracting more customers and increasing transaction volumes, which further contribute to its revenue. Overall, the combination of interest income from lending activities and non-interest income from various fees forms the backbone of Synovus's revenue model.

Synovus Financial Statement Overview

Summary

Synovus demonstrates strong profitability and efficient cash flow management, with healthy margins and a solid return on equity. However, the decline in revenue growth and increasing debt levels warrant attention. Overall, the company maintains a stable financial position with potential for improvement in revenue generation.

Income Statement

Synovus shows strong profitability with a TTM gross profit margin of 68.82% and a net profit margin of 24.05%. However, the revenue growth rate has declined by 8.53% in the TTM, indicating potential challenges in revenue generation. The EBIT and EBITDA margins are healthy at 30.36% and 31.65% respectively, showcasing efficient operational management.

Balance Sheet

The debt-to-equity ratio stands at 0.53, reflecting moderate leverage. Return on equity is solid at 14.50%, indicating effective use of equity to generate profits. The equity ratio is stable, suggesting a balanced capital structure, but the increase in total debt over the years could pose future risks.

Cash Flow

Operating cash flow to net income ratio is robust at 12.05, indicating strong cash generation relative to net income. However, free cash flow growth has slightly declined by 2.91% in the TTM. The free cash flow to net income ratio remains high at 0.94, suggesting good cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.33B	3.42B	3.39B	2.48B	2.10B	2.31B
Gross Profit	2.29B	1.84B	1.98B	2.12B	2.09B	1.66B
EBITDA	1.05B	665.36M	789.62M	1.03B	1.10B	554.29M
Net Income	800.15M	482.46M	543.71M	757.90M	760.47M	373.69M
Balance Sheet
Total Assets	60.49B	60.23B	59.81B	59.73B	57.32B	54.39B
Cash, Cash Equivalents and Short-Term Investments	4.69B	10.53B	12.20B	11.62B	13.86B	12.10B
Total Debt	3.07B	1.86B	1.42B	1.58B	1.47B	1.43B
Total Liabilities	54.65B	54.97B	54.67B	55.26B	52.02B	49.23B
Stockholders Equity	5.82B	5.24B	5.12B	4.48B	5.30B	5.16B
Cash Flow
Free Cash Flow	689.91M	764.88M	1.25B	1.16B	768.06M	-13.07M
Operating Cash Flow	701.67M	821.03M	1.28B	1.19B	794.02M	17.03M
Investing Cash Flow	-556.49M	177.57M	323.97M	-4.86B	-4.38B	-2.35B
Financing Cash Flow	275.41M	-456.04M	-1.13B	2.63B	2.35B	5.40B

Synovus Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 52.64
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

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 52.64 is above the 20-day moving average (MA) of 50.20, above the 50-day MA of 47.16, and above the 200-day MA of 47.41, indicating a bullish trend. The MACD of 1.63 indicates Negative momentum. The RSI at 70.67 is Negative, neither overbought nor oversold. The STOCH value of 61.53 is Neutral, 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
PB	79 Outperform	$6.78B	12.76	7.09%	3.28%	0.55%	19.13%
SNV	74 Outperform	$7.31B	9.83	14.32%	2.96%	8.90%	142.83%
BOKF	73 Outperform	$7.59B	14.29	9.13%	1.95%	-2.81%	14.96%
CBSH	73 Outperform	$7.34B	13.25	15.45%	1.98%	12.63%	14.25%
PNFP	73 Outperform	$7.81B	12.78	9.44%	0.95%	7.76%	49.85%
CADE	72 Outperform	$7.98B	15.77	9.10%	2.52%	14.58%	-19.97%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

Synovus Corporate Events

Synovus Issues $500 Million in Subordinated Bank Notes

On December 9, 2025, Synovus Bank issued $500 million in Subordinated Bank Notes due 2036 with a fixed-to-fixed interest rate. The proceeds from this issuance, approximately $496 million, are intended for general corporate purposes, potentially impacting the bank’s operational flexibility and financial strategy.

Synovus to Present at Goldman Sachs Conference

Synovus Financial Corp. is set to present at the Goldman Sachs 2025 US Financial Services Conference on December 9, 2025. The company is also involved in a proposed transaction with Pinnacle Financial Partners, Inc., which is expected to impact future financial and operating results. The merger aims to enhance Synovus’ market positioning, with projections indicating significant revenue growth and efficiency improvements. However, the transaction carries risks such as potential delays, integration challenges, and regulatory hurdles that could affect the anticipated benefits.

Synovus Announces New Board for Upcoming Merger

On July 24, 2025, Synovus Financial Corp. and Pinnacle Financial Partners entered into a Merger Agreement to form a new entity, Steel Newco Inc., which will be named Pinnacle Financial Partners, Inc. The merger will see both companies merge into Newco, with a board comprising eight directors from Pinnacle and seven from Synovus. On December 1, 2025, the companies announced the anticipated board members for Newco, with Terry Turner as non-executive chair and Tim E. Bentsen as lead director. The merger, approved by shareholders and regulators in November, is set to close on January 1, 2026, aiming to create a high-growth regional bank.

Synovus and Pinnacle Announce Merger Agreement

On July 24, 2025, Synovus Financial Corp. and Pinnacle Financial Partners, Inc. entered into a Merger Agreement to form a new entity, Steel Newco Inc., which will continue as Pinnacle Financial Partners, Inc. The merger is expected to significantly scale operations, improve profitability, and strengthen liquidity and capital positions, with the combined entity projected to have $117 billion in total assets and a strong market presence in the Southeast.

Synovus Gains Regulatory Approval for Merger Completion

On July 24, 2025, Synovus Financial Corp. entered into a Merger Agreement with Pinnacle Financial Partners and Steel Newco Inc., a newly formed corporation jointly owned by Synovus and Pinnacle. The merger, which involves both Synovus and Pinnacle merging into Newco, will result in Pinnacle Bank becoming a member of the Federal Reserve System, and Synovus Bank merging into Pinnacle Bank. On November 25, 2025, Synovus and Pinnacle announced that they received necessary regulatory approvals from the Federal Reserve System, Tennessee Department of Financial Institutions, and Georgia Department of Banking and Finance to complete the merger. The transaction is expected to close on January 1, 2026, pending the fulfillment of remaining conditions.

Synovus Shareholders Approve Merger with Pinnacle

On November 6, 2025, Synovus Financial Corp. held a special meeting where shareholders approved the merger with Pinnacle Financial Partners into a new entity, Steel Newco Inc. The merger aims to create a leading regional bank with strong growth potential. The merger proposal received overwhelming support, with 91.5% of Synovus shareholders and 92.2% of Pinnacle shareholders voting in favor. The merger is expected to close in the first quarter of 2026, pending regulatory approvals and other conditions. This strategic move is anticipated to enhance the companies’ market positioning and operational synergies, benefiting stakeholders through increased profitability and growth.

Synovus Faces Legal Challenges in Merger Process

On July 24, 2025, Synovus Financial Corp. and Pinnacle Financial Partners, Inc. entered into a merger agreement to form a new entity, Steel Newco Inc., which will be known as Pinnacle Financial Partners, Inc. post-merger. The merger, approved by the boards of directors of both companies, involves Synovus and Pinnacle merging into Newco, with subsequent mergers involving their respective banks. However, the merger has faced legal challenges, with three lawsuits filed alleging disclosure deficiencies in the joint proxy statement/prospectus. Despite these challenges, Synovus and Pinnacle are supplementing disclosures to avoid delays in the merger process, although they deny any wrongdoing.

Synovus Reports Strong Q3 2025 Earnings Growth

On October 15, 2025, Synovus Financial Corp. announced its third-quarter earnings, highlighting a strong performance with a diluted earnings per share of $1.33, up from $1.18 in the same quarter of the previous year. The company reported solid growth in net interest income, non-interest revenue, and loan production, despite a slight decline in net income compared to the second quarter of 2025. Synovus also provided updates on its pending merger with Pinnacle Financial Partners, which is expected to close in the first quarter of 2026, indicating significant progress in integration planning and a favorable capital generation environment.