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Synovus (SNV)
NYSE:SNV
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Synovus
(NYSE:SNV)
66Neutral
Positive Factors
Earnings
Synovus-SNV shares are outperforming peers after reporting a 1Q EPS beat.
Loan Growth
Loan production levels accelerated through the course of 1Q25, with wholesale loan production at the strongest level in two years.
Valuation
The stock valuation is seen as attractive with shares trading at a lower P/E ratio compared to SMID-cap peers.
Negative Factors
Loan Growth Expectations
Despite a 4Q24 adjusted EPS beat, the weaker than expected loan growth impacted the stock negatively.
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 (SNV) vs. S&P 500 (SPY)
Market Cap
$6.31B
Dividend Yield3.37%
Average Volume (3M)1.99M
Price to Earnings (P/E)12.7
Beta (1Y)1.71
Revenue Growth-1.64%
EPS Growth22.50%
CountryUS
Employees4,775
SectorFinancial
Sector Strength88
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.57
Shares Outstanding139,214,130
10 Day Avg. Volume1,251,628
30 Day Avg. Volume1,987,216
Financial Highlights & Ratios
PEG Ratio0.56
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.05
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit2.09
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$54.38Price Target Upside19.91% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
Synovus Business Overview & Revenue Model
Company DescriptionSynovus 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 MoneySynovus 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.72
Positive
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.65
Positive
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.58
Neutral
| 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 | |||
| 764.88M | 1.25B | 1.16B | 768.06M | -13.07M | Operating Cash Flow |
| 821.03M | 1.28B | 1.19B | 794.02M | 17.03M | Investing Cash Flow |
| 177.57M | 323.97M | -4.86B | -4.38B | -2.35B | Financing Cash Flow |
| -456.04M | -1.13B | 2.63B | 2.35B | 5.40B |
Synovus Technical Analysis
Neutral
45.35
Price Trends
45.02
Positive
49.24
Negative
47.98
Negative
Market Momentum
-0.20
Negative
57.38
Neutral
85.48
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNV, the sentiment is Neutral. The current price of 45.35 is above the 20-day moving average (MA) of 41.54, above the 50-day MA of 45.02, and below the 200-day MA of 47.98, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 57.38 is Neutral, neither overbought nor oversold. The STOCH value of 85.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SNV.
Synovus Risk Analysis
Synovus disclosed 36 risk factors in its most recent earnings report. Synovus reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Synovus Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $6.79B | 12.34 | 9.29% | 2.64% | 13.68% | -6.57% | |
74 Outperform | $5.01B | 12.55 | 10.63% | 2.68% | 6.67% | 8.50% | |
70 Neutral | $5.53B | 10.60 | 9.90% | 3.38% | 19.04% | ― | |
68 Neutral | $6.17B | 10.99 | 10.17% | 2.33% | 6.47% | 26.85% | |
68 Neutral | $6.91B | 10.28 | 12.54% | 2.65% | 9.33% | 43.64% | |
66 Neutral | $6.31B | 12.71 | 10.63% | 3.37% | -1.64% | 22.50% | |
64 Neutral | $12.64B | 9.74 | 8.05% | 17044.60% | 12.66% | -4.62% |
* Financial Sector Average
Performance Comparison
SNV
Synovus
45.35
7.96
21.29%
CADE
Cadence Bank
30.28
1.95
6.88%
BOKF
Bok Financial
96.04
5.47
6.04%
HOMB
Home Bancshares
28.56
4.34
17.92%
ONB
Old National Bancorp Capital
21.24
4.42
26.28%
BPOP
Popular
99.61
12.96
14.96%
Synovus Earnings Call Summary
Earnings Call Date:Apr 16, 2025
(Q1-2025)
| % Change Since: 11.92%|
Next Earnings Date:Jul 22, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong earnings growth, net interest margin expansion, and improved credit performance as key positives. However, the company faces challenges with increased negative sentiment among clients and potential impacts from tariffs and economic uncertainty. The decline in adjusted non-interest revenue also poses concerns.Q1-2025 Updates
Positive Updates
Strong Earnings Growth
Synovus reported GAAP and adjusted earnings per share of $1.30, with adjusted earnings per share increasing 4% from the previous quarter and 65% year-over-year. Excluding the FDIC special assessment, adjusted earnings per share rose 53%.
Net Interest Margin Expansion
Net interest margin expanded to 3.35%, up 7 basis points from the previous quarter, driven by effective deposit repricing and a stable Fed funds environment.
Loan Production and Growth
Funded loan production was the highest since Q4 2022, leading to loan growth of $40 million. Lending momentum accelerated with 8% annualized growth in high-growth segments.
Improved Credit Performance
Net charge-offs declined to 20 basis points, with improvement in broad-based credit metrics. Non-performing loans improved to 0.67% of total loans.
Capital and Liquidity Position
Common equity Tier 1 ratio was 10.75% and total risk-based capital was 13.65%. The company also completed $120 million of share repurchases in Q1.
Negative Updates
Increased Negative Sentiment Among Clients
There was an increase in negative sentiment among commercial clients, with 17% expecting business activity to decline over the next 12 months, up from 10% last quarter.
Impact of Tariffs and Economic Uncertainty
20% of clients felt increased tariffs would have a meaningful impact on their businesses, contributing to concerns about the economic environment.
Decline in Adjusted Non-Interest Revenue
Adjusted non-interest revenue was $117 million, declining 6% sequentially, impacted by loan production mix and lower seasonal and transaction-related wealth management income.
Company Guidance
During the Synovus First Quarter 2025 earnings call, the company provided robust guidance, highlighting several key metrics. Synovus reported a GAAP and adjusted earnings per share of $1.30, with adjusted earnings per share increasing by 4% from the previous quarter and 65% year-over-year. Excluding the FDIC special assessment, the adjusted earnings per share increased 53%. The company achieved a net interest margin of 3.35%, up 7 basis points from the prior quarter, driven by effective deposit repricing and a stable Fed funds environment. Loan growth was reported at $40 million for the quarter, with funded loan production reaching the highest level since Q4 2022. Net charge-offs declined to 20 basis points, and the adjusted return on tangible equity rose to 17.6%. Guidance for 2025 includes anticipated loan growth of 3% to 5% and core deposit growth of 3% to 5%, with an adjusted revenue growth outlook of 3% to 6%. The company also expects adjusted non-interest revenue between $485 million and $505 million and projects adjusted non-interest expense growth of 2% to 4%. Net charge-offs are expected to remain stable sequentially, and the tax rate is projected to be stable at 22%. Synovus emphasized its strategic initiatives and confidence in long-term growth, despite uncertainties arising from economic conditions and potential policy changes.Synovus Corporate Events
Financial Disclosures
Synovus Reports 67% EPS Growth in Q1 2025
Positive
Apr 16, 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.
Spark’s Take on SNV Stock
According to Spark, TipRanks’ AI Analyst, SNV is a Neutral.
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.
To see Spark’s full report on SNV stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.