Synovus Financial Corp.
Synovus Financial Corp. Fundamental Analysis
Synovus Financial Corp. (SNV) shows moderate financial fundamentals with a PE ratio of 8.72, profit margin of 24.05%, and ROE of 14.50%. The company generates $3.3B in annual revenue with weak year-over-year growth of 1.16%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.8/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SNV's fundamental strength across five key dimensions:
Efficiency Score
WeakSNV struggles to generate sufficient returns from assets.
Valuation Score
ModerateSNV shows balanced valuation metrics.
Growth Score
WeakSNV faces weak or negative growth trends.
Financial Health Score
ExcellentSNV maintains a strong and stable balance sheet.
Profitability Score
ModerateSNV maintains healthy but balanced margins.
Key Financial Metrics
Is SNV Expensive or Cheap?
P/E Ratio
SNV trades at 8.72 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, SNV's PEG of 3.27 indicates potential overvaluation.
Price to Book
The market values Synovus Financial Corp. at 1.20 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.81 times EBITDA. This is generally considered low.
How Well Does SNV Make Money?
Net Profit Margin
For every $100 in sales, Synovus Financial Corp. keeps $24.05 as profit after all expenses.
Operating Margin
Core operations generate 30.36 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.50 in profit for every $100 of shareholder equity.
ROA
Synovus Financial Corp. generates $1.32 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Synovus Financial Corp. produces operating cash flow of $698.47M, showing steady but balanced cash generation.
Free Cash Flow
Synovus Financial Corp. generates strong free cash flow of $686.76M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.95 in free cash annually.
FCF Yield
SNV converts 9.93% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.27
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.20
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.09
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.53
vs 25 benchmark
Current Ratio
Current assets to current liabilities
75.09
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How SNV Stacks Against Its Sector Peers
| Metric | SNV Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.72 | 18.86 | Better (Cheaper) |
| ROE | 14.50% | 847.00% | Weak |
| Net Margin | 24.05% | 4202.00% | Weak |
| Debt/Equity | 0.53 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 75.09 | 667.17 | Strong Liquidity |
| ROA | 1.32% | -21543.00% (disorted) | Weak |
SNV outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Synovus Financial Corp.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
52.34%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-8.39%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
41.52%
Industry Style: Value, Dividend, Cyclical
High Growth