Synovus Financial Corp (NYSE: SNV)

Sector: Financial Services Industry: Banks - Regional CIK: 0000018349
Market Cap 7.18 Bn
P/B 1.23
P/E 9.52
P/S 3.13
ROIC (Qtr) 8.76
Div Yield % 3.78
Rev 1y % (Qtr) 9.68
Total Debt (Qtr) 3.07 Bn
Debt/Equity (Qtr) 0.53

About

Synovus Financial Corp., or Synovus, is a financial services company based in Columbus, Georgia, with the ticker symbol SNV. It operates primarily through its subsidiary, Synovus Bank, providing commercial and consumer banking services, along with a variety of specialized products and services. As a bank holding company, Synovus is subject to comprehensive supervision and regulation by the Federal Reserve and other regulatory agencies. The company's operations span across various segments, including commercial banking, consumer banking, wealth...

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Price action

Investment thesis

Bull case

  • Operating cash flow of 701.67M provides strong 22.18x coverage of stock compensation 31.64M, indicating sustainable incentive practices.
  • Strong tangible asset base of 59.98B provides 19.53x coverage of total debt 3.07B, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 668.15M exceeds capital expenditure of 33.53M by 19.93x, indicating strong organic growth funding capability.
  • Operating cash flow of 701.67M provides strong 2.48x coverage of operating expenses 283.23M, showing operational efficiency.
  • Retained earnings of 3.15B provide strong 6.21x coverage of intangibles 506.88M, indicating quality earnings retention.

Bear case

  • Operating cash flow of 701.67M barely covers its investment activities of (556.49M), with a coverage ratio of -1.26, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 701.67M provides thin coverage of dividend payments of (216.47M) with a -3.24 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Operating cash flow of 701.67M shows concerning coverage of minority interest expenses of (2.28M), which is -308.29x, suggesting complex corporate structure risks.
  • Operating cash flow of 701.67M is outpaced by equity issuance of (204.16M) (-3.44 ratio), indicating concerning reliance on equity markets for funding operations.
  • Retained earnings of 3.15B provide limited buffer against comprehensive income items of (676.80M), which is -4.65x, indicating elevated exposure to market risks.

Peer comparison

Companies in the Banks - Regional
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 USB Us Bancorp \De\ 84.44 Bn 12.40 3.25 77.98 Bn
2 PNC Pnc Financial Services Group, Inc. 84.36 Bn 13.61 3.73 62.34 Bn
3 NU Nu Holdings Ltd. 81.47 Bn 32.21 5.79 4.49 Bn
4 NWG NatWest Group plc 66.53 Bn 9.88 3.05 169.04 Bn
5 TFC Truist Financial Corp 64.60 Bn 13.18 3.53 71.11 Bn
6 MTB M&T Bank Corp 32.73 Bn 12.47 3.60 14.99 Bn
7 FITB Fifth Third Bancorp 31.96 Bn 14.15 3.93 18.94 Bn
8 FCNCA First Citizens Bancshares Inc /De/ 28.98 Bn 12.78 3.26 40.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.14 0.14
EV to Cash from Ops. EV/CFO 11.87 7.21
EV to Debt EV to Debt 2.71 5.20
EV to EBIT EV/EBIT 8.23 14.98
EV to EBITDA EV/EBITDA 7.82 8.92
EV to Free Cash Flow [EV/FCF] EV/FCF 12.46 8.87
EV to Market Cap EV to Market Cap 1.16 1.04
EV to Revenue EV/Rev 3.63 -3.76
Price to Book Value [P/B] P/B 1.23 1.17
Price to Earnings [P/E] P/E 9.52 15.63
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.88 271.44
Dividend Payout Ratio % Div Payout % (Qtr) 28.80 35.28
Dividend per Basic Share Div per Share (Qtr) 1.55 0.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 32.20 34.52
Interest Coverage Interest Coverage 0.00 -0.05
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 40.16 -73.15
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 22.69 15.78
Dividend Growth (1y) % Div 1y % (Qtr) 1.97 5.32
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 120.81 110.93
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 99.25 38.80
EBIT Growth (1y) % EBIT 1y % (Qtr) 120.24 61.46
EBT Growth (1y) % EBT 1y % (Qtr) 120.24 61.37
EPS Growth (1y) % EPS 1y % (Qtr) 141.70 76.34
FCF Growth (1y) % FCF 1y % (Qtr) -13.27 161.72
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 31.11 14.15
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.04 0.04
Cash Payout Ratio Cash Payout (Qtr) 0.31 0.26
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.01
Debt to Equity Ratio Debt/Equity (Qtr) 0.53 0.53
Interest Cover Ratio Interest Cover Ratio 0.00 -0.05
Times Interest Earned Times Interest Earned 0.00 -0.05
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 46.60 147.97
EBIT Margin % EBIT Margin % (Qtr) 44.17 155.41
EBT Margin % EBT Margin % (Qtr) 44.17 154.66
Gross Margin % Gross Margin % (Qtr) 100.00 97.82
Net Profit Margin % Net Margin % (Qtr) 32.90 115.63