Synovus Financial (DB:SYU1) - Share price, News & Analysis

Q: What is the Fair Price of SYU1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SYU1 (€34) is trading below our estimate of [[fair value]] (€142.28)

SYU1 fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	2/6
Past Performance	5/6
Financial Health	6/6
Dividends	5/6

SYU1 Stock Overview

Synovus Financial Corp. operates as the bank holding company for Synovus Bank that provides commercial and retail banking products and services.

Rewards

Trading at 76.1% below our estimate of its fair value

Earnings are forecast to grow 7.47% per year

Earnings grew by 45.4% over the past year

Pays a reliable dividend of 3.69%

Risk Analysis

No risks detected for SYU1 from our risk checks.

Synovus Financial Competitors

Commerzbank

XTRA:CBK

€8.0b

UmweltBank

XTRA:UBK

€595.3m

Aareal Bank

XTRA:ARL

€1.7b

Deutsche Pfandbriefbank

XTRA:PBB

€1.1b

Price History & Performance

Summary of all time highs, changes and price drops for Synovus Financial
Historical stock prices
Current Share Price	US$34.00
52 Week High	US$47.00
52 Week Low	US$32.80
Beta	1.44
1 Month Change	-15.00%
3 Month Change	-21.66%
1 Year Change	-9.09%
3 Year Change	11.99%
5 Year Change	-12.27%
Change since IPO	-76.50%

Shareholder Returns

	SYU1	DE Banks	DE Market
7D	1.2%	-3.0%	-2.6%
1Y	-9.1%	-13.5%	-23.9%

Return vs Industry: SYU1 exceeded the German Banks industry which returned -13.5% over the past year.

Return vs Market: SYU1 exceeded the German Market which returned -23.9% over the past year.

Price Volatility

Is SYU1's price volatile compared to industry and market?
SYU1 volatility
SYU1 Average Weekly Movement	4.7%
Banks Industry Average Movement	4.6%
Market Average Movement	5.6%
10% most volatile stocks in DE Market	9.9%
10% least volatile stocks in DE Market	2.8%

Stable Share Price: SYU1 is not significantly more volatile than the rest of German stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: SYU1's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1888	4,907	Kevin Blair	https://www.synovus.com

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.

Synovus Financial Fundamentals Summary

How do Synovus Financial's earnings and revenue compare to its market cap?
SYU1 fundamental statistics
Market Cap	US$5.36b
Earnings (TTM)	US$711.25m
Revenue (TTM)	US$2.07b

7.5x

P/E Ratio

1.3x

P/B Ratio

Is SYU1 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SYU1 income statement (TTM)
Revenue	US$2.07b
Cost of Revenue	US$0
Gross Profit	US$2.07b
Other Expenses	US$1.36b
Earnings	US$711.25m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Jul 21, 2022

Earnings per share (EPS)	4.89
Gross Margin	100.00%
Net Profit Margin	34.33%
Debt/Equity Ratio	31.9%

How did SYU1 perform over the long term?

See historical performance and comparison

Dividends

3.7%

Current Dividend Yield

27%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is SYU1 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SYU1?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SYU1. This is calculated by dividing SYU1's market cap by their current preferred multiple.
What is SYU1's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$5.36b

SYU1 key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	1x

Price to Earnings Ratio vs Peers

How does SYU1's PE Ratio compare to its peers?

SYU1 PE Ratio vs Peers

The above table shows the PE ratio for SYU1 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	21.7x
CBK Commerzbank	17.6x	19.1%	€8.0b
UBK UmweltBank	30.7x	n/a	€595.3m
ARL Aareal Bank	32.9x	31.0%	€1.7b
PBB Deutsche Pfandbriefbank	5.6x	-0.8%	€1.1b
SYU1 Synovus Financial	7.5x	7.5%	€5.4b

Forward PE

Price-To-Earnings vs Peers: SYU1 is good value based on its Price-To-Earnings Ratio (7.5x) compared to the peer average (21.7x).

Price to Earnings Ratio vs Industry

How does SYU1's PE Ratio compare vs other companies in the European Banks Industry?

Price-To-Earnings vs Industry: SYU1 is good value based on its Price-To-Earnings Ratio (7.5x) compared to the European Banks industry average (8.7x)

Price to Earnings Ratio vs Fair Ratio

What is SYU1's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SYU1 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	7.5x
Fair PE Ratio	10.4x

Price-To-Earnings vs Fair Ratio: SYU1 is good value based on its Price-To-Earnings Ratio (7.5x) compared to the estimated Fair Price-To-Earnings Ratio (10.4x).

Share Price vs Fair Value

What is the Fair Price of SYU1 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SYU1 (€34) is trading below our estimate of fair value (€142.28)

Significantly Below Fair Value: SYU1 is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: SYU1 is poor value based on its PEG Ratio (1x)

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Future Growth

How is Synovus Financial forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

7.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SYU1's forecast earnings growth (7.5% per year) is above the savings rate (-0.01%).

Earnings vs Market: SYU1's earnings (7.5% per year) are forecast to grow slower than the German market (8.4% per year).

High Growth Earnings: SYU1's earnings are forecast to grow, but not significantly.

Revenue vs Market: SYU1's revenue (7.2% per year) is forecast to grow faster than the German market (4.7% per year).

High Growth Revenue: SYU1's revenue (7.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SYU1's Return on Equity is forecast to be low in 3 years time (15.4%).

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Past Performance

How has Synovus Financial performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

18.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SYU1 has high quality earnings.

Growing Profit Margin: SYU1's current net profit margins (34.3%) are higher than last year (26.4%).

Past Earnings Growth Analysis

Earnings Trend: SYU1's earnings have grown by 18.1% per year over the past 5 years.

Accelerating Growth: SYU1's earnings growth over the past year (45.4%) exceeds its 5-year average (18.1% per year).

Earnings vs Industry: SYU1 earnings growth over the past year (45.4%) exceeded the Banks industry 33.6%.

Return on Equity

High ROE: SYU1's Return on Equity (15.4%) is considered low.

Discover strong past performing companies

Financial Health

How is Synovus Financial's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: SYU1's Assets to Equity ratio (11.7x) is moderate.

Allowance for Bad Loans: SYU1 has a sufficient allowance for bad loans (314%).

Low Risk Liabilities: 94% of SYU1's liabilities are made up of primarily low risk sources of funding.

Loan Level: SYU1 has an appropriate level of Loans to Assets ratio (70%).

Low Risk Deposits: SYU1's Loans to Deposits ratio (82%) is appropriate.

Level of Bad Loans: SYU1 has an appropriate level of bad loans (0.3%).

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Dividend

What is Synovus Financial current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.69%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SYU1's dividend (3.69%) is higher than the bottom 25% of dividend payers in the German market (1.5%).

High Dividend: SYU1's dividend (3.69%) is low compared to the top 25% of dividend payers in the German market (4.56%).

Stability and Growth of Payments

Stable Dividend: SYU1's dividends per share have been stable in the past 10 years.

Growing Dividend: SYU1's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (27.3%), SYU1's dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: SYU1's dividends in 3 years are forecast to be well covered by earnings (27.2% payout ratio).

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure

CEO

Kevin Blair (51 yo)

2.58yrs

Tenure

US$5,638,982

Compensation

Mr. Kevin S. Blair serves as President and Chief Executive Officer at Synovus Financial Corp. since December 12, 2019 and April 22, 2021, respectively. He joined Synovus Bank in August 2016 as Executive Vi...

CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD5.64M) is above average for companies of similar size in the German market ($USD3.45M).

Compensation vs Earnings: Kevin's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: SYU1's management team is considered experienced (2.8 years average tenure).

Board Members

Experienced Board: SYU1's board of directors are considered experienced (8.3 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: SYU1 insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31