Synovus (SNV) Delivers 135.6% EPS Growth—Margin Surge Challenges Sluggish Growth Narrative

Synovus Financial (SNV) posted a sharp boost in profitability, with its net profit margin jumping to 33% from 18.4% last year and earnings soaring 135.6% over the past 12 months, far outpacing its five-year average growth of just 0.4% per year. While analysts see continued progress, both earnings and revenue growth are forecast to slow compared to the broader US market. Yet key rewards such as the bank’s attractive valuation, solid track record of profit growth, and appealing dividend profile, all backed by the absence of identified risks, give investors several positive talking points from these results.

See our full analysis for Synovus Financial.

Up next, we’ll compare these headline numbers to the market’s key narratives for Synovus to spotlight what’s in line with expectations and what might surprise investors.

See what the community is saying about Synovus Financial

Margin Expansion Paired With Modest Growth Forecasts

• With profit margins forecast to dip from 33.0% to 30.2% over the next three years, Synovus is expected to lose some operating leverage even as earnings rise.
• According to the analysts' consensus view, Synovus's strategic focus on Sun Belt market expansion and digital banking upgrades is projected to drive above-average loan growth and improved fee income.
  • On the other hand, bears will note that projected earnings growth of 2.1% per year lags well behind the US market's 15.6%.
  • This contrast creates a tension between operational momentum and restrained top-line growth expectations.
  To see how analysts weigh these crosscurrents in narrative form, read the full consensus narrative for Synovus Financial. 📊 Read the full Synovus Financial Consensus Narrative.

Dividend and P/E Ratios Beat Industry Peers

• The Price-To-Earnings ratio of 8.1x is well below both the US Banks industry average of 11.6x and direct peer average of 15.8x, underscoring Synovus’s discounted valuation.
• The analysts' consensus view highlights how Synovus's lower-than-average P/E ratio, paired with a strong dividend profile, supports the case for undervaluation.
  • This suggests current market pricing may not fully account for improvements in credit quality and profitability measures.
  • However, some investors may be cautious given slower long-term growth forecasts compared to peers.

Analyst Price Target Signals Upside From Current Levels

• Synovus is trading at $44.13, while the analyst price target stands at $57.43, indicating potential upside of around 30% based on current estimates.
• The analysts' consensus narrative frames this gap as a function of expectations that revenue will reach $2.7 billion by 2028 and earnings will total $825.1 million.
  • It is emphasized that actual outcomes may diverge if regional or industry pressures impact commercial real estate or deposit growth.
  • Investors are encouraged to critically examine whether these numbers are realistic based on their own outlook for the business.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Synovus Financial on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Notice something the consensus missed? Put your spin on Synovus’s story and shape a narrative in just a few minutes. Do it your way

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Synovus Financial.

See What Else Is Out There

Despite Synovus’s profitability improvements and solid dividend, its long-term earnings growth is forecast to trail the broader market and key industry peers.

If you want more consistent growth prospects, use our stable growth stocks screener (2098 results) to discover companies delivering steady revenue and earnings expansion regardless of the market cycle.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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