NEW YORK (TheStreet) -- TheStreet Ratings team reiterates SYNOVUS FINANCIAL CORP as a Hold with a ratings score of C.
By late morning Wednesday, the Georgia-based bank had added 4.2% to $3.71. Since the beginning of the year, shares have gained 3.1%.SNV data by YCharts
The team has this to say about their recommendation:
"We rate SYNOVUS FINANCIAL CORP (SNV) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and notable return on equity. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Powered by its strong earnings growth of 100.00% and other important driving factors, this stock has surged by 45.30% over the past year, outperforming the rise in the S&P 500 Index during the same period. Although SNV had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 48.7% when compared to the same quarter one year prior, rising from $30.73 million to $45.70 million.
- The gross profit margin for SYNOVUS FINANCIAL CORP is currently very high, coming in at 87.68%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, SNV's net profit margin of 15.36% significantly trails the industry average.
- SNV, with its decline in revenue, slightly underperformed the industry average of 0.5%. Since the same quarter one year prior, revenues slightly dropped by 7.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- SYNOVUS FINANCIAL CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, SYNOVUS FINANCIAL CORP turned its bottom line around by earning $0.85 versus -$0.16 in the prior year. For the next year, the market is expecting a contraction of 83.5% in earnings ($0.14 versus $0.85).
- You can view the full analysis from the report here: SNV Ratings Report