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FIRST HORIZON CORP (FHN) Stock Fundamental Analysis

NYSE:FHN - New York Stock Exchange, Inc. - US3205171057 - Common Stock - Currency: USD

18.28  +0.2 (+1.11%)

After market: 18.01 -0.27 (-1.48%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to FHN. FHN was compared to 398 industry peers in the Banks industry. Both the profitability and financial health of FHN have multiple concerns. FHN has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

In the past year FHN was profitable.
FHN had a positive operating cash flow in the past year.
FHN had positive earnings in each of the past 5 years.
Each year in the past 5 years FHN had a positive operating cash flow.
FHN Yearly Net Income VS EBIT VS OCF VS FCFFHN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B

1.2 Ratios

Looking at the Return On Assets, with a value of 0.90%, FHN is in line with its industry, outperforming 59.30% of the companies in the same industry.
FHN's Return On Equity of 8.37% is in line compared to the rest of the industry. FHN outperforms 50.00% of its industry peers.
Industry RankSector Rank
ROA 0.9%
ROE 8.37%
ROIC N/A
ROA(3y)1.02%
ROA(5y)1.02%
ROE(3y)9.5%
ROE(5y)10.1%
ROIC(3y)N/A
ROIC(5y)N/A
FHN Yearly ROA, ROE, ROICFHN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8 10

1.3 Margins

FHN has a Profit Margin (23.14%) which is comparable to the rest of the industry.
FHN's Profit Margin has been stable in the last couple of years.
The Operating Margin and Gross Margin are not available for FHN so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) 23.14%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-9.62%
PM growth 5Y-0.16%
GM growth 3YN/A
GM growth 5YN/A
FHN Yearly Profit, Operating, Gross MarginsFHN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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1

2. Health

2.1 Basic Checks

FHN does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, FHN has less shares outstanding
FHN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FHN has a worse debt to assets ratio.
FHN Yearly Shares OutstandingFHN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M 500M
FHN Yearly Total Debt VS Total AssetsFHN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B

2.2 Solvency

The Debt to FCF ratio of FHN is 3.75, which is a good value as it means it would take FHN, 3.75 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of FHN (3.75) is worse than 65.58% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that FHN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.52, FHN is doing worse than 78.14% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF 3.75
Altman-Z N/A
ROIC/WACCN/A
WACC17.26%
FHN Yearly LT Debt VS Equity VS FCFFHN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B 8B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
FHN Yearly Current Assets VS Current LiabilitesFHN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

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5

3. Growth

3.1 Past

FHN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.56%, which is quite impressive.
The Earnings Per Share has been decreasing by -1.35% on average over the past years.
Looking at the last year, FHN shows a decrease in Revenue. The Revenue has decreased by -7.12% in the last year.
FHN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.34% yearly.
EPS 1Y (TTM)22.56%
EPS 3Y-9%
EPS 5Y-1.35%
EPS Q2Q%20%
Revenue 1Y (TTM)-7.12%
Revenue growth 3Y1.29%
Revenue growth 5Y11.34%
Sales Q2Q%-0.85%

3.2 Future

The Earnings Per Share is expected to grow by 10.52% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.29% on average over the next years.
EPS Next Y9.38%
EPS Next 2Y9.91%
EPS Next 3Y10.52%
EPS Next 5YN/A
Revenue Next Year2.11%
Revenue Next 2Y3.03%
Revenue Next 3Y3.29%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
FHN Yearly Revenue VS EstimatesFHN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1B 2B 3B
FHN Yearly EPS VS EstimatesFHN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0.5 1 1.5 2

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5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 11.21, the valuation of FHN can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of FHN is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.85, FHN is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.70, the valuation of FHN can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as FHN.
FHN is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.77, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 11.21
Fwd PE 9.7
FHN Price Earnings VS Forward Price EarningsFHN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, FHN is valued cheaply inside the industry as 81.66% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 7.57
EV/EBITDA N/A
FHN Per share dataFHN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.2
PEG (5Y)N/A
EPS Next 2Y9.91%
EPS Next 3Y10.52%

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6

5. Dividend

5.1 Amount

FHN has a Yearly Dividend Yield of 3.38%. Purely for dividend investing, there may be better candidates out there.
FHN's Dividend Yield is comparable with the industry average which is at 3.51.
FHN's Dividend Yield is a higher than the S&P500 average which is at 2.45.
Industry RankSector Rank
Dividend Yield 3.38%

5.2 History

The dividend of FHN has a limited annual growth rate of 3.44%.
FHN has paid a dividend for at least 10 years, which is a reliable track record.
FHN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.44%
Div Incr Years0
Div Non Decr Years13
FHN Yearly Dividends per shareFHN Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3 0.4 0.5

5.3 Sustainability

48.92% of the earnings are spent on dividend by FHN. This is a bit on the high side, but may be sustainable.
FHN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP48.92%
EPS Next 2Y9.91%
EPS Next 3Y10.52%
FHN Yearly Income VS Free CF VS DividendFHN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B 2B
FHN Dividend Payout.FHN Dividend Payout, showing the Payout Ratio.FHN Dividend Payout.PayoutRetained Earnings

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FIRST HORIZON CORP

NYSE:FHN (5/1/2025, 9:00:27 PM)

After market: 18.01 -0.27 (-1.48%)

18.28

+0.2 (+1.11%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)04-16 2025-04-16/bmo
Earnings (Next)07-15 2025-07-15/bmo
Inst Owners85.95%
Inst Owner Change0%
Ins Owners0.86%
Ins Owner Change-6.45%
Market Cap9.27B
Analysts76
Price Target22.19 (21.39%)
Short Float %2.28%
Short Ratio1.7
Dividend
Industry RankSector Rank
Dividend Yield 3.38%
Yearly Dividend0.67
Dividend Growth(5Y)3.44%
DP48.92%
Div Incr Years0
Div Non Decr Years13
Ex-Date03-14 2025-03-14 (0.15)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.43%
Min EPS beat(2)8.83%
Max EPS beat(2)10.03%
EPS beat(4)3
Avg EPS beat(4)4.72%
Min EPS beat(4)-2.8%
Max EPS beat(4)10.03%
EPS beat(8)5
Avg EPS beat(8)2.93%
EPS beat(12)8
Avg EPS beat(12)2.75%
EPS beat(16)12
Avg EPS beat(16)9.26%
Revenue beat(2)0
Avg Revenue beat(2)-10.43%
Min Revenue beat(2)-20.5%
Max Revenue beat(2)-0.37%
Revenue beat(4)1
Avg Revenue beat(4)-5.63%
Min Revenue beat(4)-20.5%
Max Revenue beat(4)0.17%
Revenue beat(8)3
Avg Revenue beat(8)-3.03%
Revenue beat(12)6
Avg Revenue beat(12)-1.34%
Revenue beat(16)9
Avg Revenue beat(16)-0.69%
PT rev (1m)-6.74%
PT rev (3m)2.11%
EPS NQ rev (1m)0.63%
EPS NQ rev (3m)10.42%
EPS NY rev (1m)-0.42%
EPS NY rev (3m)7.12%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)1.2%
Revenue NY rev (1m)-0.82%
Revenue NY rev (3m)-0.5%
Valuation
Industry RankSector Rank
PE 11.21
Fwd PE 9.7
P/S 2.91
P/FCF 7.57
P/OCF 7.31
P/B 1.05
P/tB 1.3
EV/EBITDA N/A
EPS(TTM)1.63
EY8.92%
EPS(NY)1.88
Fwd EY10.31%
FCF(TTM)2.41
FCFY13.21%
OCF(TTM)2.5
OCFY13.68%
SpS6.29
BVpS17.39
TBVpS14.09
PEG (NY)1.2
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.9%
ROE 8.37%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 23.14%
GM N/A
FCFM 38.38%
ROA(3y)1.02%
ROA(5y)1.02%
ROE(3y)9.5%
ROE(5y)10.1%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-9.62%
PM growth 5Y-0.16%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.04
Health
Industry RankSector Rank
Debt/Equity 0.52
Debt/FCF 3.75
Debt/EBITDA N/A
Cap/Depr 44.44%
Cap/Sales 1.38%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 165.85%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score4
WACC17.26%
ROIC/WACCN/A
Cap/Depr(3y)35.39%
Cap/Depr(5y)42.9%
Cap/Sales(3y)1.11%
Cap/Sales(5y)1.38%
Profit Quality(3y)190.82%
Profit Quality(5y)131.57%
High Growth Momentum
Growth
EPS 1Y (TTM)22.56%
EPS 3Y-9%
EPS 5Y-1.35%
EPS Q2Q%20%
EPS Next Y9.38%
EPS Next 2Y9.91%
EPS Next 3Y10.52%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.12%
Revenue growth 3Y1.29%
Revenue growth 5Y11.34%
Sales Q2Q%-0.85%
Revenue Next Year2.11%
Revenue Next 2Y3.03%
Revenue Next 3Y3.29%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-3.01%
FCF growth 3Y21.17%
FCF growth 5Y9.4%
OCF growth 1Y-2.39%
OCF growth 3Y19.61%
OCF growth 5Y8.84%