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FIRST HORIZON CORP (FHN) Stock Fundamental Analysis

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

20.83  -0.71 (-3.3%)

After market: 20.74 -0.09 (-0.43%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to FHN. FHN was compared to 404 industry peers in the Banks industry. FHN may be in some trouble as it scores bad on both profitability and health. FHN has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

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3

1. Profitability

1.1 Basic Checks

In the past year FHN was profitable.
In the past year FHN had a positive cash flow from operations.
Each year in the past 5 years FHN has been profitable.
FHN had a positive operating cash flow in 4 of the past 5 years.
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 0.92%, FHN is in the better half of the industry, outperforming 61.81% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.39%, FHN is in line with its industry, outperforming 52.76% of the companies in the same industry.
Industry RankSector Rank
ROA 0.92%
ROE 8.39%
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

Looking at the Profit Margin, with a value of 23.22%, FHN is in line with its industry, outperforming 55.53% of the companies in the same industry.
In the last couple of years the Profit Margin of FHN has remained more or less at the same level.
FHN does not have Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) 23.22%
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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2

2. Health

2.1 Basic Checks

FHN does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for FHN has been reduced compared to 1 year ago.
FHN has more shares outstanding than it did 5 years ago.
FHN has a worse debt/assets ratio than last year.
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 2.70, which is a good value as it means it would take FHN, 2.70 years of fcf income to pay off all of its debts.
FHN has a Debt to FCF ratio (2.70) which is in line with its industry peers.
A Debt/Equity ratio of 0.42 indicates that FHN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.42, FHN is doing worse than 73.87% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.42
Debt/FCF 2.7
Altman-Z N/A
ROIC/WACCN/A
WACC14.38%
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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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 9.09% over the past year.
Measured over the past years, FHN shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.35% on average per year.
FHN shows a decrease in Revenue. In the last year, the revenue decreased by -7.96%.
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)9.09%
EPS 3Y-9%
EPS 5Y-1.35%
EPS Q2Q%34.37%
Revenue 1Y (TTM)-7.96%
Revenue growth 3Y1.29%
Revenue growth 5Y11.34%
Sales Q2Q%-17.62%

3.2 Future

FHN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.06% yearly.
FHN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.14% yearly.
EPS Next Y9.27%
EPS Next 2Y10.84%
EPS Next 3Y10.06%
EPS Next 5YN/A
Revenue Next Year2.92%
Revenue Next 2Y3.92%
Revenue Next 3Y4.14%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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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4

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 13.35, FHN is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as FHN.
FHN is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.22, which indicates a correct valuation of FHN.
FHN's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, FHN is valued a bit cheaper.
Industry RankSector Rank
PE 13.35
Fwd PE 12.22
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

FHN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FHN is cheaper than 83.17% of the companies in the same industry.
Industry RankSector Rank
P/FCF 7.79
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

FHN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.44
PEG (5Y)N/A
EPS Next 2Y10.84%
EPS Next 3Y10.06%

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6

5. Dividend

5.1 Amount

FHN has a Yearly Dividend Yield of 2.73%.
Compared to an average industry Dividend Yield of 3.15, FHN has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.29, FHN has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.73%

5.2 History

On average, the dividend of FHN grows each year by 8.34%, which is quite nice.
FHN has been paying a dividend for at least 10 years, so it has a reliable track record.
FHN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)8.34%
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

48.61% 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.
DP48.61%
EPS Next 2Y10.84%
EPS Next 3Y10.06%
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 (2/21/2025, 8:18:06 PM)

After market: 20.74 -0.09 (-0.43%)

20.83

-0.71 (-3.3%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupBanks
GICS IndustryBanks
Earnings (Last)01-16 2025-01-16/bmo
Earnings (Next)04-15 2025-04-15/bmo
Inst Owners83.32%
Inst Owner Change3.23%
Ins Owners0.84%
Ins Owner Change0.67%
Market Cap10.91B
Analysts76
Price Target23.64 (13.49%)
Short Float %1.96%
Short Ratio1.73
Dividend
Industry RankSector Rank
Dividend Yield 2.73%
Yearly Dividend0.67
Dividend Growth(5Y)8.34%
DP48.61%
Div Incr Years0
Div Non Decr Years13
Ex-Date03-14 2025-03-14 (0.15)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.62%
Min EPS beat(2)-2.8%
Max EPS beat(2)10.03%
EPS beat(4)3
Avg EPS beat(4)3.95%
Min EPS beat(4)-2.8%
Max EPS beat(4)10.03%
EPS beat(8)5
Avg EPS beat(8)2.54%
EPS beat(12)8
Avg EPS beat(12)4.15%
EPS beat(16)12
Avg EPS beat(16)11.03%
Revenue beat(2)0
Avg Revenue beat(2)-1.1%
Min Revenue beat(2)-1.84%
Max Revenue beat(2)-0.37%
Revenue beat(4)2
Avg Revenue beat(4)-0.38%
Min Revenue beat(4)-1.84%
Max Revenue beat(4)0.52%
Revenue beat(8)4
Avg Revenue beat(8)-0.13%
Revenue beat(12)7
Avg Revenue beat(12)0.45%
Revenue beat(16)10
Avg Revenue beat(16)0.73%
PT rev (1m)8.82%
PT rev (3m)21.35%
EPS NQ rev (1m)1.98%
EPS NQ rev (3m)2.39%
EPS NY rev (1m)7%
EPS NY rev (3m)8.08%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)0.74%
Valuation
Industry RankSector Rank
PE 13.35
Fwd PE 12.22
P/S 3.35
P/FCF 7.79
P/OCF 7.57
P/B 1.21
P/tB 1.49
EV/EBITDA N/A
EPS(TTM)1.56
EY7.49%
EPS(NY)1.7
Fwd EY8.18%
FCF(TTM)2.67
FCFY12.84%
OCF(TTM)2.75
OCFY13.21%
SpS6.22
BVpS17.22
TBVpS14
PEG (NY)1.44
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 0.92%
ROE 8.39%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) 23.22%
GM N/A
FCFM 42.98%
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 0.42
Debt/FCF 2.7
Debt/EBITDA N/A
Cap/Depr 41.41%
Cap/Sales 1.26%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 185.07%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score4
WACC14.38%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)9.09%
EPS 3Y-9%
EPS 5Y-1.35%
EPS Q2Q%34.37%
EPS Next Y9.27%
EPS Next 2Y10.84%
EPS Next 3Y10.06%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.96%
Revenue growth 3Y1.29%
Revenue growth 5Y11.34%
Sales Q2Q%-17.62%
Revenue Next Year2.92%
Revenue Next 2Y3.92%
Revenue Next 3Y4.14%
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 1Y50.65%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y50.37%
OCF growth 3YN/A
OCF growth 5YN/A