DB:FT2

Stock Analysis Report

First Horizon National

Executive Summary

First Horizon National Corporation operates as the bank holding company for First Tennessee Bank National Association that provides various financial services.

Snowflake

Fundamentals

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

How has First Horizon National's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FT2 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.0%

FT2

-0.6%

DE Banks

0.8%

DE Market


1 Year Return

3.6%

FT2

-24.7%

DE Banks

9.0%

DE Market

Return vs Industry: FT2 exceeded the German Banks industry which returned -24.7% over the past year.

Return vs Market: FT2 underperformed the German Market which returned 9% over the past year.


Shareholder returns

FT2IndustryMarket
7 Day-2.0%-0.6%0.8%
30 Day3.4%7.6%6.3%
90 Day8.6%17.5%14.4%
1 Year7.4%3.6%-22.3%-24.7%12.4%9.0%
3 Year-3.6%-10.9%-12.1%-16.3%25.6%14.5%
5 Year67.8%49.6%-6.6%-29.1%41.0%21.8%

Price Volatility Vs. Market

How volatile is First Horizon National's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is First Horizon National undervalued compared to its fair value and its price relative to the market?

37.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FT2 (€15) is trading below our estimate of fair value (€23.95)

Significantly Below Fair Value: FT2 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FT2 is good value based on its PE Ratio (12.8x) compared to the Banks industry average (16x).

PE vs Market: FT2 is good value based on its PE Ratio (12.8x) compared to the German market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: FT2 is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: FT2 is overvalued based on its PB Ratio (1.1x) compared to the DE Banks industry average (0.8x).


Next Steps

Future Growth

How is First Horizon National forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

5.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FT2's forecast earnings growth (5.9% per year) is above the savings rate (0.2%).

Earnings vs Market: FT2's earnings (5.9% per year) are forecast to grow slower than the German market (12.8% per year).

High Growth Earnings: FT2's earnings are forecast to grow, but not significantly.

Revenue vs Market: FT2's revenue (12.7% per year) is forecast to grow faster than the German market (4.9% per year).

High Growth Revenue: FT2's revenue (12.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FT2's Return on Equity is forecast to be low in 3 years time (10.8%).


Next Steps

Past Performance

How has First Horizon National performed over the past 5 years?

29.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FT2 has a high level of non-cash earnings.

Growing Profit Margin: FT2's current net profit margins (23.9%) are higher than last year (20.5%).


Past Earnings Growth Analysis

Earnings Trend: FT2's earnings have grown significantly by 29.4% per year over the past 5 years.

Accelerating Growth: FT2's earnings growth over the past year (6.3%) is below its 5-year average (29.4% per year).

Earnings vs Industry: FT2 earnings growth over the past year (6.3%) exceeded the Banks industry 0.2%.


Return on Equity

High ROE: FT2's Return on Equity (8.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is First Horizon National's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: FT2 has a low level of unsold assets or inventory.

Debt Coverage by Assets: FT2's debt is not covered by short term assets (assets are 0.8x debt).


Financial Institutions Analysis

Asset Level: FT2's level of assets compared to its equity is low.

Allowance for Bad Loans: FT2 has a sufficient allowance for bad loans.

Low Risk Liabilities: FT2's liabilities are made up of primarily low risk sources of funding.

Loan Level: FT2 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FT2's loans are broadly funded by customer deposits.

Level of Bad Loans: FT2 has an appropriate level of bad loans (0.57%)


Next Steps

Dividend

What is First Horizon National's current dividend yield, its reliability and sustainability?

3.33%

Current Dividend Yield


Upcoming Dividend Payment

Purchase First Horizon National before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company3.3%marketbottom25%1.4%markettop25%3.6%industryaverage3.5%forecastin3Years3.6%

Current dividend yield vs market & industry

Notable Dividend: FT2's dividend (3.33%) is higher than the bottom 25% of dividend payers in the German market (1.39%).

High Dividend: FT2's dividend (3.33%) is low compared to the top 25% of dividend payers in the German market (3.64%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, FT2 has been paying a dividend for less than 10 years.

Growing Dividend: FT2's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.2%), FT2's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FT2's dividends in 3 years are forecast to be well covered by earnings (44.2% payout ratio).


Next Steps

Management

What is the CEO of First Horizon National's salary, the management and board of directors tenure and is there insider trading?

8.8yrs

Average management tenure


CEO

D. Jordan (57yo)

11.2yrs

Tenure

US$4,345,297

Compensation

Mr. D. Bryan Jordan has been President and Director of First Horizon National Corporation (“First Horizon”) since 2008 and has been its Chief Executive Officer since September 2008. In January 1, 2012, he  ...


CEO Compensation Analysis

Compensation vs Market: D.'s total compensation ($USD4.35M) is about average for companies of similar size in the German market ($USD3.68M).

Compensation vs Earnings: D.'s compensation has been consistent with company performance over the past year.


Management Age and Tenure

8.8yrs

Average Tenure

57yo

Average Age

Experienced Management: FT2's management team is seasoned and experienced (8.8 years average tenure).


Board Age and Tenure

8.1yrs

Average Tenure

65.5yo

Average Age

Experienced Board: FT2's board of directors are considered experienced (8.1 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$320,00211 Dec 18
Scott Niswonger
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares25,000
Max PriceUS$12.81

Ownership Breakdown

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


Management Team

  • D. Jordan (57yo)

    Chairman

    • Tenure: 11.2yrs
    • Compensation: US$4.35m
  • Charlie Tuggle (70yo)

    Executive VP & General Counsel

    • Tenure: 11.8yrs
    • Compensation: US$1.43m
  • Yousef Valine (59yo)

    Executive VP

    • Tenure: 1.8yrs
    • Compensation: US$1.64m
  • Bruce Livesay

    Executive VP & Chief Information Officer

    • Tenure: 0yrs
  • BJ Losch (48yo)

    Executive VP & CFO

    • Tenure: 10.8yrs
    • Compensation: US$1.69m
  • Michael Kisber (59yo)

    President of FHN Financial

    • Tenure: 8.8yrs
    • Compensation: US$1.35m
  • Jeff Fleming (57yo)

    Executive VP

    • Tenure: 7.8yrs
  • Dawn Morris (51yo)

    Executive VP and Chief Digital Banking & Marketing Officer

    • Tenure: 1.2yrs
  • Aarti Bowman

    Director of Investor Relations

    • Tenure: 10.8yrs
  • Candace Flippin

    Executive VP & Chief Communications Officer

    • Tenure: 1.8yrs

Board Members

  • Vicki Palmer (65yo)

    Independent Director

    • Tenure: 26.8yrs
    • Compensation: US$199.58k
  • Colin Reed (71yo)

    Lead Director

    • Tenure: 0yrs
    • Compensation: US$215.64k
  • Scott Niswonger (71yo)

    Independent Director

    • Tenure: 8.1yrs
    • Compensation: US$171.64k
  • D. Jordan (57yo)

    Chairman

    • Tenure: 11.2yrs
    • Compensation: US$4.35m
  • Luke Yancy (69yo)

    Independent Director

    • Tenure: 18.1yrs
    • Compensation: US$157.14k
  • John Compton (58yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$158.64k
  • Mark Emkes (66yo)

    Independent Director

    • Tenure: 11yrs
    • Compensation: US$195.64k
  • Cory Gilchrist (49yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$173.64k
  • Gene Taylor (71yo)

    Vice Chairman of the Board

    • Tenure: 2yrs
    • Compensation: US$1.42m
  • Cece Stewart (60yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$156.64k

Company Information

First Horizon National Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: First Horizon National Corporation
  • Ticker: FT2
  • Exchange: DB
  • Founded: 1864
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$5.228b
  • Listing Market Cap: US$4.747b
  • Shares outstanding: 311.18m
  • Website: https://www.firsthorizon.com

Number of Employees


Location

  • First Horizon National Corporation
  • 165 Madison Avenue
  • Memphis
  • Tennessee
  • 38103
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FHNNYSE (New York Stock Exchange)YesCommon StockUSUSDJan 1980
FT2DB (Deutsche Boerse AG)YesCommon StockDEEURJan 1980
FHN.PRANYSE (New York Stock Exchange)DEP SHSUSUSDJan 2013

Biography

First Horizon National Corporation operates as the bank holding company for First Tennessee Bank National Association that provides various financial services. It operates through four segments: Regional B ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/12 20:42
End of Day Share Price2019/11/12 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.