First Horizon (NYSE:FHN) - Share price, News & Analysis

Q: What is the Fair Price of FHN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

FHN ($23.11) is trading below our estimate of [[fair value]] ($43.2)

FHN fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	2/6
Financial Health	6/6
Dividends	5/6

FHN Stock Overview

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

Rewards

Trading at 46.5% below our estimate of its fair value

Earnings are forecast to grow 14.79% per year

Pays a reliable dividend of 2.6%

Risk Analysis

Profit margins (25.5%) are lower than last year (38.7%)

First Horizon Competitors

Signature Bank

NasdaqGS:SBNY

US$12.6b

Western Alliance Bancorporation

NYSE:WAL

US$9.2b

First Citizens BancShares

NasdaqGS:FCNC.A

US$13.5b

East West Bancorp

NasdaqGS:EWBC

US$10.9b

Price History & Performance

Summary of all time highs, changes and price drops for First Horizon
Historical stock prices
Current Share Price	US$23.11
52 Week High	US$24.24
52 Week Low	US$14.67
Beta	1.08
1 Month Change	5.29%
3 Month Change	4.15%
1 Year Change	48.24%
3 Year Change	46.73%
5 Year Change	34.67%
Change since IPO	565.76%

Recent News & Updates

Aug 16

First Horizon sells Lenders Title Group

Lenders Title, a subsidiary of First Horizon (NYSE:FHN), has been acquired by Knox-Precision Holdings. Terms of the deal were not disclosed. Lenders Title is a title insurance agency, operating in Arkansas, Louisiana and Tennessee regions.

Jul 26

First Horizon National declares $0.15 dividend

First Horizon National (NYSE:FHN) declared $0.15/share quarterly dividend, in line with previous. Forward yield 2.69% Payable Oct. 3; for shareholders of record Sept. 9; ex-div Sept. 8. See FHN Dividend Scorecard, Yield Chart, & Dividend Growth.

Shareholder Returns

	FHN	US Banks	US Market
7D	-0.1%	1.6%	1.4%
1Y	48.2%	-7.2%	-8.4%

Return vs Industry: FHN exceeded the US Banks industry which returned -8.2% over the past year.

Return vs Market: FHN exceeded the US Market which returned -9% over the past year.

Price Volatility

Is FHN's price volatile compared to industry and market?
FHN volatility
FHN Average Weekly Movement	2.5%
Banks Industry Average Movement	3.6%
Market Average Movement	7.6%
10% most volatile stocks in US Market	17.1%
10% least volatile stocks in US Market	3.1%

Stable Share Price: FHN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: FHN's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1864	7,500	D. Jordan	https://www.firsthorizon.com

First Horizon Corporation operates as the bank holding company for First Horizon Bank that provides various financial services. The company operates through three segments: Regional Banking, Specialty Banking, and Corporate. It offers general banking services for consumers, businesses, financial institutions, and governments.

First Horizon Fundamentals Summary

How do First Horizon's earnings and revenue compare to its market cap?
FHN fundamental statistics
Market Cap	US$12.40b
Earnings (TTM)	US$795.00m
Revenue (TTM)	US$3.12b

15.6x

P/E Ratio

1.7x

P/B Ratio

Is FHN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
FHN income statement (TTM)
Revenue	US$3.12b
Cost of Revenue	US$0
Gross Profit	US$3.12b
Other Expenses	US$2.33b
Earnings	US$795.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

Oct 18, 2022

Earnings per share (EPS)	1.48
Gross Margin	100.00%
Net Profit Margin	25.47%
Debt/Equity Ratio	48.6%

How did FHN perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

41%

Payout Ratio

Does FHN pay a reliable dividends?

See FHN dividend history and benchmarks

When do you need to buy FHN by to receive an upcoming dividend?
First Horizon dividend dates
Ex Dividend Date	Sep 08 2022
Dividend Pay Date	Oct 03 2022
Days until Ex dividend	19 days
Days until Dividend pay date	44 days

Does FHN pay a reliable dividends?

See FHN dividend history and benchmarks

We’ve recently updated our valuation analysis.

Valuation

Is FHN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FHN?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for FHN. This is calculated by dividing FHN's market cap by their current preferred multiple.
What is FHN's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$12.40b

FHN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

How does FHN's PE Ratio compare to its peers?

FHN PE Ratio vs Peers

The above table shows the PE ratio for FHN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	12.6x
SBNY Signature Bank	10.9x	10.0%	US$12.6b
WAL Western Alliance Bancorporation	9.5x	16.4%	US$9.2b
FCNC.A First Citizens BancShares	18.4x	18.5%	US$13.5b
EWBC East West Bancorp	11.6x	13.3%	US$10.9b
FHN First Horizon	15.6x	14.8%	US$12.4b

Price-To-Earnings vs Peers: FHN is expensive based on its Price-To-Earnings Ratio (15.6x) compared to the peer average (12.6x).

Price to Earnings Ratio vs Industry

How does FHN's PE Ratio compare vs other companies in the US Banks Industry?

Price-To-Earnings vs Industry: FHN is expensive based on its Price-To-Earnings Ratio (15.6x) compared to the US Banks industry average (10.1x)

Price to Earnings Ratio vs Fair Ratio

What is FHN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FHN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	15.6x
Fair PE Ratio	16.1x

Price-To-Earnings vs Fair Ratio: FHN is good value based on its Price-To-Earnings Ratio (15.6x) compared to the estimated Fair Price-To-Earnings Ratio (16.1x).

Share Price vs Fair Value

What is the Fair Price of FHN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FHN ($23.11) is trading below our estimate of fair value ($43.2)

Significantly Below Fair Value: FHN is trading below fair value by more than 20%.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

How is First Horizon forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

14.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: FHN's forecast earnings growth (14.8% per year) is above the savings rate (1.9%).

Earnings vs Market: FHN's earnings (14.8% per year) are forecast to grow faster than the US market (14.4% per year).

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

Revenue vs Market: FHN's revenue (7.8% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: FHN's revenue (7.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: FHN's Return on Equity is forecast to be low in 3 years time (12.7%).

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Past Performance

How has First Horizon performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

30.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FHN has high quality earnings.

Growing Profit Margin: FHN's current net profit margins (25.5%) are lower than last year (38.7%).

Past Earnings Growth Analysis

Earnings Trend: FHN's earnings have grown significantly by 30.5% per year over the past 5 years.

Accelerating Growth: FHN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FHN had negative earnings growth (-37.7%) over the past year, making it difficult to compare to the Banks industry average (8.8%).

Return on Equity

High ROE: FHN's Return on Equity (9.8%) is considered low.

Discover strong past performing companies

Financial Health

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

Financial Health Score

6/6

Financial Health Score 6/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: FHN's Assets to Equity ratio (10x) is low.

Allowance for Bad Loans: FHN has a sufficient allowance for bad loans (203%).

Low Risk Liabilities: 92% of FHN's liabilities are made up of primarily low risk sources of funding.

Loan Level: FHN has an appropriate level of Loans to Assets ratio (66%).

Low Risk Deposits: FHN's Loans to Deposits ratio (79%) is appropriate.

Level of Bad Loans: FHN has an appropriate level of bad loans (0.5%).

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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.60%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: FHN's dividend (2.6%) is higher than the bottom 25% of dividend payers in the US market (1.48%).

High Dividend: FHN's dividend (2.6%) is low compared to the top 25% of dividend payers in the US market (3.99%).

Stability and Growth of Payments

Stable Dividend: FHN's dividends per share have been stable in the past 10 years.

Growing Dividend: FHN's dividend payments have increased over the past 10 years.

Current Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (40.6%), FHN's dividend payments are well covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: FHN's dividends in 3 years are forecast to be well covered by earnings (31.8% payout ratio).

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure

CEO

D. Jordan (60 yo)

13.92yrs

Tenure

US$8,414,496

Compensation

Mr. D. Bryan Jordan has been Director of First Union Horizon Corporation (“First Horizon”) since 2008 and has been its Chief Executive Officer since September 2008. He served as President of First Horizon...

CEO Compensation Analysis

Compensation vs Market: D.'s total compensation ($USD8.41M) is below average for companies of similar size in the US market ($USD12.88M).

Compensation vs Earnings: D.'s compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: FHN's management team is considered experienced (2.1 years average tenure).

Board Members

Experienced Board: FHN's board of directors are considered experienced (7 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/08/18 00:00
End of Day Share Price	2022/08/18 00:00
Earnings	2022/06/30
Annual Earnings	2021/12/31