NYSE:FHN

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

First Horizon National

Executive Summary

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


Snowflake Analysis

Flawless balance sheet 6 star dividend payer.


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: FHN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-12.7%

FHN

-4.8%

US Banks

-4.6%

US Market


1 Year Return

-37.4%

FHN

-31.0%

US Banks

11.5%

US Market

Return vs Industry: FHN underperformed the US Banks industry which returned -31% over the past year.

Return vs Market: FHN underperformed the US Market which returned 11.5% over the past year.


Shareholder returns

FHNIndustryMarket
7 Day-12.7%-4.8%-4.6%
30 Day8.5%2.4%-0.9%
90 Day7.9%-1.6%2.2%
1 Year-33.9%-37.4%-28.5%-31.0%14.0%11.5%
3 Year-40.3%-46.4%-21.7%-28.2%34.5%25.6%
5 Year-20.7%-31.8%11.2%-2.5%73.0%53.6%

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

Valuation

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

24.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FHN ($10) is trading below our estimate of fair value ($13.18)

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


Price To Earnings Ratio

PE vs Industry: FHN is good value based on its PE Ratio (5.3x) compared to the US Banks industry average (9.9x).

PE vs Market: FHN is good value based on its PE Ratio (5.3x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: FHN is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: FHN's PB Ratio (0.8x) is in line with the US Banks industry average.


Next Steps

Future Growth

How is First Horizon National forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

4.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FHN's forecast earnings growth (4.4% per year) is above the savings rate (2.2%).

Earnings vs Market: FHN's earnings (4.4% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: FHN's revenue (8% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: FHN's revenue (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 (9.9%).


Next Steps

Past Performance

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

27.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FHN has a large one-off gain of $240.4M impacting its September 30 2020 financial results.

Growing Profit Margin: FHN's current net profit margins (35.9%) are higher than last year (23.9%).


Past Earnings Growth Analysis

Earnings Trend: FHN's earnings have grown significantly by 27% per year over the past 5 years.

Accelerating Growth: FHN's earnings growth over the past year (69.9%) exceeds its 5-year average (27% per year).

Earnings vs Industry: FHN earnings growth over the past year (69.9%) exceeded the Banks industry -3.6%.


Return on Equity

High ROE: FHN's Return on Equity (9%) is considered low.


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


Financial Institutions Analysis

Asset Level: FHN's Assets to Equity ratio (10.2x) is moderate.

Allowance for Bad Loans: FHN has a sufficient allowance for bad loans (221%).

Low Risk Liabilities: 91% 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 (71%).

Low Risk Deposits: FHN's Loans to Deposits ratio (86%) is appropriate.

Level of Bad Loans: FHN has an appropriate level of bad loans (0.7%).


Next Steps

Dividend

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

6.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FHN's dividend (6%) is higher than the bottom 25% of dividend payers in the US market (1.71%).

High Dividend: FHN's dividend (6%) is in the top 25% of dividend payers in the US market (4.86%)


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

Dividend Coverage: With its reasonably low payout ratio (31.1%), 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 (42.8% payout ratio).


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

D. Jordan (58 yo)

12.08yrs

Tenure

US$5,551,044

Compensation

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


CEO Compensation Analysis

Compensation vs Market: D.'s total compensation ($USD5.55M) is about average for companies of similar size in the US market ($USD7.34M).

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


Leadership Team

NamePositionTenureCompensationOwnership
D. Jordan
CEO & President12.08yrsUS$5.55m0.13%
$ 7.4m
William Losch
Senior EVP & CFO11.75yrsUS$2.99m0.053%
$ 2.9m
David Popwell
President of Specialty Bankingno dataUS$3.48m0.064%
$ 3.6m
Michael Kisber
President of FHN Financial9.75yrsUS$4.05m0.078%
$ 4.3m
Daryl Byrd
Executive Chairman of the Board0.25yrno data0.29%
$ 16.1m
Bruce Livesay
Executive VP & Chief Information Officerno datano datano data
Anthony Restel
Senior EVP & COO0.25yrno data0.070%
$ 3.9m
Jeff Fleming
Executive VP8.75yrsno data0.012%
$ 684.6k
Ellen Taylor
Executive VP & Head of Investor Relations0.33yrno datano data
Charles Tuggle
Executive VP & General Counsel12.75yrsUS$1.43m0.042%
$ 2.3m
Elizabeth Ardoin
Senior EVP & Chief Communications Officer0.25yrno data0.040%
$ 2.2m
Dawn Morris
Executive VP and Chief Digital Banking & Marketing Officer2.08yrsno datano data

5.4yrs

Average Tenure

58yo

Average Age

Experienced Management: FHN's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
D. Jordan
CEO & President12.08yrsUS$5.55m0.13%
$ 7.4m
Daryl Byrd
Executive Chairman of the Board0.25yrno data0.29%
$ 16.1m
Vicki Palmer
Independent Director27.75yrsUS$226.09k0.0095%
$ 526.1k
Colin Reed
Lead Independent Director0.25yrUS$240.51k0.020%
$ 1.1m
William Fenstermaker
Independent Director0.25yrno data0.061%
$ 3.4m
Rick Maples
Independent Director0.25yrno data0.0093%
$ 514.4k
John Compton
Independent Director9.58yrsUS$180.51k0.014%
$ 785.5k
Mark Emkes
Independent Director11.92yrsUS$219.51k0.013%
$ 726.2k
Rajesh Subramaniam
Independent Director4.25yrsUS$164.51k0.0014%
$ 74.8k
Kenneth Burdick
Independent Director1.75yrsUS$213.92k0.0013%
$ 69.8k
Roger Taylor
Director2.92yrsUS$1.47m0.21%
$ 11.7m
Cecelia Stewart
Independent Director6yrsUS$180.51k0.0034%
$ 190.1k

3.6yrs

Average Tenure

63yo

Average Age

Experienced Board: FHN's board of directors are considered experienced (3.6 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 78.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: First Horizon National Corporation
  • Ticker: FHN
  • Exchange: NYSE
  • Founded: 1864
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$5.544b
  • Shares outstanding: 554.36m
  • 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
FHN.PRENYSE (New York Stock Exchange)6.50 DP RP PFD EUSUSDMay 2020
FHN.PRCNYSE (New York Stock Exchange)DP SHS NCM PFD CUSUSDJul 2020
FHN.PRDNYSE (New York Stock Exchange)DP SHS NCM DUSUSDJul 2020
FHN.PRBNYSE (New York Stock Exchange)DP SHS NCM PFD BUSUSDJul 2020

Biography

First Horizon National Corporation operates as the bank holding company for First Horizon Bank that provides various financial services. It operates through four segments: Regional Banking, Fixed Income, C ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/29 00:37
End of Day Share Price2020/10/28 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.