NYSE:FHN

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 Analysis

Very undervalued with flawless balance sheet.


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

6.8%

FHN

-0.08%

US Banks

2.0%

US Market


1 Year Return

19.9%

FHN

15.5%

US Banks

23.6%

US Market

Return vs Industry: FHN exceeded the US Banks industry which returned 15.3% over the past year.

Return vs Market: FHN underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

FHNIndustryMarket
7 Day6.8%-0.08%2.0%
30 Day3.2%-1.6%3.9%
90 Day11.1%9.2%12.0%
1 Year24.4%19.9%18.9%15.5%26.2%23.6%
3 Year-3.3%-11.0%34.6%25.1%53.2%43.3%
5 Year49.5%32.8%86.1%65.2%75.7%56.3%

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?

34.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FHN ($16.39) is trading below our estimate of fair value ($21.99)

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 (12.5x) compared to the Banks industry average (12.8x).

PE vs Market: FHN is good value based on its PE Ratio (12.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: FHN is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: FHN is good value based on its PB Ratio (1.1x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

How is First Horizon National forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

40.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FHN's forecast earnings growth (42.7% per year) is above the savings rate (1.7%).

Earnings vs Market: FHN's earnings (42.7% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FHN's revenue (29.3% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: FHN's revenue (29.3% per year) is forecast to grow faster 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 (10.3%).


Next Steps

Past Performance

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

31.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FHN has high quality earnings.

Growing Profit Margin: FHN's current net profit margins (23.9%) are lower than last year (27.9%).


Past Earnings Growth Analysis

Earnings Trend: FHN's earnings have grown significantly by 29.4% 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 (-19.3%) over the past year, making it difficult to compare to the Banks industry average (26.1%).


Return on Equity

High ROE: FHN'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: FHN has a low level of unsold assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

Level of Bad Loans: FHN 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?

3.24%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years3.9%

Current dividend yield vs market & industry

Notable Dividend: FHN's dividend (3.42%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: FHN's dividend (3.42%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

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

Growing Dividend: FHN'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%), 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 (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?

10.0yrs

Average management tenure


CEO

D. Jordan (57yo)

11.3yrs

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 ($USD4.35M) is below average for companies of similar size in the US market ($USD6.46M).

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


Management Age and Tenure

10.0yrs

Average Tenure

59yo

Average Age

Experienced Management: FHN's management team is seasoned and experienced (10 years average tenure).


Board Age and Tenure

8.3yrs

Average Tenure

65.5yo

Average Age

Experienced Board: FHN's board of directors are considered experienced (8.3 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.


Ownership Breakdown

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


Management Team

  • David Popwell (59yo)

    President of Banking

    • Compensation: US$1.87m
  • D. Jordan (57yo)

    Chairman

    • Tenure: 11.3yrs
    • Compensation: US$4.35m
  • Charlie Tuggle (70yo)

    Executive VP & General Counsel

    • Tenure: 12yrs
    • Compensation: US$1.43m
  • Yousef Valine (59yo)

    Executive VP

    • Tenure: 2yrs
    • Compensation: US$1.64m
  • Bruce Livesay

    Executive VP & Chief Information Officer

    • BJ Losch (48yo)

      Executive VP & CFO

      • Tenure: 11yrs
      • Compensation: US$1.69m
    • Michael Kisber (59yo)

      President of FHN Financial

      • Tenure: 9yrs
      • Compensation: US$1.35m
    • Jeff Fleming (57yo)

      Executive VP

      • Tenure: 8yrs
    • Aarti Bowman

      Director of Investor Relations

      • Tenure: 11yrs
    • Candace Flippin

      Executive VP & Chief Communications Officer

      • Tenure: 2yrs

    Board Members

    • Vicki Palmer (65yo)

      Independent Director

      • Tenure: 27yrs
      • Compensation: US$199.58k
    • Colin Reed (71yo)

      Lead Director

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

      Independent Director

      • Tenure: 8.3yrs
      • Compensation: US$171.64k
    • D. Jordan (57yo)

      Chairman

      • Tenure: 11.3yrs
      • Compensation: US$4.35m
    • Luke Yancy (69yo)

      Independent Director

      • Tenure: 18.3yrs
      • Compensation: US$157.14k
    • John Compton (58yo)

      Independent Director

      • Tenure: 8.9yrs
      • Compensation: US$158.64k
    • Mark Emkes (66yo)

      Independent Director

      • Tenure: 11.2yrs
      • Compensation: US$195.64k
    • Cory Gilchrist (49yo)

      Independent Director

      • Tenure: 7.5yrs
      • Compensation: US$173.64k
    • Gene Taylor (71yo)

      Vice Chairman of the Board

      • Tenure: 2.2yrs
      • Compensation: US$1.42m
    • Cece Stewart (60yo)

      Independent Director

      • Tenure: 5.3yrs
      • 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: FHN
    • Exchange: NYSE
    • Founded: 1864
    • Industry: Regional Banks
    • Sector: Banks
    • Market Cap: US$5.379b
    • Shares outstanding: 311.47m
    • 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 Banking, Fixed Income, Corporate, and Non-Strategic. The company offers general banking services for consumers, businesses, financial institutions, and governments. It is also involved in the underwriting of bank-eligible securities and other fixed-income securities eligible for underwriting by financial subsidiaries; loan sales; derivative sales; and provision of advisory services. In addition, the company offers brokerage services; correspondent banking services; transaction processing services comprising nationwide check clearing and remittance processing; trust, fiduciary, and agency services; credit card products; equipment finance; and investment and financial advisory services. Further, it engages in mutual fund and retail insurance sales, as well as provides mortgage banking services. As of December 31, 2018, the company operated approximately 300 branches under the First Tennessee Bank and Capital Bank brands. The company was founded in 1864 and is headquartered in Memphis, Tennessee. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/18 23:53
    End of Day Share Price2020/01/17 00:00
    Earnings2019/12/31
    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.