NYSE:FHN

Stock Analysis Report

First Horizon National

Executive Summary

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


Snowflake Analysis

Very undervalued with flawless balance sheet and pays a dividend.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.9%

FHN

0.7%

US Banks

2.4%

US Market


1 Year Return

-44.1%

FHN

-28.9%

US Banks

-10.0%

US Market

Return vs Industry: FHN underperformed the US Banks industry which returned -28.9% over the past year.

Return vs Market: FHN underperformed the US Market which returned -10% over the past year.


Shareholder returns

FHNIndustryMarket
7 Day8.9%0.7%2.4%
30 Day-19.9%-18.9%-11.0%
90 Day-50.0%-39.2%-19.4%
1 Year-41.6%-44.1%-26.8%-28.9%-8.1%-10.0%
3 Year-50.9%-55.3%-17.2%-23.3%17.3%9.6%
5 Year-36.5%-44.2%8.1%-4.4%36.1%21.1%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FHN ($8.09) is trading below our estimate of fair value ($18.95)

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 (5.8x) compared to the Banks industry average (8.7x).

PE vs Market: FHN is good value based on its PE Ratio (5.8x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: FHN is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: FHN is good value based on its PB Ratio (0.5x) compared to the US 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 12 analysts?

28.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FHN's forecast earnings growth (28.5% per year) is above the savings rate (1.7%).

Earnings vs Market: FHN's earnings (28.5% per year) are forecast to grow faster than the US market (13.3% per year).

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

Revenue vs Market: FHN's revenue (18.7% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: FHN's revenue (18.7% 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 (11.4%).


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 31% 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 (10.8%).


Return on Equity

High ROE: FHN's Return on Equity (8.9%) 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 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 (0.54%)


Next Steps

Dividend

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

7.42%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FHN's dividend (7.42%) is higher than the bottom 25% of dividend payers in the US market (1.93%).

High Dividend: FHN's dividend (7.42%) is in the top 25% of dividend payers in the US market (5.46%)


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 (40.4%), 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 (33.7% payout ratio).


Next Steps

Management

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

10.3yrs

Average management tenure


CEO

D. Jordan (57yo)

11.58s

Tenure

US$5,551,044

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 ($USD5.55M) is about average for companies of similar size in the US market ($USD5.63M).

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

NamePositionTenureCompensationOwnership
D. Jordan
Chairman11.58yrsUS$5.55m0.22% $5.6m
William Losch
Executive VP & CFO11.25yrsUS$2.99m0.091% $2.3m
David Popwell
President of Bankingno dataUS$3.48m0.11% $2.8m
Michael Kisber
President of FHN Financial9.25yrsUS$4.05m0.14% $3.5m
Bruce Livesay
Executive VP & Chief Information Officerno datano datano data
Yousef Valine
Executive VP and Chief Operating & Risk Officer2.25yrsUS$1.64m0.047% $1.2m
Jeff Fleming
Executive VP8.25yrsno data0.022% $553.9k
Aarti Bowman
Director of Investor Relations11.25yrsno datano data
Charles Tuggle
Executive VP & General Counsel12.25yrsUS$1.43m0.072% $1.8m
Candace Flippin
Executive VP & Chief Communications Officer2.25yrsno datano data

10.3yrs

Average Tenure

59yo

Average Age

Experienced Management: FHN's management team is seasoned and experienced (10.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
D. Jordan
Chairman11.58yrsUS$5.55m0.22% $5.6m
Vicki Palmer
Independent Director27.25yrsUS$226.09k0.016% $392.7k
Colin Reed
Lead Independent Directorno dataUS$240.51k0.033% $822.0k
Scott Niswonger
Independent Director8.5yrsUS$195.51k0.28% $7.0m
Luke Yancy
Independent Director18.5yrsUS$181.01k0.013% $338.5k
John Compton
Independent Director9.17yrsUS$180.51k0.024% $602.6k
Mark Emkes
Independent Director11.42yrsUS$219.51k0.017% $430.3k
Corydon Gilchrist
Independent Director7.75yrsUS$195.51k0.023% $577.1k
Roger Taylor
Vice Chairman of the Board2.42yrsUS$1.47m0.38% $9.5m
Cecelia Stewart
Independent Director5.5yrsUS$180.51k0.0048% $120.8k

8.5yrs

Average Tenure

65.5yo

Average Age

Experienced Board: FHN's board of directors are considered experienced (8.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: FHN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


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$2.522b
  • Shares outstanding: 311.79m
  • 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 Horizon Bank 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; investment and financial advisory services; and wealth management services. Further, it engages in mutual fund and retail insurance sales, as well as provides mortgage banking services. As of January 17, 2020, the company operated approximately 270 branches under the First Horizon Bank brand in the Southeast United States; and 29 offices in 18 states across the United States under the FHN Financial brand. 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 Analysis2020/04/08 04:54
End of Day Share Price2020/04/07 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.