First Horizon (FHN) AI Stock Analysis

• Market Cap: $10.60B
• Dividend Yield: 2.86%
• Average Volume (3M): 15.55M
• Price to Earnings (P/E): 12.6
• Beta (1Y): 1.23
• Revenue Growth: -4.49%
• EPS Growth: 20.77%
• Country: US
• Employees: 7,200
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.51
• Shares Outstanding: 507,747,620
• 10 Day Avg. Volume: 22,381,025
• 30 Day Avg. Volume: 15,548,177
• PEG Ratio: -1.06
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 2.20
• P/FCF Ratio: 8.89
• Enterprise Value/Market Cap: 1.59
• Enterprise Value/Revenue: 3.50
• Enterprise Value/Gross Profit: 5.65
• Enterprise Value/Ebitda: 14.45
• 1Y Price Target: $24.23
• Price Target Upside: 15.44% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 65 Neutral
• Price Target: $22.50 ▲(7.19% Upside)

First Horizon's overall score reflects strong earnings growth and a solid capital position, offset by technical weakness and challenges in revenue growth and cash flow efficiency. The valuation is fair, with a reasonable P/E ratio and attractive dividend yield.

Positive Factors

Strong EPS Growth

The increase in EPS indicates improved profitability and operational efficiency, which can enhance shareholder value and support future growth initiatives.

Net Interest Income and Margin Expansion

Growth in net interest income and margin expansion reflect effective asset-liability management, which is crucial for sustaining long-term profitability in a banking environment.

Capital and Share Buybacks

A strong capital position and ongoing share buybacks indicate financial stability and a commitment to returning value to shareholders, supporting long-term investor confidence.

Negative Factors

Decline in Revenue Growth

A declining revenue growth trend suggests difficulties in expanding market share or product offerings, which could hinder long-term business expansion and competitiveness.

Core Deposit Challenges

A decline in core deposits can strain liquidity and increase funding costs, potentially impacting the bank's ability to lend and grow its balance sheet sustainably.

Increased Adjusted Expenses

Rising expenses can pressure profit margins and reduce operational efficiency, challenging the company's ability to maintain profitability in a competitive market.

First Horizon Business Overview & Revenue Model

Company Description

First Horizon Corporation (FHN) is a leading financial services company headquartered in Memphis, Tennessee. It operates primarily in the banking sector, offering a range of financial products and services including commercial banking, retail banking, wealth management, and capital markets services. First Horizon serves individual consumers, businesses, and institutional customers across the southeastern United States, focusing on delivering personalized banking solutions and innovative financial products.

How the Company Makes Money

First Horizon generates revenue primarily through net interest income and non-interest income. Net interest income is derived from the interest earned on loans and securities, less the interest paid on deposits and borrowings. The company’s diverse loan portfolio includes commercial loans, residential mortgages, and consumer loans, which contribute significantly to its interest income. Non-interest income comes from fees for services such as asset management, investment banking, and transaction fees related to account services. Additionally, First Horizon has strategic partnerships that enhance its service offerings and revenue potential, such as collaborations with fintech companies to provide digital banking solutions. The company also benefits from a growing customer base and a focus on expanding its presence in key markets, which further supports its overall earnings.

First Horizon Financial Statement Overview

Summary

First Horizon demonstrates sound financial health with strong profitability and operational efficiency. The company's stable balance sheet and robust cash flows provide a solid foundation for future growth. However, revenue growth is a concern, and there is room for improvement in equity funding.

Income Statement

First Horizon shows solid profitability with a consistent Gross Profit Margin and a Net Profit Margin of 16.5% for TTM (Trailing-Twelve-Months). However, there's a slight decline in Total Revenue on a TTM basis when compared to the previous year, indicating a need to focus on revenue growth strategies. The EBIT and EBITDA margins are healthy, reflecting strong operational efficiency.

Balance Sheet

The company's balance sheet is relatively stable with a Debt-to-Equity Ratio of 0.63, indicating moderate leverage. The Equity Ratio of 10.7% suggests a solid capital structure, though there's room for improvement in equity funding. The Return on Equity (ROE) is 9.2%, highlighting reasonable returns on shareholders' investments.

Cash Flow

First Horizon's cash flow is robust with a Free Cash Flow to Net Income Ratio of 0.92, indicating strong cash generation relative to profits. However, the Free Cash Flow has declined compared to the previous year, reflecting potential areas for cash flow optimization. The Operating Cash Flow to Net Income Ratio of 0.97 shows efficient cash operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.82B	4.94B	4.71B	3.41B	3.15B	2.80B
Gross Profit	2.99B	2.95B	2.90B	3.02B	3.30B	2.06B
EBITDA	1.17B	1.11B	1.23B	1.24B	1.33B	995.00M
Net Income	842.00M	775.00M	897.00M	900.00M	999.00M	845.00M
Balance Sheet
Total Assets	82.08B	82.15B	81.66B	78.95B	89.09B	84.21B
Cash, Cash Equivalents and Short-Term Investments	11.26B	8.94B	10.73B	11.28B	24.76B	17.60B
Total Debt	4.80B	4.59B	3.70B	4.10B	3.71B	3.87B
Total Liabilities	72.83B	73.04B	72.37B	70.41B	80.60B	75.90B
Stockholders Equity	8.96B	8.82B	9.00B	8.25B	8.20B	8.01B
Cash Flow
Free Cash Flow	971.00M	1.22B	1.26B	2.26B	672.00M	114.00M
Operating Cash Flow	1.01B	1.27B	1.30B	2.29B	725.00M	172.00M
Investing Cash Flow	143.00M	-1.06B	-2.60B	8.33B	-4.60B	-4.97B
Financing Cash Flow	-1.10B	-404.00M	1.49B	-10.87B	4.02B	5.18B

First Horizon Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 20.99
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FHN, the sentiment is Negative. The current price of 20.99 is below the 20-day moving average (MA) of 21.87, below the 50-day MA of 22.20, and above the 200-day MA of 20.52, indicating a neutral trend. The MACD of -0.53 indicates Positive momentum. The RSI at 41.30 is Neutral, neither overbought nor oversold. The STOCH value of 22.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FHN.

First Horizon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UMBF	―	$8.62B	13.04	10.05%	1.41%	30.40%	12.40%
WTFC	―	$8.64B	11.86	11.69%	1.51%	3.61%	13.93%
WBS	―	$9.39B	10.52	9.95%	2.83%	4.90%	21.68%
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SSB	―	$9.16B	12.42	9.32%	2.47%	33.88%	12.26%
FHN	―	$10.60B	12.61	9.87%	2.86%	-4.49%	20.77%
WAL	―	$8.75B	9.80	12.79%	1.92%	4.92%	25.28%

First Horizon Corporate Events

First Horizon Corporation Reports Strong Q3 2025 Results

First Horizon Corporation, a leading regional financial services company headquartered in Memphis, TN, operates primarily in the southern U.S., offering a wide range of services including commercial and private banking, wealth management, and mortgage banking. The company has been recognized as one of the nation’s top employers and a reputable U.S. bank.

First Horizon National’s Earnings Call Highlights Robust Growth

First Horizon National’s recent earnings call conveyed a generally positive sentiment, underscored by robust EPS growth and notable improvements in net interest income and margin. The company addressed challenges in loan and deposit trends but maintained a strong capital position and continued its share buyback program, despite facing increased expenses.

First Horizon Reports Strong Q3 2025 Financial Results

First Horizon Corporation reported strong financial results for the third quarter of 2025, with a net income of $254 million and earnings per share of $0.50, marking an increase from the previous quarter. The company’s performance was bolstered by growth in net interest income and noninterest income, as well as prudent risk management and strategic investments in technology and community partnerships. Despite a decrease in period-end loan balances, average deposits increased, reflecting the company’s adaptability and solid performance in a changing economic environment.

The most recent analyst rating on (FHN) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on First Horizon stock, see the FHN Stock Forecast page.

First Horizon Appoints Michael Moehn to Board

On August 20, 2025, First Horizon Corporation and its subsidiary First Horizon Bank elected Michael L. Moehn to their Boards of Directors. Mr. Moehn, currently the Senior Executive Vice President and CFO of Ameren Corporation, brings extensive experience in strategic planning, financial affairs, and cybersecurity. His appointment includes roles on the Audit and Information Technology Committees. Additionally, the Board approved an amendment to the Bylaws, increasing the number of directors from twelve to thirteen, reflecting a strategic expansion in governance.

The most recent analyst rating on (FHN) stock is a Buy with a $25.00 price target. To see the full list of analyst forecasts on First Horizon stock, see the FHN Stock Forecast page.

First Horizon Announces Executive Retirement

David T. Popwell, Senior Executive Vice President—Senior Strategic Executive at First Horizon Corporation, has announced his retirement effective December 31, 2025. His departure is not due to any disagreement with the company, indicating a smooth transition for First Horizon’s executive team.

The most recent analyst rating on (FHN) stock is a Buy with a $18.00 price target. To see the full list of analyst forecasts on First Horizon stock, see the FHN Stock Forecast page.