First Horizon (FHN) AI Stock Analysis

• Market Cap: $11.04B
• Dividend Yield: 2.76%
• Average Volume (3M): 5.50M
• Price to Earnings (P/E): 15.2
• Beta (1Y): 1.27
• Revenue Growth: -0.50%
• EPS Growth: -1.31%
• Country: US
• Employees: 7,200
• Sector: Financial
• Sector Strength: 81
• Industry: Banks - Regional
• EPS (TTM): 0.42
• Shares Outstanding: 507,233,430
• 10 Day Avg. Volume: 7,206,730
• 30 Day Avg. Volume: 5,503,302
• PEG Ratio: 2.20
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.74
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 4.59
• Enterprise Value/Ebitda: 3.16
• 1Y Price Target: $22.46
• Price Target Upside: 3.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13

• Rating: 76 Outperform
• Price Target: $22.50 ▲(3.40%Upside)

First Horizon's strong financial management and operational efficiency are the most significant strengths. Technical analysis supports a stable trend, while recent corporate performance highlights effective strategic execution. However, macroeconomic uncertainties and revenue growth concerns slightly temper the overall outlook.

Positive Factors

Earnings

Higher net interest margin and lower expense outlook push earnings per share estimates higher.

Stock Valuation

Improving visibility on medium-term return on tangible common equity target should drive a re-rating in the stock.

Negative Factors

Earnings Outlook

First Horizon-FHN shares ended the day largely unchanged after reporting a fourth quarter earnings per share beat and leaving fiscal year 2025 outlook unchanged.

Macroeconomic Uncertainty

Credit trends remained solid, but reserves were increased due to broader macro uncertainty.

First Horizon Business Overview & Revenue Model

Company Description

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. The company also underwrites bank-eligible securities and other fixed-income securities eligible for underwriting by financial subsidiaries; sells loans and derivatives; and offers advisory services. In addition, it offers various services, such as mortgage banking; title insurance and loan-closing; brokerage; correspondent banking; nationwide check clearing and remittance processing; trust, fiduciary, and agency; equipment finance; and investment and financial advisory services. Further, the company sells mutual fund and retail insurance products; and credit cards. It operates approximately 500 banking offices in 22 states under the First Horizon Bank brand; and 400 banking centers in 12 states under the FHN Financial brand in the United States. The company was formerly known as First Horizon National Corporation and changed its name to First Horizon Corporation in November 2020. First Horizon Corporation was founded in 1864 and is headquartered in Memphis, Tennessee.

How the Company Makes Money

First Horizon makes money through a variety of revenue streams primarily centered around traditional banking services. It earns interest income from loans provided to individuals and businesses, such as mortgages, personal loans, and commercial loans. The company also generates non-interest income through fees for services such as asset management, investment banking, and transaction processing. Additionally, First Horizon benefits from interchange fees and other charges associated with its credit and debit card offerings. Key partnerships with financial technology firms and collaborations with regional businesses further enhance its revenue-generating capabilities. Overall, the company's earnings are influenced by interest rate environments, economic conditions, and regulatory factors that impact the banking industry.

First Horizon Financial Statement Overview

Summary

First Horizon exhibits a mixed financial performance with declining revenues and profitability concerns marked by zero net income in 2024. However, the company maintains a strong balance sheet with reduced leverage and stable cash flows, supporting financial stability amidst operational challenges.

Income Statement

The income statement shows a declining revenue trend from $3.209B in 2022 to $1.155B in 2024. Gross profit margin remains at 100% due to the nature of banking operations. The absence of EBIT and net income for 2024 significantly impacts profitability analysis, indicating potential operational challenges.

Balance Sheet

The balance sheet reflects a stable equity position with stockholders' equity rising from $8.253B in 2022 to $9.111B in 2024. The debt-to-equity ratio improved from 0.50 in 2022 to 0.37 in 2024, indicating reduced leverage. Equity ratio slightly increased to approximately 11.1% in 2024, suggesting a stable financial foundation.

Cash Flow

Operating cash flow shows resilience, maintaining around $1.268B in 2024 despite revenue declines. Free cash flow remains strong at $1.268B, but growth has stagnated. The operating cash flow to net income ratio cannot be assessed due to zero net income in 2024, highlighting a potential risk in earnings sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.86B	4.94B	4.71B	3.41B	3.15B	2.80B
Gross Profit	2.95B	2.95B	2.90B	3.02B	3.30B	2.06B
EBITDA	1.13B	1.11B	1.23B	1.24B	1.33B	995.00M
Net Income	801.00M	775.00M	897.00M	900.00M	999.00M	845.00M
Balance Sheet
Total Assets	81.49B	82.15B	81.66B	78.95B	89.09B	84.21B
Cash, Cash Equivalents and Short-Term Investments	8.75B	8.94B	10.73B	11.28B	24.76B	17.60B
Total Debt	5.49B	4.59B	3.70B	4.10B	3.71B	3.87B
Total Liabilities	72.45B	73.04B	72.37B	70.41B	80.60B	75.90B
Stockholders Equity	8.75B	8.82B	9.00B	8.25B	8.20B	8.01B
Cash Flow
Free Cash Flow	736.00M	1.22B	1.26B	2.26B	672.00M	114.00M
Operating Cash Flow	779.00M	1.27B	1.30B	2.31B	725.00M	172.00M
Investing Cash Flow	511.00M	-1.06B	-2.60B	8.33B	-4.60B	-4.97B
Financing Cash Flow	-1.21B	-404.00M	1.49B	-10.87B	4.02B	5.18B

First Horizon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FHN, the sentiment is Positive. The current price of 21.76 is above the 20-day moving average (MA) of 20.20, above the 50-day MA of 19.53, and above the 200-day MA of 18.98, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 73.44 is Negative, neither overbought nor oversold. The STOCH value of 95.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FHN.

First Horizon Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SSB	80 Outperform	$9.82B	15.26	7.18%	2.23%	9.38%	3.47%
WBS	79 Outperform	$9.56B	12.79	8.59%	2.81%	2.69%	-9.07%
FHN	76 Outperform	$11.04B	15.18	9.09%	2.76%	-0.50%	-1.31%
CBSH	74 Outperform	$8.50B	15.81	16.82%	1.73%	-4.27%	17.70%
WF	73 Outperform	$12.29B	6.24	9.43%	2.72%	-0.86%	13.17%
GGAL	71 Outperform	$8.09B	5.38	28.17%	2.15%	-35.65%	70.23%
Sector *	58 Neutral	$12.52B	5.23	-2.71%	5.27%	5.88%	-56.03%

First Horizon Corporate Events

First Horizon Reports Strong Q1 2025 Financial Results

First Horizon Corporation reported strong financial results for the first quarter of 2025, with a net income available to common shareholders of $213 million and an earnings per share of $0.41, marking an increase from the previous quarter. The company’s business model, which emphasizes safety, profitability, and growth, has enabled it to navigate economic uncertainties and achieve sustainable growth, benefiting its stakeholders in the long term.