First Horizon (FHN) AI Stock Analysis

• Market Cap: $11.21B
• Dividend Yield: 2.63%
• Average Volume (3M): 6.51M
• Price to Earnings (P/E): 13.8
• Beta (1Y): 1.12
• Revenue Growth: -4.51%
• EPS Growth: 20.78%
• Country: US
• Employees: 7,200
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.51
• Shares Outstanding: 492,394,100
• 10 Day Avg. Volume: 3,973,180
• 30 Day Avg. Volume: 6,506,516
• 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: 1.51
• Enterprise Value/Revenue: 3.82
• Enterprise Value/Gross Profit: 5.42
• Enterprise Value/Ebitda: 13.84
• 1Y Price Target: $24.38
• Price Target Upside: 7.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 1.84
• Revenue Forecast (FY): $3.39B

• Rating: 72 Outperform
• Price Target: $24.50 ▲(7.55% Upside)

First Horizon's overall stock score reflects a balanced view of its financial performance, technical indicators, and valuation. Strong profitability and operational efficiency are offset by revenue growth and cash flow challenges. Technical analysis suggests bullish momentum, while valuation remains attractive. The positive earnings call further supports the company's strategic direction and confidence in sustaining growth.

Positive Factors

Net Interest Income Growth

The growth in net interest income and margin expansion indicates effective interest rate management and loan pricing, supporting long-term profitability.

Strong Capital Position

A strong capital position with ongoing share buybacks reflects financial stability and management's confidence in the company's future performance.

Board Expansion

The addition of a board member with strategic experience suggests a commitment to governance and strategic growth, enhancing long-term decision-making.

Negative Factors

Declining Revenue Growth

Declining revenue growth can hinder long-term expansion and market competitiveness, potentially impacting future profitability.

Core Deposit Challenges

A decline in core deposits indicates competitive pressures and challenges in retaining customer funds, affecting liquidity and funding costs.

Decline in Period-End Loans

A decrease in period-end loans suggests potential issues in loan demand or credit conditions, impacting future interest income and growth.

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 generates revenue through several key streams, primarily from net interest income and non-interest income. Net interest income is derived from the difference between interest earned on loans and interest paid on deposits, which constitutes a significant portion of the company's earnings. Additionally, First Horizon earns non-interest income through fees from various services, including wealth management, investment services, and mortgage origination. The company also benefits from strategic partnerships and collaborations that enhance its service offerings and market reach. Factors contributing to its earnings include interest rate changes, loan growth, and overall economic conditions in its operating regions.

First Horizon Financial Statement Overview

Summary

First Horizon's financial performance is stable with strong profitability margins and a solid balance sheet. However, challenges include declining revenue growth and low operating cash flow coverage ratio, which need improvement for sustained growth.

Income Statement

First Horizon's income statement shows a mixed performance. The TTM data reveals a decline in revenue growth rate, indicating potential challenges in revenue generation. However, the company maintains healthy gross and net profit margins, suggesting efficient cost management. The EBIT and EBITDA margins are stable, reflecting consistent operational efficiency.

Balance Sheet

The balance sheet of First Horizon is relatively strong, with a moderate debt-to-equity ratio indicating manageable leverage. The return on equity is positive, though slightly declining, suggesting effective use of equity to generate profits. The equity ratio is stable, reflecting a solid capital structure.

Cash Flow

Cash flow analysis indicates a positive trend in free cash flow growth, although the operating cash flow to net income ratio is low, suggesting potential challenges in converting income into cash. The free cash flow to net income ratio is high, indicating efficient cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.41B	4.94B	4.71B	3.41B	3.15B	2.80B
Gross Profit	3.11B	2.95B	2.90B	3.02B	3.30B	2.06B
EBITDA	1.22B	1.11B	1.23B	1.24B	1.33B	995.00M
Net Income	886.00M	775.00M	897.00M	900.00M	999.00M	845.00M
Balance Sheet
Total Assets	83.19B	82.15B	81.66B	78.95B	89.09B	84.21B
Cash, Cash Equivalents and Short-Term Investments	10.24B	8.94B	10.73B	11.28B	24.76B	17.60B
Total Debt	5.60B	4.59B	3.70B	4.10B	3.71B	3.87B
Total Liabilities	73.95B	73.04B	72.37B	70.41B	80.60B	75.90B
Stockholders Equity	8.95B	8.82B	9.00B	8.25B	8.20B	8.01B
Cash Flow
Free Cash Flow	406.00M	1.22B	1.26B	2.26B	672.00M	114.00M
Operating Cash Flow	423.00M	1.27B	1.30B	2.29B	725.00M	172.00M
Investing Cash Flow	-355.00M	-1.06B	-2.60B	8.33B	-4.60B	-4.97B
Financing Cash Flow	-418.00M	-404.00M	1.49B	-10.87B	4.02B	5.18B

First Horizon Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 22.78 is above the 20-day moving average (MA) of 21.92, above the 50-day MA of 21.76, and above the 200-day MA of 20.61, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 62.46 is Neutral, neither overbought nor oversold. The STOCH value of 85.79 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	79 Outperform	$9.26B	12.65	9.32%	2.49%	33.87%	12.26%
WTFC	78 Outperform	$9.21B	12.64	11.69%	1.45%	3.58%	13.93%
UMBF	77 Outperform	$8.73B	13.01	11.06%	1.40%	38.81%	10.38%
WBS	77 Outperform	$10.08B	11.64	9.80%	2.55%	4.78%	21.68%
WAL	72 Outperform	$9.39B	10.55	12.79%	1.85%	6.30%	25.28%
FHN	72 Outperform	$11.21B	13.77	9.87%	2.63%	-4.51%	20.78%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

First Horizon Corporate Events

First Horizon Elects Sital K. Mody to Board

On October 27, 2025, First Horizon Corporation and its subsidiary, First Horizon Bank, elected Sital K. Mody to their Boards of Directors. Mr. Mody, who is currently the President of the Natural Gas Pipelines Group at Kinder Morgan, Inc., brings extensive experience in energy infrastructure and strategic operations. His appointment includes roles on the Nominating and Corporate Governance Committee and the Compensation Committee. Additionally, the Board approved an amendment to the Bylaws, increasing the number of directors from thirteen to fourteen.

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.