First Horizon (FHN) AI Stock Analysis

• Market Cap: $11.40B
• Dividend Yield: 2.88%
• Average Volume (3M): 12.36M
• Price to Earnings (P/E): 14.5
• 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: 14,238,812
• 30 Day Avg. Volume: 12,361,351
• 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: 1.35
• Enterprise Value/Revenue: 3.20
• Enterprise Value/Gross Profit: 5.17
• Enterprise Value/Ebitda: 13.22
• 1Y Price Target: $24.36
• Price Target Upside: 16.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 69 Neutral
• Price Target: $25.00 ▲(19.90% Upside)

First Horizon's overall score reflects a stable financial position with strong profitability and a solid balance sheet. Technical indicators show positive momentum, and the earnings call provided optimistic guidance. However, challenges in revenue growth and cash flow efficiency slightly temper the outlook.

Positive Factors

Net Interest Income Growth

The growth in net interest income and margin expansion indicates effective management of interest-bearing assets and liabilities, which is crucial for sustained profitability in the banking sector.

Strong Capital Position

Maintaining a strong CET1 capital ratio and continuing share buybacks reflect robust capital management, providing financial stability and flexibility for future growth initiatives.

Diversified Business Model

A diversified business model and strategic geographic presence enhance resilience against market volatility and support long-term growth by catering to a broad customer base.

Negative Factors

Declining Revenue Growth

A declining revenue growth rate suggests potential difficulties in expanding the business, which could impact long-term profitability and market competitiveness if not addressed.

Core Deposit Challenges

A significant decline in core deposits can strain liquidity and increase reliance on more expensive funding sources, potentially affecting interest margins and financial stability.

Increased Adjusted Expenses

Rising expenses, particularly in personnel and contributions, can erode profit margins and may necessitate cost management strategies to maintain financial health.

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 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: 20.85
• 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 20.85 is below the 20-day moving average (MA) of 22.69, below the 50-day MA of 22.34, and above the 200-day MA of 20.49, indicating a neutral trend. The MACD of -0.05 indicates Positive momentum. The RSI at 34.96 is Neutral, neither overbought nor oversold. The STOCH value of 36.63 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	78 Outperform	$8.82B	13.34	10.05%	1.38%	30.40%	12.40%
WBS	78 Outperform	$9.67B	11.82	9.34%	2.75%	4.73%	7.12%
WTFC	76 Outperform	$8.60B	12.14	11.60%	1.52%	4.74%	10.10%
SSB	73 Outperform	$9.74B	14.30	8.19%	2.29%	21.10%	7.74%
FHN	69 Neutral	$11.40B	14.48	9.87%	2.88%	-4.49%	20.77%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WAL	65 Neutral	$8.70B	10.37	12.58%	1.93%	7.14%	14.94%

First Horizon Corporate Events

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.

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.

First Horizon Reports Strong Q2 2025 Financial Results

On July 16, 2025, First Horizon Corporation reported strong financial results for the second quarter of 2025, with a net income available to common shareholders of $233 million and an earnings per share of $0.45, marking an increase from the previous quarter. The company’s performance highlights its commitment to safety, soundness, profitability, and growth, with notable improvements in net interest income, noninterest income, and loan portfolio growth. The results underscore the company’s strategic focus and operational strengths, positively impacting its industry positioning and stakeholder value.