First Horizon Corp (FHN.PF) stock analysis

P/E below its 5-year median

First Horizon's P/E of 11.1 is below its own 5-year median of 12.9.

P/E below the industry

First Horizon's P/E of 11.1 is below the Commercial Banks median of 12.3.

P/S below the industry

First Horizon's price-to-sales of 3.13 is below the Commercial Banks median of 3.64.

P/B below the industry

First Horizon's price-to-book of 1.20 is below the Commercial Banks median of 1.27.

Trading below fair value

The share price of $23.27 is below our fair value estimate of $25.35.

Margin of safety under 20%

The price is 8.2% below fair value, less than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 2.2% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 6.9% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 25.3% over the last twelve months, against a 5-year average of 3.1% a year.

Growing slower than the industry

Revenue grew 10.3% over the last twelve months; the Commercial Banks median is 11.4%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 11.6% over the last twelve months and averaged 10.7% over five years; we look for 15% on both.

Return on assets over 1%

Return on assets was 1.3%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

First Horizon's return on equity of 11.6% is above the Commercial Banks median of 11.2%.

Earnings grew over 5 years

Net income grew 3.1% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 29.9% over the last twelve months, against a 5-year average of 27.9%.

Net margin below the industry

First Horizon's net margin of 29.9% is below the Commercial Banks median of 30.0%.

Well capitalized

Equity is 10.9% of total assets; 8% or more is a comfortable cushion.

Loans funded by deposits

Loans equal 94.9% of deposits, so lending is funded by customer deposits.

Adequate loan-loss reserve

The allowance for credit losses is 1.1% of loans; we look for at least 1%.

High cost base

Non-interest expense takes 60.5% of revenue; under 60% is efficient for a bank.

Deposits growing

Deposits grew 3.8% over the past year.

Modest borrowings

Borrowings other than deposits are 32.8% of equity.

Pays a dividend

First Horizon paid dividends worth 2.8% of the share price over the last twelve months.

Yield below Treasuries

The 2.8% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 4.0% or more; First Horizon yields 2.8%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 29.5% of net income.

Covered by free cash flow

Dividends take 30.7% of free cash flow.