First Horizon Corporation
First Horizon Corporation Fundamental Analysis
First Horizon Corporation (FHN-PC) shows moderate financial fundamentals with a PE ratio of 12.56, profit margin of 19.99%, and ROE of 11.06%. The company generates $5.1B in annual revenue with moderate year-over-year growth of 4.71%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 51.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze FHN-PC's fundamental strength across five key dimensions:
Efficiency Score
WeakFHN-PC struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFHN-PC trades at attractive valuation levels.
Growth Score
WeakFHN-PC faces weak or negative growth trends.
Financial Health Score
ModerateFHN-PC shows balanced financial health with some risks.
Profitability Score
ModerateFHN-PC maintains healthy but balanced margins.
Key Financial Metrics
Is FHN-PC Expensive or Cheap?
P/E Ratio
FHN-PC trades at 12.56 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FHN-PC's PEG of 0.95 indicates potential undervaluation.
Price to Book
The market values First Horizon Corporation at 1.39 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.55 times EBITDA. This is generally considered low.
How Well Does FHN-PC Make Money?
Net Profit Margin
For every $100 in sales, First Horizon Corporation keeps $19.99 as profit after all expenses.
Operating Margin
Core operations generate 26.07 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.06 in profit for every $100 of shareholder equity.
ROA
First Horizon Corporation generates $1.17 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
First Horizon Corporation generates limited operating cash flow of $435.03M, signaling weaker underlying cash strength.
Free Cash Flow
First Horizon Corporation produces free cash flow of $417.55M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.83 in free cash annually.
FCF Yield
FHN-PC converts 3.27% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.95
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.39
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.52
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.52
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.96
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.01
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How FHN-PC Stacks Against Its Sector Peers
| Metric | FHN-PC Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.56 | 18.86 | Better (Cheaper) |
| ROE | 11.06% | 847.00% | Weak |
| Net Margin | 19.99% | 4202.00% | Weak |
| Debt/Equity | 0.52 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 0.96 | 667.17 | Weak Liquidity |
| ROA | 1.17% | -21543.00% (disorted) | Weak |
FHN-PC outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews First Horizon Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
28.39%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
2.01%
Industry Style: Value, Dividend, Cyclical
GrowingFCF CAGR
-11.32%
Industry Style: Value, Dividend, Cyclical
Declining