First Horizon Corporation (FHN) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

First Horizon Corporation (FHN) Financial Services Profile

First Horizon Corporation, a regional bank holding company founded in 1864, provides comprehensive financial services through its Regional Banking, Specialty Banking, and Corporate segments. Operating approximately 500 banking offices across 22 states under the First Horizon Bank brand, and 400 banking centers in 12 states under the FHN Financial brand, it maintains a strong presence in the U.S. market.

What Is the Investment Thesis for FHN?

With a market capitalization of $11.8B and a P/E ratio of 11.73, the company demonstrates financial stability. A profit margin of 22.3% and a gross margin of 73.8% indicate efficient operations. The dividend yield of 2.52% provides an attractive income stream for investors. Growth catalysts include expansion of its digital banking platform and strategic acquisitions to enhance market share. Potential risks include interest rate volatility and increased competition from fintech companies. The company's beta of 0.63 suggests lower volatility compared to the overall market.

Based on FMP financials and quantitative analysis

FHN Key Highlights

Market capitalization of $11.8B, reflecting substantial investor confidence.

• P/E ratio of 11.73, indicating a potentially undervalued stock relative to earnings.
• Profit margin of 22.3%, showcasing efficient profitability.
• Gross margin of 73.8%, highlighting effective cost management.
• Dividend yield of 2.52%, providing a steady income stream for investors.

Who Are FHN's Competitors?

FHN is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are FHN's Key Strengths?

Established regional presence with a strong branch network.

• Diverse service offerings catering to a wide range of customer needs.
• Solid financial performance with healthy profit margins.
• Experienced management team.

What Are FHN's Weaknesses?

Limited geographic diversification compared to national banks.

• Exposure to regional economic fluctuations.
• Reliance on traditional banking services in a rapidly evolving market.
• Potential integration challenges with acquired entities.

What Could Drive FHN Stock Higher?

Potential strategic acquisitions to expand market presence.

• Continued expansion of digital banking platform to attract and retain customers.
• Focus on wealth management services to drive revenue growth.
• Enhancement of commercial lending activities to support small and medium-sized businesses.

What Are the Key Risks for FHN?

Financial-distress signal — its Altman Z-Score of 0.26 sits in the distress zone (elevated bankruptcy risk).

• Insider selling — insiders were net sellers of roughly $2.8M recently.
• Increased competition from national banks and fintech companies.
• Interest rate volatility impacting net interest margin.
• Regulatory changes and compliance costs.
• Economic downturn affecting loan demand and credit quality.
• Integration risks associated with acquisitions.

What Are the Growth Opportunities for FHN?

• Expansion of Digital Banking Platform: First Horizon can capitalize on the growing demand for digital banking services by enhancing its online and mobile platforms. This includes offering a wider range of digital products, improving user experience, and leveraging data analytics to personalize services. The digital banking market is projected to reach $9 trillion by 2028, presenting a significant growth opportunity. Timeline: Ongoing.
• Strategic Acquisitions: First Horizon can pursue strategic acquisitions to expand its geographic footprint and market share. This includes targeting smaller regional banks or specialized financial service providers that complement its existing business. Successful acquisitions can drive revenue growth and improve operational efficiency. The M&A activity in the banking sector is expected to remain robust, providing ample opportunities. Timeline: Ongoing.
• Increased Focus on Wealth Management: First Horizon can expand its wealth management services to cater to the growing affluent population. This includes offering personalized investment advice, financial planning, and trust services. The wealth management market is projected to reach $140 trillion by 2026, presenting a significant growth opportunity. Timeline: Ongoing.
• Enhancement of Commercial Lending: First Horizon can increase its commercial lending activities by targeting small and medium-sized businesses. This includes offering a range of loan products, providing flexible financing solutions, and building strong relationships with business owners. The commercial lending market is expected to grow steadily, driven by increasing business investment. Timeline: Ongoing.
• Leveraging Fintech Partnerships: First Horizon can partner with fintech companies to enhance its product offerings and improve customer experience. This includes integrating fintech solutions into its digital banking platform, offering innovative payment options, and leveraging data analytics to personalize services. Fintech partnerships can drive innovation and improve competitiveness. Timeline: Ongoing.

What Are FHN's Competitive Advantages?

• Extensive branch network providing a strong physical presence.
• Established brand reputation built over 160 years.
• Diverse service offerings catering to a wide range of customer needs.
• Strong relationships with local communities and businesses.

What Does FHN Do?

First Horizon Corporation, established in 1864 and headquartered in Memphis, Tennessee, has evolved into a prominent regional bank holding company. Originally known as First Horizon National Corporation, the company rebranded in November 2020 to First Horizon Corporation. Through its primary subsidiary, First Horizon Bank, the company delivers a wide array of financial services targeting consumers, businesses, financial institutions, and government entities. The company is structured into three key segments: Regional Banking, Specialty Banking, and Corporate. The Regional Banking segment focuses on traditional banking services, including deposit accounts, loans, and wealth management. The Specialty Banking segment offers specialized financial solutions, such as mortgage banking, title insurance, and equipment finance. The Corporate segment manages the company's investment portfolio, provides treasury services, and oversees other corporate functions. First Horizon 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. These branches provide access to a comprehensive suite of products, including checking and savings accounts, commercial and consumer loans, mortgages, and investment services. Additionally, the company offers services such as brokerage, correspondent banking, and trust and fiduciary services. First Horizon also provides mutual fund and retail insurance products, as well as credit cards. The company's diverse service offerings and extensive branch network position it as a key player in the regional banking sector.

What Products and Services Does FHN Offer?

• Provides general banking services to consumers and businesses.
• Offers mortgage banking and loan-closing services.
• Provides brokerage and investment advisory services.
• Offers correspondent banking services.
• Provides trust, fiduciary, and agency services.
• Offers equipment finance solutions.
• Sells mutual fund and retail insurance products.
• Provides credit cards.

How Does FHN Make Money?

• Generates revenue through interest income from loans.
• Earns fees from services such as mortgage banking, brokerage, and wealth management.
• Underwrites bank-eligible securities and other fixed-income securities.
• Sells loans and derivatives.

What Industry Does FHN Operate In?

First Horizon Corporation operates within the regional banking sector, which is characterized by increasing consolidation and technological disruption. The industry is influenced by factors such as interest rate movements, regulatory changes, and economic growth. Competition is intense, with both traditional banks and fintech companies vying for market share. First Horizon differentiates itself through its extensive branch network and diverse service offerings. The regional banking sector is expected to grow modestly, driven by increasing demand for loans and financial services from small and medium-sized businesses. Key competitors include Banco Santander-Chile (BSAC), Comerica Incorporated (CMA), and Webster Financial Corporation (WBS).

Who Are FHN's Key Customers?

• Consumers seeking personal banking services.
• Businesses requiring commercial banking solutions.
• Financial institutions utilizing correspondent banking services.
• Government entities needing financial services.

Over the past six months, First Horizon Corporation insiders filed 45 SEC Form 4 transactions — 22 sales and 23 purchases. On net that is roughly 227K shares acquired (about $2.8M) — insiders putting money in tends to read as conviction.

First Horizon Corporation has beaten Wall Street's EPS estimate in 8 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 9.4% above estimates on average.

First Horizon Corporation's Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 0.26 places it in the distress zone, a signal of elevated financial risk.

Return on equity for First Horizon Corporation stands at 11.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.2%, showing how much profit it generates from its asset base. FHN trades at a trailing price-to-earnings ratio of 11.73, below the Financial Services sector average of ~17.50x. Its free cash flow yield is 7.6%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.96 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 8.7%, the inverse of the P/E and a quick read on earnings relative to price.

First Horizon Corporation (FHN) Valuation Context

Valued at $11.8B, FHN is classified as a large-cap stock. Analyst price targets span from $27.00 to $30.00, with a consensus of $28.58. At the current price of $24.76, that implies approximately 15% upside potential. Relative to its peer group, FHN's quantitative score of 89/100 is roughly in line with the peer average of 88/100.

FHN Revenue & Earnings Trend

In Q2 FY2026, FHN generated $1.24B in top-line revenue, marking a sequential increase of 43.9%. The company recorded net income of $271.0M, with diluted EPS of $0.56. Quarter-over-quarter revenue has been mixed, typical for a large-cap company operating in Financial Services. Across the four most recent quarters, FHN averaged $0.54 in diluted EPS.

Company Profile

First Horizon Corporation operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Memphis, US. The company is led by CEO D. Bryan Jordan. FHN has traded publicly since 1980.

FHN Financials

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FHN Analyst Consensus

FHN MoonshotScore

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Common Questions About FHN (Financial Services)

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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