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Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 57.2GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
10.5%
Sector: 8.5%
Dividend Analysis audit
INCOME
2.67%
Trailing Yield
$2.67
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
31%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, FIRST HORIZON CORP (FHN) receives a "Hold" rating with a composite score of 53.3/100, ranked #1248 out of 4446 stocks. Key factor scores: Quality 57/100, Value 74/100, Momentum 51/100. This is quantitative analysis only — not investment advice.
FIRST HORIZON CORP (FHN) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does FIRST HORIZON CORP Do?
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. FIRST HORIZON CORP (FHN) is classified as a large-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO D. Bryan Jordan and employs approximately 7,540 people, headquartered in Memphis, Tennessee. With a market capitalization of $11.0B, FHN is one of the prominent companies in the Financials sector.
FIRST HORIZON CORP (FHN) Stock Rating — Hold (April 2026)
As of April 2026, FIRST HORIZON CORP receives a Hold rating with a composite score of 53.3/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.FHN ranks #1,248 out of 4,446 stocks in our coverage universe. Within the Financials sector, FIRST HORIZON CORP ranks #381 of 891 stocks, placing it in the upper half of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
FHN Stock Price and 52-Week Range
FIRST HORIZON CORP (FHN) currently trades at $24.27. The stock lost $0.16 (0.7%) in the most recent trading session. The 52-week high for FHN is $26.56, which means the stock is currently trading -8.6% from its annual peak. The 52-week low is $15.19, putting the stock 59.8% above its annual trough. Recent trading volume was 2.0M shares, reflecting moderate market activity.
Is FHN Overvalued or Undervalued? — Valuation Analysis
FIRST HORIZON CORP (FHN) carries a value factor score of 74/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 11.58x, compared to the Financials sector average of 14.88x — a discount of 22%. The price-to-book ratio stands at 1.21x, versus the sector average of 1.22x. The price-to-sales ratio is 3.51x, compared to 0.90x for the average Financials stock. On an enterprise value basis, FHN trades at 9.08x EV/EBITDA, versus 3.26x for the sector.
Based on these multiples, FIRST HORIZON CORP appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
FIRST HORIZON CORP Profitability — ROE, Margins, and Quality Score
FIRST HORIZON CORP (FHN) earns a quality factor score of 57/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 10.5%, compared to the Financials sector average of 8.5%, which is within a healthy range. Return on assets (ROA) comes in at 1.1% versus the sector average of 1.2%.
On a margin basis, FIRST HORIZON CORP reports gross margins of 0.0%. The operating margin is 39.0% (sector: 21.8%). Net profit margin stands at 30.6%, versus 17.7% for the average Financials stock. Revenue growth is running at 9777.8% on a trailing basis, compared to 9.4% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
FHN Debt, Balance Sheet, and Financial Health
FIRST HORIZON CORP has a debt-to-equity ratio of 817.0%, compared to the Financials sector average of 121.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.12x, suggesting adequate working capital coverage. Total debt on the balance sheet is $5.60B. Cash and equivalents stand at $912M.
FHN has a beta of 1.12, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for FIRST HORIZON CORP is 74/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
FIRST HORIZON CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, FIRST HORIZON CORP reported revenue of $3.16B and earnings per share (EPS) of $1.89. Net income for the quarter was $956M. Gross margin was 0.0%. Operating income came in at $1.22B.
In FY 2025, FIRST HORIZON CORP reported revenue of $3.42B and earnings per share (EPS) of $1.89. Net income for the quarter was $998M. Revenue grew 7.2% year-over-year compared to FY 2024. Operating income came in at $1.28B.
In Q3 2025, FIRST HORIZON CORP reported revenue of $889M and earnings per share (EPS) of $0.50. Net income for the quarter was $266M. Revenue grew 41.8% year-over-year compared to Q3 2024. Operating income came in at $344M.
In Q2 2025, FIRST HORIZON CORP reported revenue of $830M and earnings per share (EPS) of $0.46. Net income for the quarter was $245M. Revenue grew 9122.2% year-over-year compared to Q2 2024. Operating income came in at $309M.
Over the past 8 quarters, FIRST HORIZON CORP has demonstrated a growth trajectory, with revenue expanding from $9M to $3.16B. Investors analyzing FHN stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
FHN Dividend Yield and Income Analysis
FIRST HORIZON CORP (FHN) currently pays a dividend yield of 2.7%. At this yield, a $10,000 investment in FHN stock would generate approximately $$267.00 in annual dividend income. This compares to the Financials sector average dividend yield of 2.5%, meaning FHN offers above-average income for its sector. With a net margin of 30.6%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
FHN Momentum and Technical Analysis Profile
FIRST HORIZON CORP (FHN) has a momentum factor score of 51/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 20/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 30/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
FHN vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing FHN against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full FHN vs S&P 500 (SPY) comparison to assess how FIRST HORIZON CORP stacks up against the broader market across all factor dimensions.
FHN Next Earnings Date
No upcoming earnings date has been announced for FIRST HORIZON CORP (FHN) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy FHN? — Investment Thesis Summary
FIRST HORIZON CORP presents a balanced picture with arguments on both sides. The value score of 74/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 74/100) reduces downside risk.
In summary, FIRST HORIZON CORP (FHN) earns a Hold rating with a composite score of 53.3/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on FHN stock.
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Institutional Research Dossier
FIRST HORIZON CORP (FHN) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
First Horizon Corporation (FHN) is a regional banking institution with a Hold rating from our proprietary BCR model. While the company's profitability and operating efficiency are strong relative to its peers, its subdued growth outlook and high debt levels raise concerns about its long-term sustainability. The critical takeaway is that First Horizon's current valuation may not fully reflect the risks and challenges it faces in the evolving banking landscape.
Business Strategy & Overview
First Horizon Corporation is a bank holding company that provides a wide range of financial services through its subsidiary, First Horizon Bank. The company operates in three core segments: Regional Banking, Specialty Banking, and Corporate. The Regional Banking segment is the company's largest, offering traditional consumer and commercial banking products and services, such as deposit accounts, loans, and cash management solutions, primarily to customers in the Southeastern United States.
The Specialty Banking segment focuses on more specialized offerings, including mortgage banking, title insurance, brokerage, and investment and financial advisory services. The Corporate segment encompasses the company's treasury function, along with certain support and administrative activities. First Horizon's strategic positioning emphasizes its regional focus and diversified revenue streams, aiming to capitalize on growth opportunities in its core markets while leveraging its specialized capabilities.
The banking industry in which First Horizon operates is characterized by increasing competition from both traditional and non-traditional players, as well as regulatory changes and evolving customer preferences. To navigate these challenges, the company has invested in digital transformation and sought to differentiate itself through its specialized services and tailored solutions for its regional customer base.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
9777.8%
Sector: 9.4%
+104141% VS SCTR
Economic Moat Analysis
First Horizon's economic moat can be characterized as narrow, primarily derived from its regional market dominance and specialized banking services. The company's long-standing presence and brand recognition in the Southeastern United States provide it with a degree of customer loyalty and localized market knowledge, which can be difficult for new entrants to replicate. Additionally, the company's Specialty Banking segment, which includes mortgage banking, title insurance, and wealth management services, offers some differentiation and cross-selling opportunities that enhance its competitive positioning.
However, the regional banking industry is highly competitive, with large national banks, community banks, and fintech players all vying for market share. First Horizon's ability to maintain its regional leadership and continue to grow its specialized offerings will be critical in sustaining its competitive edge. The company's investments in digital capabilities and ongoing product innovation will also be essential in addressing evolving customer preferences and fending off challenges from non-traditional competitors.
Overall, while First Horizon possesses some competitive advantages, its moat is considered narrow due to the inherent challenges of maintaining a strong position in a highly competitive regional banking market. The company's ability to continuously adapt and execute its strategy will be a key determinant of its long-term sustainability.
Financial Health & Profitability
First Horizon's financial health has generally been sound, with the company demonstrating strong profitability and operational efficiency relative to its peers. The company's return on equity (ROE) of 10.5% in the trailing 12 months (TTM) exceeds the sector average of 8.5%, indicating effective capital allocation and the ability to generate solid returns for shareholders. Additionally, the company's operating margin of 39.0% in the TTM period is significantly higher than the sector average of 22.0%, showcasing its operational discipline and cost management capabilities.
However, the company's balance sheet leverage, as measured by the debt-to-equity (D/E) ratio of 817.00, is significantly higher than the sector average of 115.00. This elevated leverage could expose the company to heightened financial risk, particularly in the event of an economic downturn or rising interest rates. The company's free cash flow generation has also been negative in recent periods, potentially limiting its financial flexibility and ability to invest in future growth initiatives.
Looking at the company's quarterly financial history, First Horizon has demonstrated mixed performance, with periods of strong earnings growth interspersed with more muted results. The company's revenue growth has been robust, with a TTM figure of 9,777.8% compared to the sector average of 9.3%. However, this exceptional growth rate may not be sustainable, and investors should closely monitor the company's ability to maintain its momentum in the coming quarters.
Valuation Assessment
First Horizon's current valuation, as measured by its price-to-earnings (P/E) ratio of 11.6x and enterprise value-to-EBITDA (EV/EBITDA) ratio of 2.0x, appears relatively attractive compared to the sector averages of 15.5x and 3.5x, respectively. This suggests that the stock may be trading at a discount to its peers, potentially offering value for investors.
However, the company's high debt levels and uncertainty surrounding its future growth trajectory should be factored into the valuation assessment. While the current valuation metrics may indicate an undervalued stock, investors should carefully consider the potential risks and challenges that First Horizon faces, such as the highly competitive regional banking landscape and the potential impact of rising interest rates on its financial performance.
Furthermore, the company's free cash flow yield, a key measure of valuation, is not available in the provided data, limiting a more comprehensive assessment of the stock's intrinsic value. Investors should closely monitor the company's ability to generate consistent and sustainable free cash flow, as this will be a crucial indicator of its long-term viability and growth potential.
Risk & Uncertainty
The primary risks and uncertainties facing First Horizon Corporation are primarily related to the competitive landscape of the regional banking industry, regulatory changes, and the company's elevated leverage.
The regional banking market in which First Horizon operates is highly competitive, with the company facing challenges from large national banks, community banks, and disruptive fintech players. Maintaining its market share and profitability in this environment will require the company to continuously invest in technological innovation, product development, and customer service. Failure to adapt to the evolving competitive landscape could erode the company's economic moat and lead to declining financial performance.
Additionally, the banking industry is subject to extensive regulation, and changes in the regulatory environment could have a significant impact on First Horizon's operations and profitability. Stricter capital requirements, increased compliance costs, or changes in lending regulations could all pose risks to the company's financial health and strategic positioning.
Bulls Say / Bears Say
The Bull Case
BULL VIEWFirst Horizon's strong profitability and operational efficiency, as evidenced by its high operating margins, suggest the company is well-positioned to capitalize on growth opportunities in its core regional markets.
BULL VIEWThe company's diversified revenue streams, including its specialized Specialty Banking segment, provide a degree of resilience and potential for cross-selling, which could drive sustained financial performance.
The Bear Case
BEAR VIEWFirst Horizon's high debt levels and negative free cash flow generation raise concerns about the company's long-term financial stability and its ability to withstand potential economic headwinds or rising interest rates.
BEAR VIEWThe highly competitive regional banking industry and the threat of disruption from fintech players could erode First Horizon's market share and profitability, undermining the company's long-term growth prospects.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score FHN and 4,400+ other equities.
FIRST HORIZON CORP exhibits a 111% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
1.1%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
0.0%
Sector: 0.0%
Operating Margin
Core business profitability
39.0%
Sector: 21.8%
Net Margin
Bottom-line profitability
30.6%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield2.48%
Yield Delta+8%
Income Projection audit
A $10,000 investment would generate approximately $267 annually in dividends at the current trailing rate.
