First Horizon returned losses of -49.9% last year, with its stock price reaching a high of $24.92 and a low of $8.99. Over the same period, the stock underperformed the S&P 500 index by -62.0%. As of April 2023, the company's 50-day average price was $13.15. First Horizon Corporation operates as the bank holding company for First Horizon Bank that provides various financial services. Based in Memphis, TN, the large-cap Finance company has 7,300 full time employees. First Horizon has offered a 5.4% dividend yield over the last 12 months.
The Business Runs With Low Leverage Levels:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | 2022-12-31 | |
|---|---|---|---|---|
| Revenue (MM) | $1,818 | $3,154 | $3,071 | $3,209 |
| Interest Income (MM) | $1,210 | $1,662 | $1,994 | $2,392 |
| Net Margins | 24.25% | 26.79% | 32.53% | 28.05% |
| Net Income (MM) | $441 | $845 | $999 | $900 |
| Depreciation & Amort. (MM) | -$25 | -$40 | -$56 | -$51 |
| Earnings Per Share | $1.38 | $1.89 | $1.74 | $1.62 |
| EPS Growth | n/a | 36.96% | -7.94% | -6.9% |
| Diluted Shares (MM) | 316 | 434 | 551 | 538 |
| Free Cash Flow (MM) | $781 | $114 | $688 | $2,283 |
| Capital Expenditures (MM) | -$49 | -$58 | -$53 | -$28 |
| Long Term Debt (MM) | $791 | $1,670 | $1,590 | $1,597 |
| Net Debt / EBITDA | 1.07 | -2.17 | -3.71 | 0.46 |
First Horizon benefits from low leverage, growing revenues and decreasing reinvestment in the business, and consistent net margins with a stable trend. The company's financial statements show positive EPS growth and generally positive cash flows.
First Horizon Is Potentially Undervalued and Trades Below Its Graham Number:
First Horizon has a trailing twelve month P/E ratio of 8.1, compared to an average of 14.34 for the Finance sector. Based on its EPS guidance of $1.4, the company has a forward P/E ratio of 9.4. The 0.3% compound average growth rate of First Horizon's historical and projected earnings per share yields a PEG ratio of 28.17. This suggests that these shares are overvalued. In contrast, the market is likely undervaluing First Horizon in terms of its equity because its P/B ratio is 0.79 while the sector average is 1.57. The company's shares are currently trading -51.5% below their Graham number.
First Horizon Has an Analyst Consensus of Some Upside Potential:
The 7 analysts following First Horizon have set target prices ranging from $12.25 to $16.0 per share, for an average of $13.32 with a buy rating. As of April 2023, the company is trading -1.3% away from its average target price, indicating that there is an analyst consensus of some upside potential.
First Horizon has an average amount of shares sold short because 4.8% of the company's shares are sold short. Institutions own 80.2% of the company's shares, and the insider ownership rate stands at 1.08%, suggesting a small amount of insider investors. The largest shareholder is Blackrock Inc., whose 14% stake in the company is worth $830,814,877.
