Company Overview
First Horizon Corporation functions as the primary bank holding company for First Horizon Bank, delivering a comprehensive suite of financial services through its Regional Banking, Specialty Banking, and Corporate segments. This organization operates within the broader Financial Services sector, specifically categorized under Banks - Regional, which typically implies a focus on localized markets and community-focused lending rather than nationwide dominance. The company's scale is substantial, evidenced by a market capitalization of $10.69B and a workforce of 7,277 employees, reflecting its significant footprint in the regional banking landscape. Its annual revenue reaches $3.35B, a figure that positions First Horizon as a meaningful participant in the financial services industry, capable of generating capital for operations and potential expansion while maintaining a stable presence in its designated markets.
Financial Health
First Horizon reported a total revenue of $3.35B over the trailing twelve months, with a corresponding net income of $956.00M, while specific EBITDA figures are not disclosed in the available data. The substantial gap between the $3.35B revenue and the $956.00M net income reveals a cost structure where operational expenses, including interest expense and overhead, consume approximately 70.7% of total revenue before arriving at the bottom line. The company holds a cash reserve of $4.95B against a total debt load of $5.35B, indicating a balance sheet that is nearly neutral with only $0.40B more in debt than in cash on hand. Specific metrics for free cash flow, debt-to-equity ratio, and current ratio are not provided in the current dataset, limiting a direct quantitative assessment of daily liquidity and leverage ratios. However, the company demonstrates a Return on Equity of 10.9% and a Return on Assets of 1.2%, metrics that indicate management is effectively deploying shareholder capital to generate returns, with the ROE being particularly notable for a regional banking institution. The operating margin stands at 43.2% and the profit margin is 29.3%, suggesting efficient cost management relative to the high-cost nature of banking operations, though the gross margin is listed at 0.0%, which is standard for financial institutions as their primary cost is interest-bearing liabilities rather than traditional cost of goods sold.
Valuation Assessment
The stock carries a trailing P/E ratio of 11.83 and a forward P/E of 9.44, a difference that implies the market expects earnings growth in the future that would lower the valuation multiple compared to historical performance. The price-to-book ratio is 1.26, indicating that the market values the company at a modest premium of 26% over its tangible book value, which is a conservative stance typical for regional banks with solid balance sheets. Alternative valuation metrics such as the price-to-sales ratio of 3.19 and the EV/EBITDA metric, which is not available, provide additional context, suggesting the company is priced in line with its revenue generation capabilities. The 52-week trading range spans from a low of $15.19 to a high of $26.56, establishing a volatility band within which the current price must be evaluated to determine relative attractiveness. The beta coefficient is 0.62, a value that signifies the stock's price volatility is significantly lower than the broader market, making it a less volatile investment option compared to large-cap equities.
Growth & Income
Revenue growth for the trailing twelve months stands at 23.7%, while earnings growth is markedly higher at 72.3%, implying that the company is improving its profitability efficiency at a much faster rate than it is expanding its top line. For dividend investors, First Horizon offers a dividend yield of 3.1% with a payout ratio of 32.1%, a low ratio that suggests the dividend is highly sustainable given the strong earnings growth and ample cash reserves. Because the payout ratio is well below 100%, the company retains the majority of its earnings to fuel growth initiatives and bolster capital reserves rather than distributing all profits to shareholders. The overall profile presents a blend of moderate price volatility, significant earnings acceleration, and a reliable income stream supported by a conservative payout policy.