First Horizon Corporation (NYSE:FHN) Accelerates Capital Returns While Momentum Builds Near-Term

First Horizon enters late 2025 with stronger capital-return signals and bullish technical momentum, even as several valuation metrics place the stock above WMDST's fair-value assessment. Near-term price action will reflect the interaction between firm trend strength and stretched cash-flow metrics.

Recent News

On October 27, 2025 the board authorized a new $1.2 billion common-stock repurchase program and declared a $0.15 quarterly cash dividend payable January 2, 2026.

In mid-December 2025, a market research note highlighted improving relative strength and a chart pattern breakout into a buy zone, noting momentum improvement but still short of top technical benchmarks.

Technical Analysis

ADX at 44.2 signals very strong trend strength; that strength amplifies directional signals and implies moves carry conviction rather than random noise.

DI+ sits at 29.65 with a dip-and-reversal, a bullish directional shift, while DI- at 7.48 shows a decreasing trajectory; together these directional indicators bias price action higher and support the near-term bullish momentum.

MACD stands at 0.64 and the MACD line has crossed above its 0.53 signal line, while the MACD trend shows increasing momentum; that crossover confirms accelerating bullish momentum and supports continuation of recent gains.

MRO at 5.61 with a peak-and-reversal signals the price currently trades above the model target and faces potential downward pressure from momentum exhaustion despite broader bullish signals.

RSI at 60.57 and rising points to constructive momentum without extended overbought readings, consistent with room for further upside before extreme conditions emerge.

Price sits above key averages: close $24.51 versus the 20-day average $23.80, 50-day average $22.05 and 200-day average $20.88, while the 12-day EMA at $23.95 trends higher; these relationships reinforce the bullish price bias and place near-term support near the super-trend lower line at $23.58.

Bollinger boundaries place the close near the upper 1x band ($24.52) and close to the 52-week high ($24.75), indicating price tests of the short-term range top; low trading volume relative to 10/50/200-day averages suggests current moves lack broad participation, which can limit the durability of breakouts.

 


Fundamental Analysis

Earnings: Reported EPS $0.51 versus an estimate of $0.45, producing an EPS surprise of 13.33%, and reported net income of $262,000,000 for the period; those results reinforce earnings momentum embedded in current multiples.

Profitability and returns: Return on equity registers 3.05% and return on assets 0.317%, with QoQ improvements of 7.935% and 7.458% respectively; ROE sits slightly above the industry peer mean of 2.846%, indicating comparative efficiency in generating shareholder returns.

Revenue and interest income: Total revenue $865,000,000 and net interest income $674,000,000; reported revenue growth of 7.19% and year-over-year earnings growth of 13.33% underpin multiple expansion despite mixed cash-flow signals.

Cash flow and capital: Operating cash flow showed an outflow of $200,000,000 and free cash flow registered negative $208,000,000, yielding a free cash flow yield of -1.88%, which sits well below the industry peer mean free cash flow yield of 2.78%; negative free cash flow constrains intrinsic-value support even with capital returns announced.

Balance sheet and leverage: Total assets $83,192,000,000, total equity $8,600,000,000, and debt-to-assets 3.515%, which remains below the industry peer mean debt-to-assets of 5.628%; the lighter leverage profile supports capital return capacity while limiting balance-sheet risk.

Valuation metrics: Price-to-book 1.289 sits above the industry peer mean book multiple of 1.2447 and median 1.15007; price-to-earnings 43.45 exceeds the industry peer mean of 42.9964 but only marginally; price-to-sales 12.82 aligns with the industry peer mean of 12.812. PEG at 3.26 compares below the industry peer mean of 4.6578. Despite pockets of relative parity, the aggregate picture drives WMDST’s current valuation view.

Dividend and capital policy: Dividend payout ratio 32.06% with a dividend yield of 0.76% and announced board actions to return capital via buybacks and dividends; the new $1.2 billion repurchase program materially increases cash deployment for shareholder returns.

Valuation summary: WMDST values the stock as over-valued. Elevated P/E and P/S multiples combined with negative free cash flow yield create upward price expectations that exceed fundamental cash-generation support despite modestly above-mean ROE and recent EPS beats.

MOST-RECENT QUARTERLY REPORT
REPORT PERIOD ENDING: 2025-09-30
REPORT DATE: 2025-10-15
NEXT REPORT DATE: 2026-01-14
CASH FLOW  Begin Period Cash Flow 1.5 B
 Operating Cash Flow -200.00 M
 Capital Expenditures -8.00 M
 Change In Working Capital -445.00 M
 Dividends Paid -84.00 M
 Cash Flow Delta 171.0 M
 End Period Cash Flow 1.7 B
 
INCOME STATEMENT REVENUE
 Total Revenue 865.0 M
 Forward Revenue 204.2 M
COSTS
 Cost Of Revenue
 Depreciation 14.0 M
 Depreciation and Amortization 6.0 M
 Research and Development
 Total Operating Expenses
PROFITABILITY
 Gross Profit
 EBITDA
 EBIT
 Operating Income
 Interest Income 1.1 B
 Interest Expense 403.0 M
 Net Interest Income 674.0 M
 Income Before Tax 344.0 M
 Tax Provision 78.0 M
 Tax Rate 22.7 %
 Net Income 262.0 M
 Net Income From Continuing Operations 265.0 M
EARNINGS
 EPS Estimate 0.45
 EPS Actual 0.51
 EPS Difference 0.06
 EPS Surprise 13.333 %
 Forward EPS 0.49
 
BALANCE SHEET ASSETS
 Total Assets 83.2 B
 Intangible Assets 1.6 B
 Net Tangible Assets 7.3 B
 Total Current Assets
 Cash and Short-Term Investments
 Cash 2.1 B
 Net Receivables
 Inventory
 Long-Term Investments
LIABILITIES
 Accounts Payable
 Short-Term Debt 1.6 B
 Total Current Liabilities
 Net Debt 784.0 M
 Total Debt 2.9 B
 Total Liabilities 73.9 B
EQUITY
 Total Equity 8.6 B
 Retained Earnings 4.8 B
VALUATION & PER-SHARE METRICS EQUITY & PER-SHARE METRICS
 Book Value Per-Share 17.19
 Shares Outstanding 500.368 M
 Revenue Per-Share 1.73
VALUATION
 Market Capitalization 11.1 B
 Enterprise Value 14.0 B
 Enterprise Multiple
Enterprise Multiple QoQ
Enterprise Multiple YoY
Enterprise Multiple IPRWA
 EV/R 16.198
CAPITAL STRUCTURE
 Asset To Equity 9.673
 Asset To Liability 1.125
 Debt To Capital 0.254
 Debt To Assets 0.035
Debt To Assets QoQ 80.072 %
Debt To Assets YoY 330.233 %
Debt To Assets IPRWA high: 0.165
mean: 0.056
median: 0.053
FHN: 0.035
low: 0.0
 Debt To Equity 0.34
Debt To Equity QoQ 81.159 %
Debt To Equity YoY 332.956 %
Debt To Equity IPRWA high: 1.525
mean: 0.513
median: 0.455
FHN: 0.34
low: -0.109
PRICE-BASED VALUATION
 Price To Book (P/B) 1.289
Price To Book QoQ 0.81 %
Price To Book YoY 35.247 %
Price To Book IPRWA high: 2.042
FHN: 1.289
mean: 1.245
median: 1.15
low: 0.284
 Price To Earnings (P/E) 43.449
Price To Earnings QoQ -3.005 %
Price To Earnings YoY 18.53 %
Price To Earnings IPRWA high: 75.793
FHN: 43.449
mean: 42.996
median: 41.642
low: 9.669
 PE/G Ratio 3.259
 Price To Sales (P/S) 12.818
Price To Sales QoQ -5.244 %
Price To Sales YoY 25.47 %
Price To Sales IPRWA high: 24.051
FHN: 12.818
mean: 12.812
median: 12.491
low: 0.117
FORWARD MULTIPLES
Forward P/E 56.063
Forward PE/G 4.205
Forward P/S 68.4
EFFICIENCY OPERATIONAL
 Operating Leverage
ASSET & SALES
 Asset Turnover Ratio 0.01
Asset Turnover Ratio QoQ 6.079 %
Asset Turnover Ratio YoY 7.605 %
Asset Turnover Ratio IPRWA high: 0.016
FHN: 0.01
mean: 0.01
median: 0.01
low: 0.005
 Receivables Turnover
Receivables Turnover Ratio QoQ
Receivables Turnover Ratio YoY
Receivables Turnover Ratio IPRWA
 Inventory Turnover
Inventory Turnover Ratio QoQ
Inventory Turnover Ratio YoY
Inventory Turnover Ratio IPRWA
 Days Sales Outstanding (DSO)
CASH CYCLE
 Cash Conversion Cycle Days (CCC)
Cash Conversion Cycle Days QoQ
Cash Conversion Cycle Days YoY
Cash Conversion Cycle Days IPRWA high: 84.471
mean: 35.522
median: 34.679
FHN: 0
low: -17.91
CAPITAL DEPLOYMENT
 Cash Conversion Ratio
 CapEx To Revenue -0.009
 CapEx To Depreciation -0.571
 
CAPITAL, LIQUIDITY & COVERAGE CAPITAL STRUCTURE
 Total Capital 10.3 B
 Net Invested Capital 11.5 B
 Invested Capital 11.5 B
 Net Tangible Assets 7.3 B
 Net Working Capital
LIQUIDITY
 Cash Ratio
 Current Ratio
Current Ratio QoQ
Current Ratio YoY
Current Ratio IPRWA
 Quick Ratio
Quick Ratio QoQ
Quick Ratio YoY
Quick Ratio IPRWA
COVERAGE & LEVERAGE
 Debt To EBITDA
 Cost Of Debt 13.766 %
 Interest Coverage Ratio
Interest Coverage Ratio QoQ
Interest Coverage Ratio YoY
Interest Coverage Ratio IPRWA
 Operating Cash Flow Ratio
TIMING / LIQUIDITY
 Days Payables Outstanding (DPO)
DIVIDENDS
 Dividend Coverage Ratio 3.119
 Dividend Payout Ratio 0.321
 Dividend Rate 0.17
 Dividend Yield 0.008
PERFORMANCE GROWTH
 Asset Growth Rate 1.35 %
 Revenue Growth 7.187 %
Revenue Growth QoQ 215.081 %
Revenue Growth YoY 469.042 %
Revenue Growth IPRWA high: 23.369 %
FHN: 7.187 %
mean: 4.907 %
median: 4.033 %
low: -9.66 %
 Earnings Growth 13.333 %
Earnings Growth QoQ 86.658 %
Earnings Growth YoY -20.004 %
Earnings Growth IPRWA high: 63.889 %
FHN: 13.333 %
median: 8.04 %
mean: 7.498 %
low: -37.5 %
MARGINS
 Gross Margin
Gross Margin QoQ
Gross Margin YoY
Gross Margin IPRWA
 EBIT Margin
EBIT Margin QoQ
EBIT Margin YoY
EBIT Margin IPRWA
 Return On Sales (ROS)
Return On Sales QoQ
Return On Sales YoY
Return On Sales IPRWA
CASH FLOW
 Free Cash Flow (FCF) -208.00 M
 Free Cash Flow Yield -1.876 %
Free Cash Flow Yield QoQ -376.696 %
Free Cash Flow Yield YoY -140.128 %
Free Cash Flow Yield IPRWA high: 9.814 %
mean: 2.782 %
median: 2.661 %
FHN: -1.876 %
low: -3.401 %
 Free Cash Growth -381.081 %
Free Cash Growth QoQ 387.098 %
Free Cash Growth YoY 12.783 %
Free Cash Growth IPRWA high: 435.53 %
mean: 24.887 %
median: 4.44 %
FHN: -381.081 %
low: -394.679 %
 Free Cash To Net Income -0.794
 Cash Flow Margin 30.983 %
 Cash Flow To Earnings 1.023
VALUE & RETURNS
 Economic Value Added 0.06
 Return On Assets (ROA) 0.317 %
Return On Assets QoQ 7.458 %
Return On Assets YoY 20.076 %
Return On Assets IPRWA high: 0.657 %
FHN: 0.317 %
mean: 0.305 %
median: 0.301 %
low: 0.027 %
 Return On Capital Employed (ROCE)
 Return On Equity (ROE) 0.03
Return On Equity QoQ 7.935 %
Return On Equity YoY 20.15 %
Return On Equity IPRWA high: 0.052
FHN: 0.03
median: 0.03
mean: 0.028
low: 0.002
 DuPont ROE 3.059 %
 Return On Invested Capital (ROIC)
Return On Invested Capital QoQ
Return On Invested Capital YoY
Return On Invested Capital IPRWA

Six-Week Outlook

Directional indicators and a bullish MACD crossover favor continued upside attempts over the next six weeks, with near-term support clustered around the super-trend lower at $23.58 and the 20-day average. Rising RSI and price positioned above the 12-day EMA add momentum to upside scenarios. Countervailing risk comes from a positive but peaking MRO and negative free cash flow, which increase the likelihood of short corrective episodes if participation does not pick up. Low relative volume makes breakouts more fragile, and announced share-repurchase activity may compress float and amplify short-term moves. Expect price to oscillate within a momentum-driven range with a bullish tilt tempered by valuation and cash-flow dynamics.

About First Horizon Corporation

First Horizon Corporation (NYSE:FHN) delivers a broad array of financial services from its headquarters in Memphis, Tennessee. Established in 1864, the company acts as the bank holding company for First Horizon Bank, catering to the financial needs of individuals, businesses, financial institutions, and government entities. Through its Regional Banking and Specialty Banking segments, First Horizon provides consumer and commercial banking, mortgage banking, and wealth management services. The company offers innovative financial solutions, including deposit services, loan syndications, and brokerage services. In the capital markets, First Horizon provides underwriting services for securities and derivatives, along with investment and financial advisory services. Its specialized offerings include commercial real estate services, asset-based lending, and finance solutions for the energy and healthcare sectors. First Horizon also extends its capabilities beyond traditional banking by offering transaction processing, credit card services, and the sale of mutual funds and retail insurance products. With a commitment to building enduring relationships, First Horizon maintains a legacy of trust and excellence in the financial industry, continually adapting to the changing needs of its clients and communities.



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