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First Horizon (NYSE:FHN) Earnings Yield %

: 6.19% (As of today)
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The earnings yield is an indication of how much return shareholders' investment in the company earned over the past 12 months. The higher the earnings yield is, the better.

As of today (2023-01-31), the stock price of First Horizon is $24.73. First Horizon's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2022 was $1.53. Therefore, First Horizon's earnings yield of today is 6.19%.

The earnings yield does not consider the growth of the business. A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. First Horizon's Forward Rate of Return (Yacktman) % for the quarter that ended in Sep. 2022 was 9.72%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


First Horizon Earnings Yield % Historical Data

The historical data trend for First Horizon's Earnings Yield % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

First Horizon Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Earnings Yield %
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First Horizon Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
Earnings Yield % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - - - -

First Horizon Earnings Yield % Calculation

Earnings yield is the reciprocal of the P/E Ratio.

First Horizon's Earnings Yield for today is calculated as

Earnings Yield=Earnings per Share (Diluted) (TTM)/Share Price
=1.530/24.73
=6.19 %

First Horizon's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Sep. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $1.530 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:

Earnings Yield=Net Income /Market Cap

The earnings in the calculation is the Trailing Twelve Months earnings.


First Horizon  (NYSE:FHN) Earnings Yield % Explanation

If the P/E ratio is an indication of how many years it takes for the company to earn back the stock price shareholders pay to buy the shares, the earnings yield is an indication of how much return shareholders' investment in the company earned over the past 12 months. The higher the earnings yield is, the better.

If a company loses money, the earnings yield is negative. This gives a more straightforward indication that the company is losing money. This is an advantage of using earnings yield instead of the P/E ratio in valuation. For valuation purposes, the P/B Ratio and the P/S Ratio should be used for companies that are losing money.

Like the P/E ratio, the earnings yield can be used to compare investments in different industries. It can even be used to compare the attractiveness of different asset classes such as bonds and cash. Of course, the earnings yield should not be the only factor in deciding which asset classes to invest.

Also similar to the P/E ratio, the earnings yield does not consider the growth of the business. A growing company with the same earnings yield should be more attractive than a company that has the same earnings yield but does not grow.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %.

Be Aware

Just like the P/E Ratio, non-recurring items such as selling part of the business, selling a previous investment, etc., can affect earnings yield dramatically. The earning yield is also a poor indication for cyclical companies. When a cyclical stock has a high earnings yield it is usually at the peak of its cycle.


First Horizon Earnings Yield % Related Terms

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First Horizon (NYSE:FHN) Business Description

First Horizon logo
Address
165 Madison Avenue, Memphis, TN, USA, 38103
First Horizon Corp is the parent company of First Tennessee Bank, a prominent regional bank with about 200 branches around Tennessee. The regional bank is responsible for roughly 65% of its revenue, while capital markets make a 25% contribution. The remainder is split between the firm's non-strategic (wind-down) and corporate operations. First Horizon concentrates on offering a variety of banking products mainly in its home state, where it has the second- largest deposit franchise with a 13% deposit market share.
Executives
Hope Dmuchowski officer: Sr. EVP & CFO 165 MADISON AVE, MEMPHIS TN 38103
John N Casbon director 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Tammy Locascio officer: Sr. EVP, Chief HR Officer 165 MADISON AVE, MEMPHIS TN 38103
Kemp Sr James Michael director 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Ricky E Maples director 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Terry Lawson Akins officer: Sr. EVP, Chief Risk Officer 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Elizabeth A Ardoin officer: SEVP, Chief Communications Ofc 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Rosa Sugranes director 2975 N.W. 77TH AVE, DORAL FL 33132
Anthony J Restel officer: SEVP Chief Operating Officer 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Shea E Stewart Iii director 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
William H Fenstermaker director 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Daryl G Byrd director, officer: Executive Chairman of Board 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Barton Harry V Jr director 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Michael J Brown officer: President - Regional Banking 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Wendy P Davidson director 2210 WEST OAKLAWN DRIVE, SPRINGDALE AR 72762

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