GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » First Horizon Corp (NYSE:FHN) » Definitions » Piotroski F-Score

First Horizon (First Horizon) Piotroski F-Score : 7 (As of Jun. 17, 2024)


View and export this data going back to 1973. Start your Free Trial

What is First Horizon Piotroski F-Score?

Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

First Horizon has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for First Horizon's Piotroski F-Score or its related term are showing as below:

FHN' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 6   Max: 9
Current: 7

During the past 13 years, the highest Piotroski F-Score of First Horizon was 9. The lowest was 2. And the median was 6.


First Horizon Piotroski F-Score Historical Data

The historical data trend for First Horizon's Piotroski F-Score 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 Piotroski F-Score Chart

First Horizon Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.00 5.00 5.00 4.00 8.00

First Horizon Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Piotroski F-Score Get a 7-Day Free Trial 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 5.00 8.00 8.00 8.00 7.00

Competitive Comparison of First Horizon's Piotroski F-Score

For the Banks - Regional subindustry, First Horizon's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


First Horizon's Piotroski F-Score Distribution in the Banks Industry

For the Banks industry and Financial Services sector, First Horizon's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where First Horizon's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Net Income was 325 + 137 + 184 + 192 = $838 Mil.
Cash Flow from Operations was 305 + 698 + 365 + 838 = $2,206 Mil.
Revenue was 783 + 757 + 777 + 798 = $3,115 Mil.
Average Total Assets from the begining of this year (Mar23)
to the end of this year (Mar24) was
(80729 + 85071 + 82533 + 81661 + 81799) / 5 = $82358.6 Mil.
Total Assets at the begining of this year (Mar23) was $80,729 Mil.
Long-Term Debt & Capital Lease Obligation was $1,165 Mil.
Total Assets was $81,799 Mil.
Total Liabilities was $72,626 Mil.
Net Income was 174 + 265 + 266 + 251 = $956 Mil.

Revenue was 720 + 853 + 860 + 837 = $3,270 Mil.
Average Total Assets from the begining of last year (Mar22)
to the end of last year (Mar23) was
(88660 + 85132 + 80299 + 78953 + 80729) / 5 = $82754.6 Mil.
Total Assets at the begining of last year (Mar22) was $88,660 Mil.
Long-Term Debt & Capital Lease Obligation was $1,605 Mil.
Total Assets was $80,729 Mil.
Total Liabilities was $71,834 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

First Horizon's current Net Income (TTM) was 838. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

First Horizon's current Cash Flow from Operations (TTM) was 2,206. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Mar23)
=838/80729
=0.01038041

ROA (Last Year)=Net Income/Total Assets (Mar22)
=956/88660
=0.01078277

First Horizon's return on assets of this year was 0.01038041. First Horizon's return on assets of last year was 0.01078277. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

First Horizon's current Net Income (TTM) was 838. First Horizon's current Cash Flow from Operations (TTM) was 2,206. ==> 2,206 > 838 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar23 to Mar24
=1165/82358.6
=0.01414546

Gearing (Last Year: Mar23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar22 to Mar23
=1605/82754.6
=0.01939469

First Horizon's gearing of this year was 0.01414546. First Horizon's gearing of last year was 0.01939469. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.

Current Ratio (This Year: Mar24)=Total Assets/Total Liabilities
=81799/72626
=1.12630463

Current Ratio (Last Year: Mar23)=Total Assets/Total Liabilities
=80729/71834
=1.12382716

First Horizon's current ratio of this year was 1.12630463. First Horizon's current ratio of last year was 1.12382716. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

First Horizon's number of shares in issue this year was 557.873. First Horizon's number of shares in issue last year was 571.991. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.

Net Margin (This Year: TTM)=Net Income/Revenue
=838/3115
=0.26902087

Net Margin (Last Year: TTM)=Net Income/Revenue
=956/3270
=0.29235474

First Horizon's net margin of this year was 0.26902087. First Horizon's net margin of last year was 0.29235474. ==> Last year's net margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Mar23)
=3115/80729
=0.03858589

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar22)
=3270/88660
=0.03688247

First Horizon's asset turnover of this year was 0.03858589. First Horizon's asset turnover of last year was 0.03688247. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+1+1+0+1
=7

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

First Horizon has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

First Horizon  (NYSE:FHN) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


First Horizon Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of First Horizon's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


First Horizon (First Horizon) Business Description

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
Velia Carboni director 165 MADISON AVE, MEMPHIS TN 38103
William H Fenstermaker director 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Vicki R Palmer director PO BOX 723040, ATLANTA GA 30339
Rosa Sugranes director 2975 N.W. 77TH AVE, DORAL FL 33132
Reed Colin V director
Wendy P Davidson director 2210 WEST OAKLAWN DRIVE, SPRINGDALE AR 72762
D Bryan Jordan officer: EVP and CFO
Terry Lawson Akins officer: Sr. EVP, Chief Risk Officer 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
David T Popwell officer: EVP-Regional Bkg & Bkg COO 165 MADISON AVENUE, MEMPHIS TN 38103
Tammy Locascio officer: Sr. EVP, Chief HR Officer 165 MADISON AVE, MEMPHIS TN 38103
Daryl G Byrd director, officer: Executive Chairman of Board 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Anthony J Restel officer: SEVP Chief Operating Officer 200 WEST CONGRESS STREET, LAFAYETTE LA 70501
Hope Dmuchowski officer: Sr. EVP & CFO 165 MADISON AVE, MEMPHIS TN 38103
Losch William C Iii officer: EVP and CFO 165 MADISON AVENUE, MEMPHIS TN 38103
Elizabeth A Ardoin officer: SEVP, Chief Communications Ofc 200 WEST CONGRESS STREET, LAFAYETTE LA 70501