FHN (First Horizon) Beneish M-Score: -2.23 (As of Jul. 31, 2026)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

FHN First Horizon Corp FHN
69 GF Score
Price $25.64
GF Value $21.56
Valuation Modestly Overvalued
! 5 Warning Signs
View Full Analysis

What is First Horizon Beneish M-Score?

First Horizon FHN +0.75% 69 Beneish M-Score is -2.23 as of Jul. 31, 2026. GuruFocus rates FHN with a GF Score™ of 69/100 and a GF Value™ of $21.56 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,392 Banks companies, First Horizon ranks worse than 78.23% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.23 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FHN' s Beneish M-Score Range Over the Past 10 Years
Min: -3.52   Med: -2.49   Max: 0.41
Current: -2.23

During the past 13 years, the highest Beneish M-Score of First Horizon was 0.41. The lowest was -3.52. And the median was -2.49.

FHN
69GF Score
First Horizon Corp FHN
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

First Horizon Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of First Horizon for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1+0.528 * 1+0.404 * 1.0006+0.892 * 1.1001+0.115 * 1.3723
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.922+4.679 * 0.005598-0.327 * 0.755
=-2.23

* 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 (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was $1,500 Mil.
Revenue was 860 + 863 + 865 + 807 = $3,395 Mil.
Gross Profit was 860 + 863 + 865 + 807 = $3,395 Mil.
Total Current Assets was $0 Mil.
Total Assets was $84,132 Mil.
Property, Plant and Equipment(Net PPE) was $539 Mil.
Depreciation, Depletion and Amortization(DDA) was $64 Mil.
Selling, General, & Admin. Expense(SGA) was $1,272 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $1,318 Mil.
Net Income was 263 + 262 + 262 + 241 = $1,028 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 278 + 396 + -200 + 83 = $557 Mil.
 Total Receivables was $0 Mil.
Revenue was 789 + 703 + 802 + 792 = $3,086 Mil.
Gross Profit was 789 + 703 + 802 + 792 = $3,086 Mil.
Total Current Assets was $0 Mil.
Total Assets was $81,491 Mil.
Property, Plant and Equipment(Net PPE) was $569 Mil.
Depreciation, Depletion and Amortization(DDA) was $97 Mil.
Selling, General, & Admin. Expense(SGA) was $1,254 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $1,691 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(1500 / 3395) / (0 / 3086)
=0.441826 / 0
=1

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(3086 / 3086) / (3395 / 3395)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 539) / 84132) / (1 - (0 + 569) / 81491)
=0.993593 / 0.993018
=1.0006

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=3395 / 3086
=1.1001

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(97 / (97 + 569)) / (64 / (64 + 539))
=0.145646 / 0.106136
=1.3723

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(1272 / 3395) / (1254 / 3086)
=0.374669 / 0.406351
=0.922

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((1318 + 0) / 84132) / ((1691 + 0) / 81491)
=0.015666 / 0.020751
=0.755

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(1028 - 0 - 557) / 84132
=0.005598

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

First Horizon has a M-score of -2.23 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.23 mean?
First Horizon (FHN) has a Beneish M-Score of -2.23 as of Jul. 31, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on First Horizon and its competitors. According to the industry distribution chart, First Horizon ranks #1089 out of 1392 companies in the Banks industry, placing it in the top 78.2%.
Is First Horizon's Beneish M-Score too high?
First Horizon's current Beneish M-Score is -2.23. Based on the distribution chart, First Horizon ranks #1089 out of 1392 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, First Horizon has a GF Score™ of 69/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does First Horizon's Beneish M-Score compare to WBS and BPOP?
According to the Banks industry distribution chart, First Horizon ranks #1089 out of 1392 companies for Beneish M-Score. This places First Horizon in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Banks company?
A good Beneish M-Score depends on the Banks industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on First Horizon and its competitors. First Horizon's current Beneish M-Score is -2.23. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First Horizon stock overvalued right now?
Based on GuruFocus' analysis, First Horizon (FHN) is currently considered Modestly Overvalued. The stock's GF Value™ is $21.56, compared to a current price of $25.64 — trading 18.9% above its estimated fair value. The current Beneish M-Score is -2.23. First Horizon's overall GF Score™ is 69/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For First Horizon (FHN), the current Beneish M-Score is -2.23 as of Jul. 31, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is First Horizon (FHN) Overvalued in 2026?

Based on GuruFocus' analysis, First Horizon stock appears to be overvalued. The current stock price of $25.64 is trading 18.9% above its estimated GF Value™ of $21.56. GuruFocus considers First Horizon to be Modestly Overvalued.

Key valuation signals for FHN:

  • Beneish M-Score: -2.23
  • GF Value™: $21.56 vs. price of $25.64 (18.9% above fair value)
  • GF Score™: 69/100 with 5 warning signs

No single metric tells the full story. See the FHN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

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 company's reportable segments are: Commercial, Consumer & Wealth, Wholesale, and Corporate. The majority of its revenue is generated from Commercial, Consumer & Wealth. The Commercial, Consumer & Wealth segment offers financial products and services, including traditional lending and deposit taking, to commercial and consumer clients in the southern USA and other selected markets. The Wholesale segment delivers industry-specific products and services, while the Corporate segment provides internal support functions like finance, risk, and audit.
69GF Score

Get the complete analysis for FHN

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$25.64
Price
$21.56
GF Value