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First HorizonFHN -1.24%69 ROE % is 11.68% as of Mar. 2026, which is 9% above its 10-year median of 10.67. 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 1,524 Banks companies, First Horizon ranks better than 60.37% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. First Horizon's annualized net income for the quarter that ended in Mar. 2026 was $1,052 Mil. First Horizon's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $9,009 Mil. Therefore, First Horizon's annualized ROE % for the quarter that ended in Mar. 2026 was 11.68%.
The historical rank and industry rank for First Horizon's ROE % or its related term are showing as below:
FHN'
s ROE % Range Over the Past 10 Years
Min: 4.94 Med: 10.67 Max: 13.21
Current: 11.73
During the past 13 years, First Horizon's highest ROE % was 13.21%. The lowest was 4.94%. And the median was 10.67%.
FHN's ROE % is ranked better than 60.37% of 1524
companies
in the Banks industry
Industry Median: 10.33
vs FHN: 11.73
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
First Horizon ROE % Related Terms
First Horizon ROE % Historical Data
* Premium members only.
The historical data trend for First Horizon's ROE % 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.
For the Banks - Regional subindustry, First Horizon's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Banks Industry
For the Banks industry and Financial Services sector, First Horizon's ROE % distribution charts can be found below:
* The bar in red indicates where First Horizon's ROE % falls into.
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
First Horizon (FHN) has a ROE % of 11.68% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on First Horizon and its competitors. This is near median its historical median of 10.67. Over the past decade, First Horizon's ROE % has ranged from 4.94 to 13.21. According to the industry distribution chart, First Horizon ranks #604 out of 1524 companies in the Banks industry, placing it in the top 39.6%.
Is First Horizon's ROE % too high?
First Horizon's current ROE % of 11.68% is near median its 10-year median of 10.67. Over the past 10 years, this metric has ranged from a low of 4.94 to a high of 13.21. The Banks industry median ROE % is 10.33. First Horizon's value of 11.68% is 13.1% above this industry median. Based on the distribution chart, First Horizon ranks #604 out of 1524 companies in the Banks industry, which is above the industry midpoint. 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 ROE % compare to WBS and BPOP?
According to the Banks industry distribution chart, First Horizon ranks #604 out of 1524 companies for ROE %. This puts First Horizon in the upper half of its industry. The industry median ROE % is 10.33. First Horizon's value of 11.68% is 13.1% above this benchmark. Historically, First Horizon's own ROE % has ranged from 4.94 to 13.21 over the past decade. While the company's 10-year median is 10.67 vs. the industry median of 10.33, First Horizon has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Banks company?
The median ROE % among Banks companies is 10.33, based on 1,524 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. First Horizon's current ROE % of 11.68% is 13.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on First Horizon and its competitors. For the Banks industry, the median ROE % is 10.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Horizon's current ROE % is 11.68%, which is near median its own 10-year median of 10.67. 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 $25.45 — trading 18% above its estimated fair value. The current ROE % is 11.68%, which is near median its 10-year median of 10.67 and 13.1% above the Banks industry median of 10.33. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For First Horizon (FHN), the current ROE % is 11.68% as of Mar. 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 $25.45 is trading 18% above its estimated GF Value™ of $21.56.
GuruFocus considers First Horizon to be Modestly Overvalued.
Key valuation signals for FHN:
ROE %: 11.68% (near median its 10-year median of 10.67)
GF Value™: $21.56 vs. price of $25.45 (18% above fair value)
Industry Position: 13.1% above the Banks median (#604 of 1524)
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 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
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