First Horizon National Stock Beneish M Score

FHN Stock  USD 21.09  0.10  0.47%   
This module uses fundamental data of First Horizon to approximate the value of its Beneish M Score. First Horizon M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out First Horizon Piotroski F Score and First Horizon Altman Z Score analysis.
  
At this time, First Horizon's Debt Ratio is very stable compared to the past year. At this time, First Horizon's EV To Operating Cash Flow is very stable compared to the past year. As of the 28th of November 2024, PE Ratio is likely to grow to 13.07, while Price To Sales Ratio is likely to drop 1.96.
At this time, it appears that First Horizon National is an unlikely manipulator. The earnings manipulation may begin if First Horizon's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by First Horizon executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of First Horizon's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.74
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.78

Focus
Asset Quality

0.9

Focus
Expense Coverage

0.93

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

0.93

Focus
Depreciation Resistance

0.84

Focus
Net Sales Growth

0.59

Focus
Financial Leverage Condition

1.0

Focus

First Horizon Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if First Horizon's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables69.2 B65.9 B
Sufficiently Up
Slightly volatile
Total Revenue1.8 BB
Way Down
Slightly volatile
Total Assets85.7 B81.7 B
Sufficiently Up
Slightly volatile
Total Current Assets18 B9.4 B
Way Up
Pretty Stable
Non Current Assets Total14.4 B13.7 B
Sufficiently Up
Slightly volatile
Property Plant Equipment454.6 M703.8 M
Way Down
Slightly volatile
Depreciation And Amortization80.4 M102 M
Significantly Down
Slightly volatile
Selling General Administrative699.2 M1.3 B
Way Down
Slightly volatile
Total Current Liabilities21.3 B20.3 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total76 B72.4 B
Sufficiently Up
Slightly volatile
Short Term Debt2.7 B2.5 B
Sufficiently Up
Slightly volatile
Long Term Debt1.8 B1.1 B
Way Up
Slightly volatile
Operating Income702.8 M886 M
Significantly Down
Slightly volatile
Short Term Investments8.8 B8.4 B
Sufficiently Up
Slightly volatile
Long Term Investments15.6 B11.1 B
Significantly Up
Pretty Stable

First Horizon National Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between First Horizon's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards First Horizon in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find First Horizon's degree of accounting gimmicks and manipulations.

About First Horizon Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Other Operating Expenses

877.61 Million

At this time, First Horizon's Other Operating Expenses is very stable compared to the past year.

First Horizon Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as First Horizon. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables68.7M38.9M40.1M57.3B65.9B69.2B
Total Revenue1.8B3.2B3.1B3.2B3.0B1.8B
Total Assets43.3B84.2B89.1B79.0B81.7B85.7B
Total Current Assets5.6B17.6B24.8B2.4B9.4B18.0B
Net Debt1.9B(5.7B)(12.3B)1.7B1.7B1.8B
Short Term Debt2.3B2.2B2.1B2.5B2.5B2.7B
Long Term Debt1.4B2.0B1.6B1.6B1.2B1.8B
Operating Income574.2M921M1.3B1.5B886M702.8M
Investments(2.4B)(7.0B)(4.6B)8.2B(2.7B)(2.5B)

First Horizon ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, First Horizon's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to First Horizon's managers, analysts, and investors.
Environmental
Governance
Social

About First Horizon Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze First Horizon National's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of First Horizon using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of First Horizon National based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

Pair Trading with First Horizon

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if First Horizon position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in First Horizon will appreciate offsetting losses from the drop in the long position's value.

Moving together with First Stock

  0.95AX Axos FinancialPairCorr
  0.93BY Byline Bancorp Fiscal Year End 23rd of January 2025 PairCorr

Moving against First Stock

  0.68CFG-PE Citizens FinancialPairCorr
  0.66TFC-PO Truist FinancialPairCorr
  0.64TFC-PR Truist FinancialPairCorr
  0.38WF Woori Financial GroupPairCorr
The ability to find closely correlated positions to First Horizon could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace First Horizon when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back First Horizon - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling First Horizon National to buy it.
The correlation of First Horizon is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as First Horizon moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if First Horizon National moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for First Horizon can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether First Horizon National offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of First Horizon's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of First Horizon National Stock. Outlined below are crucial reports that will aid in making a well-informed decision on First Horizon National Stock:
Check out First Horizon Piotroski F Score and First Horizon Altman Z Score analysis.
You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.
Is Regional Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of First Horizon. If investors know First will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about First Horizon listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.734
Dividend Share
0.6
Earnings Share
1.37
Revenue Per Share
5.604
Quarterly Revenue Growth
0.186
The market value of First Horizon National is measured differently than its book value, which is the value of First that is recorded on the company's balance sheet. Investors also form their own opinion of First Horizon's value that differs from its market value or its book value, called intrinsic value, which is First Horizon's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because First Horizon's market value can be influenced by many factors that don't directly affect First Horizon's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between First Horizon's value and its price as these two are different measures arrived at by different means. Investors typically determine if First Horizon is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, First Horizon's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.