First Horizon National's average rating is Buy from 11 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on First Horizon market sentiment investors' perception of the future value of First. Let us look at a few aspects of First technical analysis. The company has Net Profit Margin of
37.23 %, which may imply that it executes well on its competitive polices and has reasonable control over its expenses and variable costs. This is very large. In the same way, it shows Net Operating Margin of
27.59 %, which entails that for every 100 dollars of revenue, it generated 0.28 of operating income.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of First Horizon National. In general, sophisticated investors focus on analyzing First Horizon stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build First Horizon's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of
First Horizon's intrinsic value. In addition to deriving basic predictive indicators for First Horizon, many experienced traders also check how macroeconomic factors affect First Horizon price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of First Horizon's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as First Horizon. Your research has to be compared to or analyzed against First Horizon's peers to derive any actionable benefits. When done correctly, First Horizon's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in First Horizon National.
How important is First Horizon's Liquidity
First Horizon
financial leverage refers to using borrowed capital as a funding source to finance First Horizon National ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. First Horizon financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to First Horizon's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of First Horizon's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between First Horizon's total debt and its cash.
First Horizon Gross Profit
First Horizon Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing First Horizon previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show First Horizon Gross Profit growth over the last 10 years. Please check First Horizon's
gross profit and other
fundamental indicators for more details.
Closer look at First Horizon Semi Variance
First Horizon National has current Semi Variance of 4.16. Semi-variance provides a good measure of downside volatility for equity or a portfolio. It is similar to variance, but it only looks at periods where the returns are less than the target or average level.
Semi-variance is the square of semi-deviation. Semi-variance is calculated by averaging the deviations of returns that have a result that is less than the mean.
Semi Variance | = | SUM(RET DEV)2 N(ZERO) |
| = | 4.16 |
| SUM | = | Summation notation |
| RET DEV | = | Actual return deviation over selected period |
| N(ZERO) | = | Number of points with returns less than zero |
Let's now compare First Horizon Semi Variance to its closest peers:
| FHN | 4.161224427641881 |
| EGBN | 3.68 |
| EBMT | 4.16 |
| KB | 3.38 |
| AX | 2.14 |
First technical analysis suggests possible bounce back
The expected short fall is down to -2.81 as of today. First Horizon National currently demonstrates below-verage downside deviation. It has Information Ratio of 0.1 and Jensen Alpha of 0.46. However, we do advice investors to further question First Horizon National expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.
Our Final Take On First Horizon
Whereas some firms within the banks—regional industry are still a little expensive, even after the recent corrections, First Horizon may offer a potential longer-term growth to institutional investors. While some institutional investors may not share our view, we believe that right now is not a good time to increase your holdings in First. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to First Horizon.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of First Horizon National. Please refer to our
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