FEDERATED HERMES INC (FHI)
US3142111034 - Common Stock
FHI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 210 industry peers in the Capital Markets industry. Both the health and profitability get an excellent rating, making FHI a very profitable company, without any liquidiy or solvency issues. FHI is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make FHI suitable for value investing!
1. Profitability
1.1 Basic Checks
FHI had positive earnings in the past year.
FHI had a positive operating cash flow in the past year.
In the past 5 years FHI has always been profitable.
FHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 16.70%, FHI belongs to the top of the industry, outperforming 96.63% of the companies in the same industry.
Looking at the Return On Equity, with a value of 31.12%, FHI belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
FHI's Return On Invested Capital of 20.18% is amongst the best of the industry. FHI outperforms 95.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FHI is significantly above the industry average of 10.67%.
The 3 year average ROIC (16.38%) for FHI is below the current ROIC(20.18%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.7% | ||
| ROE | 31.12% | ||
| ROIC | 20.18% |
ROA(3y)12.56%
ROA(5y)13.37%
ROE(3y)23.44%
ROE(5y)24.61%
ROIC(3y)16.38%
ROIC(5y)16.52%
1.3 Margins
FHI has a Profit Margin (17.63%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of FHI has remained more or less at the same level.
FHI has a Operating Margin (24.40%) which is in line with its industry peers.
FHI's Operating Margin has declined in the last couple of years.
FHI's Gross Margin of 95.69% is amongst the best of the industry. FHI outperforms 93.75% of its industry peers.
In the last couple of years the Gross Margin of FHI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.4% | ||
| PM (TTM) | 17.63% | ||
| GM | 95.69% |
OM growth 3Y-4.78%
OM growth 5Y-3.04%
PM growth 3Y-6.48%
PM growth 5Y-1.02%
GM growth 3Y-0.18%
GM growth 5Y-0.11%
2. Health
2.1 Basic Checks
Compared to 1 year ago, FHI has less shares outstanding
The number of shares outstanding for FHI has been reduced compared to 5 years ago.
FHI has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.47 indicates that FHI is not in any danger for bankruptcy at the moment.
FHI has a better Altman-Z score (4.47) than 84.13% of its industry peers.
The Debt to FCF ratio of FHI is 1.14, which is an excellent value as it means it would take FHI, only 1.14 years of fcf income to pay off all of its debts.
FHI's Debt to FCF ratio of 1.14 is amongst the best of the industry. FHI outperforms 85.10% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that FHI is not too dependend on debt financing.
FHI has a better Debt to Equity ratio (0.31) than 75.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.14 | ||
| Altman-Z | 4.47 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
FHI has a Current Ratio of 2.51. This indicates that FHI is financially healthy and has no problem in meeting its short term obligations.
FHI has a Current ratio of 2.51. This is in the better half of the industry: FHI outperforms 74.04% of its industry peers.
A Quick Ratio of 2.51 indicates that FHI has no problem at all paying its short term obligations.
FHI's Quick ratio of 2.51 is fine compared to the rest of the industry. FHI outperforms 74.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.51 | ||
| Quick Ratio | 2.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 16.38% over the past year.
FHI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.37% yearly.
The Revenue has grown by 12.47% in the past year. This is quite good.
The Revenue has been growing slightly by 7.22% on average over the past years.
EPS 1Y (TTM)16.38%
EPS 3Y2.04%
EPS 5Y7.37%
EPS growth Q2Q6.67%
Revenue 1Y (TTM)12.47%
Revenue growth 3Y3.58%
Revenue growth 5Y7.22%
Revenue growth Q2Q4.69%
3.2 Future
FHI is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.70% yearly.
Based on estimates for the next years, FHI will show a small growth in Revenue. The Revenue will grow by 0.72% on average per year.
EPS Next Y6.83%
EPS Next 2Y8.85%
EPS Next 3Y8.14%
EPS Next 5Y6.7%
Revenue Next Year2.28%
Revenue Next 2Y3.71%
Revenue Next 3Y4.15%
Revenue Next 5Y0.72%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.65, which indicates a very decent valuation of FHI.
Compared to the rest of the industry, the Price/Earnings ratio of FHI indicates a somewhat cheap valuation: FHI is cheaper than 70.19% of the companies listed in the same industry.
FHI is valuated cheaply when we compare the Price/Earnings ratio to 28.28, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.03, the valuation of FHI can be described as reasonable.
Based on the Price/Forward Earnings ratio, FHI is valued a bit cheaper than the industry average as 71.15% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.88, FHI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.65 | ||
| Fwd PE | 9.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FHI is valued cheaper than 93.27% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FHI is valued a bit cheaper than 74.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.14 | ||
| EV/EBITDA | 4.67 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FHI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.41
PEG (5Y)1.31
EPS Next 2Y8.85%
EPS Next 3Y8.14%
5. Dividend
5.1 Amount
FHI has a Yearly Dividend Yield of 3.78%.
FHI's Dividend Yield is comparable with the industry average which is at 7.28.
Compared to an average S&P500 Dividend Yield of 2.41, FHI pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
5.2 History
The dividend of FHI has a limited annual growth rate of 1.25%.
FHI has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of FHI decreased in the last 3 years.
Dividend Growth(5Y)1.25%
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
27.94% of the earnings are spent on dividend by FHI. This is a low number and sustainable payout ratio.
The dividend of FHI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP27.94%
EPS Next 2Y8.85%
EPS Next 3Y8.14%
FEDERATED HERMES INC
NYSE:FHI (5/3/2024, 7:04:00 PM)
After market: 32.89 0 (0%)32.89
-0.11 (-0.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.78B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.78% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.65 | ||
| Fwd PE | 9.03 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.41
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.7% | ||
| ROE | 31.12% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.4% | ||
| PM (TTM) | 17.63% | ||
| GM | 95.69% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.95
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.51 | ||
| Quick Ratio | 2.51 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)16.38%
EPS 3Y2.04%
EPS 5Y
EPS growth Q2Q
EPS Next Y6.83%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.47%
Revenue growth 3Y3.58%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y