FEDERATED HERMES INC (FHI) Fundamental Analysis & Valuation

NYSE:FHI • US3142111034

55.52 USD
+0.18 (+0.33%)
Last: Mar 10, 2026, 10:46 AM
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This FHI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to FHI. FHI was compared to 242 industry peers in the Capital Markets industry. FHI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. FHI is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

7

1. FHI Profitability Analysis

1.1 Basic Checks

  • In the past year FHI was profitable.
  • In the past year FHI had a positive cash flow from operations.
  • Of the past 5 years FHI 4 years were profitable.
  • Of the past 5 years FHI 4 years had a positive operating cash flow.
FHI Yearly Net Income VS EBIT VS OCF VS FCFFHI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

1.2 Ratios

  • FHI has a better Return On Assets (16.68%) than 95.45% of its industry peers.
  • FHI has a Return On Equity of 30.66%. This is amongst the best in the industry. FHI outperforms 95.87% of its industry peers.
  • The Return On Invested Capital of FHI (18.60%) is better than 95.04% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for FHI is significantly above the industry average of 7.06%.
  • The 3 year average ROIC (16.23%) for FHI is below the current ROIC(18.60%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 16.68%
ROE 30.66%
ROIC 18.6%
ROA(3y)12.38%
ROA(5y)13.04%
ROE(3y)23.49%
ROE(5y)24.27%
ROIC(3y)16.23%
ROIC(5y)16.25%
FHI Yearly ROA, ROE, ROICFHI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

  • The Profit Margin of FHI (20.80%) is comparable to the rest of the industry.
  • FHI's Profit Margin has declined in the last couple of years.
  • FHI has a Operating Margin of 28.35%. This is comparable to the rest of the industry: FHI outperforms 54.96% of its industry peers.
  • FHI's Operating Margin has been stable in the last couple of years.
  • FHI's Gross Margin of 95.56% is amongst the best of the industry. FHI outperforms 96.69% of its industry peers.
  • FHI's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 28.35%
PM (TTM) 20.8%
GM 95.56%
OM growth 3Y-3.42%
OM growth 5Y0.08%
PM growth 3Y-7.67%
PM growth 5Y-4.49%
GM growth 3Y-0.05%
GM growth 5Y-0.31%
FHI Yearly Profit, Operating, Gross MarginsFHI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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8

2. FHI Health Analysis

2.1 Basic Checks

  • FHI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
FHI Yearly Shares OutstandingFHI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
FHI Yearly Total Debt VS Total AssetsFHI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.2 Solvency

  • FHI has an Altman-Z score of 5.33. This indicates that FHI is financially healthy and has little risk of bankruptcy at the moment.
  • FHI has a Altman-Z score of 5.33. This is amongst the best in the industry. FHI outperforms 85.95% of its industry peers.
  • The Debt to FCF ratio of FHI is 1.34, which is an excellent value as it means it would take FHI, only 1.34 years of fcf income to pay off all of its debts.
  • FHI has a better Debt to FCF ratio (1.34) than 88.02% of its industry peers.
  • FHI has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
  • The Debt to Equity ratio of FHI (0.29) is better than 72.73% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.29
Debt/FCF 1.34
Altman-Z 5.33
ROIC/WACCN/A
WACCN/A
FHI Yearly LT Debt VS Equity VS FCFFHI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.3 Liquidity

  • A Current Ratio of 3.13 indicates that FHI has no problem at all paying its short term obligations.
  • The Current ratio of FHI (3.13) is better than 80.58% of its industry peers.
  • FHI has a Quick Ratio of 3.13. This indicates that FHI is financially healthy and has no problem in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 3.13, FHI belongs to the top of the industry, outperforming 80.58% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.13
Quick Ratio 3.13
FHI Yearly Current Assets VS Current LiabilitesFHI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. FHI Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 61.13% over the past year.
  • The Earnings Per Share has been growing by 9.87% on average over the past years. This is quite good.
EPS 1Y (TTM)61.13%
EPS 3Y20.61%
EPS 5Y9.87%
EPS Q2Q%33.65%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%13.69%

3.2 Future

  • Based on estimates for the next years, FHI will show a small growth in Earnings Per Share. The EPS will grow by 5.75% on average per year.
  • The Revenue is expected to grow by 1.75% on average over the next years.
EPS Next Y0.15%
EPS Next 2Y5.69%
EPS Next 3Y5.82%
EPS Next 5Y5.75%
Revenue Next Year9.87%
Revenue Next 2Y7.35%
Revenue Next 3Y6.66%
Revenue Next 5Y1.75%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
FHI Yearly Revenue VS EstimatesFHI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 500M 1B 1.5B 2B
FHI Yearly EPS VS EstimatesFHI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6

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6

4. FHI Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 10.80, which indicates a very decent valuation of FHI.
  • FHI's Price/Earnings ratio is a bit cheaper when compared to the industry. FHI is cheaper than 60.33% of the companies in the same industry.
  • FHI is valuated cheaply when we compare the Price/Earnings ratio to 26.45, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 10.79, the valuation of FHI can be described as reasonable.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of FHI indicates a somewhat cheap valuation: FHI is cheaper than 64.46% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of FHI to the average of the S&P500 Index (24.65), we can say FHI is valued rather cheaply.
Industry RankSector Rank
PE 10.8
Fwd PE 10.79
FHI Price Earnings VS Forward Price EarningsFHI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FHI indicates a rather cheap valuation: FHI is cheaper than 90.50% of the companies listed in the same industry.
  • FHI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FHI is cheaper than 66.94% of the companies in the same industry.
Industry RankSector Rank
P/FCF 16.28
EV/EBITDA 7.26
FHI Per share dataFHI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FHI does not grow enough to justify the current Price/Earnings ratio.
  • The decent profitability rating of FHI may justify a higher PE ratio.
PEG (NY)73.68
PEG (5Y)1.09
EPS Next 2Y5.69%
EPS Next 3Y5.82%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. FHI Dividend Analysis

5.1 Amount

  • FHI has a Yearly Dividend Yield of 2.39%.
  • Compared to an average industry Dividend Yield of 6.64, FHI has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, FHI pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.39%

5.2 History

  • On average, the dividend of FHI grows each year by 15.47%, which is quite nice.
  • FHI has been paying a dividend for at least 10 years, so it has a reliable track record.
  • FHI has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)15.47%
Div Incr Years2
Div Non Decr Years3
FHI Yearly Dividends per shareFHI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

5.3 Sustainability

  • 28.50% 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 the earnings are growing slower. This means the dividend growth is not sustainable.
DP28.5%
EPS Next 2Y5.69%
EPS Next 3Y5.82%
FHI Yearly Income VS Free CF VS DividendFHI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
FHI Dividend Payout.FHI Dividend Payout, showing the Payout Ratio.FHI Dividend Payout.PayoutRetained Earnings

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FHI Fundamentals: All Metrics, Ratios and Statistics

FEDERATED HERMES INC

NYSE:FHI (3/10/2026, 10:46:29 AM)

55.52

+0.18 (+0.33%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)01-29
Earnings (Next)04-22
Inst Owners91.95%
Inst Owner ChangeN/A
Ins Owners3.44%
Ins Owner Change4.83%
Market Cap4.22B
Revenue(TTM)N/A
Net Income(TTM)363.99M
Analysts68.33
Price Target56.71 (2.14%)
Short Float %4.37%
Short Ratio5.26
Dividend
Industry RankSector Rank
Dividend Yield 2.39%
Yearly Dividend2.22
Dividend Growth(5Y)15.47%
DP28.5%
Div Incr Years2
Div Non Decr Years3
Ex-Date02-06
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.12%
Min EPS beat(2)12.16%
Max EPS beat(2)18.07%
EPS beat(4)4
Avg EPS beat(4)17.74%
Min EPS beat(4)5.9%
Max EPS beat(4)34.82%
EPS beat(8)7
Avg EPS beat(8)2.76%
EPS beat(12)10
Avg EPS beat(12)3.62%
EPS beat(16)11
Avg EPS beat(16)1.95%
Revenue beat(2)1
Avg Revenue beat(2)2.14%
Min Revenue beat(2)-0.52%
Max Revenue beat(2)4.79%
Revenue beat(4)2
Avg Revenue beat(4)0.97%
Min Revenue beat(4)-0.52%
Max Revenue beat(4)4.79%
Revenue beat(8)2
Avg Revenue beat(8)-0.28%
Revenue beat(12)4
Avg Revenue beat(12)0.44%
Revenue beat(16)6
Avg Revenue beat(16)5.28%
PT rev (1m)4.91%
PT rev (3m)7.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.47%
EPS NY rev (1m)0%
EPS NY rev (3m)2.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.28%
Valuation
Industry RankSector Rank
PE 10.8
Fwd PE 10.79
P/S 2.41
P/FCF 16.28
P/OCF 16.05
P/B 3.55
P/tB N/A
EV/EBITDA 7.26
EPS(TTM)5.14
EY9.26%
EPS(NY)5.15
Fwd EY9.27%
FCF(TTM)3.41
FCFY6.14%
OCF(TTM)3.46
OCFY6.23%
SpS23.03
BVpS15.63
TBVpS-0.11
PEG (NY)73.68
PEG (5Y)1.09
Graham Number42.51
Profitability
Industry RankSector Rank
ROA 16.68%
ROE 30.66%
ROCE 25.76%
ROIC 18.6%
ROICexc 28.03%
ROICexgc 434.37%
OM 28.35%
PM (TTM) 20.8%
GM 95.56%
FCFM 14.81%
ROA(3y)12.38%
ROA(5y)13.04%
ROE(3y)23.49%
ROE(5y)24.27%
ROIC(3y)16.23%
ROIC(5y)16.25%
ROICexc(3y)23.98%
ROICexc(5y)23%
ROICexgc(3y)1021.49%
ROICexgc(5y)802.2%
ROCE(3y)22.48%
ROCE(5y)22.5%
ROICexgc growth 3Y38.23%
ROICexgc growth 5Y38.01%
ROICexc growth 3Y9.02%
ROICexc growth 5Y7%
OM growth 3Y-3.42%
OM growth 5Y0.08%
PM growth 3Y-7.67%
PM growth 5Y-4.49%
GM growth 3Y-0.05%
GM growth 5Y-0.31%
F-Score7
Asset Turnover0.8
Health
Industry RankSector Rank
Debt/Equity 0.29
Debt/FCF 1.34
Debt/EBITDA 0.67
Cap/Depr 16.6%
Cap/Sales 0.21%
Interest Coverage 250
Cash Conversion 50.71%
Profit Quality 71.2%
Current Ratio 3.13
Quick Ratio 3.13
Altman-Z 5.33
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)21%
Cap/Depr(5y)28.99%
Cap/Sales(3y)0.35%
Cap/Sales(5y)0.55%
Profit Quality(3y)126.81%
Profit Quality(5y)111.36%
High Growth Momentum
Growth
EPS 1Y (TTM)61.13%
EPS 3Y20.61%
EPS 5Y9.87%
EPS Q2Q%33.65%
EPS Next Y0.15%
EPS Next 2Y5.69%
EPS Next 3Y5.82%
EPS Next 5Y5.75%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%13.69%
Revenue Next Year9.87%
Revenue Next 2Y7.35%
Revenue Next 3Y6.66%
Revenue Next 5Y1.75%
EBIT growth 1Y-7.04%
EBIT growth 3Y4.23%
EBIT growth 5Y4.35%
EBIT Next Year51.75%
EBIT Next 3Y17.57%
EBIT Next 5Y9.5%
FCF growth 1Y-16%
FCF growth 3Y28.89%
FCF growth 5Y1.38%
OCF growth 1Y-16.45%
OCF growth 3Y26.7%
OCF growth 5Y0.69%

FEDERATED HERMES INC / FHI FAQ

Can you provide the ChartMill fundamental rating for FEDERATED HERMES INC?

ChartMill assigns a fundamental rating of 6 / 10 to FHI.


What is the valuation status for FHI stock?

ChartMill assigns a valuation rating of 6 / 10 to FEDERATED HERMES INC (FHI). This can be considered as Fairly Valued.


How profitable is FEDERATED HERMES INC (FHI) stock?

FEDERATED HERMES INC (FHI) has a profitability rating of 7 / 10.


What is the valuation of FEDERATED HERMES INC based on its PE and PB ratios?

The Price/Earnings (PE) ratio for FEDERATED HERMES INC (FHI) is 10.8 and the Price/Book (PB) ratio is 3.55.


Is the dividend of FEDERATED HERMES INC sustainable?

The dividend rating of FEDERATED HERMES INC (FHI) is 5 / 10 and the dividend payout ratio is 28.5%.