FEDERATED HERMES INC (FHI) Stock Fundamental Analysis
USA - NYSE:FHI - US3142111034 - Common Stock
49.06 USD
+0.58 (+1.2%)
49.06 USD
0 (0%)
Overall FHI gets a fundamental rating of 7 out of 10. We evaluated FHI against 237 industry peers in the Capital Markets industry. FHI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. A decent growth rate in combination with a cheap valuation! Better keep an eye on FHI. These ratings would make FHI suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
In the past year FHI was profitable.
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
The Return On Assets of FHI (16.19%) is better than 96.20% of its industry peers.
FHI has a better Return On Equity (31.27%) than 96.20% of its industry peers.
FHI has a Return On Invested Capital of 17.89%. This is amongst the best in the industry. FHI outperforms 93.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FHI is significantly above the industry average of 7.59%.
The last Return On Invested Capital (17.89%) for FHI is above the 3 year average (16.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.19% | ||
| ROE | 31.27% | ||
| ROIC | 17.89% |
ROA(3y)12.38%
ROA(5y)13.04%
ROE(3y)23.49%
ROE(5y)24.27%
ROIC(3y)16.23%
ROIC(5y)16.25%
1.3 Margins
FHI has a Profit Margin of 20.64%. This is comparable to the rest of the industry: FHI outperforms 56.96% of its industry peers.
In the last couple of years the Profit Margin of FHI has declined.
The Operating Margin of FHI (28.27%) is comparable to the rest of the industry.
FHI's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 95.42%, FHI belongs to the best of the industry, outperforming 95.36% of the companies in the same industry.
FHI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.27% | ||
| PM (TTM) | 20.64% | ||
| GM | 95.42% |
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%
2. Health
2.1 Basic Checks
The number of shares outstanding for FHI has been reduced compared to 1 year ago.
The number of shares outstanding for FHI has been reduced compared to 5 years ago.
FHI has a worse debt/assets ratio than last year.
2.2 Solvency
FHI has an Altman-Z score of 4.89. This indicates that FHI is financially healthy and has little risk of bankruptcy at the moment.
FHI's Altman-Z score of 4.89 is amongst the best of the industry. FHI outperforms 85.23% of its industry peers.
The Debt to FCF ratio of FHI is 1.25, which is an excellent value as it means it would take FHI, only 1.25 years of fcf income to pay off all of its debts.
FHI's Debt to FCF ratio of 1.25 is amongst the best of the industry. FHI outperforms 89.87% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that FHI is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.31, FHI is doing good in the industry, outperforming 71.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 4.89 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 3.37 indicates that FHI has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.37, FHI belongs to the top of the industry, outperforming 81.01% of the companies in the same industry.
FHI has a Quick Ratio of 3.37. This indicates that FHI is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of FHI (3.37) is better than 81.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.37 | ||
| Quick Ratio | 3.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 54.02% over the past year.
Measured over the past 5 years, FHI shows a small growth in Earnings Per Share. The EPS has been growing by 3.47% on average per year.
FHI shows a small growth in Revenue. In the last year, the Revenue has grown by 1.58%.
Measured over the past years, FHI shows a small growth in Revenue. The Revenue has been growing by 4.26% on average per year.
EPS 1Y (TTM)54.02%
EPS 3Y3.71%
EPS 5Y3.47%
EPS Q2Q%26.42%
Revenue 1Y (TTM)1.58%
Revenue growth 3Y7.92%
Revenue growth 5Y4.26%
Sales Q2Q%14.93%
3.2 Future
The Earnings Per Share is expected to grow by 14.18% on average over the next years. This is quite good.
Based on estimates for the next years, FHI will show a small growth in Revenue. The Revenue will grow by 3.25% on average per year.
EPS Next Y48.14%
EPS Next 2Y23.99%
EPS Next 3Y19.5%
EPS Next 5Y14.18%
Revenue Next Year8.03%
Revenue Next 2Y6.88%
Revenue Next 3Y5.91%
Revenue Next 5Y3.25%
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 accelerating.
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
Based on the Price/Earnings ratio of 10.24, the valuation of FHI can be described as reasonable.
Based on the Price/Earnings ratio, FHI is valued a bit cheaper than the industry average as 70.04% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.51. FHI is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.00, which indicates a very decent valuation of FHI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FHI indicates a somewhat cheap valuation: FHI is cheaper than 71.73% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.53. FHI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.24 | ||
| Fwd PE | 10 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FHI is valued cheaply inside the industry as 91.56% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FHI indicates a somewhat cheap valuation: FHI is cheaper than 65.40% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.7 | ||
| EV/EBITDA | 6.54 |
4.3 Compensation for Growth
FHI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of FHI may justify a higher PE ratio.
A more expensive valuation may be justified as FHI's earnings are expected to grow with 19.50% in the coming years.
PEG (NY)0.21
PEG (5Y)2.95
EPS Next 2Y23.99%
EPS Next 3Y19.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.81%, FHI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 8.38, FHI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, FHI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
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
5.3 Sustainability
29.55% 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.
DP29.55%
EPS Next 2Y23.99%
EPS Next 3Y19.5%
49.06
+0.58 (+1.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners86.98%
Inst Owner ChangeN/A
Ins Owners4.03%
Ins Owner Change-1.96%
Market Cap3.81B
Revenue(TTM)1.63B
Net Income(TTM)348.33M
Analysts68.33
Price Target52.02 (6.03%)
Short Float %2.77%
Short Ratio3.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.81% |
Yearly Dividend2.22
Dividend Growth(5Y)15.47%
DP29.55%
Div Incr Years2
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)23.49%
Min EPS beat(2)12.16%
Max EPS beat(2)34.82%
EPS beat(4)4
Avg EPS beat(4)16.8%
Min EPS beat(4)5.9%
Max EPS beat(4)34.82%
EPS beat(8)7
Avg EPS beat(8)0.81%
EPS beat(12)10
Avg EPS beat(12)2.9%
EPS beat(16)11
Avg EPS beat(16)0.89%
Revenue beat(2)0
Avg Revenue beat(2)-0.5%
Min Revenue beat(2)-0.52%
Max Revenue beat(2)-0.49%
Revenue beat(4)1
Avg Revenue beat(4)-0.52%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)0.11%
Revenue beat(8)1
Avg Revenue beat(8)-0.94%
Revenue beat(12)4
Avg Revenue beat(12)0.06%
Revenue beat(16)5
Avg Revenue beat(16)4.77%
PT rev (1m)3.38%
PT rev (3m)13.75%
EPS NQ rev (1m)3.11%
EPS NQ rev (3m)3.97%
EPS NY rev (1m)1.04%
EPS NY rev (3m)5.63%
Revenue NQ rev (1m)0.78%
Revenue NQ rev (3m)2.97%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)1.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.24 | ||
| Fwd PE | 10 | ||
| P/S | 2.25 | ||
| P/FCF | 13.7 | ||
| P/OCF | 13.74 | ||
| P/B | 3.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.54 |
EPS(TTM)4.79
EY9.76%
EPS(NY)4.9
Fwd EY10%
FCF(TTM)3.58
FCFY7.3%
OCF(TTM)3.57
OCFY7.28%
SpS21.76
BVpS14.36
TBVpS-1.2
PEG (NY)0.21
PEG (5Y)2.95
Graham Number39.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.19% | ||
| ROE | 31.27% | ||
| ROCE | 24.77% | ||
| ROIC | 17.89% | ||
| ROICexc | 26.13% | ||
| ROICexgc | 309.43% | ||
| OM | 28.27% | ||
| PM (TTM) | 20.64% | ||
| GM | 95.42% | ||
| FCFM | 16.46% |
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-Score5
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.25 | ||
| Debt/EBITDA | 0.7 | ||
| Cap/Depr | 3.43% | ||
| Cap/Sales | 0.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 55.46% | ||
| Profit Quality | 79.72% | ||
| Current Ratio | 3.37 | ||
| Quick Ratio | 3.37 | ||
| Altman-Z | 4.89 |
F-Score5
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)54.02%
EPS 3Y3.71%
EPS 5Y3.47%
EPS Q2Q%26.42%
EPS Next Y48.14%
EPS Next 2Y23.99%
EPS Next 3Y19.5%
EPS Next 5Y14.18%
Revenue 1Y (TTM)1.58%
Revenue growth 3Y7.92%
Revenue growth 5Y4.26%
Sales Q2Q%14.93%
Revenue Next Year8.03%
Revenue Next 2Y6.88%
Revenue Next 3Y5.91%
Revenue Next 5Y3.25%
EBIT growth 1Y-8.56%
EBIT growth 3Y4.23%
EBIT growth 5Y4.35%
EBIT Next Year43.37%
EBIT Next 3Y15.03%
EBIT Next 5Y9.26%
FCF growth 1Y-12.06%
FCF growth 3Y28.89%
FCF growth 5Y1.38%
OCF growth 1Y-13.73%
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 7 / 10 to FHI.
What is the valuation status of FEDERATED HERMES INC (FHI) stock?
ChartMill assigns a valuation rating of 8 / 10 to FEDERATED HERMES INC (FHI). This can be considered as Undervalued.
How profitable is FEDERATED HERMES INC (FHI) stock?
FEDERATED HERMES INC (FHI) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for FHI stock?
The Price/Earnings (PE) ratio for FEDERATED HERMES INC (FHI) is 10.24 and the Price/Book (PB) ratio is 3.42.
Can you provide the financial health for FHI stock?
The financial health rating of FEDERATED HERMES INC (FHI) is 9 / 10.