FEDERATED HERMES INC (FHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FHI - US3142111034 - Common Stock
50.77 USD
+0.17 (+0.34%)
50.77 USD
0 (0%)
Overall FHI gets a fundamental rating of 7 out of 10. We evaluated FHI against 238 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. FHI scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes FHI very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year FHI was profitable.
In the past year FHI had a positive cash flow from operations.
Each year in the past 5 years FHI has been profitable.
In the past 5 years FHI always reported a positive cash flow from operatings.
1.2 Ratios
FHI's Return On Assets of 16.68% is amongst the best of the industry. FHI outperforms 96.64% of its industry peers.
The Return On Equity of FHI (30.66%) is better than 96.64% of its industry peers.
With an excellent Return On Invested Capital value of 18.60%, FHI belongs to the best of the industry, outperforming 94.96% of the companies in the same industry.
FHI had an Average Return On Invested Capital over the past 3 years of 16.23%. This is significantly above the industry average of 6.95%.
The 3 year average ROIC (16.23%) for FHI is below the current ROIC(18.60%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
FHI's Profit Margin of 20.80% is in line compared to the rest of the industry. FHI outperforms 57.14% of its industry peers.
In the last couple of years the Profit Margin of FHI has declined.
FHI has a Operating Margin of 28.35%. This is comparable to the rest of the industry: FHI outperforms 57.14% 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 95.38% of its industry peers.
FHI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
Compared to 1 year ago, FHI has less shares outstanding
Compared to 5 years ago, FHI has less shares outstanding
The debt/assets ratio for FHI is higher compared to a year ago.
2.2 Solvency
FHI has an Altman-Z score of 5.16. This indicates that FHI is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.16, FHI belongs to the top of the industry, outperforming 85.29% of the companies in the same industry.
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's Debt to FCF ratio of 1.34 is amongst the best of the industry. FHI outperforms 88.66% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that FHI is not too dependend on debt financing.
The Debt to Equity ratio of FHI (0.29) is better than 72.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.34 | ||
| Altman-Z | 5.16 |
ROIC/WACCN/A
WACCN/A
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 80.67% of its industry peers.
A Quick Ratio of 3.13 indicates that FHI has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.13, FHI belongs to the top of the industry, outperforming 80.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 3.13 |
3. Growth
3.1 Past
FHI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.02%, which is quite impressive.
FHI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.47% yearly.
Looking at the last year, FHI shows a very negative growth in Revenue. The Revenue has decreased by -12.36% in the last year.
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)-12.36%
Revenue growth 3Y7.92%
Revenue growth 5Y4.26%
Sales Q2Q%14.93%
3.2 Future
Based on estimates for the next years, FHI will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.18% on average per year.
The Revenue is expected to grow by 3.25% on average over the next years.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 10.60 indicates a reasonable valuation of FHI.
Based on the Price/Earnings ratio, FHI is valued a bit cheaper than 68.91% of the companies in the same industry.
FHI is valuated cheaply when we compare the Price/Earnings ratio to 26.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.35, the valuation of FHI can be described as very reasonable.
FHI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FHI is cheaper than 70.17% of the companies in the same industry.
FHI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.6 | ||
| Fwd PE | 10.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FHI is valued cheaper than 92.02% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FHI indicates a somewhat cheap valuation: FHI is cheaper than 63.45% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.19 | ||
| EV/EBITDA | 6.75 |
4.3 Compensation for Growth
The 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)0.22
PEG (5Y)3.06
EPS Next 2Y23.99%
EPS Next 3Y19.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.70%, FHI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 8.39, FHI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, FHI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
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
FHI pays out 28.50% of its income as dividend. This is a sustainable payout ratio.
FHI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP28.5%
EPS Next 2Y23.99%
EPS Next 3Y19.5%
50.77
+0.17 (+0.34%)
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 Change1.36%
Market Cap3.94B
Revenue(TTM)1.75B
Net Income(TTM)363.99M
Analysts68.33
Price Target52.6 (3.6%)
Short Float %2.83%
Short Ratio3.87
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
Yearly Dividend2.22
Dividend Growth(5Y)15.47%
DP28.5%
Div Incr Years2
Div Non Decr Years3
Ex-Date
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)4.54%
PT rev (3m)7.07%
EPS NQ rev (1m)2.73%
EPS NQ rev (3m)6.3%
EPS NY rev (1m)0.18%
EPS NY rev (3m)2.26%
Revenue NQ rev (1m)2.49%
Revenue NQ rev (3m)4%
Revenue NY rev (1m)0.74%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.6 | ||
| Fwd PE | 10.35 | ||
| P/S | 2.25 | ||
| P/FCF | 15.19 | ||
| P/OCF | 14.98 | ||
| P/B | 3.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.75 |
EPS(TTM)4.79
EY9.43%
EPS(NY)4.9
Fwd EY9.66%
FCF(TTM)3.34
FCFY6.58%
OCF(TTM)3.39
OCFY6.68%
SpS22.56
BVpS15.31
TBVpS-0.11
PEG (NY)0.22
PEG (5Y)3.06
Graham Number40.62
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 5.16 |
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)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)-12.36%
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-7.04%
EBIT growth 3Y4.23%
EBIT growth 5Y4.35%
EBIT Next Year43.37%
EBIT Next 3Y15.03%
EBIT Next 5Y9.26%
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 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 10.6 and the Price/Book (PB) ratio is 3.32.
Can you provide the financial health for FHI stock?
The financial health rating of FEDERATED HERMES INC (FHI) is 9 / 10.