FEDERATED HERMES INC (FHI) Stock Fundamental Analysis
USA - NYSE:FHI - US3142111034 - Common Stock
51.04 USD
-1.5 (-2.85%)
51.04 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to FHI. FHI was compared to 238 industry peers in the Capital Markets industry. FHI gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on FHI. With these ratings, FHI could be worth investigating further 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.
Each year in the past 5 years FHI had a positive operating cash flow.
1.2 Ratios
FHI's Return On Assets of 16.19% is amongst the best of the industry. FHI outperforms 96.22% of its industry peers.
FHI has a better Return On Equity (31.27%) than 96.22% of its industry peers.
With an excellent Return On Invested Capital value of 17.89%, FHI belongs to the best of the industry, outperforming 93.70% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FHI is significantly above the industry average of 7.64%.
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's Profit Margin of 20.64% is in line compared to the rest of the industry. FHI outperforms 56.30% of its industry peers.
In the last couple of years the Profit Margin of FHI has declined.
Looking at the Operating Margin, with a value of 28.27%, FHI is in line with its industry, outperforming 54.20% of the companies in the same industry.
In the last couple of years the Operating Margin of FHI has remained more or less at the same level.
Looking at the Gross Margin, with a value of 95.42%, FHI belongs to the top of the industry, outperforming 95.38% of the companies in the same industry.
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 | 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
Compared to 1 year ago, FHI has less shares outstanding
FHI has less shares outstanding than it did 5 years ago.
FHI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.07 indicates that FHI is not in any danger for bankruptcy at the moment.
FHI has a better Altman-Z score (5.07) than 85.29% of its industry peers.
FHI has a debt to FCF ratio of 1.25. This is a very positive value and a sign of high solvency as it would only need 1.25 years to pay back of all of its debts.
FHI's Debt to FCF ratio of 1.25 is amongst the best of the industry. FHI outperforms 89.92% of its industry peers.
FHI has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.31, FHI is in the better half of the industry, outperforming 71.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 5.07 |
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 81.51% 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.
FHI has a better Quick ratio (3.37) than 81.51% 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 54.98% 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 very negative growth in Revenue. In the last year, the Revenue has decreased by -15.16%.
FHI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.26% yearly.
EPS 1Y (TTM)54.98%
EPS 3Y3.71%
EPS 5Y3.47%
EPS Q2Q%480%
Revenue 1Y (TTM)-15.16%
Revenue growth 3Y7.92%
Revenue growth 5Y4.26%
Sales Q2Q%5.53%
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 Y46.36%
EPS Next 2Y22.65%
EPS Next 3Y19.25%
EPS Next 5Y14.18%
Revenue Next Year6.7%
Revenue Next 2Y5.71%
Revenue Next 3Y5.37%
Revenue Next 5Y3.25%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
FHI is valuated reasonably with a Price/Earnings ratio of 11.32.
Based on the Price/Earnings ratio, FHI is valued a bit cheaper than 64.29% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.02. FHI is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 10.64 indicates a reasonable valuation of FHI.
63.87% of the companies in the same industry are more expensive than FHI, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.57, FHI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.32 | ||
| Fwd PE | 10.64 |
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 91.18% of the companies listed in the same industry.
63.87% of the companies in the same industry are more expensive than FHI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.26 | ||
| EV/EBITDA | 7.17 |
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.
FHI has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as FHI's earnings are expected to grow with 19.25% in the coming years.
PEG (NY)0.24
PEG (5Y)3.26
EPS Next 2Y22.65%
EPS Next 3Y19.25%
5. Dividend
5.1 Amount
FHI has a Yearly Dividend Yield of 2.65%.
FHI's Dividend Yield is comparable with the industry average which is at 8.50.
FHI's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
5.2 History
On average, the dividend of FHI grows each year by 15.47%, which is quite nice.
FHI has paid a dividend for at least 10 years, which is 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 29.55% of its income as dividend. This is a 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 2Y22.65%
EPS Next 3Y19.25%
51.04
-1.5 (-2.85%)
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-1.7%
Market Cap3.96B
Analysts68.33
Price Target50.32 (-1.41%)
Short Float %2.97%
Short Ratio3.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.65% |
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)2.42%
PT rev (3m)16.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.09%
EPS NY rev (1m)1.02%
EPS NY rev (3m)5.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.09%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)1.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.32 | ||
| Fwd PE | 10.64 | ||
| P/S | 2.35 | ||
| P/FCF | 14.26 | ||
| P/OCF | 14.29 | ||
| P/B | 3.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.17 |
EPS(TTM)4.51
EY8.84%
EPS(NY)4.8
Fwd EY9.4%
FCF(TTM)3.58
FCFY7.01%
OCF(TTM)3.57
OCFY7%
SpS21.76
BVpS14.36
TBVpS-1.2
PEG (NY)0.24
PEG (5Y)3.26
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%
ROICexcg growth 3Y38.23%
ROICexcg 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 | 5.07 |
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)54.98%
EPS 3Y3.71%
EPS 5Y3.47%
EPS Q2Q%480%
EPS Next Y46.36%
EPS Next 2Y22.65%
EPS Next 3Y19.25%
EPS Next 5Y14.18%
Revenue 1Y (TTM)-15.16%
Revenue growth 3Y7.92%
Revenue growth 5Y4.26%
Sales Q2Q%5.53%
Revenue Next Year6.7%
Revenue Next 2Y5.71%
Revenue Next 3Y5.37%
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%