FEDERATED HERMES INC (FHI) Stock Fundamental Analysis
NYSE:FHI - US3142111034 - Common Stock
54.3 USD
+0.2 (+0.37%)
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. FHI scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make FHI a good candidate 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.
FHI had positive earnings in each of the past 5 years.
In the past 5 years FHI always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 16.19%, FHI belongs to the best of the industry, outperforming 96.22% of the companies in the same industry.
The Return On Equity of FHI (31.27%) is better than 96.22% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.89%, FHI belongs to the top 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 7.60%.
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
With a Profit Margin value of 20.64%, FHI perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
FHI's Profit Margin has declined in the last couple of years.
FHI has a Operating Margin of 28.27%. This is comparable to the rest of the industry: FHI outperforms 54.62% of its industry peers.
FHI's Operating Margin has been stable in the last couple of years.
FHI's Gross Margin of 95.42% is amongst the best of the industry. FHI outperforms 95.80% 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 | 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
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
An Altman-Z score of 5.14 indicates that FHI is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.14, FHI belongs to the best of the industry, outperforming 86.13% of the companies in the same industry.
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 88.66% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that FHI is not too dependend on debt financing.
The Debt to Equity ratio of FHI (0.31) is better than 73.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 5.14 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
FHI has a Current Ratio of 3.37. This indicates that FHI is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of FHI (3.37) is better than 81.93% of its industry peers.
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 Quick ratio of 3.37. This is amongst the best in the industry. FHI outperforms 81.93% 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.
The Revenue for FHI has decreased by -15.16% in the past year. This is quite bad
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
FHI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.89% yearly.
Based on estimates for the next years, FHI will show a small growth in Revenue. The Revenue will grow by 2.46% on average per year.
EPS Next Y44.87%
EPS Next 2Y21.59%
EPS Next 3Y18.34%
EPS Next 5Y12.89%
Revenue Next Year6.63%
Revenue Next 2Y5.62%
Revenue Next 3Y5.44%
Revenue Next 5Y2.46%
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 12.04, the valuation of FHI can be described as correct.
Based on the Price/Earnings ratio, FHI is valued a bit cheaper than the industry average as 64.71% of the companies are valued more expensively.
FHI is valuated cheaply when we compare the Price/Earnings ratio to 27.14, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.51 indicates a reasonable valuation of FHI.
Based on the Price/Forward Earnings ratio, FHI is valued a bit cheaper than the industry average as 65.55% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.80, FHI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.04 | ||
| Fwd PE | 11.51 |
4.2 Price Multiples
FHI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FHI is cheaper than 92.86% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FHI is valued a bit cheaper than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.17 | ||
| EV/EBITDA | 7.41 |
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.
FHI's earnings are expected to grow with 18.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.27
PEG (5Y)3.47
EPS Next 2Y21.59%
EPS Next 3Y18.34%
5. Dividend
5.1 Amount
FHI has a Yearly Dividend Yield of 2.58%. Purely for dividend investing, there may be better candidates out there.
FHI's Dividend Yield is comparable with the industry average which is at 8.00.
Compared to an average S&P500 Dividend Yield of 2.34, FHI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
5.2 History
The dividend of FHI is nicely growing with an annual growth rate of 15.47%!
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 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 2Y21.59%
EPS Next 3Y18.34%
NYSE:FHI (8/28/2025, 12:39:09 PM)
54.3
+0.2 (+0.37%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners82.27%
Inst Owner ChangeN/A
Ins Owners3.98%
Ins Owner Change3.38%
Market Cap4.21B
Analysts52
Price Target49.13 (-9.52%)
Short Float %3.48%
Short Ratio3.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.58% |
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)7.44%
PT rev (3m)17.96%
EPS NQ rev (1m)0.83%
EPS NQ rev (3m)3.2%
EPS NY rev (1m)3.48%
EPS NY rev (3m)7.74%
Revenue NQ rev (1m)1.77%
Revenue NQ rev (3m)0.18%
Revenue NY rev (1m)1.51%
Revenue NY rev (3m)1.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.04 | ||
| Fwd PE | 11.51 | ||
| P/S | 2.5 | ||
| P/FCF | 15.17 | ||
| P/OCF | 15.21 | ||
| P/B | 3.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.41 |
EPS(TTM)4.51
EY8.31%
EPS(NY)4.72
Fwd EY8.69%
FCF(TTM)3.58
FCFY6.59%
OCF(TTM)3.57
OCFY6.58%
SpS21.76
BVpS14.36
TBVpS-1.2
PEG (NY)0.27
PEG (5Y)3.47
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 | 5.14 |
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 Y44.87%
EPS Next 2Y21.59%
EPS Next 3Y18.34%
EPS Next 5Y12.89%
Revenue 1Y (TTM)-15.16%
Revenue growth 3Y7.92%
Revenue growth 5Y4.26%
Sales Q2Q%5.53%
Revenue Next Year6.63%
Revenue Next 2Y5.62%
Revenue Next 3Y5.44%
Revenue Next 5Y2.46%
EBIT growth 1Y-8.56%
EBIT growth 3Y4.23%
EBIT growth 5Y4.35%
EBIT Next Year42.17%
EBIT Next 3Y14.38%
EBIT Next 5Y8.12%
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%