FEDERATED HERMES INC (FHI) Stock Fundamental Analysis
NYSE:FHI - New York Stock Exchange, Inc. - US3142111034 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to FHI. FHI was compared to 233 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 is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
FHI had a positive operating cash flow in the past year.
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 17.65% is amongst the best of the industry. FHI outperforms 97.42% of its industry peers.
FHI has a Return On Equity of 32.83%. This is amongst the best in the industry. FHI outperforms 96.14% of its industry peers.
With an excellent Return On Invested Capital value of 22.88%, FHI belongs to the best of the industry, outperforming 98.28% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FHI is significantly above the industry average of 7.86%.
The last Return On Invested Capital (22.88%) for FHI is above the 3 year average (16.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.65% | ||
| ROE | 32.83% | ||
| ROIC | 22.88% |
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
The Profit Margin of FHI (17.15%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of FHI has declined.
FHI has a Operating Margin (27.37%) which is in line with its industry peers.
FHI's Operating Margin has been stable in the last couple of years.
FHI has a better Gross Margin (95.30%) than 95.28% 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 | 27.37% | ||
| PM (TTM) | 17.15% | ||
| GM | 95.3% |
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
The number of shares outstanding for FHI has been reduced compared to 5 years ago.
The debt/assets ratio for FHI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.54 indicates that FHI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.54, FHI belongs to the top of the industry, outperforming 85.41% of the companies in the same industry.
The Debt to FCF ratio of FHI is 1.02, which is an excellent value as it means it would take FHI, only 1.02 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.02, FHI belongs to the top of the industry, outperforming 87.98% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that FHI is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.32, FHI is doing good in the industry, outperforming 74.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.02 | ||
| Altman-Z | 5.54 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 3.04 indicates that FHI has no problem at all paying its short term obligations.
FHI's Current ratio of 3.04 is fine compared to the rest of the industry. FHI outperforms 79.83% of its industry peers.
A Quick Ratio of 3.04 indicates that FHI has no problem at all paying its short term obligations.
The Quick ratio of FHI (3.04) is better than 79.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.04 | ||
| Quick Ratio | 3.04 |
3. Growth
3.1 Past
FHI shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.85%.
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 2.68%.
The Revenue has been growing slightly by 4.26% on average over the past years.
EPS 1Y (TTM)0.85%
EPS 3Y3.71%
EPS 5Y3.47%
EPS Q2Q%40.45%
Revenue 1Y (TTM)2.68%
Revenue growth 3Y7.92%
Revenue growth 5Y4.26%
Sales Q2Q%6.85%
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 Y40.01%
EPS Next 2Y19.56%
EPS Next 3Y14.57%
EPS Next 5Y12.89%
Revenue Next Year5.05%
Revenue Next 2Y4.44%
Revenue Next 3Y4.13%
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.
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
With a Price/Earnings ratio of 13.02, FHI is valued correctly.
61.37% of the companies in the same industry are more expensive than FHI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.51. FHI is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 10.14, 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 72.96% 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 (35.58), we can say FHI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.02 | ||
| Fwd PE | 10.14 |
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 93.13% 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 74.68% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.68 | ||
| EV/EBITDA | 5.7 |
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 14.57% in the coming years.
PEG (NY)0.33
PEG (5Y)3.75
EPS Next 2Y19.56%
EPS Next 3Y14.57%
5. Dividend
5.1 Amount
FHI has a Yearly Dividend Yield of 2.94%. Purely for dividend investing, there may be better candidates out there.
FHI's Dividend Yield is comparable with the industry average which is at 7.77.
Compared to an average S&P500 Dividend Yield of 2.35, FHI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
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 52.75% of its income as dividend. This is a bit on the high side, but may be sustainable.
FHI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP52.75%
EPS Next 2Y19.56%
EPS Next 3Y14.57%
NYSE:FHI (7/15/2025, 11:13:03 AM)
46.23
-0.37 (-0.79%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners81.98%
Inst Owner ChangeN/A
Ins Owners3.99%
Ins Owner Change3.19%
Market Cap3.66B
Analysts52
Price Target43.35 (-6.23%)
Short Float %3.14%
Short Ratio3.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
Yearly Dividend2.22
Dividend Growth(5Y)15.47%
DP52.75%
Div Incr Years2
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.36%
Min EPS beat(2)5.9%
Max EPS beat(2)34.82%
EPS beat(4)3
Avg EPS beat(4)-5.65%
Min EPS beat(4)-77.66%
Max EPS beat(4)34.82%
EPS beat(8)6
Avg EPS beat(8)-1%
EPS beat(12)9
Avg EPS beat(12)0.99%
EPS beat(16)11
Avg EPS beat(16)0.21%
Revenue beat(2)1
Avg Revenue beat(2)-0.19%
Min Revenue beat(2)-0.49%
Max Revenue beat(2)0.11%
Revenue beat(4)1
Avg Revenue beat(4)-0.5%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)0.11%
Revenue beat(8)2
Avg Revenue beat(8)0.19%
Revenue beat(12)5
Avg Revenue beat(12)7.54%
Revenue beat(16)6
Avg Revenue beat(16)4.82%
PT rev (1m)0.79%
PT rev (3m)4.94%
EPS NQ rev (1m)2.12%
EPS NQ rev (3m)3.9%
EPS NY rev (1m)4.12%
EPS NY rev (3m)8.82%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-2.11%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)-1.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.02 | ||
| Fwd PE | 10.14 | ||
| P/S | 1.78 | ||
| P/FCF | 10.68 | ||
| P/OCF | 10.54 | ||
| P/B | 3.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.7 |
EPS(TTM)3.55
EY7.68%
EPS(NY)4.56
Fwd EY9.86%
FCF(TTM)4.33
FCFY9.36%
OCF(TTM)4.38
OCFY9.48%
SpS26.04
BVpS13.6
TBVpS-0.79
PEG (NY)0.33
PEG (5Y)3.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.65% | ||
| ROE | 32.83% | ||
| ROCE | 31.69% | ||
| ROIC | 22.88% | ||
| ROICexc | 32.91% | ||
| ROICexgc | 413.75% | ||
| OM | 27.37% | ||
| PM (TTM) | 17.15% | ||
| GM | 95.3% | ||
| FCFM | 16.62% |
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 Turnover1.03
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.02 | ||
| Debt/EBITDA | 0.59 | ||
| Cap/Depr | 19.92% | ||
| Cap/Sales | 0.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 59.19% | ||
| Profit Quality | 96.9% | ||
| Current Ratio | 3.04 | ||
| Quick Ratio | 3.04 | ||
| Altman-Z | 5.54 |
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)0.85%
EPS 3Y3.71%
EPS 5Y3.47%
EPS Q2Q%40.45%
EPS Next Y40.01%
EPS Next 2Y19.56%
EPS Next 3Y14.57%
EPS Next 5Y12.89%
Revenue 1Y (TTM)2.68%
Revenue growth 3Y7.92%
Revenue growth 5Y4.26%
Sales Q2Q%6.85%
Revenue Next Year5.05%
Revenue Next 2Y4.44%
Revenue Next 3Y4.13%
Revenue Next 5Y2.46%
EBIT growth 1Y12.71%
EBIT growth 3Y4.23%
EBIT growth 5Y4.35%
EBIT Next Year62.14%
EBIT Next 3Y11.97%
EBIT Next 5Y8.11%
FCF growth 1Y-0.86%
FCF growth 3Y28.89%
FCF growth 5Y1.38%
OCF growth 1Y-0.51%
OCF growth 3Y26.7%
OCF growth 5Y0.69%