FEDERATED HERMES INC (FHI) Stock Fundamental Analysis
USA - NYSE:FHI - US3142111034 - Common Stock
52.55 USD
-0.13 (-0.25%)
52.55 USD
0 (0%)
FHI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 237 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 is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make FHI a good candidate 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.
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
FHI's Return On Assets of 16.19% is amongst the best of the industry. FHI outperforms 96.20% of its industry peers.
With an excellent Return On Equity value of 31.27%, FHI belongs to the best of the industry, outperforming 95.78% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 17.89%, FHI belongs to the top of the industry, outperforming 93.67% 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 7.61%.
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 (20.64%) which is comparable to the rest of the industry.
FHI's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 28.27%, FHI perfoms like the industry average, outperforming 54.43% 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 95.78% 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
FHI has less shares outstanding than it did 1 year ago.
FHI has less shares outstanding than it did 5 years ago.
The debt/assets ratio for FHI is higher compared to a year ago.
2.2 Solvency
FHI has an Altman-Z score of 5.07. This indicates that FHI is financially healthy and has little risk of bankruptcy at the moment.
FHI has a Altman-Z score of 5.07. This is amongst the best in the industry. FHI outperforms 85.65% 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 88.61% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that FHI is not too dependend on debt financing.
FHI has a Debt to Equity ratio of 0.31. This is in the better half of the industry: FHI outperforms 72.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 5.07 |
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.
FHI's Current ratio of 3.37 is amongst the best of the industry. FHI outperforms 81.86% of its industry peers.
A Quick Ratio of 3.37 indicates that FHI has no problem at all paying its short term obligations.
FHI has a better Quick ratio (3.37) than 81.86% 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.
Looking at the last year, FHI shows a very negative growth in Revenue. The Revenue has decreased by -15.16% 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)54.98%
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
The Earnings Per Share is expected to grow by 12.89% on average over the next years. This is quite good.
FHI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.46% yearly.
EPS Next Y44.87%
EPS Next 2Y21.59%
EPS Next 3Y18.34%
EPS Next 5Y12.89%
Revenue Next Year6.7%
Revenue Next 2Y5.71%
Revenue Next 3Y5.37%
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
With a Price/Earnings ratio of 11.65, the valuation of FHI can be described as very reasonable.
65.82% 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 27.20. FHI is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.14, which indicates a very decent valuation of FHI.
Based on the Price/Forward Earnings ratio, FHI is valued a bit cheaper than 66.67% 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 22.70.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.65 | ||
| Fwd PE | 11.14 |
4.2 Price Multiples
91.98% of the companies in the same industry are more expensive than FHI, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FHI is valued a bit cheaper than 63.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.68 | ||
| 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.
FHI's earnings are expected to grow with 18.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.26
PEG (5Y)3.36
EPS Next 2Y21.59%
EPS Next 3Y18.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.51%, FHI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 7.96, FHI has a dividend in line with its industry peers.
FHI's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
5.2 History
The dividend of FHI is nicely growing with an annual growth rate of 15.47%!
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.
FHI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.55%
EPS Next 2Y21.59%
EPS Next 3Y18.34%
52.55
-0.13 (-0.25%)
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 Change-1.7%
Market Cap4.08B
Analysts68.33
Price Target50.32 (-4.24%)
Short Float %3.18%
Short Ratio3.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
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)5.34%
PT rev (3m)17%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)4.09%
EPS NY rev (1m)3.48%
EPS NY rev (3m)7.74%
Revenue NQ rev (1m)1.08%
Revenue NQ rev (3m)3.09%
Revenue NY rev (1m)1.45%
Revenue NY rev (3m)1.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.65 | ||
| Fwd PE | 11.14 | ||
| P/S | 2.42 | ||
| P/FCF | 14.68 | ||
| P/OCF | 14.72 | ||
| P/B | 3.66 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.17 |
EPS(TTM)4.51
EY8.58%
EPS(NY)4.72
Fwd EY8.98%
FCF(TTM)3.58
FCFY6.81%
OCF(TTM)3.57
OCFY6.79%
SpS21.76
BVpS14.36
TBVpS-1.2
PEG (NY)0.26
PEG (5Y)3.36
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 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 Year6.7%
Revenue Next 2Y5.71%
Revenue Next 3Y5.37%
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%