FEDERATED HERMES INC (FHI) Stock Fundamental Analysis
NYSE:FHI - New York Stock Exchange, Inc. - US3142111034 - Common Stock - Currency: USD
Overall FHI gets a fundamental rating of 7 out of 10. We evaluated FHI against 232 industry peers in the Capital Markets industry. FHI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. FHI is valued quite cheap, while showing a decent growth score. This is a good combination! This makes FHI very considerable 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.
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
The Return On Assets of FHI (17.65%) is better than 97.41% of its industry peers.
The Return On Equity of FHI (32.83%) is better than 96.12% of its industry peers.
FHI has a Return On Invested Capital of 22.88%. This is amongst the best in the industry. FHI outperforms 98.28% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FHI is significantly above the industry average of 7.88%.
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
With a Profit Margin value of 17.15%, FHI perfoms like the industry average, outperforming 54.31% of the companies in the same industry.
FHI's Profit Margin has declined in the last couple of years.
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.
With an excellent Gross Margin value of 95.30%, FHI belongs to the best of the industry, outperforming 95.26% 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 | 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
Compared to 5 years ago, FHI has less shares outstanding
FHI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.31 indicates that FHI is not in any danger for bankruptcy at the moment.
FHI has a better Altman-Z score (5.31) than 85.78% of its industry peers.
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.
FHI has a better Debt to FCF ratio (1.02) than 87.50% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that FHI is not too dependend on debt financing.
FHI has a better Debt to Equity ratio (0.32) than 73.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.02 | ||
| Altman-Z | 5.31 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
FHI has a Current Ratio of 3.04. This indicates that FHI is financially healthy and has no problem in meeting its short term obligations.
FHI has a Current ratio of 3.04. This is amongst the best in the industry. FHI outperforms 80.17% of its industry peers.
A Quick Ratio of 3.04 indicates that FHI has no problem at all paying its short term obligations.
FHI has a Quick ratio of 3.04. This is amongst the best in the industry. FHI outperforms 80.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.04 | ||
| Quick Ratio | 3.04 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.85% over the past year.
The Earnings Per Share has been growing slightly by 3.47% on average over the past years.
FHI shows a small growth in Revenue. In the last year, the Revenue has grown by 2.68%.
FHI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.26% yearly.
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
The Earnings Per Share is expected to grow by 12.89% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.46% on average over the next years.
EPS Next Y34.46%
EPS Next 2Y16.5%
EPS Next 3Y12.02%
EPS Next 5Y12.89%
Revenue Next Year4.87%
Revenue Next 2Y4.17%
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.
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 11.87, the valuation of FHI can be described as reasonable.
FHI's Price/Earnings ratio is a bit cheaper when compared to the industry. FHI is cheaper than 64.66% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.31. FHI is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 9.73, 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 71.55% 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 22.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.87 | ||
| Fwd PE | 9.73 |
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 93.53% 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 76.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.73 | ||
| EV/EBITDA | 5.09 |
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 12.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.34
PEG (5Y)3.42
EPS Next 2Y16.5%
EPS Next 3Y12.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.18%, FHI has a reasonable but not impressive dividend return.
FHI's Dividend Yield is comparable with the industry average which is at 7.98.
FHI's Dividend Yield is a higher than the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
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 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 2Y16.5%
EPS Next 3Y12.02%
42.13
-0.7 (-1.63%)
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 Change3.43%
Market Cap3.33B
Analysts52
Price Target43.01 (2.09%)
Short Float %3.6%
Short Ratio2.79
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.18% |
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)3.27%
PT rev (3m)3.27%
EPS NQ rev (1m)1.84%
EPS NQ rev (3m)-0.79%
EPS NY rev (1m)0%
EPS NY rev (3m)5.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.53%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-1.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.87 | ||
| Fwd PE | 9.73 | ||
| P/S | 1.62 | ||
| P/FCF | 9.73 | ||
| P/OCF | 9.61 | ||
| P/B | 3.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.09 |
EPS(TTM)3.55
EY8.43%
EPS(NY)4.33
Fwd EY10.28%
FCF(TTM)4.33
FCFY10.27%
OCF(TTM)4.38
OCFY10.41%
SpS26.04
BVpS13.6
TBVpS-0.79
PEG (NY)0.34
PEG (5Y)3.42
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 | 5.31 |
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 Y34.46%
EPS Next 2Y16.5%
EPS Next 3Y12.02%
EPS Next 5Y12.89%
Revenue 1Y (TTM)2.68%
Revenue growth 3Y7.92%
Revenue growth 5Y4.26%
Sales Q2Q%6.85%
Revenue Next Year4.87%
Revenue Next 2Y4.17%
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%