When you look at NYSE:FHI, it's hard to ignore the strong fundamentals, especially considering its likely undervaluation.

Last update: Mar 19, 2024

Discover FEDERATED HERMES INC (NYSE:FHI), an undervalued stock highlighted by our stock screener. NYSE:FHI showcases solid financial health and profitability while maintaining an appealing valuation. We'll explore the details.

Evaluating Valuation: NYSE:FHI

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NYSE:FHI boasts a 7 out of 10:

With a Price/Earnings ratio of 10.48, the valuation of FHI can be described as very reasonable.
Based on the Price/Earnings ratio, FHI is valued a bit cheaper than 65.05% of the companies in the same industry.
FHI is valuated cheaply when we compare the Price/Earnings ratio to 25.68, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 9.64, the valuation of FHI can be described as reasonable.
Based on the Price/Forward Earnings ratio, FHI is valued a bit cheaper than 66.02% of the companies in the same industry.
FHI is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.14, which is the current average of the S&P500 Index.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FHI indicates a rather cheap valuation: FHI is cheaper than 89.81% of the companies listed in the same industry.
73.30% of the companies in the same industry are more expensive than FHI, based on the Price/Free Cash Flow ratio.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FHI has a very decent profitability rating, which may justify a higher PE ratio.

Assessing Profitability for NYSE:FHI

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:FHI has earned a 7 out of 10:

Looking at the Return On Assets, with a value of 15.71%, FHI belongs to the top of the industry, outperforming 95.63% of the companies in the same industry.
FHI has a better Return On Equity (29.70%) than 93.69% of its industry peers.
With an excellent Return On Invested Capital value of 19.48%, FHI belongs to the best of the industry, outperforming 94.66% 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 10.89%.
The last Return On Invested Capital (19.48%) for FHI is above the 3 year average (16.49%), which is a sign of increasing profitability.
FHI has a Gross Margin of 95.68%. This is amongst the best in the industry. FHI outperforms 93.69% of its industry peers.

Health Analysis for NYSE:FHI

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:FHI has earned a 8 out of 10:

An Altman-Z score of 4.56 indicates that FHI is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.56, FHI belongs to the best of the industry, outperforming 83.98% of the companies in the same industry.
FHI has a debt to FCF ratio of 1.13. This is a very positive value and a sign of high solvency as it would only need 1.13 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.13, FHI belongs to the top of the industry, outperforming 86.41% of the companies in the same industry.
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 75.24% of its industry peers.
FHI has a Current Ratio of 2.78. This indicates that FHI is financially healthy and has no problem in meeting its short term obligations.
FHI has a better Current ratio (2.78) than 74.27% of its industry peers.
FHI has a Quick Ratio of 2.78. This indicates that FHI is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of FHI (2.78) is better than 74.27% of its industry peers.

Assessing Growth for NYSE:FHI

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NYSE:FHI has achieved a 4 out of 10:

The Earnings Per Share has grown by an impressive 22.26% over the past year.
The Revenue has grown by 14.85% in the past year. This is quite good.

Every day, new Decent Value stocks can be found on ChartMill in our Decent Value screener.

Our latest full fundamental report of FHI contains the most current fundamental analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.