FEDERATED HERMES INC (FHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FHI - US3142111034 - Common Stock
49.27 USD
+0.35 (+0.72%)
FHI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 237 industry peers in the Capital Markets industry. Both the health and profitability get an excellent rating, making FHI a very profitable company, without any liquidiy or solvency issues. FHI scores decently on growth, while it is valued quite cheap. This could make an interesting 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.
In the past 5 years FHI has always 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 (16.68%) is better than 96.62% of its industry peers.
With an excellent Return On Equity value of 30.66%, FHI belongs to the best of the industry, outperforming 96.62% of the companies in the same industry.
The Return On Invested Capital of FHI (18.60%) is better than 94.94% of its industry peers.
FHI had an Average Return On Invested Capital over the past 3 years of 16.23%. This is significantly above the industry average of 6.96%.
The last Return On Invested Capital (18.60%) for FHI is above the 3 year average (16.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.68% | ||
| ROE | 30.66% | ||
| ROIC | 18.6% |
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's Profit Margin of 20.80% is in line compared to the rest of the industry. FHI outperforms 56.96% of its industry peers.
FHI's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 28.35%, FHI perfoms like the industry average, outperforming 56.96% of the companies in the same industry.
FHI's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 95.56%, FHI belongs to the best of the industry, outperforming 95.36% 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 | 28.35% | ||
| PM (TTM) | 20.8% | ||
| GM | 95.56% |
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
The number of shares outstanding for FHI has been reduced compared to 1 year ago.
FHI has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, FHI has a worse debt to assets ratio.
2.2 Solvency
FHI has an Altman-Z score of 5.08. This indicates that FHI is financially healthy and has little risk of bankruptcy at the moment.
FHI has a Altman-Z score of 5.08. This is amongst the best in the industry. FHI outperforms 86.08% of its industry peers.
The Debt to FCF ratio of FHI is 1.34, which is an excellent value as it means it would take FHI, only 1.34 years of fcf income to pay off all of its debts.
FHI has a Debt to FCF ratio of 1.34. This is amongst the best in the industry. FHI outperforms 88.61% of its industry peers.
FHI has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of FHI (0.29) is better than 73.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.34 | ||
| Altman-Z | 5.08 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 3.13 indicates that FHI has no problem at all paying its short term obligations.
The Current ratio of FHI (3.13) is better than 81.01% of its industry peers.
A Quick Ratio of 3.13 indicates that FHI has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.13, FHI belongs to the top of the industry, outperforming 81.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 3.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 54.02% over the past year.
FHI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.47% yearly.
FHI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.36%.
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)54.02%
EPS 3Y3.71%
EPS 5Y3.47%
EPS Q2Q%26.42%
Revenue 1Y (TTM)-12.36%
Revenue growth 3Y7.92%
Revenue growth 5Y4.26%
Sales Q2Q%14.93%
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 14.18% yearly.
Based on estimates for the next years, FHI will show a small growth in Revenue. The Revenue will grow by 3.25% on average per year.
EPS Next Y48.14%
EPS Next 2Y23.99%
EPS Next 3Y19.5%
EPS Next 5Y14.18%
Revenue Next Year8.03%
Revenue Next 2Y6.88%
Revenue Next 3Y5.91%
Revenue Next 5Y3.25%
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 10.29, the valuation of FHI can be described as very reasonable.
FHI's Price/Earnings ratio is a bit cheaper when compared to the industry. FHI is cheaper than 68.35% of the companies in the same industry.
FHI is valuated cheaply when we compare the Price/Earnings ratio to 25.65, which is the current average of the S&P500 Index.
FHI is valuated reasonably with a Price/Forward Earnings ratio of 10.05.
Based on the Price/Forward Earnings ratio, FHI is valued a bit cheaper than the industry average as 69.20% of the companies are valued more expensively.
FHI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.29 | ||
| Fwd PE | 10.05 |
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 | 14.75 | ||
| EV/EBITDA | 6.47 |
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.
FHI has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as FHI's earnings are expected to grow with 19.50% in the coming years.
PEG (NY)0.21
PEG (5Y)2.97
EPS Next 2Y23.99%
EPS Next 3Y19.5%
5. Dividend
5.1 Amount
FHI has a Yearly Dividend Yield of 2.86%. Purely for dividend investing, there may be better candidates out there.
FHI's Dividend Yield is comparable with the industry average which is at 8.60.
FHI's Dividend Yield is comparable with the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
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
28.50% of the earnings are spent on dividend by FHI. This is a low number and sustainable payout ratio.
FHI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP28.5%
EPS Next 2Y23.99%
EPS Next 3Y19.5%
NYSE:FHI (11/25/2025, 12:33:32 PM)
49.27
+0.35 (+0.72%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners86.98%
Inst Owner ChangeN/A
Ins Owners4.03%
Ins Owner Change0.91%
Market Cap3.82B
Revenue(TTM)1.75B
Net Income(TTM)363.99M
Analysts68.33
Price Target52.6 (6.76%)
Short Float %2.86%
Short Ratio3.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.86% |
Yearly Dividend2.22
Dividend Growth(5Y)15.47%
DP28.5%
Div Incr Years2
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)15.12%
Min EPS beat(2)12.16%
Max EPS beat(2)18.07%
EPS beat(4)4
Avg EPS beat(4)17.74%
Min EPS beat(4)5.9%
Max EPS beat(4)34.82%
EPS beat(8)7
Avg EPS beat(8)2.76%
EPS beat(12)10
Avg EPS beat(12)3.62%
EPS beat(16)11
Avg EPS beat(16)1.95%
Revenue beat(2)1
Avg Revenue beat(2)2.14%
Min Revenue beat(2)-0.52%
Max Revenue beat(2)4.79%
Revenue beat(4)2
Avg Revenue beat(4)0.97%
Min Revenue beat(4)-0.52%
Max Revenue beat(4)4.79%
Revenue beat(8)2
Avg Revenue beat(8)-0.28%
Revenue beat(12)4
Avg Revenue beat(12)0.44%
Revenue beat(16)6
Avg Revenue beat(16)5.28%
PT rev (1m)4.54%
PT rev (3m)7.07%
EPS NQ rev (1m)3.24%
EPS NQ rev (3m)6.4%
EPS NY rev (1m)0.18%
EPS NY rev (3m)2.26%
Revenue NQ rev (1m)2.49%
Revenue NQ rev (3m)4.46%
Revenue NY rev (1m)0.74%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.29 | ||
| Fwd PE | 10.05 | ||
| P/S | 2.18 | ||
| P/FCF | 14.75 | ||
| P/OCF | 14.54 | ||
| P/B | 3.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.47 |
EPS(TTM)4.79
EY9.72%
EPS(NY)4.9
Fwd EY9.95%
FCF(TTM)3.34
FCFY6.78%
OCF(TTM)3.39
OCFY6.88%
SpS22.56
BVpS15.31
TBVpS-0.11
PEG (NY)0.21
PEG (5Y)2.97
Graham Number40.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.68% | ||
| ROE | 30.66% | ||
| ROCE | 25.76% | ||
| ROIC | 18.6% | ||
| ROICexc | 28.03% | ||
| ROICexgc | 434.37% | ||
| OM | 28.35% | ||
| PM (TTM) | 20.8% | ||
| GM | 95.56% | ||
| FCFM | 14.81% |
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%
ROICexgc growth 3Y38.23%
ROICexgc 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-Score7
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.34 | ||
| Debt/EBITDA | 0.67 | ||
| Cap/Depr | 16.6% | ||
| Cap/Sales | 0.21% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 50.71% | ||
| Profit Quality | 71.2% | ||
| Current Ratio | 3.13 | ||
| Quick Ratio | 3.13 | ||
| Altman-Z | 5.08 |
F-Score7
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)54.02%
EPS 3Y3.71%
EPS 5Y3.47%
EPS Q2Q%26.42%
EPS Next Y48.14%
EPS Next 2Y23.99%
EPS Next 3Y19.5%
EPS Next 5Y14.18%
Revenue 1Y (TTM)-12.36%
Revenue growth 3Y7.92%
Revenue growth 5Y4.26%
Sales Q2Q%14.93%
Revenue Next Year8.03%
Revenue Next 2Y6.88%
Revenue Next 3Y5.91%
Revenue Next 5Y3.25%
EBIT growth 1Y-7.04%
EBIT growth 3Y4.23%
EBIT growth 5Y4.35%
EBIT Next Year43.37%
EBIT Next 3Y15.03%
EBIT Next 5Y9.26%
FCF growth 1Y-16%
FCF growth 3Y28.89%
FCF growth 5Y1.38%
OCF growth 1Y-16.45%
OCF growth 3Y26.7%
OCF growth 5Y0.69%
FEDERATED HERMES INC / FHI FAQ
Can you provide the ChartMill fundamental rating for FEDERATED HERMES INC?
ChartMill assigns a fundamental rating of 7 / 10 to FHI.
What is the valuation status of FEDERATED HERMES INC (FHI) stock?
ChartMill assigns a valuation rating of 8 / 10 to FEDERATED HERMES INC (FHI). This can be considered as Undervalued.
How profitable is FEDERATED HERMES INC (FHI) stock?
FEDERATED HERMES INC (FHI) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for FHI stock?
The Price/Earnings (PE) ratio for FEDERATED HERMES INC (FHI) is 10.29 and the Price/Book (PB) ratio is 3.22.
Can you provide the financial health for FHI stock?
The financial health rating of FEDERATED HERMES INC (FHI) is 9 / 10.