FEDERATED HERMES INC (FHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FHI - US3142111034 - Common Stock
54.13 USD
-0.2 (-0.37%)
54.13 USD
0 (0%)
Overall FHI gets a fundamental rating of 7 out of 10. We evaluated FHI against 238 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 scores decently on growth, while it is valued quite cheap. This could make an interesting 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 16.68% is amongst the best of the industry. FHI outperforms 96.22% of its industry peers.
FHI's Return On Equity of 30.66% is amongst the best of the industry. FHI outperforms 96.22% of its industry peers.
With an excellent Return On Invested Capital value of 18.60%, FHI belongs to the best of the industry, outperforming 94.96% 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 7.00%.
The 3 year average ROIC (16.23%) for FHI is below the current ROIC(18.60%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 20.80%, FHI is in line with its industry, outperforming 57.14% of the companies in the same industry.
In the last couple of years the Profit Margin of FHI has declined.
The Operating Margin of FHI (28.35%) is comparable to the rest of the industry.
FHI's Operating Margin has been stable in the last couple of years.
FHI has a Gross Margin of 95.56%. This is amongst the best in the industry. FHI outperforms 95.38% of its industry peers.
FHI's Gross Margin has been stable in the last couple of years.
| 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
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.
FHI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.33 indicates that FHI is not in any danger for bankruptcy at the moment.
The Altman-Z score of FHI (5.33) is better than 86.55% 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 88.66% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that FHI is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.29, FHI is doing good in the industry, outperforming 73.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.34 | ||
| Altman-Z | 5.33 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
FHI has a Current Ratio of 3.13. This indicates that FHI is financially healthy and has no problem in meeting its short term obligations.
FHI has a better Current ratio (3.13) than 81.51% of its industry peers.
FHI has a Quick Ratio of 3.13. This indicates that FHI is financially healthy and has no problem in meeting its short term obligations.
FHI's Quick ratio of 3.13 is amongst the best of the industry. FHI outperforms 81.51% of its industry peers.
| 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.
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.
The Revenue for FHI has decreased by -12.36% in the past year. This is quite bad
The Revenue has been growing slightly by 4.26% on average over the past years.
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
Based on estimates for the next years, FHI will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.18% on average per year.
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 Y52.14%
EPS Next 2Y24.77%
EPS Next 3Y20.02%
EPS Next 5Y14.18%
Revenue Next Year9.49%
Revenue Next 2Y8.21%
Revenue Next 3Y7.34%
Revenue Next 5Y3.25%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 11.30, which indicates a very decent valuation of FHI.
Based on the Price/Earnings ratio, FHI is valued a bit cheaper than the industry average as 63.87% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of FHI to the average of the S&P500 Index (26.57), we can say FHI is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.90, the valuation of FHI can be described as very reasonable.
Based on the Price/Forward Earnings ratio, FHI is valued a bit cheaper than the industry average as 65.55% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 24.04. FHI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.3 | ||
| Fwd PE | 10.9 |
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 90.76% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FHI indicates a somewhat cheap valuation: FHI is cheaper than 61.76% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.2 | ||
| EV/EBITDA | 7.28 |
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.
The excellent profitability rating of FHI may justify a higher PE ratio.
FHI's earnings are expected to grow with 20.02% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.22
PEG (5Y)3.26
EPS Next 2Y24.77%
EPS Next 3Y20.02%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.50%, FHI has a reasonable but not impressive dividend return.
FHI's Dividend Yield is comparable with the industry average which is at 6.54.
Compared to an average S&P500 Dividend Yield of 2.00, FHI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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
FHI pays out 28.50% of its income as dividend. This is a sustainable payout ratio.
The dividend of FHI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP28.5%
EPS Next 2Y24.77%
EPS Next 3Y20.02%
54.13
-0.2 (-0.37%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners91.82%
Inst Owner ChangeN/A
Ins Owners4.12%
Ins Owner Change1.43%
Market Cap4.20B
Revenue(TTM)1.75B
Net Income(TTM)363.99M
Analysts68.33
Price Target52.89 (-2.29%)
Short Float %2.94%
Short Ratio3.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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)1.12%
PT rev (3m)4.54%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.3%
EPS NY rev (1m)2.7%
EPS NY rev (3m)5.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4%
Revenue NY rev (1m)1.35%
Revenue NY rev (3m)2.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.3 | ||
| Fwd PE | 10.9 | ||
| P/S | 2.4 | ||
| P/FCF | 16.2 | ||
| P/OCF | 15.97 | ||
| P/B | 3.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.28 |
EPS(TTM)4.79
EY8.85%
EPS(NY)4.97
Fwd EY9.17%
FCF(TTM)3.34
FCFY6.17%
OCF(TTM)3.39
OCFY6.26%
SpS22.56
BVpS15.31
TBVpS-0.11
PEG (NY)0.22
PEG (5Y)3.26
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 | 5.33 |
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 Y52.14%
EPS Next 2Y24.77%
EPS Next 3Y20.02%
EPS Next 5Y14.18%
Revenue 1Y (TTM)-12.36%
Revenue growth 3Y7.92%
Revenue growth 5Y4.26%
Sales Q2Q%14.93%
Revenue Next Year9.49%
Revenue Next 2Y8.21%
Revenue Next 3Y7.34%
Revenue Next 5Y3.25%
EBIT growth 1Y-7.04%
EBIT growth 3Y4.23%
EBIT growth 5Y4.35%
EBIT Next Year53.28%
EBIT Next 3Y16.01%
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 11.3 and the Price/Book (PB) ratio is 3.54.
Can you provide the financial health for FHI stock?
The financial health rating of FEDERATED HERMES INC (FHI) is 9 / 10.