FEDERATED HERMES INC (FHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FHI - US3142111034 - Common Stock
53.9 USD
-0.47 (-0.86%)
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 may be a bit undervalued, certainly considering the very reasonable score on growth These ratings could make FHI a good candidate for value and quality investing.
1. Profitability
1.1 Basic Checks
- In the past year FHI was profitable.
- In the past year FHI had a positive cash flow from operations.
- Each year in the past 5 years FHI has 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 16.68% is amongst the best of the industry. FHI outperforms 95.80% of its industry peers.
- The Return On Equity of FHI (30.66%) is better than 95.80% of its industry peers.
- With an excellent Return On Invested Capital value of 18.60%, FHI belongs to the best of the industry, outperforming 94.54% 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 7.27%.
- 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
- FHI has a Profit Margin of 20.80%. This is comparable to the rest of the industry: FHI outperforms 55.88% of its industry peers.
- FHI's Profit Margin has declined in the last couple of years.
- FHI's Operating Margin of 28.35% is in line compared to the rest of the industry. FHI outperforms 56.72% of its industry peers.
- FHI's Operating Margin has been stable in the last couple of years.
- The Gross Margin of FHI (95.56%) is better than 96.22% 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
- FHI has less shares outstanding than it did 5 years ago.
- FHI has a worse debt/assets ratio than last year.
2.2 Solvency
- FHI has an Altman-Z score of 5.33. This indicates that FHI is financially healthy and has little risk of bankruptcy at the moment.
- FHI has a better Altman-Z score (5.33) than 85.71% of its industry peers.
- FHI has a debt to FCF ratio of 1.34. This is a very positive value and a sign of high solvency as it would only need 1.34 years to pay back of all of its debts.
- The Debt to FCF ratio of FHI (1.34) is better than 88.66% of its industry peers.
- A Debt/Equity ratio of 0.29 indicates that FHI is not too dependend on debt financing.
- FHI's Debt to Equity ratio of 0.29 is fine compared to the rest of the industry. FHI outperforms 73.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.34 | ||
| Altman-Z | 5.33 |
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.
- Looking at the Current ratio, with a value of 3.13, FHI belongs to the top of the industry, outperforming 81.51% of the companies in the same industry.
- A Quick Ratio of 3.13 indicates that FHI has no problem at all paying its short term obligations.
- The Quick ratio of FHI (3.13) is better than 81.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 3.13 |
3. Growth
3.1 Past
- FHI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.02%, which is quite impressive.
- 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
- FHI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.10% yearly.
- Based on estimates for the next years, FHI will show a small growth in Revenue. The Revenue will grow by 4.00% on average per year.
EPS Next Y54.16%
EPS Next 2Y25.86%
EPS Next 3Y20.84%
EPS Next 5Y15.1%
Revenue Next Year9.8%
Revenue Next 2Y8.72%
Revenue Next 3Y7.18%
Revenue Next 5Y4%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 11.25, the valuation of FHI can be described as very reasonable.
- Based on the Price/Earnings ratio, FHI is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
- FHI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.38.
- A Price/Forward Earnings ratio of 10.67 indicates a reasonable valuation of FHI.
- 71.43% of the companies in the same industry are more expensive than FHI, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. FHI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 10.67 |
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 91.60% 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 68.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.13 | ||
| EV/EBITDA | 7.28 |
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 20.84% in the coming years.
PEG (NY)0.21
PEG (5Y)3.24
EPS Next 2Y25.86%
EPS Next 3Y20.84%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.55%, FHI has a reasonable but not impressive dividend return.
- FHI's Dividend Yield is comparable with the industry average which is at 6.10.
- Compared to an average S&P500 Dividend Yield of 1.84, FHI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
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
- 28.50% of the earnings are spent on dividend by FHI. This is a low number and 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 2Y25.86%
EPS Next 3Y20.84%
NYSE:FHI (1/20/2026, 11:10:48 AM)
53.9
-0.47 (-0.86%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)01-29 2026-01-29/amc
Inst Owners91.72%
Inst Owner ChangeN/A
Ins Owners3.46%
Ins Owner Change1.43%
Market Cap4.18B
Revenue(TTM)1.75B
Net Income(TTM)363.99M
Analysts68.33
Price Target53.19 (-1.32%)
Short Float %3.27%
Short Ratio4.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
Yearly Dividend2.22
Dividend Growth(5Y)15.47%
DP28.5%
Div Incr Years2
Div Non Decr Years3
Ex-DateN/A
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)1.11%
PT rev (3m)5.7%
EPS NQ rev (1m)2.48%
EPS NQ rev (3m)6.23%
EPS NY rev (1m)1.32%
EPS NY rev (3m)5.33%
Revenue NQ rev (1m)0.67%
Revenue NQ rev (3m)3.38%
Revenue NY rev (1m)0.28%
Revenue NY rev (3m)2.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.25 | ||
| Fwd PE | 10.67 | ||
| P/S | 2.39 | ||
| P/FCF | 16.13 | ||
| P/OCF | 15.9 | ||
| P/B | 3.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.28 |
EPS(TTM)4.79
EY8.89%
EPS(NY)5.05
Fwd EY9.38%
FCF(TTM)3.34
FCFY6.2%
OCF(TTM)3.39
OCFY6.29%
SpS22.56
BVpS15.31
TBVpS-0.11
PEG (NY)0.21
PEG (5Y)3.24
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 Y54.16%
EPS Next 2Y25.86%
EPS Next 3Y20.84%
EPS Next 5Y15.1%
Revenue 1Y (TTM)-12.36%
Revenue growth 3Y7.92%
Revenue growth 5Y4.26%
Sales Q2Q%14.93%
Revenue Next Year9.8%
Revenue Next 2Y8.72%
Revenue Next 3Y7.18%
Revenue Next 5Y4%
EBIT growth 1Y-7.04%
EBIT growth 3Y4.23%
EBIT growth 5Y4.35%
EBIT Next Year51.34%
EBIT Next 3Y16.94%
EBIT Next 5Y9.5%
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 for 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.
What is the valuation of FEDERATED HERMES INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for FEDERATED HERMES INC (FHI) is 11.25 and the Price/Book (PB) ratio is 3.52.
Is the dividend of FEDERATED HERMES INC sustainable?
The dividend rating of FEDERATED HERMES INC (FHI) is 5 / 10 and the dividend payout ratio is 28.5%.