FEDERATED HERMES INC (FHI) Fundamental Analysis & Valuation

NYSE:FHI • US3142111034

Current stock price

54.12 USD
-3.97 (-6.83%)
At close:
54.12 USD
0 (0%)
After Hours:

This FHI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. FHI Profitability Analysis

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.
  • Each year in the past 5 years FHI had a positive operating cash flow.
FHI Yearly Net Income VS EBIT VS OCF VS FCFFHI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M

1.2 Ratios

  • FHI has a better Return On Assets (17.28%) than 92.47% of its industry peers.
  • With an excellent Return On Equity value of 32.18%, FHI belongs to the best of the industry, outperforming 95.40% of the companies in the same industry.
  • FHI's Return On Invested Capital of 19.98% is amongst the best of the industry. FHI outperforms 95.82% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for FHI is significantly above the industry average of 7.31%.
  • The 3 year average ROIC (17.87%) for FHI is below the current ROIC(19.98%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 17.28%
ROE 32.18%
ROIC 19.98%
ROA(3y)14.38%
ROA(5y)13.45%
ROE(3y)26.96%
ROE(5y)25.19%
ROIC(3y)17.87%
ROIC(5y)17.01%
FHI Yearly ROA, ROE, ROICFHI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • FHI has a Profit Margin (21.27%) which is in line with its industry peers.
  • In the last couple of years the Profit Margin of FHI has remained more or less at the same level.
  • With a Operating Margin value of 28.95%, FHI perfoms like the industry average, outperforming 54.81% of the companies in the same industry.
  • In the last couple of years the Operating Margin of FHI has remained more or less at the same level.
  • Looking at the Gross Margin, with a value of 95.54%, FHI belongs to the top of the industry, outperforming 96.23% of the companies in the same industry.
  • FHI's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 28.95%
PM (TTM) 21.27%
GM 95.54%
OM growth 3Y3.48%
OM growth 5Y0.05%
PM growth 3Y10.43%
PM growth 5Y-0.36%
GM growth 3Y-0.16%
GM growth 5Y-0.14%
FHI Yearly Profit, Operating, Gross MarginsFHI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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9

2. FHI Health Analysis

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 better debt/assets ratio than last year.
FHI Yearly Shares OutstandingFHI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
FHI Yearly Total Debt VS Total AssetsFHI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

2.2 Solvency

  • FHI has an Altman-Z score of 5.41. This indicates that FHI is financially healthy and has little risk of bankruptcy at the moment.
  • FHI has a Altman-Z score of 5.41. This is amongst the best in the industry. FHI outperforms 87.03% of its industry peers.
  • FHI has a debt to FCF ratio of 1.18. This is a very positive value and a sign of high solvency as it would only need 1.18 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 1.18, FHI belongs to the top of the industry, outperforming 87.03% of the companies in the same industry.
  • A Debt/Equity ratio of 0.29 indicates that FHI is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.29, FHI is in the better half of the industry, outperforming 73.64% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.29
Debt/FCF 1.18
Altman-Z 5.41
ROIC/WACCN/A
WACCN/A
FHI Yearly LT Debt VS Equity VS FCFFHI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

2.3 Liquidity

  • FHI has a Current Ratio of 2.75. This indicates that FHI is financially healthy and has no problem in meeting its short term obligations.
  • With an excellent Current ratio value of 2.75, FHI belongs to the best of the industry, outperforming 80.33% of the companies in the same industry.
  • A Quick Ratio of 2.75 indicates that FHI has no problem at all paying its short term obligations.
  • With an excellent Quick ratio value of 2.75, FHI belongs to the best of the industry, outperforming 80.33% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.75
Quick Ratio 2.75
FHI Yearly Current Assets VS Current LiabilitesFHI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

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4

3. FHI Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 45.35% over the past year.
  • FHI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.87% yearly.
  • The Revenue has grown by 10.78% in the past year. This is quite good.
  • Measured over the past years, FHI shows a small growth in Revenue. The Revenue has been growing by 4.57% on average per year.
EPS 1Y (TTM)45.35%
EPS 3Y20.61%
EPS 5Y9.87%
EPS Q2Q%1.6%
Revenue 1Y (TTM)10.78%
Revenue growth 3Y7.9%
Revenue growth 5Y4.57%
Sales Q2Q%13.08%

3.2 Future

  • The Earnings Per Share is expected to grow by 6.89% on average over the next years.
  • The Revenue is expected to grow by 1.77% on average over the next years.
EPS Next Y1.92%
EPS Next 2Y6.2%
EPS Next 3Y7.49%
EPS Next 5Y6.89%
Revenue Next Year9.7%
Revenue Next 2Y6.99%
Revenue Next 3Y5.29%
Revenue Next 5Y1.77%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less 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.
FHI Yearly Revenue VS EstimatesFHI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 500M 1B 1.5B 2B
FHI Yearly EPS VS EstimatesFHI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8

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6

4. FHI Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 10.49 indicates a reasonable valuation of FHI.
  • FHI's Price/Earnings ratio is a bit cheaper when compared to the industry. FHI is cheaper than 62.34% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 26.64. FHI is valued rather cheaply when compared to this.
  • A Price/Forward Earnings ratio of 9.34 indicates a reasonable valuation of FHI.
  • Based on the Price/Forward Earnings ratio, FHI is valued a bit cheaper than the industry average as 69.46% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 21.36, FHI is valued rather cheaply.
Industry RankSector Rank
PE 10.49
Fwd PE 9.34
FHI Price Earnings VS Forward Price EarningsFHI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 89.96% 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 66.11% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 13.93
EV/EBITDA 7.11
FHI Per share dataFHI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • FHI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.45
PEG (5Y)1.06
EPS Next 2Y6.2%
EPS Next 3Y7.49%

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4

5. FHI Dividend Analysis

5.1 Amount

  • FHI has a Yearly Dividend Yield of 2.62%.
  • FHI's Dividend Yield is comparable with the industry average which is at 6.46.
  • Compared to an average S&P500 Dividend Yield of 1.80, FHI pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.62%

5.2 History

  • The dividend of FHI decreases each year by -8.56%.
  • FHI has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-8.56%
Div Incr Years0
Div Non Decr Years0
FHI Yearly Dividends per shareFHI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

5.3 Sustainability

  • FHI pays out 27.23% of its income as dividend. This is a sustainable payout ratio.
DP27.23%
EPS Next 2Y6.2%
EPS Next 3Y7.49%
FHI Yearly Income VS Free CF VS DividendFHI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
FHI Dividend Payout.FHI Dividend Payout, showing the Payout Ratio.FHI Dividend Payout.PayoutRetained Earnings

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FHI Fundamentals: All Metrics, Ratios and Statistics

FEDERATED HERMES INC

NYSE:FHI (5/1/2026, 8:27:16 PM)

After market: 54.12 0 (0%)

54.12

-3.97 (-6.83%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Industry Strength31.68
Industry Growth53.42
Earnings (Last)04-30
Earnings (Next)07-29
Inst Owners94.09%
Inst Owner Change0.5%
Ins Owners3.5%
Ins Owner Change1.25%
Market Cap4.10B
Revenue(TTM)1.81B
Net Income(TTM)385.17M
Analysts68.33
Price Target58.75 (8.56%)
Short Float %4.34%
Short Ratio3.89
Dividend
Industry RankSector Rank
Dividend Yield 2.62%
Yearly Dividend1.33
Dividend Growth(5Y)-8.56%
DP27.23%
Div Incr Years0
Div Non Decr Years0
Ex-Date02-06
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)16.71%
Min EPS beat(2)15.34%
Max EPS beat(2)18.07%
EPS beat(4)4
Avg EPS beat(4)20.1%
Min EPS beat(4)12.16%
Max EPS beat(4)34.82%
EPS beat(8)7
Avg EPS beat(8)2.87%
EPS beat(12)10
Avg EPS beat(12)3.57%
EPS beat(16)12
Avg EPS beat(16)2.96%
Revenue beat(2)2
Avg Revenue beat(2)3.59%
Min Revenue beat(2)2.38%
Max Revenue beat(2)4.79%
Revenue beat(4)2
Avg Revenue beat(4)1.54%
Min Revenue beat(4)-0.52%
Max Revenue beat(4)4.79%
Revenue beat(8)3
Avg Revenue beat(8)0.31%
Revenue beat(12)4
Avg Revenue beat(12)0.5%
Revenue beat(16)7
Avg Revenue beat(16)5.78%
PT rev (1m)3.24%
PT rev (3m)10.08%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)2.48%
EPS NY rev (1m)1.77%
EPS NY rev (3m)2.23%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)1.55%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)1.91%
Valuation
Industry RankSector Rank
PE 10.49
Fwd PE 9.34
P/S 2.27
P/FCF 13.93
P/OCF 13.8
P/B 3.43
P/tB 307.77
EV/EBITDA 7.11
EPS(TTM)5.16
EY9.53%
EPS(NY)5.8
Fwd EY10.71%
FCF(TTM)3.88
FCFY7.18%
OCF(TTM)3.92
OCFY7.24%
SpS23.88
BVpS15.78
TBVpS0.18
PEG (NY)5.45
PEG (5Y)1.06
Graham Number42.806 (-20.91%)
Profitability
Industry RankSector Rank
ROA 17.28%
ROE 32.18%
ROCE 27.37%
ROIC 19.98%
ROICexc 32.13%
ROICexgc 5250.42%
OM 28.95%
PM (TTM) 21.27%
GM 95.54%
FCFM 16.27%
ROA(3y)14.38%
ROA(5y)13.45%
ROE(3y)26.96%
ROE(5y)25.19%
ROIC(3y)17.87%
ROIC(5y)17.01%
ROICexc(3y)27.56%
ROICexc(5y)25.17%
ROICexgc(3y)2493.83%
ROICexgc(5y)1778.86%
ROCE(3y)24.48%
ROCE(5y)23.31%
ROICexgc growth 3Y82.35%
ROICexgc growth 5Y66.55%
ROICexc growth 3Y13.21%
ROICexc growth 5Y7.38%
OM growth 3Y3.48%
OM growth 5Y0.05%
PM growth 3Y10.43%
PM growth 5Y-0.36%
GM growth 3Y-0.16%
GM growth 5Y-0.14%
F-Score7
Asset Turnover0.81
Health
Industry RankSector Rank
Debt/Equity 0.29
Debt/FCF 1.18
Debt/EBITDA 0.64
Cap/Depr 12.41%
Cap/Sales 0.15%
Interest Coverage 44.41
Cash Conversion 54.41%
Profit Quality 76.48%
Current Ratio 2.75
Quick Ratio 2.75
Altman-Z 5.41
F-Score7
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)19.95%
Cap/Depr(5y)22.03%
Cap/Sales(3y)0.3%
Cap/Sales(5y)0.4%
Profit Quality(3y)105.52%
Profit Quality(5y)103.72%
High Growth Momentum
Growth
EPS 1Y (TTM)45.35%
EPS 3Y20.61%
EPS 5Y9.87%
EPS Q2Q%1.6%
EPS Next Y1.92%
EPS Next 2Y6.2%
EPS Next 3Y7.49%
EPS Next 5Y6.89%
Revenue 1Y (TTM)10.78%
Revenue growth 3Y7.9%
Revenue growth 5Y4.57%
Sales Q2Q%13.08%
Revenue Next Year9.7%
Revenue Next 2Y6.99%
Revenue Next 3Y5.29%
Revenue Next 5Y1.77%
EBIT growth 1Y-0.99%
EBIT growth 3Y11.66%
EBIT growth 5Y4.62%
EBIT Next Year11.24%
EBIT Next 3Y7.03%
EBIT Next 5Y2.42%
FCF growth 1Y-14%
FCF growth 3Y-2.68%
FCF growth 5Y-3.92%
OCF growth 1Y-14.2%
OCF growth 3Y-2.82%
OCF growth 5Y-4.44%

FEDERATED HERMES INC / FHI Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for FEDERATED HERMES INC?

ChartMill assigns a fundamental rating of 7 / 10 to FHI.


Can you provide the valuation status for FEDERATED HERMES INC?

ChartMill assigns a valuation rating of 6 / 10 to FEDERATED HERMES INC (FHI). This can be considered as Fairly Valued.


Can you provide the profitability details for FEDERATED HERMES INC?

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 10.49 and the Price/Book (PB) ratio is 3.43.


What is the financial health of FEDERATED HERMES INC (FHI) stock?

The financial health rating of FEDERATED HERMES INC (FHI) is 9 / 10.