FEDERATED HERMES INC (FHI) Stock Fundamental Analysis
USA - NYSE:FHI - US3142111034 - Common Stock
48.15 USD
-2.06 (-4.1%)
48.15 USD
0 (0%)
Taking everything into account, FHI scores 7 out of 10 in our fundamental rating. FHI was compared to 235 industry peers in the Capital Markets industry. FHI gets an excellent profitability rating and is at the same time showing great financial health properties. FHI may be a bit undervalued, certainly considering the very reasonable score on growth 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.
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.
1.2 Ratios
With an excellent Return On Assets value of 16.19%, FHI belongs to the best of the industry, outperforming 96.22% of the companies in the same industry.
FHI has a Return On Equity of 31.27%. This is amongst the best in the industry. FHI outperforms 96.22% of its industry peers.
The Return On Invested Capital of FHI (17.89%) is better than 93.70% 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 7.62%.
The 3 year average ROIC (16.23%) for FHI is below the current ROIC(17.89%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.19% | ||
| ROE | 31.27% | ||
| ROIC | 17.89% |
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 20.64%, FHI is in line with its industry, outperforming 56.72% of the companies in the same industry.
In the last couple of years the Profit Margin of FHI has declined.
FHI has a Operating Margin (28.27%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of FHI has remained more or less at the same level.
The Gross Margin of FHI (95.42%) is better than 95.38% of its industry peers.
FHI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.27% | ||
| PM (TTM) | 20.64% | ||
| GM | 95.42% |
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
FHI has less shares outstanding than it did 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 4.87. This indicates that FHI is financially healthy and has little risk of bankruptcy at the moment.
FHI's Altman-Z score of 4.87 is amongst the best of the industry. FHI outperforms 84.45% of its industry peers.
The Debt to FCF ratio of FHI is 1.25, which is an excellent value as it means it would take FHI, only 1.25 years of fcf income to pay off all of its debts.
FHI has a Debt to FCF ratio of 1.25. This is amongst the best in the industry. FHI outperforms 89.92% of its industry peers.
A Debt/Equity ratio of 0.31 indicates that FHI is not too dependend on debt financing.
FHI's Debt to Equity ratio of 0.31 is fine compared to the rest of the industry. FHI outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 4.87 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
FHI has a Current Ratio of 3.37. This indicates that FHI is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 3.37, FHI belongs to the best of the industry, outperforming 81.51% of the companies in the same industry.
FHI has a Quick Ratio of 3.37. This indicates that FHI is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 3.37, FHI belongs to the best of the industry, outperforming 81.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.37 | ||
| Quick Ratio | 3.37 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 54.98% 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.
Looking at the last year, FHI shows a very negative growth in Revenue. The Revenue has decreased by -15.16% in the last year.
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)54.98%
EPS 3Y3.71%
EPS 5Y3.47%
EPS Q2Q%480%
Revenue 1Y (TTM)-15.16%
Revenue growth 3Y7.92%
Revenue growth 5Y4.26%
Sales Q2Q%5.53%
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.
The Revenue is expected to grow by 3.25% on average over the next years.
EPS Next Y47.88%
EPS Next 2Y24.07%
EPS Next 3Y20.43%
EPS Next 5Y14.18%
Revenue Next Year7.24%
Revenue Next 2Y6.34%
Revenue Next 3Y5.59%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
FHI is valuated reasonably with a Price/Earnings ratio of 10.68.
Based on the Price/Earnings ratio, FHI is valued a bit cheaper than 68.49% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.89, FHI is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.81, the valuation of FHI can be described as reasonable.
71.85% of the companies in the same industry are more expensive than FHI, based on the Price/Forward Earnings ratio.
FHI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.68 | ||
| Fwd PE | 9.81 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FHI is valued cheaply inside the industry as 92.02% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, FHI is valued a bit cheaper than 65.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.45 | ||
| EV/EBITDA | 6.49 |
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.
FHI's earnings are expected to grow with 20.43% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.22
PEG (5Y)3.08
EPS Next 2Y24.07%
EPS Next 3Y20.43%
5. Dividend
5.1 Amount
FHI has a Yearly Dividend Yield of 2.71%.
Compared to an average industry Dividend Yield of 8.34, FHI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.31, FHI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
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
29.55% 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.
DP29.55%
EPS Next 2Y24.07%
EPS Next 3Y20.43%
48.15
-2.06 (-4.1%)
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 Change-1.96%
Market Cap3.73B
Revenue(TTM)1.69B
Net Income(TTM)348.33M
Analysts68.33
Price Target50.32 (4.51%)
Short Float %2.95%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.71% |
Yearly Dividend2.22
Dividend Growth(5Y)15.47%
DP29.55%
Div Incr Years2
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)23.49%
Min EPS beat(2)12.16%
Max EPS beat(2)34.82%
EPS beat(4)4
Avg EPS beat(4)16.8%
Min EPS beat(4)5.9%
Max EPS beat(4)34.82%
EPS beat(8)7
Avg EPS beat(8)0.81%
EPS beat(12)10
Avg EPS beat(12)2.9%
EPS beat(16)11
Avg EPS beat(16)0.89%
Revenue beat(2)0
Avg Revenue beat(2)-0.5%
Min Revenue beat(2)-0.52%
Max Revenue beat(2)-0.49%
Revenue beat(4)1
Avg Revenue beat(4)-0.52%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)0.11%
Revenue beat(8)1
Avg Revenue beat(8)-0.94%
Revenue beat(12)4
Avg Revenue beat(12)0.06%
Revenue beat(16)5
Avg Revenue beat(16)4.77%
PT rev (1m)0%
PT rev (3m)10.04%
EPS NQ rev (1m)3.17%
EPS NQ rev (3m)4.03%
EPS NY rev (1m)1.04%
EPS NY rev (3m)5.63%
Revenue NQ rev (1m)0.78%
Revenue NQ rev (3m)2.97%
Revenue NY rev (1m)0.51%
Revenue NY rev (3m)2.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.68 | ||
| Fwd PE | 9.81 | ||
| P/S | 2.21 | ||
| P/FCF | 13.45 | ||
| P/OCF | 13.49 | ||
| P/B | 3.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.49 |
EPS(TTM)4.51
EY9.37%
EPS(NY)4.91
Fwd EY10.2%
FCF(TTM)3.58
FCFY7.44%
OCF(TTM)3.57
OCFY7.42%
SpS21.76
BVpS14.36
TBVpS-1.2
PEG (NY)0.22
PEG (5Y)3.08
Graham Number38.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.19% | ||
| ROE | 31.27% | ||
| ROCE | 24.77% | ||
| ROIC | 17.89% | ||
| ROICexc | 26.13% | ||
| ROICexgc | 309.43% | ||
| OM | 28.27% | ||
| PM (TTM) | 20.64% | ||
| GM | 95.42% | ||
| FCFM | 16.46% |
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-Score5
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.25 | ||
| Debt/EBITDA | 0.7 | ||
| Cap/Depr | 3.43% | ||
| Cap/Sales | 0.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 55.46% | ||
| Profit Quality | 79.72% | ||
| Current Ratio | 3.37 | ||
| Quick Ratio | 3.37 | ||
| Altman-Z | 4.87 |
F-Score5
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)54.98%
EPS 3Y3.71%
EPS 5Y3.47%
EPS Q2Q%480%
EPS Next Y47.88%
EPS Next 2Y24.07%
EPS Next 3Y20.43%
EPS Next 5Y14.18%
Revenue 1Y (TTM)-15.16%
Revenue growth 3Y7.92%
Revenue growth 5Y4.26%
Sales Q2Q%5.53%
Revenue Next Year7.24%
Revenue Next 2Y6.34%
Revenue Next 3Y5.59%
Revenue Next 5Y3.25%
EBIT growth 1Y-8.56%
EBIT growth 3Y4.23%
EBIT growth 5Y4.35%
EBIT Next Year43.37%
EBIT Next 3Y15.03%
EBIT Next 5Y9.26%
FCF growth 1Y-12.06%
FCF growth 3Y28.89%
FCF growth 5Y1.38%
OCF growth 1Y-13.73%
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 10.68 and the Price/Book (PB) ratio is 3.35.
Can you provide the financial health for FHI stock?
The financial health rating of FEDERATED HERMES INC (FHI) is 9 / 10.