FEDERATED HERMES INC (FHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FHI - US3142111034 - Common Stock
53.86 USD
-0.27 (-0.5%)
53.86 USD
0 (0%)
FHI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 235 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on FHI. These ratings would make FHI suitable for value 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.
In the past 5 years FHI has always been profitable.
FHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FHI has a better Return On Assets (16.68%) than 96.17% of its industry peers.
With an excellent Return On Equity value of 30.66%, FHI belongs to the best of the industry, outperforming 96.17% of the companies in the same industry.
The Return On Invested Capital of FHI (18.60%) is better than 94.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FHI is significantly above the industry average of 7.07%.
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 (20.80%) which is in line with its industry peers.
FHI's Profit Margin has declined in the last couple of years.
FHI has a Operating Margin (28.35%) which is in line with its industry peers.
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 95.56%, FHI belongs to the top of the industry, outperforming 95.74% 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.
Compared to 5 years ago, FHI has less shares outstanding
FHI has a worse debt/assets ratio than last year.
2.2 Solvency
FHI has an Altman-Z score of 5.32. This indicates that FHI is financially healthy and has little risk of bankruptcy at the moment.
FHI has a better Altman-Z score (5.32) than 85.96% 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 better Debt to FCF ratio (1.34) than 88.51% 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.
Looking at the Debt to Equity ratio, with a value of 0.29, FHI is in the better half of the industry, outperforming 73.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.34 | ||
| Altman-Z | 5.32 |
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.
The Current ratio of FHI (3.13) is better than 81.70% of its industry peers.
A Quick Ratio of 3.13 indicates that FHI has no problem at all paying its short term obligations.
FHI has a Quick ratio of 3.13. This is amongst the best in the industry. FHI outperforms 81.70% 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.
FHI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.47% yearly.
The Revenue for FHI has decreased by -12.36% in the past year. This is quite bad
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
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 Y54.16%
EPS Next 2Y25.86%
EPS Next 3Y20.84%
EPS Next 5Y14.18%
Revenue Next Year9.68%
Revenue Next 2Y8.41%
Revenue Next 3Y7.18%
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
With a Price/Earnings ratio of 11.24, the valuation of FHI can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of FHI indicates a somewhat cheap valuation: FHI is cheaper than 63.40% of the companies listed in the same industry.
FHI is valuated cheaply when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 10.66, the valuation of FHI can be described as reasonable.
Based on the Price/Forward Earnings ratio, FHI is valued a bit cheaper than 67.66% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of FHI to the average of the S&P500 Index (23.40), we can say FHI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.24 | ||
| Fwd PE | 10.66 |
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 91.06% of the companies listed in the same industry.
65.11% of the companies in the same industry are more expensive than FHI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.12 | ||
| EV/EBITDA | 7.25 |
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.
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 2.50%, FHI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 6.65, FHI has a dividend in line with its industry peers.
FHI's Dividend Yield is a higher than the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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.
FHI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP28.5%
EPS Next 2Y25.86%
EPS Next 3Y20.84%
53.86
-0.27 (-0.5%)
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 Cap4.18B
Revenue(TTM)1.75B
Net Income(TTM)363.99M
Analysts68.33
Price Target52.89 (-1.8%)
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)0.55%
PT rev (3m)5.12%
EPS NQ rev (1m)1.73%
EPS NQ rev (3m)8.15%
EPS NY rev (1m)4.06%
EPS NY rev (3m)5.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4%
Revenue NY rev (1m)1.52%
Revenue NY rev (3m)2.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.24 | ||
| Fwd PE | 10.66 | ||
| P/S | 2.39 | ||
| P/FCF | 16.12 | ||
| P/OCF | 15.89 | ||
| P/B | 3.52 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.25 |
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 | 5.32 |
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 5Y14.18%
Revenue 1Y (TTM)-12.36%
Revenue growth 3Y7.92%
Revenue growth 5Y4.26%
Sales Q2Q%14.93%
Revenue Next Year9.68%
Revenue Next 2Y8.41%
Revenue Next 3Y7.18%
Revenue Next 5Y3.25%
EBIT growth 1Y-7.04%
EBIT growth 3Y4.23%
EBIT growth 5Y4.35%
EBIT Next Year51.34%
EBIT Next 3Y16.94%
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 11.24 and the Price/Book (PB) ratio is 3.52.
Can you provide the financial health for FHI stock?
The financial health rating of FEDERATED HERMES INC (FHI) is 9 / 10.