FEDERATED HERMES INC (FHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FHI - US3142111034 - Common Stock
53.34 USD
-1.03 (-1.89%)
53.34 USD
0 (0%)
FHI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 238 industry peers in the Capital Markets industry. Both the health and profitability get an excellent rating, making FHI a very profitable company, without any liquidiy or solvency issues. 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 and quality 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.
- Each year in the past 5 years FHI had a positive operating cash flow.
1.2 Ratios
- FHI has a Return On Assets of 16.68%. This is amongst the best in the industry. FHI outperforms 95.80% of its industry peers.
- FHI's Return On Equity of 30.66% is amongst the best of the industry. FHI outperforms 95.80% of its industry peers.
- FHI has a Return On Invested Capital of 18.60%. This is amongst the best in the industry. FHI outperforms 94.54% 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 7.27%.
- 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 (20.80%) which is comparable to the rest of the industry.
- 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.
- 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
- 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
- Compared to 1 year ago, FHI has a worse debt to assets ratio.
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.
- With an excellent Altman-Z score value of 5.33, FHI belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 1.34, FHI belongs to the top of the industry, outperforming 88.66% of the companies in the same industry.
- A Debt/Equity ratio of 0.29 indicates that FHI is not too dependend on debt financing.
- FHI has a better Debt to Equity ratio (0.29) than 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
- 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.
- 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.
- Looking at the Quick 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.
| 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
- FHI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.26% yearly.
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 15.10% on average per year.
- FHI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.00% yearly.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 11.14, 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 64.29% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of FHI to the average of the S&P500 Index (26.94), we can say FHI is valued rather cheaply.
- The Price/Forward Earnings ratio is 10.56, which indicates a very decent valuation of FHI.
- FHI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FHI is cheaper than 71.43% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 23.94. FHI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.14 | ||
| Fwd PE | 10.56 |
4.2 Price Multiples
- FHI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FHI is cheaper than 91.60% of the companies 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 | 15.96 | ||
| 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.
- FHI's earnings are expected to grow with 20.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.21
PEG (5Y)3.21
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.
- FHI's Dividend Yield is a higher than the S&P500 average which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
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 2Y25.86%
EPS Next 3Y20.84%
53.34
-1.03 (-1.89%)
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 Cap4.14B
Revenue(TTM)1.75B
Net Income(TTM)363.99M
Analysts68.33
Price Target53.19 (-0.28%)
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 | 11.14 | ||
| Fwd PE | 10.56 | ||
| P/S | 2.36 | ||
| P/FCF | 15.96 | ||
| P/OCF | 15.74 | ||
| P/B | 3.48 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.28 |
EPS(TTM)4.79
EY8.98%
EPS(NY)5.05
Fwd EY9.47%
FCF(TTM)3.34
FCFY6.26%
OCF(TTM)3.39
OCFY6.35%
SpS22.56
BVpS15.31
TBVpS-0.11
PEG (NY)0.21
PEG (5Y)3.21
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 11.14 and the Price/Book (PB) ratio is 3.48.
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%.