FEDERATED HERMES INC (FHI) Fundamental Analysis & Valuation
NYSE:FHI • US3142111034
Current stock price
56.69 USD
-0.26 (-0.46%)
At close:
56.69 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.
1. FHI Profitability Analysis
1.1 Basic Checks
- FHI had positive earnings in the past year.
- 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 has a Return On Assets of 17.28%. This is amongst the best in the industry. FHI outperforms 95.83% of its industry peers.
- The Return On Equity of FHI (32.18%) is better than 95.83% of its industry peers.
- The Return On Invested Capital of FHI (19.98%) is better than 95.42% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for FHI is significantly above the industry average of 7.19%.
- The 3 year average ROIC (17.87%) for FHI is below the current ROIC(19.98%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
- With a Profit Margin value of 21.27%, FHI perfoms like the industry average, outperforming 57.50% of the companies in the same industry.
- In the last couple of years the Profit Margin of FHI has remained more or less at the same level.
- FHI has a Operating Margin (28.95%) which is in line with its industry peers.
- FHI's Operating Margin has been stable in the last couple of years.
- FHI has a better Gross Margin (95.54%) than 96.25% of its industry peers.
- 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 | 28.95% | ||
| 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%
2. FHI Health Analysis
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 an improved debt to assets ratio.
2.2 Solvency
- FHI has an Altman-Z score of 5.36. This indicates that FHI is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of FHI (5.36) is better than 87.50% of its industry peers.
- The Debt to FCF ratio of FHI is 1.18, which is an excellent value as it means it would take FHI, only 1.18 years of fcf income to pay off all of its debts.
- With an excellent Debt to FCF ratio value of 1.18, FHI belongs to the best of the industry, outperforming 87.50% 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 Debt to Equity ratio of 0.29. This is in the better half of the industry: FHI outperforms 73.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | 5.36 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 2.75 indicates that FHI has no problem at all paying its short term obligations.
- FHI has a Current ratio of 2.75. This is amongst the best in the industry. FHI outperforms 80.83% of its industry peers.
- A Quick Ratio of 2.75 indicates that FHI has no problem at all paying its short term obligations.
- FHI has a Quick ratio of 2.75. This is amongst the best in the industry. FHI outperforms 80.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.75 | ||
| Quick Ratio | 2.75 |
3. FHI Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 61.13% over the past year.
- Measured over the past years, FHI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.87% on average per year.
- FHI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.86%.
- 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)61.13%
EPS 3Y20.61%
EPS 5Y9.87%
EPS Q2Q%33.65%
Revenue 1Y (TTM)-10.86%
Revenue growth 3Y7.9%
Revenue growth 5Y4.57%
Sales Q2Q%13.69%
3.2 Future
- Based on estimates for the next years, FHI will show a small growth in Earnings Per Share. The EPS will grow by 5.75% on average per year.
- The Revenue is expected to grow by 1.75% on average over the next years.
EPS Next Y1.92%
EPS Next 2Y6.2%
EPS Next 3Y7.49%
EPS Next 5Y5.75%
Revenue Next Year9.7%
Revenue Next 2Y6.99%
Revenue Next 3Y5.29%
Revenue Next 5Y1.75%
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.
4. FHI Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 11.03, which indicates a very decent valuation of FHI.
- 61.67% of the companies in the same industry are more expensive than FHI, based on the Price/Earnings ratio.
- FHI is valuated cheaply when we compare the Price/Earnings ratio to 27.87, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 10.82, the valuation of FHI can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, FHI is valued a bit cheaper than 64.17% of the companies in the same industry.
- FHI is valuated cheaply when we compare the Price/Forward Earnings ratio to 38.51, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.03 | ||
| Fwd PE | 10.82 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FHI is valued cheaply inside the industry as 90.83% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of FHI indicates a somewhat cheap valuation: FHI is cheaper than 67.92% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.59 | ||
| EV/EBITDA | 6.96 |
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)5.73
PEG (5Y)1.12
EPS Next 2Y6.2%
EPS Next 3Y7.49%
5. FHI Dividend Analysis
5.1 Amount
- FHI has a Yearly Dividend Yield of 2.39%.
- Compared to an average industry Dividend Yield of 6.64, FHI has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, FHI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
5.2 History
- The dividend of FHI decreases each year by -8.56%.
- FHI has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-8.56%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 27.23% of the earnings are spent on dividend by FHI. This is a low number and sustainable payout ratio.
DP27.23%
EPS Next 2Y6.2%
EPS Next 3Y7.49%
FHI Fundamentals: All Metrics, Ratios and Statistics
56.69
-0.26 (-0.46%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)01-29 2026-01-29/amc
Earnings (Next)04-30 2026-04-30/amc
Inst Owners94.09%
Inst Owner Change0.15%
Ins Owners3.5%
Ins Owner Change1.25%
Market Cap4.30B
Revenue(TTM)1.81B
Net Income(TTM)385.17M
Analysts68.33
Price Target58.55 (3.28%)
Short Float %3.78%
Short Ratio3.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
Yearly Dividend1.33
Dividend Growth(5Y)-8.56%
DP27.23%
Div Incr Years0
Div Non Decr Years0
Ex-Date02-06 2026-02-06 (0.34)
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)2.16%
PT rev (3m)9.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.05%
EPS NY rev (1m)1.77%
EPS NY rev (3m)3.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.92%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)2.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.03 | ||
| Fwd PE | 10.82 | ||
| P/S | 2.37 | ||
| P/FCF | 14.59 | ||
| P/OCF | 14.46 | ||
| P/B | 3.59 | ||
| P/tB | 322.39 | ||
| EV/EBITDA | 6.96 |
EPS(TTM)5.14
EY9.07%
EPS(NY)5.24
Fwd EY9.24%
FCF(TTM)3.88
FCFY6.85%
OCF(TTM)3.92
OCFY6.92%
SpS23.88
BVpS15.78
TBVpS0.18
PEG (NY)5.73
PEG (5Y)1.12
Graham Number42.723 (-24.64%)
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 5.36 |
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)61.13%
EPS 3Y20.61%
EPS 5Y9.87%
EPS Q2Q%33.65%
EPS Next Y1.92%
EPS Next 2Y6.2%
EPS Next 3Y7.49%
EPS Next 5Y5.75%
Revenue 1Y (TTM)-10.86%
Revenue growth 3Y7.9%
Revenue growth 5Y4.57%
Sales Q2Q%13.69%
Revenue Next Year9.7%
Revenue Next 2Y6.99%
Revenue Next 3Y5.29%
Revenue Next 5Y1.75%
EBIT growth 1Y-0.99%
EBIT growth 3Y11.66%
EBIT growth 5Y4.62%
EBIT Next Year11.24%
EBIT Next 3Y7.03%
EBIT Next 5Y1.94%
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 11.03 and the Price/Book (PB) ratio is 3.59.
What is the financial health of FEDERATED HERMES INC (FHI) stock?
The financial health rating of FEDERATED HERMES INC (FHI) is 9 / 10.