FEDERATED HERMES INC (FHI) Fundamental Analysis & Valuation

NYSE:FHI • US3142111034

54.41 USD
-1.45 (-2.6%)
Last: Mar 9, 2026, 09:47 AM
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This FHI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

6

FHI gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 242 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 is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

7

1. FHI Profitability Analysis

1.1 Basic Checks

  • FHI had positive earnings in the past year.
  • FHI had a positive operating cash flow in the past year.
  • Of the past 5 years FHI 4 years were profitable.
  • Of the past 5 years FHI 4 years 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 100M 200M 300M 400M

1.2 Ratios

  • The Return On Assets of FHI (16.68%) is better than 95.45% of its industry peers.
  • FHI has a better Return On Equity (30.66%) than 95.87% of its industry peers.
  • With an excellent Return On Invested Capital value of 18.60%, FHI belongs to the best of the industry, outperforming 95.04% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for FHI is significantly above the industry average of 7.12%.
  • The last Return On Invested Capital (18.60%) for FHI is above the 3 year average (16.23%), which is a sign of increasing profitability.
Industry RankSector 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%
FHI Yearly ROA, ROE, ROICFHI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

  • Looking at the Profit Margin, with a value of 20.80%, FHI is in line with its industry, outperforming 54.55% of the companies in the same 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.
  • 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 96.69% of the companies in the same industry.
  • FHI's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 28.35%
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%
FHI Yearly Profit, Operating, Gross MarginsFHI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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8

2. FHI Health Analysis

2.1 Basic Checks

  • There is no outstanding debt for FHI. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
FHI Yearly Shares OutstandingFHI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 500M 1B 1.5B 2B

2.2 Solvency

  • An Altman-Z score of 5.35 indicates that FHI is not in any danger for bankruptcy at the moment.
  • FHI's Altman-Z score of 5.35 is amongst the best of the industry. FHI outperforms 85.95% of its industry peers.
  • FHI has a debt to FCF ratio of 1.34. This is a very positive value and a sign of high solvency as it would only need 1.34 years to pay back of all of its debts.
  • FHI's Debt to FCF ratio of 1.34 is amongst the best of the industry. FHI outperforms 88.02% of its industry peers.
  • A Debt/Equity ratio of 0.29 indicates that FHI is not too dependend on debt financing.
  • FHI's Debt to Equity ratio of 0.29 is fine compared to the rest of the industry. FHI outperforms 72.73% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.29
Debt/FCF 1.34
Altman-Z 5.35
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 200M 400M 600M 800M 1B

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.
  • With an excellent Current ratio value of 3.13, FHI belongs to the best of the industry, outperforming 80.58% of the companies in the same industry.
  • FHI has a Quick Ratio of 3.13. This indicates that FHI is financially healthy and has no problem in meeting its short term obligations.
  • FHI has a better Quick ratio (3.13) than 80.58% of its industry peers.
Industry RankSector Rank
Current Ratio 3.13
Quick Ratio 3.13
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 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. FHI Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 61.13% 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.
EPS 1Y (TTM)61.13%
EPS 3Y20.61%
EPS 5Y9.87%
EPS Q2Q%33.65%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%13.69%

3.2 Future

  • The Earnings Per Share is expected to grow by 5.75% on average over the next years.
  • The Revenue is expected to grow by 1.75% on average over the next years.
EPS Next Y0.15%
EPS Next 2Y5.69%
EPS Next 3Y5.82%
EPS Next 5Y5.75%
Revenue Next Year9.87%
Revenue Next 2Y7.35%
Revenue Next 3Y6.66%
Revenue Next 5Y1.75%

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 decreasing.
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

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6

4. FHI Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 10.59, the valuation of FHI can be described as reasonable.
  • Based on the Price/Earnings ratio, FHI is valued a bit cheaper than the industry average as 60.74% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 26.29, FHI is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 10.57, the valuation of FHI can be described as reasonable.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of FHI indicates a somewhat cheap valuation: FHI is cheaper than 64.05% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 24.60. FHI is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 10.59
Fwd PE 10.57
FHI Price Earnings VS Forward Price EarningsFHI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • 90.50% of the companies in the same industry are more expensive than FHI, based on the Enterprise Value to EBITDA ratio.
  • 66.53% of the companies in the same industry are more expensive than FHI, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 15.95
EV/EBITDA 7.34
FHI Per share dataFHI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 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.
  • The decent profitability rating of FHI may justify a higher PE ratio.
PEG (NY)72.2
PEG (5Y)1.07
EPS Next 2Y5.69%
EPS Next 3Y5.82%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. FHI Dividend Analysis

5.1 Amount

  • FHI has a Yearly Dividend Yield of 2.39%. Purely for dividend investing, there may be better candidates out there.
  • FHI's Dividend Yield is comparable with the industry average which is at 6.65.
  • Compared to an average S&P500 Dividend Yield of 1.82, FHI pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.39%

5.2 History

  • On average, the dividend of FHI grows each year by 15.47%, which is quite nice.
  • 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
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 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 2Y5.69%
EPS Next 3Y5.82%
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 100M 200M 300M
FHI Dividend Payout.FHI Dividend Payout, showing the Payout Ratio.FHI Dividend Payout.PayoutRetained Earnings

More info and screens

Find the best dividend stocksShow peers with best dividend

FHI Fundamentals: All Metrics, Ratios and Statistics

FEDERATED HERMES INC

NYSE:FHI (3/9/2026, 9:47:07 AM)

54.41

-1.45 (-2.6%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)01-29
Earnings (Next)04-22
Inst Owners91.95%
Inst Owner ChangeN/A
Ins Owners3.44%
Ins Owner Change4.83%
Market Cap4.13B
Revenue(TTM)N/A
Net Income(TTM)363.99M
Analysts68.33
Price Target56.71 (4.23%)
Short Float %4.37%
Short Ratio5.26
Dividend
Industry RankSector Rank
Dividend Yield 2.39%
Yearly Dividend2.22
Dividend Growth(5Y)15.47%
DP28.5%
Div Incr Years2
Div Non Decr Years3
Ex-Date02-06
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)4.91%
PT rev (3m)7.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.47%
EPS NY rev (1m)0%
EPS NY rev (3m)2.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.28%
Valuation
Industry RankSector Rank
PE 10.59
Fwd PE 10.57
P/S 2.36
P/FCF 15.95
P/OCF 15.73
P/B 3.48
P/tB N/A
EV/EBITDA 7.34
EPS(TTM)5.14
EY9.45%
EPS(NY)5.15
Fwd EY9.46%
FCF(TTM)3.41
FCFY6.27%
OCF(TTM)3.46
OCFY6.36%
SpS23.03
BVpS15.63
TBVpS-0.11
PEG (NY)72.2
PEG (5Y)1.07
Graham Number42.51
Profitability
Industry RankSector 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 RankSector 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 5.35
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)61.13%
EPS 3Y20.61%
EPS 5Y9.87%
EPS Q2Q%33.65%
EPS Next Y0.15%
EPS Next 2Y5.69%
EPS Next 3Y5.82%
EPS Next 5Y5.75%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%13.69%
Revenue Next Year9.87%
Revenue Next 2Y7.35%
Revenue Next 3Y6.66%
Revenue Next 5Y1.75%
EBIT growth 1Y-7.04%
EBIT growth 3Y4.23%
EBIT growth 5Y4.35%
EBIT Next Year51.75%
EBIT Next 3Y17.57%
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 6 / 10 to FHI.


What is the valuation status for FHI stock?

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


How profitable is FEDERATED HERMES INC (FHI) stock?

FEDERATED HERMES INC (FHI) has a profitability rating of 7 / 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 10.59 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%.