FEDERATED HERMES INC (FHI) Fundamental Analysis & Valuation
NYSE:FHI • US3142111034
Current stock price
58.3 USD
+2 (+3.55%)
At close:
58.3 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.
- 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 better Return On Assets (17.28%) than 95.83% of its industry peers.
- FHI's Return On Equity of 32.18% is amongst the best of the industry. FHI outperforms 95.83% of its industry peers.
- FHI has a Return On Invested Capital of 19.98%. This is amongst the best in the industry. FHI outperforms 95.42% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for FHI is significantly above the industry average of 7.19%.
- The last Return On Invested Capital (19.98%) for FHI is above the 3 year average (17.87%), which is a sign of increasing profitability.
| 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
- FHI has a Profit Margin (21.27%) which is comparable to the rest of the industry.
- FHI's Profit Margin has been stable in the last couple of years.
- With a Operating Margin value of 28.95%, FHI perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
- FHI's Operating Margin has been stable in the last couple of years.
- With an excellent Gross Margin value of 95.54%, FHI belongs to the best of the industry, outperforming 96.25% of the companies in the same industry.
- FHI's Gross Margin has been stable in the last couple of years.
| 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
- Compared to 1 year ago, FHI has less shares outstanding
- Compared to 5 years ago, FHI has less shares outstanding
- FHI has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.33 indicates that FHI is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 5.33, FHI belongs to the best of the industry, outperforming 87.08% of the companies in the same industry.
- 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.
- The Debt to FCF ratio of FHI (1.18) is better than 87.50% 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 73.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | 5.33 |
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 better Current ratio (2.75) than 80.83% of its industry peers.
- FHI has a Quick Ratio of 2.75. This indicates that FHI is financially healthy and has no problem in meeting 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
- FHI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 61.13%, which is quite impressive.
- 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.
- Looking at the last year, FHI shows a very negative growth in Revenue. The Revenue has decreased by -10.86% in the last year.
- The Revenue has been growing slightly by 4.57% on average over the past years.
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
- 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 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
- 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.
- 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. FHI Valuation Analysis
4.1 Price/Earnings Ratio
- FHI is valuated reasonably with a Price/Earnings ratio of 11.34.
- FHI's Price/Earnings ratio is a bit cheaper when compared to the industry. FHI is cheaper than 61.25% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.34. FHI is valued rather cheaply when compared to this.
- A Price/Forward Earnings ratio of 11.13 indicates a reasonable valuation of FHI.
- Based on the Price/Forward Earnings ratio, FHI is valued a bit cheaper than 64.58% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of FHI to the average of the S&P500 Index (38.18), we can say FHI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.34 | ||
| Fwd PE | 11.13 |
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 90.83% of the companies listed in the same industry.
- 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 | 15.01 | ||
| EV/EBITDA | 6.87 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FHI does not grow enough to justify the current Price/Earnings ratio.
- FHI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)5.9
PEG (5Y)1.15
EPS Next 2Y6.2%
EPS Next 3Y7.49%
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.
- FHI's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| 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
58.3
+2 (+3.55%)
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 Cap4.42B
Revenue(TTM)1.81B
Net Income(TTM)385.17M
Analysts68.33
Price Target57.94 (-0.62%)
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 | 11.34 | ||
| Fwd PE | 11.13 | ||
| P/S | 2.44 | ||
| P/FCF | 15.01 | ||
| P/OCF | 14.87 | ||
| P/B | 3.69 | ||
| P/tB | 331.54 | ||
| EV/EBITDA | 6.87 |
EPS(TTM)5.14
EY8.82%
EPS(NY)5.24
Fwd EY8.99%
FCF(TTM)3.88
FCFY6.66%
OCF(TTM)3.92
OCFY6.73%
SpS23.88
BVpS15.78
TBVpS0.18
PEG (NY)5.9
PEG (5Y)1.15
Graham Number42.72
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 | 5.33 |
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 11.34 and the Price/Book (PB) ratio is 3.69.
What is the financial health of FEDERATED HERMES INC (FHI) stock?
The financial health rating of FEDERATED HERMES INC (FHI) is 9 / 10.