FEDERATED HERMES INC (FHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FHI - US3142111034 - Common Stock
52.37 USD
+0.3 (+0.58%)
52.4 USD
+0.03 (+0.06%)
Overall FHI gets a fundamental rating of 7 out of 10. We evaluated FHI against 235 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 may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, FHI could be worth investigating further 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.
In the past 5 years FHI always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 16.68%, FHI belongs to the best of the industry, outperforming 96.17% of the companies in the same industry.
FHI has a Return On Equity of 30.66%. This is amongst the best in the industry. FHI outperforms 96.17% of its industry peers.
FHI has a Return On Invested Capital of 18.60%. This is amongst the best in the industry. FHI outperforms 94.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FHI is significantly above the industry average of 7.13%.
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 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
With a Profit Margin value of 20.80%, FHI perfoms like the industry average, outperforming 59.15% of the companies in the same industry.
In the last couple of years the Profit Margin of FHI has declined.
Looking at the Operating Margin, with a value of 28.35%, FHI is in line with its industry, outperforming 57.45% of the companies in the same industry.
In the last couple of years the Operating Margin of FHI has remained more or less at the same level.
The Gross Margin of FHI (95.56%) is better than 96.17% 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 | 28.35% | ||
| 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
An Altman-Z score of 5.23 indicates that FHI is not in any danger for bankruptcy at the moment.
FHI's Altman-Z score of 5.23 is amongst the best of the industry. FHI outperforms 86.81% 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.
Looking at the Debt to FCF ratio, with a value of 1.34, FHI belongs to the top of the industry, outperforming 88.51% of the companies in the same industry.
FHI has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
FHI has a better Debt to Equity ratio (0.29) than 74.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.34 | ||
| Altman-Z | 5.23 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 3.13 indicates that FHI has no problem at all paying its short term obligations.
FHI has a Current ratio of 3.13. This is amongst the best in the industry. FHI outperforms 81.70% of its industry peers.
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's Quick ratio of 3.13 is amongst the best of 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.
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.
FHI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.36%.
The Revenue has been growing slightly by 4.26% on average over the past years.
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
FHI is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.18% yearly.
FHI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.25% yearly.
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.
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. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.93, 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 66.81% of the companies are valued more expensively.
FHI is valuated cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 10.36, the valuation of FHI can be described as very reasonable.
Based on the Price/Forward Earnings ratio, FHI is valued a bit cheaper than 70.64% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.23. FHI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.93 | ||
| Fwd PE | 10.36 |
4.2 Price Multiples
FHI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FHI is cheaper than 91.49% 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 65.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.67 | ||
| EV/EBITDA | 6.94 |
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)0.2
PEG (5Y)3.15
EPS Next 2Y25.86%
EPS Next 3Y20.84%
5. Dividend
5.1 Amount
FHI has a Yearly Dividend Yield of 2.50%.
Compared to an average industry Dividend Yield of 6.65, FHI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.00, FHI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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.
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%
52.37
+0.3 (+0.58%)
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 Cap4.06B
Revenue(TTM)1.75B
Net Income(TTM)363.99M
Analysts68.33
Price Target52.89 (0.99%)
Short Float %2.95%
Short Ratio3.84
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-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)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 | 10.93 | ||
| Fwd PE | 10.36 | ||
| P/S | 2.32 | ||
| P/FCF | 15.67 | ||
| P/OCF | 15.45 | ||
| P/B | 3.42 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.94 |
EPS(TTM)4.79
EY9.15%
EPS(NY)5.05
Fwd EY9.65%
FCF(TTM)3.34
FCFY6.38%
OCF(TTM)3.39
OCFY6.47%
SpS22.56
BVpS15.31
TBVpS-0.11
PEG (NY)0.2
PEG (5Y)3.15
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 | 5.23 |
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 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 10.93 and the Price/Book (PB) ratio is 3.42.
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%.