FEDERATED HERMES INC (FHI)
US3142111034 - Common Stock
Overall FHI gets a fundamental rating of 7 out of 10. We evaluated FHI against 220 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 has a valuation in line with the averages, but it does not seem to be growing.
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.
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
The Return On Assets of FHI (16.10%) is better than 95.85% of its industry peers.
FHI has a better Return On Equity (30.28%) than 96.31% of its industry peers.
Looking at the Return On Invested Capital, with a value of 22.66%, FHI belongs to the top of the industry, outperforming 97.70% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for FHI is significantly above the industry average of 7.00%.
The last Return On Invested Capital (22.66%) for FHI is above the 3 year average (16.38%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.1% | ||
| ROE | 30.28% | ||
| ROIC | 22.66% |
ROA(3y)12.56%
ROA(5y)13.37%
ROE(3y)23.44%
ROE(5y)24.61%
ROIC(3y)16.38%
ROIC(5y)16.52%
1.3 Margins
Looking at the Profit Margin, with a value of 16.43%, FHI is in line with its industry, outperforming 52.53% of the companies in the same industry.
FHI's Profit Margin has been stable in the last couple of years.
FHI has a Operating Margin of 26.73%. This is comparable to the rest of the industry: FHI outperforms 49.31% of its industry peers.
FHI's Operating Margin has declined in the last couple of years.
The Gross Margin of FHI (95.34%) is better than 94.01% 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 | 26.73% | ||
| PM (TTM) | 16.43% | ||
| GM | 95.34% |
OM growth 3Y-4.78%
OM growth 5Y-3.04%
PM growth 3Y-6.48%
PM growth 5Y-1.02%
GM growth 3Y-0.18%
GM growth 5Y-0.11%
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
The debt/assets ratio for FHI has been reduced compared to a year ago.
2.2 Solvency
FHI has an Altman-Z score of 5.06. This indicates that FHI is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.06, FHI belongs to the best of the industry, outperforming 87.56% of the companies in the same industry.
The Debt to FCF ratio of FHI is 1.01, which is an excellent value as it means it would take FHI, only 1.01 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.01, FHI belongs to the best of the industry, outperforming 87.56% of the companies in the same industry.
FHI has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.32, FHI is in the better half of the industry, outperforming 76.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 5.06 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
FHI has a Current Ratio of 2.75. 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 2.75, FHI is in the better half of the industry, outperforming 74.65% of the companies in the same industry.
A Quick Ratio of 2.75 indicates that FHI has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.75, FHI is in the better half of the industry, outperforming 74.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.75 | ||
| Quick Ratio | 2.75 |
3. Growth
3.1 Past
FHI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -7.16%.
FHI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.37% yearly.
Looking at the last year, FHI shows a small growth in Revenue. The Revenue has grown by 1.17% in the last year.
The Revenue has been growing slightly by 7.22% on average over the past years.
EPS 1Y (TTM)-7.16%
EPS 3Y2.04%
EPS 5Y7.37%
EPS Q2Q%23.26%
Revenue 1Y (TTM)1.17%
Revenue growth 3Y3.58%
Revenue growth 5Y7.22%
Sales Q2Q%1.44%
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 5.68% on average per year.
FHI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.12% yearly.
EPS Next Y-4.24%
EPS Next 2Y10.65%
EPS Next 3Y10.37%
EPS Next 5Y5.68%
Revenue Next Year1.05%
Revenue Next 2Y3.77%
Revenue Next 3Y4.17%
Revenue Next 5Y3.12%
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. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.20, which indicates a correct valuation of FHI.
FHI's Price/Earnings is on the same level as the industry average.
FHI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
With a Price/Forward Earnings ratio of 9.83, the valuation of FHI can be described as very reasonable.
Based on the Price/Forward Earnings ratio, FHI is valued a bit cheaper than 67.28% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.73, FHI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.2 | ||
| Fwd PE | 9.83 |
4.2 Price Multiples
FHI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FHI is cheaper than 92.17% 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 68.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.77 | ||
| EV/EBITDA | 5.3 |
4.3 Compensation for Growth
FHI has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.79
EPS Next 2Y10.65%
EPS Next 3Y10.37%
5. Dividend
5.1 Amount
FHI has a Yearly Dividend Yield of 3.04%.
Compared to an average industry Dividend Yield of 9.57, FHI has a dividend in line with its industry peers.
FHI's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
5.2 History
The dividend of FHI has a limited annual growth rate of 1.25%.
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)1.25%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
FHI pays out 55.99% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of FHI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP55.99%
EPS Next 2Y10.65%
EPS Next 3Y10.37%
FEDERATED HERMES INC
NYSE:FHI (12/20/2024, 8:11:09 PM)
After market: 41.05 0 (0%)41.05
+0.28 (+0.69%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners80.27%
Inst Owner ChangeN/A
Ins Owners3.75%
Ins Owner Change-2.18%
Market Cap3.36B
Analysts73.33
Price Target43.57 (6.14%)
Short Float %3.51%
Short Ratio4.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.04% |
Dividend Growth(5Y)1.25%
DP55.99%
Div Incr Years2
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-31.67%
Min EPS beat(2)-77.66%
Max EPS beat(2)14.33%
EPS beat(4)3
Avg EPS beat(4)-12.22%
Min EPS beat(4)-77.66%
Max EPS beat(4)14.47%
EPS beat(8)6
Avg EPS beat(8)-3.43%
EPS beat(12)7
Avg EPS beat(12)-3.31%
EPS beat(16)10
Avg EPS beat(16)-1.61%
Revenue beat(2)0
Avg Revenue beat(2)-0.81%
Min Revenue beat(2)-1.18%
Max Revenue beat(2)-0.44%
Revenue beat(4)0
Avg Revenue beat(4)-1.54%
Min Revenue beat(4)-2.36%
Max Revenue beat(4)-0.44%
Revenue beat(8)2
Avg Revenue beat(8)0.17%
Revenue beat(12)4
Avg Revenue beat(12)6.72%
Revenue beat(16)6
Avg Revenue beat(16)4.93%
PT rev (1m)14.93%
PT rev (3m)20.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.26%
EPS NY rev (1m)1.28%
EPS NY rev (3m)3.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.77%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.2 | ||
| Fwd PE | 9.83 | ||
| P/S | 1.68 | ||
| P/FCF | 9.77 | ||
| P/OCF | 9.61 | ||
| P/B | 3.1 | ||
| P/tB | N/A | ||
| EV/EBITDA | 5.3 |
EPS(TTM)3.11
EY7.58%
EPS(NY)4.18
Fwd EY10.17%
FCF(TTM)4.2
FCFY10.24%
OCF(TTM)4.27
OCFY10.41%
SpS24.41
BVpS13.24
TBVpS-0.89
PEG (NY)N/A
PEG (5Y)1.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.1% | ||
| ROE | 30.28% | ||
| ROCE | 30.08% | ||
| ROIC | 22.66% | ||
| ROICexc | 33.25% | ||
| ROICexgc | 755.2% | ||
| OM | 26.73% | ||
| PM (TTM) | 16.43% | ||
| GM | 95.34% | ||
| FCFM | 17.22% |
ROA(3y)12.56%
ROA(5y)13.37%
ROE(3y)23.44%
ROE(5y)24.61%
ROIC(3y)16.38%
ROIC(5y)16.52%
ROICexc(3y)22.88%
ROICexc(5y)22.38%
ROICexgc(3y)756.88%
ROICexgc(5y)598.3%
ROCE(3y)21.74%
ROCE(5y)21.92%
ROICexcg growth 3Y24.29%
ROICexcg growth 5Y-5.74%
ROICexc growth 3Y1.25%
ROICexc growth 5Y2.57%
OM growth 3Y-4.78%
OM growth 5Y-3.04%
PM growth 3Y-6.48%
PM growth 5Y-1.02%
GM growth 3Y-0.18%
GM growth 5Y-0.11%
F-Score6
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.01 | ||
| Debt/EBITDA | 0.63 | ||
| Cap/Depr | 24.6% | ||
| Cap/Sales | 0.28% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 62.79% | ||
| Profit Quality | 104.8% | ||
| Current Ratio | 2.75 | ||
| Quick Ratio | 2.75 | ||
| Altman-Z | 5.06 |
F-Score6
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)26.6%
Cap/Depr(5y)36.98%
Cap/Sales(3y)0.53%
Cap/Sales(5y)0.73%
Profit Quality(3y)102.89%
Profit Quality(5y)109.08%
High Growth Momentum
Growth
EPS 1Y (TTM)-7.16%
EPS 3Y2.04%
EPS 5Y7.37%
EPS Q2Q%23.26%
EPS Next Y-4.24%
EPS Next 2Y10.65%
EPS Next 3Y10.37%
EPS Next 5Y5.68%
Revenue 1Y (TTM)1.17%
Revenue growth 3Y3.58%
Revenue growth 5Y7.22%
Sales Q2Q%1.44%
Revenue Next Year1.05%
Revenue Next 2Y3.77%
Revenue Next 3Y4.17%
Revenue Next 5Y3.12%
EBIT growth 1Y11.82%
EBIT growth 3Y-1.38%
EBIT growth 5Y3.96%
EBIT Next Year4.1%
EBIT Next 3Y9.44%
EBIT Next 5Y8%
FCF growth 1Y35.27%
FCF growth 3Y-5.46%
FCF growth 5Y9.97%
OCF growth 1Y33.92%
OCF growth 3Y-5.81%
OCF growth 5Y8.61%