FEDERATED HERMES INC (FHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FHI - US3142111034 - Common Stock
50.17 USD
-0.15 (-0.3%)
50.17 USD
0 (0%)
Taking everything into account, FHI scores 7 out of 10 in our fundamental rating. FHI was compared to 238 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make FHI a good candidate for value investing.
1. Profitability
1.1 Basic Checks
FHI had positive earnings in the past year.
FHI had a positive operating cash flow in the past year.
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
The Return On Assets of FHI (16.68%) is better than 96.64% of its industry peers.
FHI has a Return On Equity of 30.66%. This is amongst the best in the industry. FHI outperforms 96.64% of its industry peers.
The Return On Invested Capital of FHI (18.60%) is better than 94.96% of its industry peers.
FHI had an Average Return On Invested Capital over the past 3 years of 16.23%. This is significantly above the industry average of 6.96%.
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
FHI has a Profit Margin (20.80%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of FHI has declined.
The Operating Margin of FHI (28.35%) is comparable to the rest of the industry.
FHI's Operating Margin has been stable in the last couple of years.
FHI has a Gross Margin of 95.56%. This is amongst the best in the industry. FHI outperforms 95.38% 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
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 a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.14 indicates that FHI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.14, FHI belongs to the top of the industry, outperforming 85.29% of the companies in the same industry.
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 has a Debt to FCF ratio of 1.34. This is amongst the best in the industry. FHI outperforms 88.66% of its industry peers.
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 72.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.34 | ||
| Altman-Z | 5.14 |
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.
With an excellent Current ratio value of 3.13, FHI belongs to the best of the industry, outperforming 80.67% 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.
Looking at the Quick ratio, with a value of 3.13, FHI belongs to the top of the industry, outperforming 80.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 3.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 54.02% over the past year.
The Earnings Per Share has been growing slightly by 3.47% on average over the past years.
The Revenue for FHI has decreased by -12.36% in the past year. This is quite bad
Measured over the past years, FHI shows a small growth in Revenue. The Revenue has been growing by 4.26% on average per year.
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.
Based on estimates for the next years, FHI will show a small growth in Revenue. The Revenue will grow by 3.25% on average per year.
EPS Next Y48.14%
EPS Next 2Y23.99%
EPS Next 3Y19.5%
EPS Next 5Y14.18%
Revenue Next Year8.03%
Revenue Next 2Y6.88%
Revenue Next 3Y5.91%
Revenue Next 5Y3.25%
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 accelerating.
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
A Price/Earnings ratio of 10.47 indicates a reasonable valuation of FHI.
Based on the Price/Earnings ratio, FHI is valued a bit cheaper than the industry average as 69.33% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.31. FHI is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.23, the valuation of FHI can be described as reasonable.
Based on the Price/Forward Earnings ratio, FHI is valued a bit cheaper than 68.91% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.56. FHI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.47 | ||
| Fwd PE | 10.23 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FHI is valued cheaper than 92.02% of the companies 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 63.87% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.01 | ||
| EV/EBITDA | 6.66 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FHI has an outstanding profitability rating, which may justify a higher PE ratio.
FHI's earnings are expected to grow with 19.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.22
PEG (5Y)3.02
EPS Next 2Y23.99%
EPS Next 3Y19.5%
5. Dividend
5.1 Amount
FHI has a Yearly Dividend Yield of 2.70%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 8.39, FHI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, FHI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
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
5.3 Sustainability
28.50% of the earnings are spent on dividend by FHI. This is a low number and 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 2Y23.99%
EPS Next 3Y19.5%
50.17
-0.15 (-0.3%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners86.98%
Inst Owner ChangeN/A
Ins Owners4.03%
Ins Owner Change1.36%
Market Cap3.89B
Revenue(TTM)1.75B
Net Income(TTM)363.99M
Analysts68.33
Price Target52.6 (4.84%)
Short Float %2.86%
Short Ratio3.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
Yearly Dividend2.22
Dividend Growth(5Y)15.47%
DP28.5%
Div Incr Years2
Div Non Decr Years3
Ex-Date
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)4.54%
PT rev (3m)7.07%
EPS NQ rev (1m)2.73%
EPS NQ rev (3m)6.3%
EPS NY rev (1m)0.18%
EPS NY rev (3m)2.26%
Revenue NQ rev (1m)2.49%
Revenue NQ rev (3m)4%
Revenue NY rev (1m)0.74%
Revenue NY rev (3m)1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.47 | ||
| Fwd PE | 10.23 | ||
| P/S | 2.22 | ||
| P/FCF | 15.01 | ||
| P/OCF | 14.8 | ||
| P/B | 3.28 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.66 |
EPS(TTM)4.79
EY9.55%
EPS(NY)4.9
Fwd EY9.77%
FCF(TTM)3.34
FCFY6.66%
OCF(TTM)3.39
OCFY6.76%
SpS22.56
BVpS15.31
TBVpS-0.11
PEG (NY)0.22
PEG (5Y)3.02
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 | 5.14 |
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 Y48.14%
EPS Next 2Y23.99%
EPS Next 3Y19.5%
EPS Next 5Y14.18%
Revenue 1Y (TTM)-12.36%
Revenue growth 3Y7.92%
Revenue growth 5Y4.26%
Sales Q2Q%14.93%
Revenue Next Year8.03%
Revenue Next 2Y6.88%
Revenue Next 3Y5.91%
Revenue Next 5Y3.25%
EBIT growth 1Y-7.04%
EBIT growth 3Y4.23%
EBIT growth 5Y4.35%
EBIT Next Year43.37%
EBIT Next 3Y15.03%
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 of FEDERATED HERMES INC (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.
Can you provide the PE and PB ratios for FHI stock?
The Price/Earnings (PE) ratio for FEDERATED HERMES INC (FHI) is 10.47 and the Price/Book (PB) ratio is 3.28.
Can you provide the financial health for FHI stock?
The financial health rating of FEDERATED HERMES INC (FHI) is 9 / 10.