FEDERATED HERMES INC (FHI) Stock Fundamental Analysis
USA - NYSE:FHI - US3142111034 - Common Stock
49.16 USD
-0.04 (-0.08%)
49.16 USD
0 (0%)
FHI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 237 industry peers in the Capital Markets industry. FHI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. FHI is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make FHI suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year FHI was profitable.
FHI had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 16.68%, FHI belongs to the top of the industry, outperforming 97.05% of the companies in the same industry.
With an excellent Return On Equity value of 30.66%, FHI belongs to the best of the industry, outperforming 96.20% of the companies in the same industry.
The Return On Invested Capital of FHI (18.60%) is better than 94.51% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FHI is significantly above the industry average of 7.11%.
The 3 year average ROIC (16.23%) for FHI is below the current ROIC(18.60%), indicating increased profibility in the last year.
| 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
The Profit Margin of FHI (20.80%) is comparable to the rest of the industry.
FHI's Profit Margin has declined in the last couple of years.
The Operating Margin of FHI (28.35%) is comparable to the rest of the industry.
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 95.36% of the companies in the same industry.
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.
The number of shares outstanding for FHI has been reduced compared to 5 years ago.
FHI has a worse debt/assets ratio than last year.
2.2 Solvency
FHI has an Altman-Z score of 5.09. This indicates that FHI is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 5.09, FHI belongs to the best of the industry, outperforming 86.08% 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.
The Debt to FCF ratio of FHI (1.34) is better than 89.45% 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 Debt to Equity ratio of 0.29. This is in the better half of the industry: FHI outperforms 72.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.34 | ||
| Altman-Z | 5.09 |
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 81.86% 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 Quick ratio of 3.13. This is amongst the best in the industry. FHI outperforms 81.86% of its industry peers.
| 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.
Looking at the last year, FHI shows a very negative growth in Revenue. The Revenue has decreased by -12.36% in the last year.
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
The Earnings Per Share is expected to grow by 14.18% on average over the next years. This is quite good.
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
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
A Price/Earnings ratio of 10.26 indicates a reasonable valuation of FHI.
FHI's Price/Earnings ratio is a bit cheaper when compared to the industry. FHI is cheaper than 68.35% of the companies in the same industry.
FHI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.89.
A Price/Forward Earnings ratio of 10.02 indicates a reasonable valuation of FHI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FHI indicates a somewhat cheap valuation: FHI is cheaper than 69.62% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.59. FHI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.26 | ||
| Fwd PE | 10.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FHI is valued cheaply inside the industry as 92.41% of the companies are valued more expensively.
FHI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FHI is cheaper than 63.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.71 | ||
| EV/EBITDA | 6.51 |
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)0.21
PEG (5Y)2.96
EPS Next 2Y23.99%
EPS Next 3Y19.5%
5. Dividend
5.1 Amount
FHI has a Yearly Dividend Yield of 2.76%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 8.53, FHI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, FHI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
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
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 2Y23.99%
EPS Next 3Y19.5%
49.16
-0.04 (-0.08%)
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 Change-2.73%
Market Cap3.81B
Revenue(TTM)1.75B
Net Income(TTM)363.99M
Analysts68.33
Price Target52.02 (5.82%)
Short Float %2.77%
Short Ratio3.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
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)3.38%
PT rev (3m)8.9%
EPS NQ rev (1m)3.66%
EPS NQ rev (3m)7%
EPS NY rev (1m)1.22%
EPS NY rev (3m)5.81%
Revenue NQ rev (1m)2.69%
Revenue NQ rev (3m)5.4%
Revenue NY rev (1m)1.25%
Revenue NY rev (3m)2.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.26 | ||
| Fwd PE | 10.02 | ||
| P/S | 2.18 | ||
| P/FCF | 14.71 | ||
| P/OCF | 14.51 | ||
| P/B | 3.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.51 |
EPS(TTM)4.79
EY9.74%
EPS(NY)4.9
Fwd EY9.98%
FCF(TTM)3.34
FCFY6.8%
OCF(TTM)3.39
OCFY6.89%
SpS22.56
BVpS15.31
TBVpS-0.11
PEG (NY)0.21
PEG (5Y)2.96
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 | 5.09 |
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 10.26 and the Price/Book (PB) ratio is 3.21.
Can you provide the financial health for FHI stock?
The financial health rating of FEDERATED HERMES INC (FHI) is 9 / 10.