FEDERATED HERMES INC (FHI) Fundamental Analysis & Valuation

NYSE:FHI • US3142111034

Current stock price

55.34 USD
-2.75 (-4.73%)
Last:

This FHI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

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.
  • FHI had positive earnings in each of the past 5 years.
  • FHI had a positive operating cash flow in each of the past 5 years.
FHI Yearly Net Income VS EBIT VS OCF VS FCFFHI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M 400M 500M

1.2 Ratios

  • FHI's Return On Assets of 17.28% is amongst the best of the industry. FHI outperforms 92.47% of its industry peers.
  • With an excellent Return On Equity value of 32.18%, FHI belongs to the best of the industry, outperforming 95.40% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 19.98%, FHI belongs to the top of the industry, outperforming 95.82% 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 7.31%.
  • The 3 year average ROIC (17.87%) for FHI is below the current ROIC(19.98%), indicating increased profibility in the last year.
Industry RankSector 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%
FHI Yearly ROA, ROE, ROICFHI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

1.3 Margins

  • FHI has a Profit Margin of 21.27%. This is comparable to the rest of the industry: FHI outperforms 56.90% of its industry peers.
  • In the last couple of years the Profit Margin of FHI has remained more or less at the same level.
  • FHI has a Operating Margin (28.95%) which is comparable to the rest of the industry.
  • FHI's Operating Margin has been stable in the last couple of years.
  • Looking at the Gross Margin, with a value of 95.54%, FHI belongs to the top of the industry, outperforming 96.23% 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 RankSector 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%
FHI Yearly Profit, Operating, Gross MarginsFHI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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9

2. FHI Health Analysis

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.
  • FHI has a better debt/assets ratio than last year.
FHI Yearly Shares OutstandingFHI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20M 40M 60M 80M 100M
FHI Yearly Total Debt VS Total AssetsFHI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B

2.2 Solvency

  • An Altman-Z score of 5.41 indicates that FHI is not in any danger for bankruptcy at the moment.
  • FHI's Altman-Z score of 5.41 is amongst the best of the industry. FHI outperforms 87.03% of its industry peers.
  • 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.
  • FHI has a better Debt to FCF ratio (1.18) than 87.03% 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.
  • The Debt to Equity ratio of FHI (0.29) is better than 73.64% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.29
Debt/FCF 1.18
Altman-Z 5.41
ROIC/WACCN/A
WACCN/A
FHI Yearly LT Debt VS Equity VS FCFFHI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B

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.
  • FHI has a better Current ratio (2.75) than 80.33% 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.
  • Looking at the Quick ratio, with a value of 2.75, FHI belongs to the top of the industry, outperforming 80.33% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.75
Quick Ratio 2.75
FHI Yearly Current Assets VS Current LiabilitesFHI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M

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4

3. FHI Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 45.35% over the past year.
  • FHI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.87% yearly.
  • FHI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.78%.
  • FHI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.57% yearly.
EPS 1Y (TTM)45.35%
EPS 3Y20.61%
EPS 5Y9.87%
EPS Q2Q%1.6%
Revenue 1Y (TTM)10.78%
Revenue growth 3Y7.9%
Revenue growth 5Y4.57%
Sales Q2Q%13.08%

3.2 Future

  • The Earnings Per Share is expected to grow by 6.89% on average over the next years.
  • The Revenue is expected to grow by 1.77% on average over the next years.
EPS Next Y1.92%
EPS Next 2Y6.2%
EPS Next 3Y7.49%
EPS Next 5Y6.89%
Revenue Next Year9.7%
Revenue Next 2Y6.99%
Revenue Next 3Y5.29%
Revenue Next 5Y1.77%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
FHI Yearly Revenue VS EstimatesFHI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 500M 1B 1.5B 2B
FHI Yearly EPS VS EstimatesFHI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8

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6

4. FHI Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 10.72, which indicates a very decent valuation of FHI.
  • FHI's Price/Earnings ratio is a bit cheaper when compared to the industry. FHI is cheaper than 62.34% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of FHI to the average of the S&P500 Index (26.77), we can say FHI is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 9.55, the valuation of FHI can be described as reasonable.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of FHI indicates a somewhat cheap valuation: FHI is cheaper than 69.46% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of FHI to the average of the S&P500 Index (21.75), we can say FHI is valued rather cheaply.
Industry RankSector Rank
PE 10.72
Fwd PE 9.55
FHI Price Earnings VS Forward Price EarningsFHI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 89.96% of the companies in the same industry are more expensive than FHI, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of FHI indicates a somewhat cheap valuation: FHI is cheaper than 66.11% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 14.25
EV/EBITDA 7.11
FHI Per share dataFHI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

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.
  • The excellent profitability rating of FHI may justify a higher PE ratio.
PEG (NY)5.58
PEG (5Y)1.09
EPS Next 2Y6.2%
EPS Next 3Y7.49%

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4

5. FHI Dividend Analysis

5.1 Amount

  • FHI has a Yearly Dividend Yield of 2.41%.
  • Compared to an average industry Dividend Yield of 6.53, FHI has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, FHI pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.41%

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
FHI Yearly Dividends per shareFHI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

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 Yearly Income VS Free CF VS DividendFHI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
FHI Dividend Payout.FHI Dividend Payout, showing the Payout Ratio.FHI Dividend Payout.PayoutRetained Earnings

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FHI Fundamentals: All Metrics, Ratios and Statistics

FEDERATED HERMES INC

NYSE:FHI (5/1/2026, 10:04:09 AM)

55.34

-2.75 (-4.73%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Industry Strength30.43
Industry Growth54.66
Earnings (Last)04-30
Earnings (Next)N/A
Inst Owners94.09%
Inst Owner Change0.5%
Ins Owners3.5%
Ins Owner Change1.25%
Market Cap4.20B
Revenue(TTM)1.81B
Net Income(TTM)385.17M
Analysts68.33
Price Target58.75 (6.16%)
Short Float %4.34%
Short Ratio3.89
Dividend
Industry RankSector Rank
Dividend Yield 2.41%
Yearly Dividend1.33
Dividend Growth(5Y)-8.56%
DP27.23%
Div Incr Years0
Div Non Decr Years0
Ex-Date02-06
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)3.24%
PT rev (3m)10.08%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)2.48%
EPS NY rev (1m)1.77%
EPS NY rev (3m)2.23%
Revenue NQ rev (1m)-0.21%
Revenue NQ rev (3m)1.55%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)1.91%
Valuation
Industry RankSector Rank
PE 10.72
Fwd PE 9.55
P/S 2.32
P/FCF 14.25
P/OCF 14.11
P/B 3.51
P/tB 314.71
EV/EBITDA 7.11
EPS(TTM)5.16
EY9.32%
EPS(NY)5.8
Fwd EY10.48%
FCF(TTM)3.88
FCFY7.02%
OCF(TTM)3.92
OCFY7.08%
SpS23.88
BVpS15.78
TBVpS0.18
PEG (NY)5.58
PEG (5Y)1.09
Graham Number42.806 (-22.65%)
Profitability
Industry RankSector 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 RankSector 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 5.41
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)45.35%
EPS 3Y20.61%
EPS 5Y9.87%
EPS Q2Q%1.6%
EPS Next Y1.92%
EPS Next 2Y6.2%
EPS Next 3Y7.49%
EPS Next 5Y6.89%
Revenue 1Y (TTM)10.78%
Revenue growth 3Y7.9%
Revenue growth 5Y4.57%
Sales Q2Q%13.08%
Revenue Next Year9.7%
Revenue Next 2Y6.99%
Revenue Next 3Y5.29%
Revenue Next 5Y1.77%
EBIT growth 1Y-0.99%
EBIT growth 3Y11.66%
EBIT growth 5Y4.62%
EBIT Next Year11.24%
EBIT Next 3Y7.03%
EBIT Next 5Y2.42%
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 10.72 and the Price/Book (PB) ratio is 3.51.


What is the financial health of FEDERATED HERMES INC (FHI) stock?

The financial health rating of FEDERATED HERMES INC (FHI) is 9 / 10.