FEDERATED HERMES INC (FHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FHI - US3142111034 - Common Stock
50.6 USD
+0.47 (+0.94%)
50.6 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 may be a bit undervalued, certainly considering the very reasonable score on growth 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.
Each year in the past 5 years FHI has been profitable.
Each year in the past 5 years FHI had a positive operating cash flow.
1.2 Ratios
FHI's Return On Assets of 16.68% is amongst the best of the industry. FHI outperforms 96.64% of its industry peers.
With an excellent Return On Equity value of 30.66%, FHI belongs to the best of the industry, outperforming 96.64% of the companies in the same industry.
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 6.95%.
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 57.14% of the companies in the same 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.
FHI's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 95.56%, FHI belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
FHI's Gross Margin has been stable in the last couple of years.
| 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.
The debt/assets ratio for FHI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.16 indicates that FHI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.16, FHI belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
The Debt to FCF ratio of FHI is 1.34, which is an excellent value as it means it would take FHI, only 1.34 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.34, FHI belongs to the best of the industry, outperforming 88.66% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that FHI is not too dependend on debt financing.
The Debt to Equity ratio of FHI (0.29) is better than 72.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.34 | ||
| Altman-Z | 5.16 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
FHI has a Current Ratio of 3.13. This indicates that FHI is financially healthy and has no problem in meeting its short term obligations.
FHI's Current ratio of 3.13 is amongst the best of the industry. FHI outperforms 80.67% 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.
With an excellent Quick ratio value of 3.13, FHI belongs to the best 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
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.
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
The EPS growth rate is accelerating: in the next years the growth will be better 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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 10.56, the valuation of FHI can be described as reasonable.
68.91% of the companies in the same industry are more expensive than FHI, based on the Price/Earnings ratio.
FHI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.37.
Based on the Price/Forward Earnings ratio of 10.32, the valuation of FHI can be described as reasonable.
Based on the Price/Forward Earnings ratio, FHI is valued a bit cheaper than the industry average as 69.33% of the companies are valued more expensively.
FHI's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.56 | ||
| Fwd PE | 10.32 |
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.
63.45% of the companies in the same industry are more expensive than FHI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.14 | ||
| EV/EBITDA | 6.72 |
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.
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)3.05
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.
FHI's Dividend Yield is comparable with the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
5.2 History
The dividend of FHI is nicely growing with an annual growth rate of 15.47%!
FHI has paid a dividend for at least 10 years, which is 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%
50.6
+0.47 (+0.94%)
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 Cap3.92B
Revenue(TTM)1.75B
Net Income(TTM)363.99M
Analysts68.33
Price Target52.6 (3.95%)
Short Float %2.83%
Short Ratio3.87
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 | 10.56 | ||
| Fwd PE | 10.32 | ||
| P/S | 2.24 | ||
| P/FCF | 15.14 | ||
| P/OCF | 14.93 | ||
| P/B | 3.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.72 |
EPS(TTM)4.79
EY9.47%
EPS(NY)4.9
Fwd EY9.69%
FCF(TTM)3.34
FCFY6.6%
OCF(TTM)3.39
OCFY6.7%
SpS22.56
BVpS15.31
TBVpS-0.11
PEG (NY)0.22
PEG (5Y)3.05
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 | 5.16 |
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 10.56 and the Price/Book (PB) ratio is 3.31.
Can you provide the financial health for FHI stock?
The financial health rating of FEDERATED HERMES INC (FHI) is 9 / 10.