FEDERATED HERMES INC (FHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FHI - US3142111034 - Common Stock
53.44 USD
-1.25 (-2.29%)
53.44 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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. FHI scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, FHI could be worth investigating further for value and quality 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.
- In the past 5 years FHI always reported a positive cash flow from operatings.
1.2 Ratios
- FHI's Return On Assets of 16.68% is amongst the best of the industry. FHI outperforms 95.80% of its industry peers.
- The Return On Equity of FHI (30.66%) is better than 95.80% of its industry peers.
- With an excellent Return On Invested Capital value of 18.60%, FHI belongs to the best of the industry, outperforming 94.54% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for FHI is significantly above the industry average of 7.27%.
- 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 in line with its industry peers.
- In the last couple of years the Profit Margin of FHI has declined.
- FHI has a Operating Margin of 28.35%. This is comparable to the rest of the industry: FHI outperforms 56.72% of its industry peers.
- In the last couple of years the Operating Margin of FHI has remained more or less at the same level.
- FHI's Gross Margin of 95.56% is amongst the best of the industry. FHI outperforms 96.22% 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.
- Compared to 5 years ago, FHI has less shares outstanding
- The debt/assets ratio for FHI is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 5.35 indicates that FHI is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 5.35, FHI belongs to the best of the industry, outperforming 86.13% 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 better Debt to FCF ratio (1.34) than 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 73.53% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.34 | ||
| Altman-Z | 5.35 |
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.
- FHI has a Current ratio of 3.13. This is amongst the best in the industry. FHI outperforms 81.51% 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.
- FHI's Quick ratio of 3.13 is amongst the best of the industry. FHI outperforms 81.51% 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.
- The Revenue has been growing slightly by 4.26% on average over the past years.
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 15.10% yearly.
- FHI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.00% yearly.
EPS Next Y54.16%
EPS Next 2Y25.86%
EPS Next 3Y20.84%
EPS Next 5Y15.1%
Revenue Next Year9.8%
Revenue Next 2Y8.72%
Revenue Next 3Y7.18%
Revenue Next 5Y4%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 11.16, the valuation of FHI can be described as very reasonable.
- Based on the Price/Earnings ratio, FHI is valued a bit cheaper than 64.29% of the companies in the same industry.
- FHI is valuated cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 10.58 indicates a reasonable valuation of FHI.
- Based on the Price/Forward Earnings ratio, FHI is valued a bit cheaper than the industry average as 71.01% of the companies are valued more expensively.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. FHI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.16 | ||
| Fwd PE | 10.58 |
4.2 Price Multiples
- 92.02% 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 69.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.99 | ||
| EV/EBITDA | 7.33 |
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.
- FHI has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as FHI's earnings are expected to grow with 20.84% in the coming years.
PEG (NY)0.21
PEG (5Y)3.22
EPS Next 2Y25.86%
EPS Next 3Y20.84%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.55%, FHI has a reasonable but not impressive dividend return.
- FHI's Dividend Yield is comparable with the industry average which is at 6.10.
- Compared to an average S&P500 Dividend Yield of 1.82, FHI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
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 2Y25.86%
EPS Next 3Y20.84%
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 for 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.
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 11.16 and the Price/Book (PB) ratio is 3.49.
Is the dividend of FEDERATED HERMES INC sustainable?
The dividend rating of FEDERATED HERMES INC (FHI) is 5 / 10 and the dividend payout ratio is 28.5%.