FEDERATED HERMES INC (FHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FHI - US3142111034 - Common Stock
52.51 USD
-0.9 (-1.69%)
52.51 USD
0 (0%)
Overall FHI gets a fundamental rating of 7 out of 10. We evaluated FHI against 237 industry peers in the Capital Markets industry. FHI scores excellent points on both the profitability and health parts. This is a solid base for a good stock. A decent growth rate in combination with a cheap valuation! Better keep an eye on FHI. 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.
- 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.
1.2 Ratios
- FHI has a better Return On Assets (16.68%) than 95.78% of its industry peers.
- With an excellent Return On Equity value of 30.66%, FHI belongs to the best of the industry, outperforming 95.78% of the companies in the same industry.
- FHI has a better Return On Invested Capital (18.60%) than 94.51% of its industry peers.
- 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
- Looking at the Profit Margin, with a value of 20.80%, FHI is in line with its industry, outperforming 55.70% of the companies in the same industry.
- FHI's Profit Margin has declined in the last couple of years.
- FHI has a Operating Margin of 28.35%. This is comparable to the rest of the industry: FHI outperforms 56.54% 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 96.20% of its industry peers.
- 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.
- FHI has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.25 indicates that FHI is not in any danger for bankruptcy at the moment.
- FHI has a better Altman-Z score (5.25) than 85.65% of its industry peers.
- 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.
- FHI has a Debt to FCF ratio of 1.34. This is amongst the best in the industry. FHI outperforms 88.61% of its industry peers.
- A Debt/Equity ratio of 0.29 indicates that FHI is not too dependend on debt financing.
- FHI has a Debt to Equity ratio of 0.29. This is in the better half of the industry: FHI outperforms 73.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.34 | ||
| Altman-Z | 5.25 |
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 has a Current ratio of 3.13. This is amongst the best in the industry. FHI outperforms 81.43% 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 has a Quick ratio of 3.13. This is amongst the best in the industry. FHI outperforms 81.43% of its industry peers.
| 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.
- 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 Y54.58%
EPS Next 2Y26.74%
EPS Next 3Y21.54%
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
- A Price/Earnings ratio of 10.96 indicates a reasonable valuation of FHI.
- Based on the Price/Earnings ratio, FHI is valued a bit cheaper than 63.71% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, FHI is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 10.25, 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 73.00% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of FHI to the average of the S&P500 Index (25.95), we can say FHI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.96 | ||
| Fwd PE | 10.25 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FHI is valued cheaper than 91.98% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, FHI is valued a bit cheaper than the industry average as 68.78% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.71 | ||
| EV/EBITDA | 7.01 |
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 21.54% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.2
PEG (5Y)3.16
EPS Next 2Y26.74%
EPS Next 3Y21.54%
5. Dividend
5.1 Amount
- FHI has a Yearly Dividend Yield of 2.49%.
- FHI's Dividend Yield is comparable with the industry average which is at 5.87.
- FHI's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.49% |
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
- 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 2Y26.74%
EPS Next 3Y21.54%
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 10.96 and the Price/Book (PB) ratio is 3.43.
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%.