FEDERATED HERMES INC (FHI) Fundamental Analysis & Valuation

NYSE:FHI • US3142111034

57.2 USD
+0.75 (+1.33%)
At close: Mar 4, 2026
57.2 USD
0 (0%)
After Hours: 3/4/2026, 4:27:22 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

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

Fundamental Rating

6

Overall FHI gets a fundamental rating of 6 out of 10. We evaluated FHI against 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 has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

7

1. FHI Profitability Analysis

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 4 of the past 5 years.
  • FHI had a positive operating cash flow in 4 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 100M 200M 300M 400M

1.2 Ratios

  • The Return On Assets of FHI (16.68%) is better than 95.38% of its industry peers.
  • With an excellent Return On Equity value of 30.66%, FHI belongs to the best of the industry, outperforming 95.38% of the companies in the same industry.
  • FHI has a Return On Invested Capital of 18.60%. This is amongst the best in the industry. FHI outperforms 94.54% 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 3 year average ROIC (16.23%) for FHI is below the current ROIC(18.60%), indicating increased profibility in the last year.
Industry RankSector 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%
FHI Yearly ROA, ROE, ROICFHI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

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.
  • FHI has a Operating Margin (28.35%) which is comparable to the rest of the industry.
  • FHI's Operating Margin has been stable in the last couple of years.
  • The Gross Margin of FHI (95.56%) is better than 96.22% of its industry peers.
  • FHI's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
FHI Yearly Profit, Operating, Gross MarginsFHI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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8

2. FHI Health Analysis

2.1 Basic Checks

  • FHI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
FHI Yearly Shares OutstandingFHI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 500M 1B 1.5B 2B

2.2 Solvency

  • FHI has an Altman-Z score of 5.43. This indicates that FHI is financially healthy and has little risk of bankruptcy at the moment.
  • FHI has a Altman-Z score of 5.43. This is amongst the best in the industry. FHI outperforms 86.13% 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 88.24% 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.
  • With a decent Debt to Equity ratio value of 0.29, FHI is doing good in the industry, outperforming 72.69% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.29
Debt/FCF 1.34
Altman-Z 5.43
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 200M 400M 600M 800M 1B

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.
  • Looking at the Current ratio, with a value of 3.13, FHI belongs to the top of the industry, outperforming 81.51% of the companies in the same industry.
  • A Quick Ratio of 3.13 indicates that FHI has no problem at all paying its short term obligations.
  • Looking at the Quick ratio, with a value of 3.13, FHI belongs to the top of the industry, outperforming 81.51% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.13
Quick Ratio 3.13
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 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. FHI Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 61.13% over the past year.
  • The Earnings Per Share has been growing by 9.87% on average over the past years. This is quite good.
EPS 1Y (TTM)61.13%
EPS 3Y20.61%
EPS 5Y9.87%
EPS Q2Q%33.65%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%13.69%

3.2 Future

  • The Earnings Per Share is expected to grow by 5.75% on average over the next years.
  • The Revenue is expected to grow by 1.75% on average over the next years.
EPS Next Y-0.41%
EPS Next 2Y5.34%
EPS Next 3Y5.32%
EPS Next 5Y5.75%
Revenue Next Year9.87%
Revenue Next 2Y7.35%
Revenue Next 3Y6.66%
Revenue Next 5Y1.75%

3.3 Evolution

  • The EPS 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

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6

4. FHI Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 11.13, the valuation of FHI can be described as very reasonable.
  • FHI's Price/Earnings ratio is a bit cheaper when compared to the industry. FHI is cheaper than 60.50% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.83, FHI is valued rather cheaply.
  • The Price/Forward Earnings ratio is 11.17, which indicates a very decent 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 64.29% of the companies listed in the same industry.
  • FHI is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.95, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 11.13
Fwd PE 11.17
FHI Price Earnings VS Forward Price EarningsFHI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • FHI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FHI is cheaper than 90.76% of the companies in the same industry.
  • FHI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FHI is cheaper than 65.97% of the companies in the same industry.
Industry RankSector Rank
P/FCF 17.12
EV/EBITDA 7.6
FHI Per share dataFHI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20

4.3 Compensation for Growth

  • FHI has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.13
EPS Next 2Y5.34%
EPS Next 3Y5.32%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. FHI Dividend Analysis

5.1 Amount

  • FHI has a Yearly Dividend Yield of 2.39%. Purely for dividend investing, there may be better candidates out there.
  • FHI's Dividend Yield is comparable with the industry average which is at 6.44.
  • 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 2.39%

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
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

  • 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 2Y5.34%
EPS Next 3Y5.32%
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 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 (3/4/2026, 4:27:22 PM)

After market: 57.2 0 (0%)

57.2

+0.75 (+1.33%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)01-29
Earnings (Next)04-22
Inst Owners91.72%
Inst Owner ChangeN/A
Ins Owners3.46%
Ins Owner Change1.67%
Market Cap4.44B
Revenue(TTM)N/A
Net Income(TTM)363.99M
Analysts68.33
Price Target56.71 (-0.86%)
Short Float %4.37%
Short Ratio5.26
Dividend
Industry RankSector Rank
Dividend Yield 2.39%
Yearly Dividend2.22
Dividend Growth(5Y)15.47%
DP28.5%
Div Incr Years2
Div Non Decr Years3
Ex-Date02-06
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)6.63%
PT rev (3m)7.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.47%
EPS NY rev (1m)0.87%
EPS NY rev (3m)5.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.63%
Valuation
Industry RankSector Rank
PE 11.13
Fwd PE 11.17
P/S 2.53
P/FCF 17.12
P/OCF 16.88
P/B 3.74
P/tB N/A
EV/EBITDA 7.6
EPS(TTM)5.14
EY8.99%
EPS(NY)5.12
Fwd EY8.95%
FCF(TTM)3.34
FCFY5.84%
OCF(TTM)3.39
OCFY5.93%
SpS22.56
BVpS15.31
TBVpS-0.11
PEG (NY)N/A
PEG (5Y)1.13
Graham Number42.08
Profitability
Industry RankSector 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 RankSector 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 5.43
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)61.13%
EPS 3Y20.61%
EPS 5Y9.87%
EPS Q2Q%33.65%
EPS Next Y-0.41%
EPS Next 2Y5.34%
EPS Next 3Y5.32%
EPS Next 5Y5.75%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%13.69%
Revenue Next Year9.87%
Revenue Next 2Y7.35%
Revenue Next 3Y6.66%
Revenue Next 5Y1.75%
EBIT growth 1Y-7.04%
EBIT growth 3Y4.23%
EBIT growth 5Y4.35%
EBIT Next Year51.75%
EBIT Next 3Y17.57%
EBIT Next 5Y9.5%
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 6 / 10 to FHI.


What is the valuation status for FHI stock?

ChartMill assigns a valuation rating of 6 / 10 to FEDERATED HERMES INC (FHI). This can be considered as Fairly Valued.


How profitable is FEDERATED HERMES INC (FHI) stock?

FEDERATED HERMES INC (FHI) has a profitability rating of 7 / 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 11.13 and the Price/Book (PB) ratio is 3.74.


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%.