FEDERATED HERMES INC (FHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FHI - US3142111034 - Common Stock
52.07 USD
-0.96 (-1.81%)
52.07 USD
0 (0%)
Taking everything into account, FHI scores 7 out of 10 in our fundamental rating. FHI was compared to 235 industry peers in the Capital Markets industry. FHI gets an excellent profitability rating and is at the same time showing great financial health properties. A decent growth rate in combination with a cheap valuation! Better keep an eye on FHI. These ratings would make FHI suitable for value investing!
1. Profitability
1.1 Basic Checks
In the past year FHI was profitable.
In the past year FHI had a positive cash flow from operations.
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
The Return On Assets of FHI (16.68%) is better than 96.17% of its industry peers.
FHI has a Return On Equity of 30.66%. This is amongst the best in the industry. FHI outperforms 96.17% of its industry peers.
FHI has a Return On Invested Capital of 18.60%. This is amongst the best in the industry. FHI outperforms 94.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FHI is significantly above the industry average of 7.07%.
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 59.15% 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 57.45% of its industry peers.
In the last couple of years the Operating Margin of FHI has remained more or less at the same level.
With an excellent Gross Margin value of 95.56%, FHI belongs to the best of the industry, outperforming 96.17% 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
Compared to 1 year ago, FHI has less shares outstanding
Compared to 5 years ago, FHI has less shares outstanding
FHI has a worse debt/assets ratio than last year.
2.2 Solvency
FHI has an Altman-Z score of 5.23. This indicates that FHI is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of FHI (5.23) is better than 86.81% of its industry peers.
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's Debt to FCF ratio of 1.34 is amongst the best of the industry. FHI outperforms 88.51% 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's Debt to Equity ratio of 0.29 is fine compared to the rest of the industry. FHI outperforms 74.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.34 | ||
| Altman-Z | 5.23 |
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.
With an excellent Current ratio value of 3.13, FHI belongs to the best of the industry, outperforming 81.70% of the companies in the same industry.
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 better Quick ratio (3.13) than 81.70% 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.
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.
FHI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.26% yearly.
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
Based on estimates for the next years, FHI will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.18% on average per year.
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 Y54.16%
EPS Next 2Y25.86%
EPS Next 3Y20.84%
EPS Next 5Y14.18%
Revenue Next Year9.68%
Revenue Next 2Y8.41%
Revenue Next 3Y7.18%
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
The Price/Earnings ratio is 10.87, which indicates a very decent valuation of FHI.
Based on the Price/Earnings ratio, FHI is valued a bit cheaper than the industry average as 66.81% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.51, FHI is valued rather cheaply.
With a Price/Forward Earnings ratio of 10.30, the valuation of FHI can be described as very reasonable.
FHI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FHI is cheaper than 70.64% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, FHI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.87 | ||
| Fwd PE | 10.3 |
4.2 Price Multiples
91.49% of the companies in the same industry are more expensive than FHI, based on the Enterprise Value to EBITDA ratio.
FHI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FHI is cheaper than 65.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.58 | ||
| EV/EBITDA | 6.94 |
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.
The excellent profitability rating of FHI 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)0.2
PEG (5Y)3.13
EPS Next 2Y25.86%
EPS Next 3Y20.84%
5. Dividend
5.1 Amount
FHI has a Yearly Dividend Yield of 2.50%. Purely for dividend investing, there may be better candidates out there.
FHI's Dividend Yield is comparable with the industry average which is at 6.65.
Compared to an average S&P500 Dividend Yield of 2.00, FHI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
5.2 History
The dividend of FHI is nicely growing with an annual growth rate of 15.47%!
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.
The dividend of FHI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP28.5%
EPS Next 2Y25.86%
EPS Next 3Y20.84%
52.07
-0.96 (-1.81%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners91.82%
Inst Owner ChangeN/A
Ins Owners4.12%
Ins Owner Change1.43%
Market Cap4.04B
Revenue(TTM)1.75B
Net Income(TTM)363.99M
Analysts68.33
Price Target52.89 (1.57%)
Short Float %2.95%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
Yearly Dividend2.22
Dividend Growth(5Y)15.47%
DP28.5%
Div Incr Years2
Div Non Decr Years3
Ex-DateN/A
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)0.55%
PT rev (3m)5.12%
EPS NQ rev (1m)1.73%
EPS NQ rev (3m)8.15%
EPS NY rev (1m)4.06%
EPS NY rev (3m)5.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4%
Revenue NY rev (1m)1.52%
Revenue NY rev (3m)2.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.87 | ||
| Fwd PE | 10.3 | ||
| P/S | 2.31 | ||
| P/FCF | 15.58 | ||
| P/OCF | 15.36 | ||
| P/B | 3.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.94 |
EPS(TTM)4.79
EY9.2%
EPS(NY)5.05
Fwd EY9.7%
FCF(TTM)3.34
FCFY6.42%
OCF(TTM)3.39
OCFY6.51%
SpS22.56
BVpS15.31
TBVpS-0.11
PEG (NY)0.2
PEG (5Y)3.13
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 | 5.23 |
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 Y54.16%
EPS Next 2Y25.86%
EPS Next 3Y20.84%
EPS Next 5Y14.18%
Revenue 1Y (TTM)-12.36%
Revenue growth 3Y7.92%
Revenue growth 5Y4.26%
Sales Q2Q%14.93%
Revenue Next Year9.68%
Revenue Next 2Y8.41%
Revenue Next 3Y7.18%
Revenue Next 5Y3.25%
EBIT growth 1Y-7.04%
EBIT growth 3Y4.23%
EBIT growth 5Y4.35%
EBIT Next Year51.34%
EBIT Next 3Y16.94%
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 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 10.87 and the Price/Book (PB) ratio is 3.4.
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%.