FEDERATED HERMES INC (FHI) Stock Fundamental Analysis
USA - NYSE:FHI - US3142111034 - Common Stock
52.68 USD
0 (0%)
Taking everything into account, FHI scores 7 out of 10 in our fundamental rating. FHI was compared to 237 industry peers in the Capital Markets industry. Both the health and profitability get an excellent rating, making FHI a very profitable company, without any liquidiy or solvency issues. 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.
FHI had positive earnings in each of the past 5 years.
Each year in the past 5 years FHI had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 16.19%, FHI belongs to the best of the industry, outperforming 96.20% of the companies in the same industry.
Looking at the Return On Equity, with a value of 31.27%, FHI belongs to the top of the industry, outperforming 95.78% of the companies in the same industry.
The Return On Invested Capital of FHI (17.89%) is better than 93.67% 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 7.61%.
The last Return On Invested Capital (17.89%) for FHI is above the 3 year average (16.23%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.19% | ||
| ROE | 31.27% | ||
| ROIC | 17.89% |
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
The Profit Margin of FHI (20.64%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of FHI has declined.
With a Operating Margin value of 28.27%, FHI perfoms like the industry average, outperforming 54.43% of the companies in the same industry.
FHI's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 95.42%, FHI belongs to the best of the industry, outperforming 95.78% 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 | 28.27% | ||
| PM (TTM) | 20.64% | ||
| GM | 95.42% |
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
The debt/assets ratio for FHI is higher compared to a year ago.
2.2 Solvency
FHI has an Altman-Z score of 5.08. This indicates that FHI is financially healthy and has little risk of bankruptcy at the moment.
FHI's Altman-Z score of 5.08 is amongst the best of the industry. FHI outperforms 85.65% of its industry peers.
The Debt to FCF ratio of FHI is 1.25, which is an excellent value as it means it would take FHI, only 1.25 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.25, FHI belongs to the best of the industry, outperforming 88.61% of the companies in the same industry.
FHI has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
FHI has a Debt to Equity ratio of 0.31. This is in the better half of the industry: FHI outperforms 72.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 5.08 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
FHI has a Current Ratio of 3.37. This indicates that FHI is financially healthy and has no problem in meeting its short term obligations.
FHI has a Current ratio of 3.37. This is amongst the best in the industry. FHI outperforms 81.86% of its industry peers.
A Quick Ratio of 3.37 indicates that FHI has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 3.37, FHI belongs to the best of the industry, outperforming 81.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.37 | ||
| Quick Ratio | 3.37 |
3. Growth
3.1 Past
FHI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.98%, 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 -15.16% in the last year.
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)54.98%
EPS 3Y3.71%
EPS 5Y3.47%
EPS Q2Q%480%
Revenue 1Y (TTM)-15.16%
Revenue growth 3Y7.92%
Revenue growth 5Y4.26%
Sales Q2Q%5.53%
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 12.89% on average per year.
FHI is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.46% yearly.
EPS Next Y44.87%
EPS Next 2Y21.59%
EPS Next 3Y18.34%
EPS Next 5Y12.89%
Revenue Next Year6.7%
Revenue Next 2Y5.71%
Revenue Next 3Y5.37%
Revenue Next 5Y2.46%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 11.68, the valuation of FHI can be described as reasonable.
65.40% 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 27.20.
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 66.24% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.71. FHI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.68 | ||
| Fwd PE | 11.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FHI is valued cheaply inside the industry as 92.41% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, FHI is valued a bit cheaper than the industry average as 63.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.71 | ||
| EV/EBITDA | 7.19 |
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 18.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.26
PEG (5Y)3.37
EPS Next 2Y21.59%
EPS Next 3Y18.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.51%, FHI has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 7.96, FHI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, FHI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
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
29.55% of the earnings are spent on dividend by FHI. This is a low number and sustainable payout ratio.
FHI's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP29.55%
EPS Next 2Y21.59%
EPS Next 3Y18.34%
NYSE:FHI (9/17/2025, 3:45:33 PM)
52.68
0 (0%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners82.27%
Inst Owner ChangeN/A
Ins Owners3.98%
Ins Owner Change-1.7%
Market Cap4.09B
Analysts68.33
Price Target50.32 (-4.48%)
Short Float %3.18%
Short Ratio3.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.51% |
Yearly Dividend2.22
Dividend Growth(5Y)15.47%
DP29.55%
Div Incr Years2
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)23.49%
Min EPS beat(2)12.16%
Max EPS beat(2)34.82%
EPS beat(4)4
Avg EPS beat(4)16.8%
Min EPS beat(4)5.9%
Max EPS beat(4)34.82%
EPS beat(8)7
Avg EPS beat(8)0.81%
EPS beat(12)10
Avg EPS beat(12)2.9%
EPS beat(16)11
Avg EPS beat(16)0.89%
Revenue beat(2)0
Avg Revenue beat(2)-0.5%
Min Revenue beat(2)-0.52%
Max Revenue beat(2)-0.49%
Revenue beat(4)1
Avg Revenue beat(4)-0.52%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)0.11%
Revenue beat(8)1
Avg Revenue beat(8)-0.94%
Revenue beat(12)4
Avg Revenue beat(12)0.06%
Revenue beat(16)5
Avg Revenue beat(16)4.77%
PT rev (1m)5.34%
PT rev (3m)17%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)4.09%
EPS NY rev (1m)3.48%
EPS NY rev (3m)7.74%
Revenue NQ rev (1m)1.08%
Revenue NQ rev (3m)3.09%
Revenue NY rev (1m)1.45%
Revenue NY rev (3m)1.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.68 | ||
| Fwd PE | 11.17 | ||
| P/S | 2.42 | ||
| P/FCF | 14.71 | ||
| P/OCF | 14.75 | ||
| P/B | 3.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.19 |
EPS(TTM)4.51
EY8.56%
EPS(NY)4.72
Fwd EY8.95%
FCF(TTM)3.58
FCFY6.8%
OCF(TTM)3.57
OCFY6.78%
SpS21.76
BVpS14.36
TBVpS-1.2
PEG (NY)0.26
PEG (5Y)3.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.19% | ||
| ROE | 31.27% | ||
| ROCE | 24.77% | ||
| ROIC | 17.89% | ||
| ROICexc | 26.13% | ||
| ROICexgc | 309.43% | ||
| OM | 28.27% | ||
| PM (TTM) | 20.64% | ||
| GM | 95.42% | ||
| FCFM | 16.46% |
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%
ROICexcg growth 3Y38.23%
ROICexcg 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-Score5
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.25 | ||
| Debt/EBITDA | 0.7 | ||
| Cap/Depr | 3.43% | ||
| Cap/Sales | 0.05% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 55.46% | ||
| Profit Quality | 79.72% | ||
| Current Ratio | 3.37 | ||
| Quick Ratio | 3.37 | ||
| Altman-Z | 5.08 |
F-Score5
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)54.98%
EPS 3Y3.71%
EPS 5Y3.47%
EPS Q2Q%480%
EPS Next Y44.87%
EPS Next 2Y21.59%
EPS Next 3Y18.34%
EPS Next 5Y12.89%
Revenue 1Y (TTM)-15.16%
Revenue growth 3Y7.92%
Revenue growth 5Y4.26%
Sales Q2Q%5.53%
Revenue Next Year6.7%
Revenue Next 2Y5.71%
Revenue Next 3Y5.37%
Revenue Next 5Y2.46%
EBIT growth 1Y-8.56%
EBIT growth 3Y4.23%
EBIT growth 5Y4.35%
EBIT Next Year42.17%
EBIT Next 3Y14.38%
EBIT Next 5Y8.12%
FCF growth 1Y-12.06%
FCF growth 3Y28.89%
FCF growth 5Y1.38%
OCF growth 1Y-13.73%
OCF growth 3Y26.7%
OCF growth 5Y0.69%