FEDERATED HERMES INC (FHI)
US3142111034 - Common Stock
FHI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 218 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. FHI has a valuation in line with the averages, but it does not seem to be growing.
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.
FHI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FHI's Return On Assets of 16.10% is amongst the best of the industry. FHI outperforms 96.28% of its industry peers.
The Return On Equity of FHI (30.28%) is better than 95.81% of its industry peers.
The Return On Invested Capital of FHI (22.66%) is better than 98.14% 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 6.96%.
The 3 year average ROIC (16.38%) for FHI is below the current ROIC(22.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.1% | ||
| ROE | 30.28% | ||
| ROIC | 22.66% |
ROA(3y)12.56%
ROA(5y)13.37%
ROE(3y)23.44%
ROE(5y)24.61%
ROIC(3y)16.38%
ROIC(5y)16.52%
1.3 Margins
FHI has a Profit Margin (16.43%) which is in line with its industry peers.
In the last couple of years the Profit Margin of FHI has remained more or less at the same level.
FHI has a Operating Margin (26.73%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of FHI has declined.
Looking at the Gross Margin, with a value of 95.34%, FHI belongs to the top of the industry, outperforming 93.49% of the companies in the same industry.
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 | 26.73% | ||
| PM (TTM) | 16.43% | ||
| GM | 95.34% |
OM growth 3Y-4.78%
OM growth 5Y-3.04%
PM growth 3Y-6.48%
PM growth 5Y-1.02%
GM growth 3Y-0.18%
GM growth 5Y-0.11%
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 has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.09 indicates that FHI is not in any danger for bankruptcy at the moment.
FHI's Altman-Z score of 5.09 is amongst the best of the industry. FHI outperforms 86.51% of its industry peers.
The Debt to FCF ratio of FHI is 1.01, which is an excellent value as it means it would take FHI, only 1.01 years of fcf income to pay off all of its debts.
FHI has a Debt to FCF ratio of 1.01. This is amongst the best in the industry. FHI outperforms 87.44% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that FHI is not too dependend on debt financing.
The Debt to Equity ratio of FHI (0.32) is better than 76.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 5.09 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
FHI has a Current Ratio of 2.75. This indicates that FHI is financially healthy and has no problem in meeting its short term obligations.
FHI has a better Current ratio (2.75) than 75.35% of its industry peers.
FHI has a Quick Ratio of 2.75. This indicates that FHI is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.75, FHI is in the better half of the industry, outperforming 75.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.75 | ||
| Quick Ratio | 2.75 |
3. Growth
3.1 Past
The earnings per share for FHI have decreased by -7.16% in the last year.
Measured over the past 5 years, FHI shows a small growth in Earnings Per Share. The EPS has been growing by 7.37% on average per year.
FHI shows a small growth in Revenue. In the last year, the Revenue has grown by 1.17%.
FHI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.22% yearly.
EPS 1Y (TTM)-7.16%
EPS 3Y2.04%
EPS 5Y7.37%
EPS Q2Q%23.26%
Revenue 1Y (TTM)1.17%
Revenue growth 3Y3.58%
Revenue growth 5Y7.22%
Sales Q2Q%1.44%
3.2 Future
The Earnings Per Share is expected to grow by 3.96% on average over the next years.
The Revenue is expected to grow by 0.93% on average over the next years.
EPS Next Y-5.45%
EPS Next 2Y10.09%
EPS Next 3Y10.15%
EPS Next 5Y3.96%
Revenue Next Year0.98%
Revenue Next 2Y3.74%
Revenue Next 3Y4.15%
Revenue Next 5Y0.93%
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 decreasing.
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
A Price/Earnings ratio of 13.41 indicates a correct valuation of FHI.
FHI's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.96, FHI is valued rather cheaply.
A Price/Forward Earnings ratio of 10.09 indicates a reasonable valuation of FHI.
67.44% of the companies in the same industry are more expensive than FHI, based on the Price/Forward Earnings ratio.
FHI is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 10.09 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FHI indicates a rather cheap valuation: FHI is cheaper than 92.56% of the companies listed in the same industry.
70.70% of the companies in the same industry are more expensive than FHI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.92 | ||
| EV/EBITDA | 5.4 |
4.3 Compensation for Growth
The excellent profitability rating of FHI may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.82
EPS Next 2Y10.09%
EPS Next 3Y10.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.95%, FHI has a reasonable but not impressive dividend return.
FHI's Dividend Yield is comparable with the industry average which is at 9.01.
Compared to an average S&P500 Dividend Yield of 2.23, FHI pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
5.2 History
The dividend of FHI has a limited annual growth rate of 1.25%.
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)1.25%
Div Incr Years2
Div Non Decr Years3
5.3 Sustainability
55.99% of the earnings are spent on dividend by FHI. This is a bit on the high side, but may be sustainable.
The dividend of FHI is growing, but earnings are growing more, so the dividend growth is sustainable.
DP55.99%
EPS Next 2Y10.09%
EPS Next 3Y10.15%
FEDERATED HERMES INC
NYSE:FHI (11/21/2024, 8:04:00 PM)
After market: 41.71 0 (0%)41.71
+0.29 (+0.7%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.41B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.95% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 10.09 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.1% | ||
| ROE | 30.28% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 26.73% | ||
| PM (TTM) | 16.43% | ||
| GM | 95.34% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.75 | ||
| Quick Ratio | 2.75 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-7.16%
EPS 3Y2.04%
EPS 5Y
EPS Q2Q%
EPS Next Y-5.45%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.17%
Revenue growth 3Y3.58%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y