FEDERATED HERMES INC (FHI) Stock Fundamental Analysis
USA - NYSE:FHI - US3142111034 - Common Stock
47.68 USD
-0.36 (-0.75%)
We assign a fundamental rating of 7 out of 10 to FHI. FHI was compared to 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. FHI is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make FHI suitable for value investing!
1. Profitability
1.1 Basic Checks
FHI had positive earnings in the past year.
In the past year FHI had a positive cash flow from operations.
In the past 5 years FHI has always been profitable.
In the past 5 years FHI always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 16.68%, FHI belongs to the best of the industry, outperforming 97.05% of the companies in the same industry.
The Return On Equity of FHI (30.66%) is better than 96.20% of its industry peers.
The Return On Invested Capital of FHI (18.60%) is better 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 7.11%.
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 57.38% of the companies in the same industry.
FHI's Profit Margin has declined in the last couple of years.
FHI has a Operating Margin (28.35%) which is in line with its industry peers.
In the last couple of years the Operating Margin of FHI has remained more or less at the same level.
Looking at the Gross Margin, with a value of 95.56%, FHI belongs to the top of the industry, outperforming 95.36% 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 | 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
The number of shares outstanding for FHI has been reduced compared to 1 year ago.
The number of shares outstanding for FHI has been reduced compared to 5 years ago.
FHI has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.04 indicates that FHI is not in any danger for bankruptcy at the moment.
FHI's Altman-Z score of 5.04 is amongst the best of the industry. FHI outperforms 85.65% 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 has a Debt to FCF ratio of 1.34. This is amongst the best in the industry. FHI outperforms 89.45% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that FHI is not too dependend on debt financing.
FHI's Debt to Equity ratio of 0.29 is fine compared to the rest of the industry. FHI outperforms 73.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.34 | ||
| Altman-Z | 5.04 |
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.
The Current ratio of FHI (3.13) is better than 81.86% 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.
With an excellent Quick ratio value of 3.13, FHI belongs to the best of the industry, outperforming 81.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 3.13 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 54.02% over the past year.
FHI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.47% yearly.
FHI shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.36%.
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)54.02%
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 14.18% yearly.
The Revenue is expected to grow by 3.25% on average over the next years.
EPS Next Y48.14%
EPS Next 2Y23.99%
EPS Next 3Y19.5%
EPS Next 5Y14.18%
Revenue Next Year8.03%
Revenue Next 2Y6.88%
Revenue Next 3Y5.91%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
FHI is valuated reasonably with a Price/Earnings ratio of 9.95.
Compared to the rest of the industry, the Price/Earnings ratio of FHI indicates a somewhat cheap valuation: FHI is cheaper than 69.62% of the companies listed in the same industry.
FHI is valuated cheaply when we compare the Price/Earnings ratio to 25.47, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.72 indicates a reasonable 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 68.78% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of FHI to the average of the S&P500 Index (35.42), we can say FHI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.95 | ||
| Fwd PE | 9.72 |
4.2 Price Multiples
FHI's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FHI is cheaper than 91.98% of the companies in the same industry.
63.29% 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 | 14.27 | ||
| EV/EBITDA | 6.34 |
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.
FHI's earnings are expected to grow with 19.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.21
PEG (5Y)2.87
EPS Next 2Y23.99%
EPS Next 3Y19.5%
5. Dividend
5.1 Amount
FHI has a Yearly Dividend Yield of 2.76%.
Compared to an average industry Dividend Yield of 8.50, FHI has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, FHI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
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 2Y23.99%
EPS Next 3Y19.5%
NYSE:FHI (11/20/2025, 12:49:55 PM)
47.68
-0.36 (-0.75%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners86.98%
Inst Owner ChangeN/A
Ins Owners4.03%
Ins Owner Change-2.73%
Market Cap3.70B
Revenue(TTM)1.75B
Net Income(TTM)363.99M
Analysts68.33
Price Target52.02 (9.1%)
Short Float %2.86%
Short Ratio3.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
Yearly Dividend2.22
Dividend Growth(5Y)15.47%
DP28.5%
Div Incr Years2
Div Non Decr Years3
Ex-Date
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)3.38%
PT rev (3m)8.9%
EPS NQ rev (1m)3.66%
EPS NQ rev (3m)7%
EPS NY rev (1m)1.22%
EPS NY rev (3m)5.81%
Revenue NQ rev (1m)2.69%
Revenue NQ rev (3m)5.4%
Revenue NY rev (1m)1.25%
Revenue NY rev (3m)2.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.95 | ||
| Fwd PE | 9.72 | ||
| P/S | 2.11 | ||
| P/FCF | 14.27 | ||
| P/OCF | 14.07 | ||
| P/B | 3.11 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.34 |
EPS(TTM)4.79
EY10.05%
EPS(NY)4.9
Fwd EY10.29%
FCF(TTM)3.34
FCFY7.01%
OCF(TTM)3.39
OCFY7.11%
SpS22.56
BVpS15.31
TBVpS-0.11
PEG (NY)0.21
PEG (5Y)2.87
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 | 5.04 |
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 Y48.14%
EPS Next 2Y23.99%
EPS Next 3Y19.5%
EPS Next 5Y14.18%
Revenue 1Y (TTM)-12.36%
Revenue growth 3Y7.92%
Revenue growth 5Y4.26%
Sales Q2Q%14.93%
Revenue Next Year8.03%
Revenue Next 2Y6.88%
Revenue Next 3Y5.91%
Revenue Next 5Y3.25%
EBIT growth 1Y-7.04%
EBIT growth 3Y4.23%
EBIT growth 5Y4.35%
EBIT Next Year43.37%
EBIT Next 3Y15.03%
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 of FEDERATED HERMES INC (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.
Can you provide the PE and PB ratios for FHI stock?
The Price/Earnings (PE) ratio for FEDERATED HERMES INC (FHI) is 9.95 and the Price/Book (PB) ratio is 3.11.
Can you provide the financial health for FHI stock?
The financial health rating of FEDERATED HERMES INC (FHI) is 9 / 10.