FEDERATED HERMES INC (FHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FHI - US3142111034 - Common Stock
54.37 USD
+0.96 (+1.8%)
54.37 USD
0 (0%)
Overall FHI gets a fundamental rating of 7 out of 10. We evaluated FHI against 237 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 is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make FHI suitable for value and quality investing!
1. Profitability
1.1 Basic Checks
- FHI had positive earnings in the past year.
- FHI had a positive operating cash flow in the past year.
- In the past 5 years FHI has always been profitable.
- 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 16.68%, FHI belongs to the best of the industry, outperforming 96.17% of the companies in the same industry.
- 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 better Return On Invested Capital (18.60%) than 94.89% 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 7.16%.
- The 3 year average ROIC (16.23%) for FHI is below the current ROIC(18.60%), indicating increased profibility in the last year.
| 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
- FHI has a Profit Margin (20.80%) which is in line with its industry peers.
- In the last couple of years the Profit Margin of FHI has declined.
- Looking at the Operating Margin, with a value of 28.35%, FHI is in line with its industry, outperforming 57.02% of the companies in the same industry.
- FHI's Operating Margin has been stable in the last couple of years.
- FHI has a Gross Margin of 95.56%. This is amongst the best in the industry. FHI outperforms 96.17% of its industry peers.
- 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.
- FHI has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, FHI has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 5.29 indicates that FHI is not in any danger for bankruptcy at the moment.
- The Altman-Z score of FHI (5.29) is better than 86.38% 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.
- Looking at the Debt to FCF ratio, with a value of 1.34, FHI belongs to the top of the industry, outperforming 88.51% of the companies in the same industry.
- A Debt/Equity ratio of 0.29 indicates that FHI is not too dependend on debt financing.
- FHI has a Debt to Equity ratio of 0.29. This is in the better half of the industry: FHI outperforms 74.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.34 | ||
| Altman-Z | 5.29 |
ROIC/WACCN/A
WACCN/A
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.
- With an excellent Current ratio value of 3.13, FHI belongs to the best of the industry, outperforming 82.13% 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.
- The Quick ratio of FHI (3.13) is better than 82.13% 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.
- 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
- The Earnings Per Share is expected to grow by 15.10% on average over the next years. This is quite good.
- Based on estimates for the next years, FHI will show a small growth in Revenue. The Revenue will grow by 4.00% on average per year.
EPS Next Y54.16%
EPS Next 2Y25.86%
EPS Next 3Y20.84%
EPS Next 5Y15.1%
Revenue Next Year9.68%
Revenue Next 2Y8.41%
Revenue Next 3Y7.18%
Revenue Next 5Y4%
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 stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 11.35, the valuation of FHI can be described as very reasonable.
- Based on the Price/Earnings ratio, FHI is valued a bit cheaper than 68.94% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.47, FHI is valued rather cheaply.
- A Price/Forward Earnings ratio of 10.76 indicates a reasonable valuation of FHI.
- Based on the Price/Forward Earnings ratio, FHI is valued a bit cheaper than the industry average as 72.34% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.26, FHI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.35 | ||
| Fwd PE | 10.76 |
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.
- Based on the Price/Free Cash Flow ratio, FHI is valued a bit cheaper than 68.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.27 | ||
| EV/EBITDA | 7.14 |
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.
- FHI has an outstanding profitability rating, which may justify a higher PE ratio.
- FHI's earnings are expected to grow with 20.84% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.21
PEG (5Y)3.27
EPS Next 2Y25.86%
EPS Next 3Y20.84%
5. Dividend
5.1 Amount
- FHI has a Yearly Dividend Yield of 2.55%.
- Compared to an average industry Dividend Yield of 6.12, FHI has a dividend in line with its industry peers.
- FHI's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
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 2Y25.86%
EPS Next 3Y20.84%
54.37
+0.96 (+1.8%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)10-30 2025-10-30/amc
Earnings (Next)01-29 2026-01-29/amc
Inst Owners91.72%
Inst Owner ChangeN/A
Ins Owners3.46%
Ins Owner Change1.43%
Market Cap4.22B
Revenue(TTM)1.75B
Net Income(TTM)363.99M
Analysts68.33
Price Target53.19 (-2.17%)
Short Float %2.95%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
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)1.32%
EPS NY rev (3m)5.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)2.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.35 | ||
| Fwd PE | 10.76 | ||
| P/S | 2.41 | ||
| P/FCF | 16.27 | ||
| P/OCF | 16.04 | ||
| P/B | 3.55 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.14 |
EPS(TTM)4.79
EY8.81%
EPS(NY)5.05
Fwd EY9.29%
FCF(TTM)3.34
FCFY6.15%
OCF(TTM)3.39
OCFY6.23%
SpS22.56
BVpS15.31
TBVpS-0.11
PEG (NY)0.21
PEG (5Y)3.27
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 | 5.29 |
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 5Y15.1%
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 5Y4%
EBIT growth 1Y-7.04%
EBIT growth 3Y4.23%
EBIT growth 5Y4.35%
EBIT Next Year51.34%
EBIT Next 3Y16.94%
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 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 11.35 and the Price/Book (PB) ratio is 3.55.
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%.