FEDERATED HERMES INC (FHI) Fundamental Analysis & Valuation

NYSE:FHI • US3142111034

Current stock price

56.89 USD
+0.29 (+0.51%)
At close:
56.89 USD
0 (0%)
After Hours:

This FHI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. FHI Profitability Analysis

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 4 of the past 5 years.
  • FHI had a positive operating cash flow in 4 of the past 5 years.
FHI Yearly Net Income VS EBIT VS OCF VS FCFFHI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M 400M

1.2 Ratios

  • FHI has a Return On Assets of 16.68%. This is amongst the best in the industry. FHI outperforms 95.45% of its industry peers.
  • With an excellent Return On Equity value of 30.66%, FHI belongs to the best of the industry, outperforming 95.87% of the companies in the same industry.
  • FHI's Return On Invested Capital of 18.60% is amongst the best of the industry. FHI outperforms 94.63% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for FHI is significantly above the industry average of 7.15%.
  • The 3 year average ROIC (16.23%) for FHI is below the current ROIC(18.60%), indicating increased profibility in the last year.
Industry RankSector 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%
FHI Yearly ROA, ROE, ROICFHI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

  • The Profit Margin of FHI (20.80%) is comparable to the rest of the industry.
  • In the last couple of years the Profit Margin of FHI has declined.
  • FHI has a Operating Margin (28.35%) which is comparable to the rest of the 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 96.69% 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 RankSector 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%
FHI Yearly Profit, Operating, Gross MarginsFHI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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8

2. FHI Health Analysis

2.1 Basic Checks

  • FHI has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
FHI Yearly Shares OutstandingFHI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
FHI Yearly Total Debt VS Total AssetsFHI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.2 Solvency

  • FHI has an Altman-Z score of 5.38. This indicates that FHI is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 5.38, FHI belongs to the best of the industry, outperforming 85.12% of the companies in the same industry.
  • The Debt to FCF ratio of FHI is 1.34, which is an excellent value as it means it would take FHI, only 1.34 years of fcf income to pay off all of its debts.
  • The Debt to FCF ratio of FHI (1.34) is better than 87.60% 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.
  • Looking at the Debt to Equity ratio, with a value of 0.29, FHI is in the better half of the industry, outperforming 72.31% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.29
Debt/FCF 1.34
Altman-Z 5.38
ROIC/WACCN/A
WACCN/A
FHI Yearly LT Debt VS Equity VS FCFFHI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

2.3 Liquidity

  • A Current Ratio of 3.13 indicates that FHI has no problem at all paying its short term obligations.
  • FHI's Current ratio of 3.13 is amongst the best of the industry. FHI outperforms 80.99% 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 80.99% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.13
Quick Ratio 3.13
FHI Yearly Current Assets VS Current LiabilitesFHI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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3

3. FHI Growth Analysis

3.1 Past

  • FHI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 61.13%, which is quite impressive.
  • FHI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.87% yearly.
EPS 1Y (TTM)61.13%
EPS 3Y20.61%
EPS 5Y9.87%
EPS Q2Q%33.65%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%13.69%

3.2 Future

  • The Earnings Per Share is expected to grow by 5.75% on average over the next years.
  • Based on estimates for the next years, FHI will show a small growth in Revenue. The Revenue will grow by 1.75% on average per year.
EPS Next Y0.15%
EPS Next 2Y5.69%
EPS Next 3Y5.82%
EPS Next 5Y5.75%
Revenue Next Year9.87%
Revenue Next 2Y7.35%
Revenue Next 3Y6.66%
Revenue Next 5Y1.75%

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.
FHI Yearly Revenue VS EstimatesFHI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 500M 1B 1.5B 2B
FHI Yearly EPS VS EstimatesFHI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6

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6

4. FHI Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 11.07, the valuation of FHI can be described as reasonable.
  • Based on the Price/Earnings ratio, FHI is valued a bit cheaper than the industry average as 60.74% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Earnings ratio of 25.96, FHI is valued rather cheaply.
  • A Price/Forward Earnings ratio of 11.05 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 61.98% of the companies listed in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 24.04. FHI is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 11.07
Fwd PE 11.05
FHI Price Earnings VS Forward Price EarningsFHI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, FHI is valued cheaply inside the industry as 90.08% 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 65.70% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 16.68
EV/EBITDA 7.45
FHI Per share dataFHI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15 20

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FHI does not grow enough to justify the current Price/Earnings ratio.
  • The decent profitability rating of FHI may justify a higher PE ratio.
PEG (NY)75.49
PEG (5Y)1.12
EPS Next 2Y5.69%
EPS Next 3Y5.82%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. FHI Dividend Analysis

5.1 Amount

  • FHI has a Yearly Dividend Yield of 2.40%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 6.96, FHI has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.91, FHI pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.4%

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
FHI Yearly Dividends per shareFHI Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

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 2Y5.69%
EPS Next 3Y5.82%
FHI Yearly Income VS Free CF VS DividendFHI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M
FHI Dividend Payout.FHI Dividend Payout, showing the Payout Ratio.FHI Dividend Payout.PayoutRetained Earnings

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FHI Fundamentals: All Metrics, Ratios and Statistics

FEDERATED HERMES INC

NYSE:FHI (3/17/2026, 4:19:45 PM)

After market: 56.89 0 (0%)

56.89

+0.29 (+0.51%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)01-29
Earnings (Next)04-22
Inst Owners91.95%
Inst Owner ChangeN/A
Ins Owners3.44%
Ins Owner Change4.83%
Market Cap4.32B
Revenue(TTM)N/A
Net Income(TTM)363.99M
Analysts68.33
Price Target56.71 (-0.32%)
Short Float %4.63%
Short Ratio4.98
Dividend
Industry RankSector Rank
Dividend Yield 2.4%
Yearly Dividend2.22
Dividend Growth(5Y)15.47%
DP28.5%
Div Incr Years2
Div Non Decr Years3
Ex-Date02-06
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)4.91%
PT rev (3m)7.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.47%
EPS NY rev (1m)0%
EPS NY rev (3m)2.48%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.67%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.28%
Valuation
Industry RankSector Rank
PE 11.07
Fwd PE 11.05
P/S 2.47
P/FCF 16.68
P/OCF 16.44
P/B 3.64
P/tB N/A
EV/EBITDA 7.45
EPS(TTM)5.14
EY9.03%
EPS(NY)5.15
Fwd EY9.05%
FCF(TTM)3.41
FCFY6%
OCF(TTM)3.46
OCFY6.08%
SpS23.03
BVpS15.63
TBVpS-0.11
PEG (NY)75.49
PEG (5Y)1.12
Graham Number42.51
Profitability
Industry RankSector 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 RankSector 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 5.38
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)61.13%
EPS 3Y20.61%
EPS 5Y9.87%
EPS Q2Q%33.65%
EPS Next Y0.15%
EPS Next 2Y5.69%
EPS Next 3Y5.82%
EPS Next 5Y5.75%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%13.69%
Revenue Next Year9.87%
Revenue Next 2Y7.35%
Revenue Next 3Y6.66%
Revenue Next 5Y1.75%
EBIT growth 1Y-7.04%
EBIT growth 3Y4.23%
EBIT growth 5Y4.35%
EBIT Next Year51.75%
EBIT Next 3Y17.57%
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 Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for FEDERATED HERMES INC?

ChartMill assigns a fundamental rating of 6 / 10 to FHI.


What is the valuation status for FHI stock?

ChartMill assigns a valuation rating of 6 / 10 to FEDERATED HERMES INC (FHI). This can be considered as Fairly Valued.


How profitable is FEDERATED HERMES INC (FHI) stock?

FEDERATED HERMES INC (FHI) has a profitability rating of 7 / 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 11.07 and the Price/Book (PB) ratio is 3.64.


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%.