FEDERATED HERMES INC (FHI) Stock Fundamental Analysis
USA - NYSE:FHI - US3142111034 - Common Stock
49.46 USD
-0.39 (-0.78%)
49.46 USD
0 (0%)
FHI gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, FHI could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year FHI was profitable.
FHI had a positive operating cash flow in the past year.
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 16.19%, FHI belongs to the best of the industry, outperforming 96.20% of the companies in the same industry.
FHI has a better Return On Equity (31.27%) than 96.20% of its industry peers.
FHI has a better Return On Invested Capital (17.89%) 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 7.63%.
The 3 year average ROIC (16.23%) for FHI is below the current ROIC(17.89%), indicating increased profibility in the last year.
| 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
FHI has a Profit Margin of 20.64%. This is comparable to the rest of the industry: FHI outperforms 56.54% of its industry peers.
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.
FHI has a better Gross Margin (95.42%) than 95.36% of its industry peers.
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
Compared to 1 year ago, FHI has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.93 indicates that FHI is not in any danger for bankruptcy at the moment.
The Altman-Z score of FHI (4.93) is better than 85.23% 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.
Looking at the Debt to FCF ratio, with a value of 1.25, FHI belongs to the top of the industry, outperforming 89.87% of the companies in the same industry.
A Debt/Equity ratio of 0.31 indicates that FHI is not too dependend on debt financing.
FHI has a better Debt to Equity ratio (0.31) than 71.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 1.25 | ||
| Altman-Z | 4.93 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 3.37 indicates that FHI has no problem at all paying its short term obligations.
FHI's Current ratio of 3.37 is amongst the best of the industry. FHI outperforms 81.01% of its industry peers.
A Quick Ratio of 3.37 indicates that FHI has no problem at all paying its short term obligations.
FHI has a better Quick ratio (3.37) than 81.01% of its industry peers.
| 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 54.02%, 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.
FHI shows a small growth in Revenue. In the last year, the Revenue has grown by 1.58%.
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)1.58%
Revenue growth 3Y7.92%
Revenue growth 5Y4.26%
Sales Q2Q%14.93%
3.2 Future
The Earnings Per Share is expected to grow by 14.18% on average over the next years. This is quite good.
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
The Price/Earnings ratio is 10.33, which indicates a very decent valuation of FHI.
Based on the Price/Earnings ratio, FHI is valued a bit cheaper than the industry average as 68.78% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.06. FHI is valued rather cheaply when compared to this.
FHI is valuated reasonably with a Price/Forward Earnings ratio of 10.09.
Based on the Price/Forward Earnings ratio, FHI is valued a bit cheaper than the industry average as 68.35% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 32.73. FHI is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 10.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FHI is valued cheaply inside the industry as 91.56% of the companies are valued more expensively.
FHI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FHI is cheaper than 65.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.81 | ||
| EV/EBITDA | 6.69 |
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 19.50% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.21
PEG (5Y)2.98
EPS Next 2Y23.99%
EPS Next 3Y19.5%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.73%, FHI has a reasonable but not impressive dividend return.
FHI's Dividend Yield is comparable with the industry average which is at 8.49.
Compared to an average S&P500 Dividend Yield of 2.37, FHI has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
5.2 History
The dividend of FHI is nicely growing with an annual growth rate of 15.47%!
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)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.
The dividend of FHI is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP29.55%
EPS Next 2Y23.99%
EPS Next 3Y19.5%
49.46
-0.39 (-0.78%)
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 Cap3.84B
Revenue(TTM)1.63B
Net Income(TTM)348.33M
Analysts68.33
Price Target52.02 (5.18%)
Short Float %2.77%
Short Ratio3.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
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)3.38%
PT rev (3m)8.9%
EPS NQ rev (1m)3.11%
EPS NQ rev (3m)3.11%
EPS NY rev (1m)1.22%
EPS NY rev (3m)5.81%
Revenue NQ rev (1m)0.78%
Revenue NQ rev (3m)2.95%
Revenue NY rev (1m)1.25%
Revenue NY rev (3m)2.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.33 | ||
| Fwd PE | 10.09 | ||
| P/S | 2.27 | ||
| P/FCF | 13.81 | ||
| P/OCF | 13.85 | ||
| P/B | 3.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.69 |
EPS(TTM)4.79
EY9.68%
EPS(NY)4.9
Fwd EY9.91%
FCF(TTM)3.58
FCFY7.24%
OCF(TTM)3.57
OCFY7.22%
SpS21.76
BVpS14.36
TBVpS-1.2
PEG (NY)0.21
PEG (5Y)2.98
Graham Number39.35
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%
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-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 | 4.93 |
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)54.02%
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)1.58%
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-8.56%
EBIT growth 3Y4.23%
EBIT growth 5Y4.35%
EBIT Next Year43.37%
EBIT Next 3Y15.03%
EBIT Next 5Y9.26%
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%
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 10.33 and the Price/Book (PB) ratio is 3.44.
Can you provide the financial health for FHI stock?
The financial health rating of FEDERATED HERMES INC (FHI) is 9 / 10.