FEDERATED HERMES INC (FHI) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:FHI - US3142111034 - Common Stock
52.15 USD
-0.73 (-1.38%)
We assign a fundamental rating of 7 out of 10 to FHI. FHI was compared to 235 industry peers in the Capital Markets industry. FHI has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. FHI is valued quite cheap, while showing a decent growth score. This is a good combination! This makes FHI very considerable for value and quality investing!
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.
Each year in the past 5 years FHI had a positive operating cash flow.
1.2 Ratios
FHI's Return On Assets of 16.68% is amongst the best of the industry. FHI outperforms 96.17% of its industry peers.
The Return On Equity of FHI (30.66%) is better than 96.17% of its industry peers.
FHI's Return On Invested Capital of 18.60% is amongst the best of the industry. FHI outperforms 94.89% 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 7.17%.
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
With a Profit Margin value of 20.80%, FHI perfoms like the industry average, outperforming 59.15% of the companies in the same industry.
In the last couple of years the Profit Margin of FHI has declined.
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.
FHI has a better Gross Margin (95.56%) than 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
FHI has less shares outstanding than it did 1 year ago.
The number of shares outstanding for FHI has been reduced compared to 5 years ago.
The debt/assets ratio for FHI is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.26 indicates that FHI is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.26, FHI belongs to the top of the industry, outperforming 86.81% of the companies in the same industry.
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 better Debt to FCF ratio (1.34) than 88.51% 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.
With a decent Debt to Equity ratio value of 0.29, FHI is doing good in the industry, outperforming 74.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 1.34 | ||
| Altman-Z | 5.26 |
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.
FHI has a Quick ratio of 3.13. This is amongst the best in the industry. FHI outperforms 82.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.13 | ||
| Quick Ratio | 3.13 |
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.
Looking at the last year, FHI shows a very negative growth in Revenue. The Revenue has decreased by -12.36% in the last year.
FHI shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.26% yearly.
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 15.10% yearly.
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
Based on the Price/Earnings ratio of 10.89, the valuation of FHI can be described as reasonable.
Based on the Price/Earnings ratio, FHI is valued a bit cheaper than 66.38% of the companies in the same industry.
FHI's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.19.
A Price/Forward Earnings ratio of 10.32 indicates a reasonable valuation of FHI.
Based on the Price/Forward Earnings ratio, FHI is valued a bit cheaper than 71.49% of the companies in the same industry.
FHI is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.89 | ||
| Fwd PE | 10.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FHI is valued cheaply inside the industry as 91.49% 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 67.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.61 | ||
| EV/EBITDA | 7.06 |
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.
A more expensive valuation may be justified as FHI's earnings are expected to grow with 20.84% in the coming years.
PEG (NY)0.2
PEG (5Y)3.14
EPS Next 2Y25.86%
EPS Next 3Y20.84%
5. Dividend
5.1 Amount
FHI has a Yearly Dividend Yield of 2.57%.
Compared to an average industry Dividend Yield of 6.19, 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 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
5.2 History
On average, the dividend of FHI grows each year by 15.47%, which is quite nice.
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
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 2Y25.86%
EPS Next 3Y20.84%
NYSE:FHI (1/12/2026, 9:43:13 AM)
52.15
-0.73 (-1.38%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)
Earnings (Next)
Inst Owners91.72%
Inst Owner ChangeN/A
Ins Owners3.46%
Ins Owner Change1.43%
Market Cap4.04B
Revenue(TTM)1.75B
Net Income(TTM)363.99M
Analysts68.33
Price Target52.89 (1.42%)
Short Float %2.95%
Short Ratio3.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
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 | 10.89 | ||
| Fwd PE | 10.32 | ||
| P/S | 2.31 | ||
| P/FCF | 15.61 | ||
| P/OCF | 15.39 | ||
| P/B | 3.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 7.06 |
EPS(TTM)4.79
EY9.19%
EPS(NY)5.05
Fwd EY9.69%
FCF(TTM)3.34
FCFY6.41%
OCF(TTM)3.39
OCFY6.5%
SpS22.56
BVpS15.31
TBVpS-0.11
PEG (NY)0.2
PEG (5Y)3.14
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 | 5.26 |
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 10.89 and the Price/Book (PB) ratio is 3.41.
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%.