Federated Hermes, Inc. is a publicly owned asset management holding company. More Details
Flawless balance sheet, undervalued and pays a dividend.
Share Price & News
How has Federated Hermes's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: FHI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: FHI's weekly volatility (4%) has been stable over the past year.
7 Day Return
US Capital Markets
1 Year Return
US Capital Markets
Return vs Industry: FHI underperformed the US Capital Markets industry which returned 52% over the past year.
Return vs Market: FHI exceeded the US Market which returned 39% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Federated Hermes's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StThe Federated Hermes (NYSE:FHI) Share Price Is Up 39% And Shareholders Are Holding On
1 month ago | Simply Wall StDon't Ignore The Fact That This Insider Just Sold Some Shares In Federated Hermes, Inc. (NYSE:FHI)
2 months ago | Simply Wall StIs It Worth Buying Federated Hermes, Inc. (NYSE:FHI) For Its 3.5% Dividend Yield?
Is Federated Hermes undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FHI ($33.55) is trading below our estimate of fair value ($51.95)
Significantly Below Fair Value: FHI is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: FHI is good value based on its PE Ratio (10x) compared to the US Capital Markets industry average (15x).
PE vs Market: FHI is good value based on its PE Ratio (10x) compared to the US market (19.2x).
Price to Earnings Growth Ratio
PEG Ratio: FHI is poor value based on its PEG Ratio (3.8x)
Price to Book Ratio
PB vs Industry: FHI is good value based on its PB Ratio (2.7x) compared to the US Capital Markets industry average (64.2x).
How is Federated Hermes forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FHI's forecast earnings growth (2.6% per year) is above the savings rate (2%).
Earnings vs Market: FHI's earnings (2.6% per year) are forecast to grow slower than the US market (15.7% per year).
High Growth Earnings: FHI's earnings are forecast to grow, but not significantly.
Revenue vs Market: FHI's revenue (5.3% per year) is forecast to grow slower than the US market (9.4% per year).
High Growth Revenue: FHI's revenue (5.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: FHI's Return on Equity is forecast to be high in 3 years time (23.5%)
How has Federated Hermes performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FHI has high quality earnings.
Growing Profit Margin: FHI's current net profit margins (22.6%) are higher than last year (19.7%).
Past Earnings Growth Analysis
Earnings Trend: FHI's earnings have grown by 9.8% per year over the past 5 years.
Accelerating Growth: FHI's earnings growth over the past year (19.1%) exceeds its 5-year average (9.8% per year).
Earnings vs Industry: FHI earnings growth over the past year (19.1%) underperformed the Capital Markets industry 48.4%.
Return on Equity
High ROE: FHI's Return on Equity (24.8%) is considered high.
How is Federated Hermes's financial position?
Financial Position Analysis
Short Term Liabilities: FHI's short term assets ($520.3M) exceed its short term liabilities ($199.3M).
Long Term Liabilities: FHI's short term assets ($520.3M) exceed its long term liabilities ($409.8M).
Debt to Equity History and Analysis
Debt Level: FHI's debt to equity ratio (5%) is considered satisfactory.
Reducing Debt: FHI's debt to equity ratio has reduced from 30.5% to 5% over the past 5 years.
Debt Coverage: FHI's debt is well covered by operating cash flow (448.5%).
Interest Coverage: FHI earns more interest than it pays, so coverage of interest payments is not a concern.
What is Federated Hermes's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: FHI's dividend (3.22%) is higher than the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: FHI's dividend (3.22%) is low compared to the top 25% of dividend payers in the US market (3.44%).
Stability and Growth of Payments
Stable Dividend: FHI's dividends per share have been stable in the past 10 years.
Growing Dividend: FHI's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (32%), FHI's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: FHI's dividends in 3 years are forecast to be well covered by earnings (36% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
John Donahue (71 yo)
Mr. John Christopher Donahue serves as Chairman and Trustee at Federated Equity Management Company of Pennsylvania. He is Chief Executive Officer and President at Federated Hermes, Inc. since May 1998, Cha...
CEO Compensation Analysis
Compensation vs Market: John's total compensation ($USD6.12M) is about average for companies of similar size in the US market ($USD5.35M).
Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.
Experienced Management: FHI's management team is seasoned and experienced (16.4 years average tenure).
Experienced Board: FHI's board of directors are considered experienced (5.2 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: FHI insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Federated Hermes, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Federated Hermes, Inc.
- Ticker: FHI
- Exchange: NYSE
- Founded: 1955
- Industry: Asset Management and Custody Banks
- Sector: Diversified Financials
- Market Cap: US$3.150b
- Shares outstanding: 94.53m
- Website: https://www.federatedinvestors.com
Number of Employees
- Federated Hermes, Inc.
- Federated Investors Tower
- 1001 Liberty Avenue
- United States
Federated Hermes, Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to individuals, including high net worth individuals, banking or thrift...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/06/23 01:49|
|End of Day Share Price||2021/06/22 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.