NYSE:FHI

Stock Analysis Report

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Executive Summary

Federated Hermes, Inc. is a publicly owned asset management holding company. More Details


Snowflake Analysis

Outstanding track record with flawless balance sheet and pays a dividend.


Similar Companies

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.6%

FHI

-5.8%

US Capital Markets

-4.6%

US Market


1 Year Return

-29.0%

FHI

0.6%

US Capital Markets

11.5%

US Market

Return vs Industry: FHI underperformed the US Capital Markets industry which returned 0.6% over the past year.

Return vs Market: FHI underperformed the US Market which returned 11.5% over the past year.


Shareholder returns

FHIIndustryMarket
7 Day-8.6%-5.8%-4.6%
30 Day6.4%-1.6%-0.9%
90 Day-14.0%-1.9%2.2%
1 Year-26.2%-29.0%3.2%0.6%14.0%11.5%
3 Year-20.1%-28.7%14.1%5.4%34.5%25.6%
5 Year-9.7%-27.4%55.0%35.6%73.0%53.6%

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

Valuation

Is Federated Hermes undervalued compared to its fair value and its price relative to the market?

43.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FHI ($22.68) is trading below our estimate of fair value ($40.26)

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 (7.6x) compared to the US Capital Markets industry average (20.2x).

PE vs Market: FHI is good value based on its PE Ratio (7.6x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: FHI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: FHI is good value based on its PB Ratio (2x) compared to the US Capital Markets industry average (4.4x).


Next Steps

Future Growth

How is Federated Hermes forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-1.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FHI's earnings are forecast to decline over the next 3 years (-1% per year).

Earnings vs Market: FHI's earnings are forecast to decline over the next 3 years (-1% per year).

High Growth Earnings: FHI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: FHI's revenue (2.9% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: FHI's revenue (2.9% 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 (23.1%)


Next Steps

Past Performance

How has Federated Hermes performed over the past 5 years?

10.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FHI has high quality earnings.

Growing Profit Margin: FHI's current net profit margins (20.4%) are higher than last year (18.4%).


Past Earnings Growth Analysis

Earnings Trend: FHI's earnings have grown by 10.6% per year over the past 5 years.

Accelerating Growth: FHI's earnings growth over the past year (26.1%) exceeds its 5-year average (10.6% per year).

Earnings vs Industry: FHI earnings growth over the past year (26.1%) exceeded the Capital Markets industry 13.6%.


Return on Equity

High ROE: FHI's Return on Equity (23.8%) is considered high.


Next Steps

Financial Health

How is Federated Hermes's financial position?


Financial Position Analysis

Short Term Liabilities: FHI's short term assets ($521.4M) exceed its short term liabilities ($249.0M).

Long Term Liabilities: FHI's short term assets ($521.4M) exceed its long term liabilities ($393.6M).


Debt to Equity History and Analysis

Debt Level: FHI's debt to equity ratio (7%) is considered satisfactory.

Reducing Debt: FHI's debt to equity ratio has reduced from 35.6% to 7% over the past 5 years.

Debt Coverage: FHI's debt is well covered by operating cash flow (417.7%).

Interest Coverage: FHI earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Federated Hermes's current dividend yield, its reliability and sustainability?

4.76%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FHI's dividend (4.76%) is higher than the bottom 25% of dividend payers in the US market (1.71%).

High Dividend: FHI's dividend (4.76%) is low compared to the top 25% of dividend payers in the US market (4.86%).


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 (36.3%), 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 (41.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

14.8yrs

Average management tenure


CEO

John Donahue (71 yo)

22.42yrs

Tenure

US$5,708,688

Compensation

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 ($USD5.71M) is about average for companies of similar size in the US market ($USD4.51M).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
John Donahue
President22.42yrsUS$5.71m2%
$ 43.7m
Thomas Donahue
VP, Treasurer4.5yrsUS$5.16m1.56%
$ 34.1m
John Fisher
VP & Director4.5yrsUS$5.71m0.61%
$ 13.4m
Gordon Ceresino
Vice Chairman13.75yrsUS$3.77m0.29%
$ 6.3m
Paul Uhlman
VP, Federated Hermes Inc. & President4.33yrsUS$3.47m0.29%
$ 6.4m
Mary Ochson
Head of the Tax-Free Money Market Investment Area16.5yrsno datano data
Richard Novak
VP, Assistant Treasurer & Principal Accounting Officer7.75yrsno data0.053%
$ 1.2m
Raymond Hanley
Senior Vice Presidentno datano datano data
Stephen Van Meter
VP & Chief Compliance Officer5.25yrsno data0.030%
$ 656.4k
Peter Germain
Executive VP15.75yrsno data0.14%
$ 3.1m
J. Tuskan
Senior VP and Director of Marketing & Corporate Communicationsno datano datano data
Dolores Dudiak
Director of Human Relationsno datano datano data

14.8yrs

Average Tenure

61yo

Average Age

Experienced Management: FHI's management team is seasoned and experienced (14.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Donahue
President22.42yrsUS$5.71m2%
$ 43.7m
Thomas Donahue
VP, Treasurer4.5yrsUS$5.16m1.56%
$ 34.1m
John Fisher
VP & Director4.5yrsUS$5.71m0.61%
$ 13.4m
Michael Farrell
Lead Independent Director3.5yrsUS$149.72k0.15%
$ 3.2m
Joseph Bartolacci
Independent Director4yrsUS$140.50k0.0090%
$ 196.1k
Marie Jones
Independent Director6.5yrsUS$140.50k0.015%
$ 321.0k

4.5yrs

Average Tenure

62.5yo

Average Age

Experienced Board: FHI's board of directors are considered experienced (4.5 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Federated Hermes, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Federated Hermes, Inc.
  • Ticker: FHI
  • Exchange: NYSE
  • Founded: 1955
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$2.187b
  • Shares outstanding: 96.41m
  • Website: https://www.federatedinvestors.com

Number of Employees


Location

  • Federated Hermes, Inc.
  • Federated Investors Tower
  • 1001 Liberty Avenue
  • Pittsburgh
  • Pennsylvania
  • 15222
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FHINYSE (New York Stock Exchange)YesClass B Common SharesUSUSDMay 1998
3KCDB (Deutsche Boerse AG)YesClass B Common SharesDEEURMay 1998

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/29 00:01
End of Day Share Price2020/10/28 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.