Federated HermesNYSE:FHI Stock Report

Market Cap







19 Sep, 2021


Company Financials +
FHI fundamental analysis
Snowflake Score
Future Growth2/6
Past Performance4/6
Financial Health6/6

FHI Overview

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

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.

Market Performance

7 Day Return




US Capital Markets


US Market

1 Year Return




US Capital Markets


US Market

Return vs Industry: FHI underperformed the US Capital Markets industry which returned 61.9% over the past year.

Return vs Market: FHI exceeded the US Market which returned 33.8% over the past year.

Shareholder returns

7 Day-1.9%-0.9%-0.6%
30 Day-7.6%1.2%1.0%
90 Day-7.7%6.4%3.4%
1 Year49.1%37.8%65.2%61.9%35.8%33.8%
3 Year43.5%23.0%78.5%65.5%60.0%50.1%
5 Year29.1%-1.4%174.6%141.7%123.0%98.7%

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

Federated Hermes Fundamentals Summary

How do Federated Hermes's earnings and revenue compare to its market cap?
FHI fundamental statistics
Market CapUS$2.90b
Earnings (TTM)US$298.75m
Revenue (TTM)US$1.38b


P/E Ratio


P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FHI income statement (TTM)
Cost of RevenueUS$540.87m
Gross ProfitUS$839.72m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date


Earnings per share (EPS)3.14
Gross Margin60.82%
Net Profit Margin21.64%
Debt/Equity Ratio4.6%

How did FHI perform over the long term?

See historical performance and comparison



Current Dividend Yield


Payout Ratio


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 ($30.96) is trading below our estimate of fair value ($50.84)

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 (9.7x) compared to the US Capital Markets industry average (15.2x).

PE vs Market: FHI is good value based on its PE Ratio (9.7x) compared to the US market (17.8x).

Price to Earnings Growth Ratio

PEG Ratio: FHI is poor value based on its PEG Ratio (2.1x)

Price to Book Ratio

PB vs Industry: FHI is good value based on its PB Ratio (2.5x) compared to the US Capital Markets industry average (61x).

Future Growth

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


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: FHI's forecast earnings growth (4.6% per year) is above the savings rate (2%).

Earnings vs Market: FHI's earnings (4.6% per year) are forecast to grow slower than the US market (14.8% per year).

High Growth Earnings: FHI's earnings are forecast to grow, but not significantly.

Revenue vs Market: FHI's revenue (6.5% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: FHI's revenue (6.5% 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 (20.2%)

Past Performance

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 (21.6%) are higher than last year (20.4%).

Past Earnings Growth Analysis

Earnings Trend: FHI's earnings have grown by 9% per year over the past 5 years.

Accelerating Growth: FHI's earnings growth over the past year (3.3%) is below its 5-year average (9% per year).

Earnings vs Industry: FHI earnings growth over the past year (3.3%) underperformed the Capital Markets industry 77.4%.

Return on Equity

High ROE: FHI's Return on Equity (22.3%) is considered high.

Financial Health

How is Federated Hermes's financial position?

Financial Position Analysis

Short Term Liabilities: FHI's short term assets ($564.2M) exceed its short term liabilities ($213.2M).

Long Term Liabilities: FHI's short term assets ($564.2M) exceed its long term liabilities ($418.4M).

Debt to Equity History and Analysis

Debt Level: FHI's debt to equity ratio (4.6%) is considered satisfactory.

Reducing Debt: FHI's debt to equity ratio has reduced from 29.2% to 4.6% over the past 5 years.

Debt Coverage: FHI's debt is well covered by operating cash flow (422.8%).

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

Balance Sheet


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


Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: FHI's dividend (3.49%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: FHI's dividend (3.49%) is low compared to the top 25% of dividend payers in the US market (3.6%).

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 (34.4%), 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 covered by earnings (51% payout ratio).

Next Steps


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


Average management tenure


John Donahue (72 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 ($USD6.12M) is about average for companies of similar size in the US market ($USD5.27M).

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

Leadership Team

Experienced Management: FHI's management team is seasoned and experienced (16.7 years average tenure).

Board Members

Experienced Board: FHI's board of directors are considered experienced (5.4 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

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$2.898b
  • Shares outstanding: 93.60m
  • Website: https://www.federatedinvestors.com

Number of Employees


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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/19 22:15
End of Day Share Price2021/09/17 00:00
Annual Earnings2020/12/31

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.