NYSE:FII

Stock Analysis Report

Executive Summary

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

Snowflake


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Share Price & News

How has Federated Investors's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FII has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.9%

FII

1.0%

US Capital Markets

0.7%

US Market


1 Year Return

29.8%

FII

8.6%

US Capital Markets

13.7%

US Market

Return vs Industry: FII exceeded the US Capital Markets industry which returned 8.6% over the past year.

Return vs Market: FII exceeded the US Market which returned 13.7% over the past year.


Shareholder returns

FIIIndustryMarket
7 Day-1.9%1.0%0.7%
30 Day6.1%5.5%4.7%
90 Day3.3%7.4%6.1%
1 Year34.4%29.8%11.0%8.6%16.2%13.7%
3 Year36.0%21.6%42.6%34.5%48.8%39.2%
5 Year32.7%6.8%76.2%59.9%62.5%44.5%

Price Volatility Vs. Market

How volatile is Federated Investors's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

15.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FII ($33.29) is trading below our estimate of fair value ($39.16)

Significantly Below Fair Value: FII is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FII is good value based on its PE Ratio (13.3x) compared to the Capital Markets industry average (37.8x).

PE vs Market: FII is good value based on its PE Ratio (13.3x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FII is good value based on its PB Ratio (3.4x) compared to the US Capital Markets industry average (6.4x).

Future Growth

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

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FII's forecast earnings growth (6.3% per year) is above the savings rate (2.7%).

Earnings vs Market: FII's earnings (6.3% per year) are forecast to grow slower than the US market (14.4% per year).

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

Revenue vs Market: FII's revenue (7.7% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: FII's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FII's Return on Equity is forecast to be high in 3 years time (32%)

Past Performance

How has Federated Investors performed over the past 5 years?

12.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FII has a high level of non-cash earnings.

Growing Profit Margin: FII's current net profit margins (19%) are lower than last year (25.2%).


Past Earnings Growth Analysis

Earnings Trend: FII's earnings have grown by 12.2% per year over the past 5 years.

Accelerating Growth: FII's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FII had negative earnings growth (-13.3%) over the past year, making it difficult to compare to the Capital Markets industry average (20.7%).


Return on Equity

High ROE: FII's Return on Equity (22.1%) is considered high.


Return on Assets


Return on Capital Employed

Financial Health

How is Federated Investors's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: FII has a low level of unsold assets or inventory.

Debt Coverage by Assets: FII's debt is covered by short term assets (assets are 3.5x debt).


Financial Institutions Analysis

Asset Level: FII's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if FII has a sufficient allowance for bad loans.

Low Risk Liabilities: FII reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if FII has an acceptable proportion of non-loan assets held.

Low Risk Deposits: FII has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if FII has an appropriate level of bad loans.

Dividend

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

3.24%

Current Dividend Yield


Dividend Yield vs Market

company3.2%marketbottom25%1.4%markettop25%3.6%industryaverage2.0%forecastin3Years3.4%

Current dividend yield vs market & industry

Notable Dividend: FII's dividend (3.24%) is higher than the bottom 25% of dividend payers in the US market (1.42%).

High Dividend: FII's dividend (3.24%) is low compared to the top 25% of dividend payers in the US market (3.65%).


Stability and Growth of Payments

Stable Dividend: FII's dividends per share have been stable in the past 10 years.

Growing Dividend: FII's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.3%), FII's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FII's dividends in 3 years are forecast to be well covered by earnings (34.7% payout ratio).

Management

What is the CEO of Federated Investors's salary, the management and board of directors tenure and is there insider trading?

13.8yrs

Average management tenure


CEO

John Donahue (70yo)

21.5yrs

Tenure

US$5,439,254

Compensation

Mr. John Christopher Donahue is the Chief Executive Officer and President at Federated Investors, Inc. since May 1998 and has been its Chairman since April 28, 2016 and Director since 1998. Mr. Donahue joi ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD5.44M) is about average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

13.8yrs

Average Tenure

60yo

Average Age

Experienced Management: FII's management team is seasoned and experienced (13.8 years average tenure).


Board Age and Tenure

3.6yrs

Average Tenure

61.5yo

Average Age

Experienced Board: FII's board of directors are considered experienced (3.6 years average tenure).


Insider Trading

Insider Buying: FII insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$238,28212 Nov 19
Peter Germain
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares7,000
Max PriceUS$34.04
SellUS$396,33112 Nov 19
Richard Novak
EntityIndividual
Role
Chief Accounting Officer
VP, Assistant Treasurer & Principal Accounting Officer
Shares11,800
Max PriceUS$33.59
SellUS$20,02405 Nov 19
Stephen Van Meter
EntityIndividual
Role
Chief Compliance Officer
VP & Chief Compliance Officer
Shares611
Max PriceUS$32.77
SellUS$137,46705 Nov 19
Paul Uhlman
EntityIndividual
Shares4,182
Max PriceUS$32.87
SellUS$279,28205 Nov 19
John Fisher
EntityIndividual
Role
Member of the Board of Directors
VP & Director
Shares8,478
Max PriceUS$32.94
SellUS$40,58505 Nov 19
Richard Novak
EntityIndividual
Role
Chief Accounting Officer
VP, Assistant Treasurer & Principal Accounting Officer
Shares1,234
Max PriceUS$32.89
SellUS$56,25605 Nov 19
Peter Germain
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares1,708
Max PriceUS$32.94
SellUS$197,45205 Nov 19
Gordon Ceresino
EntityIndividual
Role
Senior Key Executive
Vice Chairman
Shares6,001
Max PriceUS$32.90
SellUS$2,47505 Aug 19
Stephen Van Meter
EntityIndividual
Role
Chief Compliance Officer
VP & Chief Compliance Officer
Shares73
Max PriceUS$33.90
SellUS$1,406,16001 Aug 19
Paul Uhlman
EntityIndividual
Shares40,000
Max PriceUS$35.15
SellUS$32,04717 Jun 19
Paul Uhlman
EntityIndividual
Shares1,007
Max PriceUS$31.82
SellUS$7,96430 May 19
Peter Germain
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares258
Max PriceUS$30.87
SellUS$3,093,78022 May 19
John Fisher
EntityIndividual
Role
Member of the Board of Directors
VP & Director
Shares100,000
Max PriceUS$30.94
SellUS$70,18415 May 19
Stephen Van Meter
EntityIndividual
Role
Chief Compliance Officer
VP & Chief Compliance Officer
Shares2,284
Max PriceUS$30.73
SellUS$50,05701 Apr 19
Peter Germain
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares1,682
Max PriceUS$29.76
SellUS$390,67922 Mar 19
Gordon Ceresino
EntityIndividual
Role
Senior Key Executive
Vice Chairman
Shares13,316
Max PriceUS$29.34
SellUS$3,78906 Mar 19
Stephen Van Meter
EntityIndividual
Role
Chief Compliance Officer
VP & Chief Compliance Officer
Shares127
Max PriceUS$29.83
SellUS$14,88506 Mar 19
Richard Novak
EntityIndividual
Role
Chief Accounting Officer
VP, Assistant Treasurer & Principal Accounting Officer
Shares500
Max PriceUS$29.77
SellUS$150,71906 Mar 19
Gordon Ceresino
EntityIndividual
Role
Senior Key Executive
Vice Chairman
Shares5,067
Max PriceUS$29.75
SellUS$146,01006 Mar 19
Paul Uhlman
EntityIndividual
Shares4,911
Max PriceUS$29.73
SellUS$431,16306 Mar 19
John Fisher
EntityIndividual
Role
Member of the Board of Directors
VP & Director
Shares14,464
Max PriceUS$29.81

Ownership Breakdown

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


Management Team

  • John Donahue (70yo)

    President

    • Tenure: 21.5yrs
    • Compensation: US$5.44m
  • Thomas Donahue (60yo)

    VP, Treasurer

    • Tenure: 3.6yrs
    • Compensation: US$4.74m
  • John Fisher (63yo)

    VP & Director

    • Tenure: 3.6yrs
    • Compensation: US$5.12m
  • Mary Ochson (66yo)

    Head of the Tax-Free Money Market Investment Area

    • Tenure: 15.6yrs
  • Saker Nusseibeh (57yo)

    Chief Executive Officer of Hermes Fund Managers Limited

    • Tenure: 8yrs
    • Compensation: US$9.87m
  • Gordon Ceresino (61yo)

    Vice Chairman

    • Tenure: 12.8yrs
    • Compensation: US$6.93m
  • Richard Novak (56yo)

    VP, Assistant Treasurer & Principal Accounting Officer

    • Tenure: 6.8yrs
  • Ray Hanley

    Senior Vice President

    • Tenure: 0yrs
  • Peter Germain (60yo)

    Executive VP

    • Tenure: 14.8yrs
  • Steven Van Meter (44yo)

    VP & Chief Compliance Officer

    • Tenure: 4.3yrs

Board Members

  • John Donahue (70yo)

    President

    • Tenure: 21.5yrs
    • Compensation: US$5.44m
  • Thomas Donahue (60yo)

    VP, Treasurer

    • Tenure: 3.6yrs
    • Compensation: US$4.74m
  • John Fisher (63yo)

    VP & Director

    • Tenure: 3.6yrs
    • Compensation: US$5.12m
  • Michael Farrell (69yo)

    Lead Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$137.38k
  • Joseph Bartolacci (59yo)

    Independent Director

    • Tenure: 3.1yrs
    • Compensation: US$128.57k
  • Marie Jones (56yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$128.33k

Company Information

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


Key Information

  • Name: Federated Investors, Inc.
  • Ticker: FII
  • Exchange: NYSE
  • Founded: 1955
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: US$3.235b
  • Shares outstanding: 97.18m
  • Website: https://www.federatedinvestors.com

Number of Employees


Location

  • Federated Investors, Inc.
  • Federated Investors Tower
  • Pittsburgh
  • Pennsylvania
  • 15222
  • United States

Listings

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

Biography

Federated Investors, 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 thr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 23:37
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.