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Federated Investors

NYSE:FII
Snowflake Description

6 star dividend payer with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FII
NYSE
$3B
Market Cap
  1. Home
  2. US
  3. Diversified Financials
Company description

Federated Investors, Inc. is a publicly owned asset management holding company. The last earnings update was 26 days ago. More info.


Add to Portfolio Compare Print
  • Federated Investors is a fund or ETF! Currently our data availability for these is poor, we only recommend using them as part of a portfolio.
FII Share Price and Events
7 Day Returns
-1.6%
NYSE:FII
2.4%
US Capital Markets
1.2%
US Market
1 Year Returns
-14.6%
NYSE:FII
-11.9%
US Capital Markets
3%
US Market
FII Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Federated Investors (FII) -1.6% 3% 17.8% -14.6% 3.1% -4%
US Capital Markets 2.4% 0.6% 12.7% -11.9% 57% 59.3%
US Market 1.2% 2.1% 14.6% 3% 39% 43.5%
1 Year Return vs Industry and Market
  • FII underperformed the Capital Markets industry which returned -11.9% over the past year.
  • FII underperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
FII
Industry
5yr Volatility vs Market

FII Value

 Is Federated Investors undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Federated Investors to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Federated Investors.

NYSE:FII Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $6.73 * 31.7%
$2.14
Book Value of Equity per Share Median Book Value from the past 5 years. $6.73
Discount Rate (Cost of Equity) See below 7.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:FII
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.728 (1 + (1- 21%) (4.58%))
0.835
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.84
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.835 * 5.96%)
7.71%

Discounted Cash Flow Calculation for NYSE:FII using Excess Returns Model Model

The calculations below outline how an intrinsic value for Federated Investors is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NYSE:FII Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (31.7% – 7.71%) * $6.73)
$1.62
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $1.62 / (7.71% - 2.73%)
$32.50
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $6.73 + $32.50
$39.23
NYSE:FII Discount to Share Price
Calculation Result
Value per share (USD) From above. $39.23
Current discount Discount to share price of $29.22
= -1 x ($29.22 - $39.23) / $39.23
25.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Federated Investors is available for.
Intrinsic value
26%
Share price is $29.22 vs Future cash flow value of $39.23
Current Discount Checks
For Federated Investors to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Federated Investors's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Federated Investors's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Federated Investors's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Federated Investors's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:FII PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $2.18
NYSE:FII Share Price ** NYSE (2019-03-20) in USD $29.22
United States of America Capital Markets Industry PE Ratio Median Figure of 76 Publicly-Listed Capital Markets Companies 25.13x
United States of America Market PE Ratio Median Figure of 3,058 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Federated Investors.

NYSE:FII PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:FII Share Price ÷ EPS (both in USD)

= 29.22 ÷ 2.18

13.38x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Federated Investors is good value based on earnings compared to the US Capital Markets industry average.
  • Federated Investors is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Federated Investors's expected growth come at a high price?
Raw Data
NYSE:FII PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.38x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
7.3%per year
United States of America Capital Markets Industry PEG Ratio Median Figure of 33 Publicly-Listed Capital Markets Companies 2.17x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

NYSE:FII PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.38x ÷ 7.3%

1.83x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Federated Investors is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Federated Investors's assets?
Raw Data
NYSE:FII PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $8.85
NYSE:FII Share Price * NYSE (2019-03-20) in USD $29.22
United States of America Capital Markets Industry PB Ratio Median Figure of 149 Publicly-Listed Capital Markets Companies 4.83x
United States of America Market PB Ratio Median Figure of 5,156 Publicly-Listed Companies 1.89x
NYSE:FII PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:FII Share Price ÷ Book Value per Share (both in USD)

= 29.22 ÷ 8.85

3.3x

* Primary Listing of Federated Investors.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Federated Investors is good value based on assets compared to the US Capital Markets industry average.
X
Value checks
We assess Federated Investors's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. Federated Investors has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

FII Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Federated Investors expected to grow at an attractive rate?
  • Federated Investors's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Federated Investors's earnings growth is positive but not above the United States of America market average.
  • Federated Investors's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:FII Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:FII Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 7.3%
NYSE:FII Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 6.5%
United States of America Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 6.4%
United States of America Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:FII Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:FII Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 1,524 1
2021-12-31 1,420 1
2020-12-31 1,286 231 246 8
2019-12-31 1,247 305 235 8
NYSE:FII Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 1,136 206 212
2018-09-30 1,107 159 279
2018-06-30 1,076 310 276
2018-03-31 1,093 285 290
2017-12-31 1,103 387 280
2017-09-30 1,115 275 207
2017-06-30 1,131 260 206
2017-03-31 1,145 260 205
2016-12-31 1,143 266 201
2016-09-30 1,097 256 193
2016-06-30 1,037 250 182
2016-03-31 978 245 172

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Federated Investors's earnings are expected to grow by 7.3% yearly, however this is not considered high growth (20% yearly).
  • Federated Investors's revenue is expected to grow by 6.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:FII Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Federated Investors Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:FII Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 3.25 3.25 3.25 1.00
2021-12-31 2.58 2.95 2.20 2.00
2020-12-31 2.52 2.70 2.32 9.00
2019-12-31 2.40 2.49 2.26 8.00
NYSE:FII Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 2.18
2018-09-30 2.87
2018-06-30 2.84
2018-03-31 2.98
2017-12-31 2.87
2017-09-30 2.12
2017-06-30 2.10
2017-03-31 2.08
2016-12-31 2.03
2016-09-30 1.94
2016-06-30 1.83
2016-03-31 1.72

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Federated Investors is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Federated Investors's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Federated Investors has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

FII Past Performance

  How has Federated Investors performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Federated Investors's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Federated Investors's year on year earnings growth rate has been positive over the past 5 years.
  • Federated Investors's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Federated Investors's 1-year earnings growth is negative, it can't be compared to the US Capital Markets industry average.
Earnings and Revenue History
Federated Investors's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Federated Investors Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:FII Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 1,135.68 211.74 436.77
2018-09-30 1,106.77 278.75 431.87
2018-06-30 1,076.47 276.20 428.19
2018-03-31 1,093.28 290.20 442.13
2017-12-31 1,102.92 279.92 456.88
2017-09-30 1,114.52 207.39 479.77
2017-06-30 1,130.82 206.05 494.16
2017-03-31 1,144.76 205.35 500.03
2016-12-31 1,143.37 201.29 499.49
2016-09-30 1,097.11 192.93 459.28
2016-06-30 1,036.81 182.48 418.60
2016-03-31 978.20 171.99 380.24
2015-12-31 926.61 163.20 345.37
2015-09-30 900.83 155.48 331.00
2015-06-30 883.42 149.14 326.99
2015-03-31 868.28 144.44 325.30
2014-12-31 859.25 143.41 323.17
2014-09-30 856.11 144.91 322.32
2014-06-30 851.07 145.10 320.98
2014-03-31 861.89 148.58 323.80
2013-12-31 878.37 156.11 340.00
2013-09-30 908.47 162.65 345.10
2013-06-30 935.07 180.18 356.77
2013-03-31 943.40 180.24 365.37
2012-12-31 945.71 179.69 369.37
2012-09-30 917.29 169.30 379.64
2012-06-30 892.87 152.59 352.24
2012-03-31 886.51 154.66 344.64

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Federated Investors has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Federated Investors used its assets more efficiently than the US Capital Markets industry average last year based on Return on Assets.
  • Federated Investors's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Federated Investors's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Federated Investors has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

FII Health

 How is Federated Investors's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Federated Investors's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Federated Investors is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Federated Investors's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Federated Investors's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Federated Investors Company Filings, last reported 2 months ago.

NYSE:FII Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 1,039.63 135.00 190.49
2018-09-30 1,020.11 160.00 157.06
2018-06-30 820.11 178.00 417.56
2018-03-31 828.27 165.00 377.56
2017-12-31 791.38 170.00 369.54
2017-09-30 682.79 175.00 328.27
2017-06-30 662.29 178.50 282.78
2017-03-31 642.88 184.88 277.65
2016-12-31 627.15 191.25 301.15
2016-09-30 710.84 197.63 380.51
2016-06-30 698.78 204.00 352.45
2016-03-31 688.73 210.38 342.02
2015-12-31 657.71 216.75 346.82
2015-09-30 646.16 223.13 321.76
2015-06-30 644.25 229.50 299.88
2015-03-31 629.01 235.88 279.63
2014-12-31 613.35 242.25 297.34
2014-09-30 674.04 249.81 352.28
2014-06-30 604.83 257.30 263.60
2014-03-31 592.52 269.33 256.71
2013-12-31 581.86 276.25 292.18
2013-09-30 640.36 293.39 350.51
2013-06-30 604.66 305.40 302.95
2013-03-31 598.98 317.63 306.86
2012-12-31 503.94 318.75 258.63
2012-09-30 623.48 342.28 367.78
2012-06-30 588.42 353.70 327.13
2012-03-31 570.26 365.13 310.58
  • Federated Investors's level of debt (13%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (47.5% vs 13% today).
  • Debt is well covered by operating cash flow (152.8%, greater than 20% of total debt).
  • Federated Investors earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Federated Investors's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Federated Investors has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

FII Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.7%
Current annual income from Federated Investors dividends. Estimated to be 4.07% next year.
If you bought $2,000 of Federated Investors shares you are expected to receive $74 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Federated Investors's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.45%).
  • Federated Investors's dividend is above the markets top 25% of dividend payers in United States of America (3.64%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:FII Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
United States of America Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 43 Stocks 2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:FII Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 1.31 2.00
2020-12-31 1.21 9.00
2019-12-31 1.14 9.00
NYSE:FII Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-10-25 1.080 4.080
2018-07-27 1.080 4.606
2018-07-26 1.080 4.624
2018-04-27 1.080 4.462
2018-04-26 1.080 3.739
2017-10-26 1.000 3.007
2017-07-27 1.000 3.505
2017-04-28 1.000 3.663
2017-04-27 1.000 3.645
2017-02-24 1.000 3.770
2017-01-26 1.000 3.774
2016-10-28 1.000 3.622
2016-10-27 1.000 3.773
2016-04-29 1.000 3.276
2016-04-28 1.000 3.174
2015-10-23 1.000 3.546
2015-10-22 1.000 3.286
2015-07-24 1.000 3.228
2015-07-23 1.000 2.986
2015-04-24 1.000 2.924
2015-04-23 1.000 2.882
2014-10-23 1.000 3.058
2014-07-24 1.000 3.390
2014-04-25 1.000 3.423
2014-01-24 1.000 3.547
2013-10-24 1.000 3.600
2013-07-26 1.000 3.590
2013-04-25 0.960 3.569
2012-10-25 0.960 4.334
2012-07-26 0.960 4.603
2012-04-26 0.960 4.588
2012-01-26 0.960 4.724
2011-10-27 0.960 5.808
2011-04-28 0.960 4.668
2011-01-27 0.960 3.593
2010-10-28 0.960 3.763
2010-07-22 0.960 4.329
2010-01-28 0.960 4.024
2009-10-22 0.960 3.590
2009-07-23 0.960 3.681
2009-03-23 0.960 4.053

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Federated Investors's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess Federated Investors's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Federated Investors afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Federated Investors has a total score of 6/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

FII Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Donahue
COMPENSATION $5,439,254
AGE 69
TENURE AS CEO 20.8 years
CEO Bio

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 joined the Federated in 1972 and served as President and Chief Operating Officer from 1993 to 1998. He is responsible for determining and developing firm's long term strategies and goals. He is President of 29 investment companies managed by subsidiaries of Federated. He serves as the Chairman of Federated Equity Management Company of Pennsylvania. Previously, Mr. Donahue served as the President at Federated Investment Counseling. He currently serves as the Chairman at Federated Investment Management Company and previously served as the President and Chief Executive Officer. He currently serves as the Chairman at Passport Research, Ltd and previously served as the President and Chief Executive Officer. Mr. Donahue was also the President and Chief Executive Officer at Federated Global Investment Management Corp. He is the Chairman and Member of the Management Board of Federated MDTA LLC. He is also director or trustee of 32 investment companies managed by subsidiaries of Federated. Mr. Donahue serves as the Chairman of MDT Advisers, The Benedictine Society, Federated Global Investment Management Corp. He serves as the Chairman of Lumen Institute, and Saint Vincent College. Mr. Donahue is a graduate of Princeton University and the University of Pittsburgh School of Law.

CEO Compensation
  • John's compensation has been consistent with company performance over the past year.
  • John's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Federated Investors management team in years:

13.2
Average Tenure
59
Average Age
  • The average tenure for the Federated Investors management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

John Donahue

TITLE
President
COMPENSATION
$5M
AGE
69
TENURE
20.8 yrs

Thomas Donahue

TITLE
VP, Treasurer
COMPENSATION
$5M
AGE
59
TENURE
21.2 yrs

John Fisher

TITLE
VP & Director
COMPENSATION
$5M
AGE
62

Gordon Ceresino

TITLE
Vice Chairman
COMPENSATION
$7M
AGE
60
TENURE
12.2 yrs

Saker Nusseibeh

TITLE
Chief Executive Officer of Hermes Fund Managers Limited
COMPENSATION
$10M
AGE
56
TENURE
7.3 yrs

Mary Ochson

TITLE
Head of the Tax-Free Money Market Investment Area
AGE
65
TENURE
14.9 yrs

Richard Novak

TITLE
VP, Assistant Treasurer & Principal Accounting Officer
AGE
55
TENURE
6.2 yrs

Ray Hanley

TITLE
Senior Vice President

Steven Van Meter

TITLE
VP & Chief Compliance Officer
AGE
43
TENURE
3.7 yrs

Peter Germain

TITLE
Executive VP
AGE
59
TENURE
14.2 yrs
Board of Directors Tenure

Average tenure and age of the Federated Investors board of directors in years:

2.9
Average Tenure
60.5
Average Age
  • The average tenure for the Federated Investors board of directors is less than 3 years, this suggests a new board.
Board of Directors

John Donahue

TITLE
President
COMPENSATION
$5M
AGE
69
TENURE
2.9 yrs

Thomas Donahue

TITLE
VP, Treasurer
COMPENSATION
$5M
AGE
59
TENURE
2.9 yrs

John Fisher

TITLE
VP & Director
COMPENSATION
$5M
AGE
62
TENURE
2.9 yrs

Michael Farrell

TITLE
Lead Independent Director
COMPENSATION
$137K
AGE
68
TENURE
1.9 yrs

Joseph Bartolacci

TITLE
Director
COMPENSATION
$129K
AGE
58
TENURE
2.4 yrs

Marie Jones

TITLE
Director
COMPENSATION
$128K
AGE
55
TENURE
4.9 yrs
Who owns this company?
Recent Insider Trading
  • Federated Investors insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
06. Mar 19 Sell John Fisher Individual 05. Mar 19 05. Mar 19 -14,464 $29.81 $-431,163
06. Mar 19 Sell Peter Germain Individual 05. Mar 19 05. Mar 19 -1,682 $29.76 $-50,057
06. Mar 19 Sell Gordon Ceresino Individual 05. Mar 19 05. Mar 19 -5,067 $29.75 $-150,719
06. Mar 19 Sell Stephen Van Meter Individual 05. Mar 19 05. Mar 19 -127 $29.83 $-3,789
06. Mar 19 Sell Richard Novak Individual 05. Mar 19 05. Mar 19 -500 $29.77 $-14,885
06. Mar 19 Sell Paul Uhlman Individual 05. Mar 19 05. Mar 19 -4,911 $29.73 $-146,010
05. Nov 18 Sell John Fisher Individual 02. Nov 18 02. Nov 18 -10,099 $24.89 $-251,317
05. Nov 18 Sell Stephen Van Meter Individual 02. Nov 18 02. Nov 18 -902 $25.14 $-22,649
05. Nov 18 Sell Paul Uhlman Individual 02. Nov 18 02. Nov 18 -3,719 $24.94 $-92,768
05. Nov 18 Sell Richard Novak Individual 02. Nov 18 02. Nov 18 -1,107 $25.02 $-27,699
05. Nov 18 Sell Eugene Maloney Individual 02. Nov 18 02. Nov 18 -198 $25.08 $-4,965
05. Nov 18 Sell Peter Germain Individual 02. Nov 18 02. Nov 18 -1,415 $25.06 $-35,454
02. Aug 18 Sell Stephen Van Meter Individual 02. Aug 18 02. Aug 18 -71 $22.77 $-1,617
01. Aug 18 Buy Michael Farrell Individual 30. Jul 18 30. Jul 18 65,000 $24.47 $1,567,950
18. Jun 18 Sell Paul Uhlman Individual 18. Jun 18 18. Jun 18 -960 $23.40 $-22,464
X
Management checks
We assess Federated Investors's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Federated Investors has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

FII News

Simply Wall St News

Looking At Federated Investors Inc (NYSE:FII) From All Angles

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook.

Simply Wall St -

When Should You Buy Federated Investors Inc (NYSE:FII)?

Federated Investors Inc (NYSE:FII), a capital markets company based in United States,. … A question to answer is whether Federated Investors's current trading price of $24.11 reflective of the actual value of the? … Let’s take a look at Federated Investors’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

What Makes Federated Investors Inc (NYSE:FII) A Great Dividend Stock?

Federated Investors Inc (NYSE:FII) is a true Dividend Rock Star. … In the past ten years, Federated Investors has also grown its dividend from 0.96 to 1.08. … Below, I have outlined more attractive dividend aspects for Federated Investors for income investors who may be interested in new dividend stocks for their portfolio.

Simply Wall St -

Does Federated Investors Inc's (NYSE:FII) Past Performance Indicate A Stronger Future?

Since these values may be relatively nearsighted, I’ve computed an annualized five-year figure for Federated Investors's earnings, which stands at US$176.08M This means generally, Federated Investors has been able to increasingly improve its bottom line over the past couple of years as well. … Though Federated Investors's past data is helpful, it is only one aspect of my investment thesis. … I recommend you continue to research Federated Investors to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for FII’s future growth?

Simply Wall St -

What Makes Federated Investors Inc (NYSE:FII) A Great Dividend Stock?

View our latest analysis for Federated Investors What Is A Dividend Rock Star? … It is a stock that pays a reliable and steady dividend over the past decade, at a rate that is competitive relative to the other dividend-paying companies on the market. … More specifically: Its annual yield is among the top 25% of dividend payers It consistently pays out dividend without missing a payment or significantly cutting payout Its dividend per share amount has increased over the past It is able to pay the current rate of dividends from its earnings It has the ability to keep paying its dividends going forward High Yield And Dependable Federated Investors's yield sits at 4.44%, which is high for Capital Markets stocks.

Simply Wall St -

If You Bought Federated Investors Inc (NYSE:FII) Today, There May Be An Upside

NYSE:FII Intrinsic Value Apr 9th 18 Calculating FII's Value The central belief for this model is, the value of the company is how much money it can generate from its current level of equity capital, in excess of the cost of that capital. … The returns in excess of cost of equity is called excess returns: Excess Return Per Share = (Stable Return On Equity – Cost Of Equity) (Book Value Of Equity Per Share) = (41.58% – 8.66%) * $7.84 = $2.58 Excess Return Per Share is used to calculate the terminal value of FII, which is how much the business is expected to continue to generate over the upcoming years, in perpetuity. … This is a common component of discounted cash flow models: Terminal Value Per Share = Excess Return Per Share / (Cost of Equity – Expected Growth Rate) = $2.58 / (8.66% – 2.47%) = $41.65 Combining these components gives us FII's intrinsic value per share: Value Per Share = Book Value of Equity Per Share + Terminal Value Per Share = $7.84 + $41.65 = $49.48 Relative to today's price of $32.39, FII is , at this time, trading below what it's actually worth.

Simply Wall St -

What Does Federated Investors Inc's (NYSE:FII) Share Price Indicate?

Federated Investors Inc (NYSE:FII), a capital markets company based in United States, saw significant share price volatility over the past couple of months on the NYSE, rising to the highs of $36.53 and falling to the lows of $31.87. … Great news for investors – Federated Investors is still trading at a fairly cheap price. … NYSE:FII Future Profit Mar 22nd 18 Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares.

Simply Wall St -

Who Are Federated Investors Inc's (NYSE:FII) Major Shareholders?

See our latest analysis for Federated Investors NYSE:FII Ownership_summary Mar 2nd 18 Institutional Ownership In FII's case, institutional ownership stands at 87.70%, significant enough to cause considerable price moves in the case of large institutional transactions, especially when there is a low level of public shares available on the market to trade. … This size of ownership, while considerably small for a public company, may not be enough to change company policy if the decision is not in sync with other large shareholders. … Thus, investors not need worry too much about the consequences of these holdings.Next Steps: FII's considerably high level of institutional ownership calls for further analysis into its margin of safety.

Simply Wall St -

Does Federated Investors Inc's (NYSE:FII) CEO Pay Reflect Performance?

Performance can be measured based on factors such as earnings and total shareholder return (TSR). … NYSE:FII Past Future Earnings Feb 23rd 18 Is FII's CEO overpaid relative to the market? … Taking into account FII's size and performance, in terms of market cap and earnings, it seems that Donahue is paid in-line with other US CEOs of mid-caps, on average.

Simply Wall St -

Best Dividend Stock Picks

NYSE:FII Historical Dividend Yield Feb 10th 18 Hawaiian Electric Industries, Inc. … ALE has a solid dividend yield of 3.21% and their payout ratio stands at 61.10% , with analysts expecting a 61.45% payout in three years. … NYSE:ALE Historical Dividend Yield Feb 10th 18 For more solid dividend payers to add to your portfolio, you can use our free platform to explore our interactive list of top dividend payers.

Simply Wall St -

FII Company Info

Description

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 thrift institutions, investment companies, pension and profit sharing plans, pooled investment vehicles, charitable organizations, state or municipal government entities, and registered investment advisors. Through its subsidiaries, it manages separate client-focused equity, fixed income, balanced and money market mutual funds along with separate client-focused equity, fixed income, money market, and balanced portfolios. Through its subsidiaries, the firm invests in the public equity and fixed income markets across the globe. It invests in growth and value stocks of small-cap, mid-cap, and large-cap companies. The firm makes its fixed income investments in ultra-short, short-term, and intermediate-term mortgage-backed, U.S. Government, U.S. corporate, high yield, and municipal securities. It employs both fundamental and quantitative analysis to make its equity investments. Federated Investors, Inc. was founded in 1955 and is based in Pittsburgh, Pennsylvania with additional offices in New York City and London, United Kingdom.

Details
Name: Federated Investors, Inc.
FII
Exchange: NYSE
Founded: 1955
$2,945,421,261
100,801,549
Website: http://www.federatedinvestors.com
Address: Federated Investors, Inc.
Federated Investors Tower,
1001 Liberty Avenue,
Pittsburgh,
Pennsylvania, 15222,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE FII Class B Common Shares New York Stock Exchange US USD 14. May 1998
DB 3KC Class B Common Shares Deutsche Boerse AG DE EUR 14. May 1998
Number of employees
Current staff
Staff numbers
1,878
Federated Investors employees.
Industry
Asset Management and Custody Banks
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 23:36
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/15
Last earnings filing: 2019/02/22
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.