FHI

Federated Hermes, Inc.

Fundamental data last updated:October 20, 2026

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company profile

SECTOR

Financial Services

industry

Asset Management

Exchange

NYSE

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

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 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 Hermes, Inc. was founded in 1955 and is based in Pittsburgh, Pennsylvania with additional offices in New York City and London, United Kingdom.

 


VALUATION

P/E

10.10

Market Cap ($M USD)

$4.21B

Forward P/E

8.66

PEG

0.52

PRICE TO SALES

2.26

PRICE TO BOOK

3.35

EV / EBITDA

7.20

5-Year Average P/E

Free Cash Flow Yield

7.17%

DCF Value

$157.14

Graham Number

$45.26

Price to FCF

13.94

EV to FCF

13.73

Earnings Yield

9.90%

FCF Yield

7.17%

DIVIDEND

Yield

2.52%

Annual Payout

$1.40

Payout Ratio

26.45%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$5.49

Next Year EPS Growth Estimate

$6.40

Next Year Revenue Growth Estimate

$2.25B

Return on Equity (ROE)

33.93%

FREE CASH FLOW

Operating Margin

27.39%

Debt-to-Equity

0.38

Piotroski F-Score

7

Altman Z-Score

6.06

Return on Invested Capital (ROIC)

24.01%

Current Ratio

39.13

Quick Ratio

39.13

Net Debt to EBITDA

-0.11

Interest Coverage

40.05

Gross Profit margin

69.98%

FCF PER SHARE

$4.16

REVENUE PER SHARE

$25.64

Gainseekers Quantitative Analysis

Summary

FHI Federated Hermes, Inc. appears to be a compelling deep value opportunity. The market has significantly undervalued it, with the stock trading well below its DCF Value and Graham Number. A Forward P/E of 8.85 and an Earnings Yield of 9.81% suggest robust earnings potential, while an Altman Z-score of 6.06 indicates strong financial health. This combination of undervaluation and stability positions FHI as a potentially lucrative investment for those seeking both safety and growth.

AI Exposure / Tech Reliance

In the asset management industry, FHI is well-positioned to leverage AI and modern technology. As financial services increasingly integrate tech solutions, FHI's adaptability will be crucial in maintaining competitive advantage. Their ability to incorporate AI-driven analytics could enhance decision-making and client offerings.

The Bull Case

For value or GARP investors, FHI offers an enticing proposition. With a stellar ROIC of 24.01% and a Piotroski F-Score of 7, the company demonstrates exceptional capital efficiency and operational health. The FCF Yield, though modest, is supported by strong margins, indicating effective cost management and pricing power. These metrics suggest a company capable of generating sustainable returns.

The Bear Case

Despite its strengths, FHI faces challenges with its valuation multiples. The Price/Book ratio of 3.38 and Price/Sales of 2.28 indicate a premium that may not be justified by its current cash flow metrics. Additionally, the stock's proximity to its 52-week high suggests potential overextension. Investors should be cautious of these structural risks when considering entry points.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$56.00

Institutional Ownership %

1-Year Beta

0.65

Insider Buying % (6 Mo)

Distance to 52-Week High

6.45%

Distance to 52-Week Low

25.09%

EARNINGS SURPRISE %

5.83%

50-DAY SMA

$56.13

200-DAY SMA

$53.42

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.