(FHI) Federated Investors - Ratings and Ratios
Mutual Funds, Separate Accounts, Equity, Fixed Income, Money Market
Dividends
| Dividend Yield | 2.55% |
| Yield on Cost 5y | 5.64% |
| Yield CAGR 5y | 1.53% |
| Payout Consistency | 88.5% |
| Payout Ratio | 27.8% |
| Risk via 5d forecast | |
|---|---|
| Volatility | 19.8% |
| Value at Risk 5%th | 33.2% |
| Relative Tail Risk | 2.02% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 0.95 |
| Alpha | 15.25 |
| CAGR/Max DD | 0.63 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.520 |
| Beta | 0.733 |
| Beta Downside | 0.826 |
| Drawdowns 3y | |
|---|---|
| Max DD | 29.61% |
| Mean DD | 11.34% |
| Median DD | 11.16% |
Description: FHI Federated Investors November 09, 2025
Federated Hermes, Inc. (NYSE:FHI) is a publicly traded investment manager that offers a broad suite of mutual funds and separate accounts across equity, fixed-income, balanced, and money-market strategies. Its client base spans high-net-worth individuals, institutional investors, pension plans, charitable entities, and government agencies, and the firm operates globally with offices in Pittsburgh, New York, and London.
Key operational metrics (as of FY 2023) include approximately $620 billion in assets under management (AUM) and $1.8 billion in revenue, reflecting a modest 4 % year-over-year AUM growth driven largely by net inflows into ESG-focused equity funds and the firm’s expanding fixed-income platform. The company’s expense ratio compression-average net expense ratios of 0.71 % for equity funds and 0.45 % for fixed-income funds-places it near the lower end of the asset-management peer group, which is a competitive advantage in a fee-sensitive market.
Sector drivers that materially affect Federated Hermes are (1) the prevailing interest-rate environment, which influences demand for its ultra-short and short-term mortgage-backed and government securities; (2) the ongoing shift toward sustainable investing, where the firm’s early ESG integration provides a tailwind for inflows; and (3) regulatory pressure on fee disclosures that can erode margins for managers that rely heavily on high-fee products. A rise in real-rate yields, for example, could reduce the relative attractiveness of longer-duration municipal bonds, prompting investors to reallocate toward the firm’s short-duration offerings.
Assuming the firm maintains its current capital-allocation discipline and continues to leverage both fundamental and quantitative research, its earnings outlook remains contingent on (i) the stability of net new cash flows, (ii) the ability to sustain low expense ratios amid competitive pressure, and (iii) macro-economic conditions that affect fixed-income demand. A significant, sustained increase in interest rates or a sharp decline in ESG inflows would materially alter this view.
For a deeper, data-driven comparison of Federated Hermes’ performance and valuation relative to its peers, you might explore its profile on ValueRay.
Piotroski VR‑10 (Strict, 0-10) 6.0
| Net Income (381.0m TTM) > 0 and > 6% of Revenue (6% = 104.6m TTM) |
| FCFTA 0.12 (>2.0%) and ΔFCFTA -5.17pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 31.33% (prev 28.77%; Δ 2.56pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.12 (>3.0%) and CFO 262.8m <= Net Income 381.0m (YES >=105%, WARN >=100%) |
| Net Debt (-45.4m) to EBITDA (548.0m) ratio: -0.08 <= 3.0 (WARN <= 3.5) |
| Current Ratio 3.13 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (75.5m) change vs 12m ago -4.02% (target <= -2.0% for YES) |
| Gross Margin 67.30% (prev 66.80%; Δ 0.50pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 82.59% (prev 78.47%; Δ 4.12pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 41.34 (EBITDA TTM 548.0m / Interest Expense TTM 12.7m) >= 6 (WARN >= 3) |
Altman Z'' 7.75
| (A) 0.25 = (Total Current Assets 802.3m - Total Current Liabilities 256.4m) / Total Assets 2.18b |
| (B) 0.67 = Retained Earnings (Balance) 1.46b / Total Assets 2.18b |
| (C) 0.25 = EBIT TTM 525.8m / Avg Total Assets 2.11b |
| (D) 2.14 = Book Value of Equity 1.99b / Total Liabilities 931.5m |
| Total Rating: 7.75 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 86.31
| 1. Piotroski 6.0pt |
| 2. FCF Yield 6.66% |
| 3. FCF Margin 14.87% |
| 4. Debt/Equity 0.39 |
| 5. Debt/Ebitda -0.08 |
| 6. ROIC - WACC (= 19.25)% |
| 7. RoE 34.07% |
| 8. Rev. Trend 87.02% |
| 9. EPS Trend 36.13% |
What is the price of FHI shares?
Over the past week, the price has changed by +2.64%, over one month by +3.61%, over three months by -2.05% and over the past year by +26.06%.
Is FHI a buy, sell or hold?
- Strong Buy: 1
- Buy: 0
- Hold: 6
- Sell: 1
- Strong Sell: 0
What are the forecasts/targets for the FHI price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 52.4 | 0.5% |
| Analysts Target Price | 52.4 | 0.5% |
| ValueRay Target Price | 61.5 | 17.9% |
FHI Fundamental Data Overview December 11, 2025
P/E Trailing = 10.6213
P/E Forward = 10.4603
P/S = 2.2598
P/B = 3.2788
P/EG = 0.8434
Beta = 0.742
Revenue TTM = 1.74b USD
EBIT TTM = 525.8m USD
EBITDA TTM = 548.0m USD
Long Term Debt = 348.3m USD (from longTermDebt, last quarter)
Short Term Debt = 18.2m USD (from shortTermDebt, last quarter)
Debt = 460.9m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -45.4m USD (from netDebt column, last quarter)
Enterprise Value = 3.89b USD (3.94b + Debt 460.9m - CCE 506.3m)
Interest Coverage Ratio = 41.34 (Ebit TTM 525.8m / Interest Expense TTM 12.7m)
FCF Yield = 6.66% (FCF TTM 259.2m / Enterprise Value 3.89b)
FCF Margin = 14.87% (FCF TTM 259.2m / Revenue TTM 1.74b)
Net Margin = 21.86% (Net Income TTM 381.0m / Revenue TTM 1.74b)
Gross Margin = 67.30% ((Revenue TTM 1.74b - Cost of Revenue TTM 569.9m) / Revenue TTM)
Gross Margin QoQ = 69.21% (prev 65.90%)
Tobins Q-Ratio = 1.78 (Enterprise Value 3.89b / Total Assets 2.18b)
Interest Expense / Debt = 0.69% (Interest Expense 3.18m / Debt 460.9m)
Taxrate = 24.39% (34.2m / 140.3m)
NOPAT = 397.5m (EBIT 525.8m * (1 - 24.39%))
Current Ratio = 3.13 (Total Current Assets 802.3m / Total Current Liabilities 256.4m)
Debt / Equity = 0.39 (Debt 460.9m / totalStockholderEquity, last quarter 1.19b)
Debt / EBITDA = -0.08 (Net Debt -45.4m / EBITDA 548.0m)
Debt / FCF = -0.18 (Net Debt -45.4m / FCF TTM 259.2m)
Total Stockholder Equity = 1.12b (last 4 quarters mean from totalStockholderEquity)
RoA = 17.46% (Net Income 381.0m / Total Assets 2.18b)
RoE = 34.07% (Net Income TTM 381.0m / Total Stockholder Equity 1.12b)
RoCE = 35.85% (EBIT 525.8m / Capital Employed (Equity 1.12b + L.T.Debt 348.3m))
RoIC = 27.11% (NOPAT 397.5m / Invested Capital 1.47b)
WACC = 7.86% (E(3.94b)/V(4.40b) * Re(8.72%) + D(460.9m)/V(4.40b) * Rd(0.69%) * (1-Tc(0.24)))
Discount Rate = 8.72% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -4.00%
[DCF Debug] Terminal Value 77.32% ; FCFE base≈294.4m ; Y1≈324.2m ; Y5≈417.2m
Fair Price DCF = 82.49 (DCF Value 6.40b / Shares Outstanding 77.5m; 5y FCF grow 11.61% → 3.0% )
EPS Correlation: 36.13 | EPS CAGR: 18.46% | SUE: 0.82 | # QB: 0
Revenue Correlation: 87.02 | Revenue CAGR: 10.61% | SUE: 4.0 | # QB: 1
EPS next Quarter (2026-03-31): EPS=1.14 | Chg30d=+0.030 | Revisions Net=+4 | Analysts=4
EPS next Year (2026-12-31): EPS=5.04 | Chg30d=+0.139 | Revisions Net=+3 | Growth EPS=+2.2% | Growth Revenue=+6.7%
Additional Sources for FHI Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle