(FHI) Federated Investors - Overview
Sector: Financial Services | Industry: Asset Management | Exchange: NYSE (USA) | Market Cap: 4.104m USD | Total Return: 33.8% in 12m
Avg Turnover: 42.1M
EPS Trend: 80.1%
Qual. Beats: 0
Rev. Trend: 90.1%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Federated Hermes, Inc. (FHI) is a global asset manager based in Pittsburgh, Pennsylvania, specializing in equity, fixed income, and money market strategies. The firm serves a diverse client base ranging from individual high-net-worth investors to large institutional entities such as pension plans and government agencies. Its investment approach utilizes both fundamental and quantitative analysis to manage portfolios across various market capitalizations and credit durations.
Operating within the Asset Management & Custody Banks sub-industry, the company generates revenue primarily through management fees calculated as a percentage of assets under management (AUM). This business model relies on market performance and net inflows to drive top-line growth. Investors may find it useful to examine ValueRay for deeper insights into the firms valuation metrics and historical performance trends.
The firm maintains an international presence with offices in major financial hubs including London and New York. Its fixed income offerings are extensive, covering U.S. Government, corporate, high-yield, and municipal securities. Federated Hermes has operated since 1955, establishing a long-term track record in the public equity and fixed income markets.
- High interest rates drive record inflows into money market fund assets
- Asset management fee revenue fluctuates with global equity market performance
- Integration of ESG products influences institutional client retention and growth
- Operating margins remain sensitive to competitive pressure and distribution fee waivers
- Regulatory changes impacting money market fund liquidity requirements create operational risk
| Net Income: 398.9m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.21 > 0.02 and ΔFCF/TA 3.86 > 1.0 |
| NWC/Revenue: 38.67% < 20% (prev 27.46%; Δ 11.21% < -1%) |
| CFO/TA 0.15 > 3% & CFO 311.9m > Net Income 398.9m |
| Net Debt (-92.8m) to EBITDA (576.1m): -0.16 < 3 |
| Current Ratio: 39.13 > 1.5 & < 3 |
| Outstanding Shares: last quarter (72.7m) vs 12m ago -6.31% < -2% |
| Gross Margin: 69.98% > 18% (prev 0.67%; Δ 6.93k% > 0.5%) |
| Asset Turnover: 89.85% > 50% (prev 82.88%; Δ 6.98% > 0%) |
| Interest Coverage Ratio: 43.49 > 6 (EBITDA TTM 576.1m / Interest Expense TTM 12.7m) |
| A: 0.34 (Total Current Assets 739.1m - Total Current Liabilities 18.9m) / Total Assets 2.14b |
| B: 0.74 (Retained Earnings 1.59b / Total Assets 2.14b) |
| C: 0.27 (EBIT TTM 554.0m / Avg Total Assets 2.07b) |
| D: 2.42 (Book Value of Equity 2.13b / Total Liabilities 881.0m) |
| Altman-Z'' = 8.96 = AAA |
| DSRI: 0.81 (Receivables 93.7m/103.0m, Revenue 1.86b/1.66b) |
| GMI: 0.96 (GM 69.98% / 67.02%) |
| AQI: 1.00 (AQ_t 0.60 / AQ_t-1 0.60) |
| SGI: 1.12 (Revenue 1.86b / 1.66b) |
| TATA: 0.04 (NI 398.9m - CFO 311.9m) / TA 2.14b) |
| Beneish M = -3.09 (Cap -4..+1) = AA |
As of May 24, 2026, the stock is trading at USD 53.86 with a total of 542,222 shares traded.
Over the past week, the price has changed by +1.39%,
over one month by -2.26%,
over three months by +0.94% and
over the past year by +33.83%.
Federated Investors has received a consensus analysts rating of 3.13. Therefore, it is recommended to hold FHI.
- StrongBuy: 1
- Buy: 0
- Hold: 6
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 55.4 | 2.9% |
P/E Forward = 10.9051
P/S = 2.211
P/B = 3.5267
P/EG = 2.2258
Revenue TTM = 1.86b USD
EBIT TTM = 554.0m USD
EBITDA TTM = 576.1m USD
Long Term Debt = 348.4m USD (from longTermDebt, last quarter)
Short Term Debt = 18.9m USD (from shortTermDebt, last quarter)
Debt = 552.6m USD (from shortLongTermDebtTotal, last quarter) + Leases 102.1m
Net Debt = -92.8m USD (calculated: Debt 552.6m - CCE 645.4m)
Enterprise Value = 4.01b USD (4.10b + Debt 552.6m - CCE 645.4m)
Interest Coverage Ratio = 43.49 (Ebit TTM 554.0m / Interest Expense TTM 12.7m)
EV/FCF = 9.04x (Enterprise Value 4.01b / FCF TTM 443.6m)
FCF Yield = 11.06% (FCF TTM 443.6m / Enterprise Value 4.01b)
FCF Margin = 23.81% (FCF TTM 443.6m / Revenue TTM 1.86b)
Net Margin = 21.42% (Net Income TTM 398.9m / Revenue TTM 1.86b)
Gross Margin = 69.98% ((Revenue TTM 1.86b - Cost of Revenue TTM 559.2m) / Revenue TTM)
Gross Margin QoQ = 71.69% (prev 72.59%)
Tobins Q-Ratio = 1.87 (Enterprise Value 4.01b / Total Assets 2.14b)
Interest Expense / Debt = 2.31% (Interest Expense 12.7m / Debt 552.6m)
Taxrate = 26.06% (33.8m / 129.8m)
NOPAT = 409.6m (EBIT 554.0m * (1 - 26.06%))
Current Ratio = 6.10 (Total Current Assets 739.1m / Total Current Liabilities 121.1m)
Debt / Equity = 0.46 (Debt 552.6m / totalStockholderEquity, last quarter 1.20b)
Debt / EBITDA = -0.16 (Net Debt -92.8m / EBITDA 576.1m)
Debt / FCF = -0.21 (Net Debt -92.8m / FCF TTM 443.6m)
Total Stockholder Equity = 1.18b (last 4 quarters mean from totalStockholderEquity)
RoA = 19.24% (Net Income 398.9m / Total Assets 2.14b)
RoE = 33.93% (Net Income TTM 398.9m / Total Stockholder Equity 1.18b)
RoCE = 36.35% (EBIT 554.0m / Capital Employed (Equity 1.18b + L.T.Debt 348.4m))
RoIC = 19.63% (NOPAT 409.6m / Invested Capital 2.09b)
WACC = 7.16% (E(4.10b)/V(4.66b) * Re(7.89%) + D(552.6m)/V(4.66b) * Rd(2.31%) * (1-Tc(0.26)))
Discount Rate = 7.89% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -100.00 | Cagr: -5.22%
[DCF] Terminal Value 77.97% ; FCFF base≈400.9m ; Y1≈459.6m ; Y5≈676.4m
[DCF] Fair Price = 135.3 (EV 10.2b - Net Debt -92.8m = Equity 10.3b / Shares 75.9m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 80.10 | EPS CAGR: 20.12% | SUE: 0.27 | # QB: 0
Revenue Correlation: 90.09 | Revenue CAGR: 5.58% | SUE: 0.65 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.15 | Chg30d=-5.28% | Revisions=-33% | Analysts=4
EPS next Quarter (2026-09-30): EPS=1.29 | Chg30d=-3.51% | Revisions=-33% | Analysts=4
EPS current Year (2026-12-31): EPS=5.03 | Chg30d=+0.23% | Revisions=-33% | GrowthEPS=-1.9% | GrowthRev=+8.8%
EPS next Year (2027-12-31): EPS=5.60 | Chg30d=-0.79% | Revisions=+0% | GrowthEPS=+11.3% | GrowthRev=+4.4%
[Analyst] Revisions Ratio: -33%