FHI Stock Analysis: Federated Investors | NYSE
Asset Management | NYSE, USA | Market Cap: 4.788m USD | 12M Return: 24.1% | US3142111034 | Charts, Fundamentals & Technical Analysis
Avg Turnover: 33.9M
EPS Trend: 87.6%
Qual. Beats: 0
Rev. Trend: 91.1%
Qual. Beats: 1
Warnings
No concerns identified
Tailwinds
Seasonality 11.6 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Federated Hermes, Inc. (NYSE: FHI) is a Pittsburgh-based investment manager founded in 1955 that provides asset management services to a broad range of clients, including individuals, high net worth investors, pension plans, pooled investment vehicles, charitable organizations, government entities, and registered investment advisors. The firm manages separate client-focused equity, fixed income, balanced, and money market mutual funds, as well as corresponding managed portfolios, investing across global public equity and fixed income markets.
On the equity side, Federated invests in growth and value stocks across small-cap, mid-cap, and large-cap companies using both fundamental and quantitative analysis. Its fixed income strategies span ultra-short, short-term, and intermediate-term mortgage-backed securities, U.S. Government and corporate bonds, high yield debt, and municipal securities. The firm maintains additional offices in New York City, Chicago, and London.
As a mid-cap asset manager in the Financials sector with a market capitalization of roughly $4.5 billion, Federated earns the majority of its revenue from management and administrative fees charged on client assets under management (AUM). Money market funds have historically been a core product line for the firm, a segment that is highly competitive and sensitive to short-term interest rate cycles.
- Money market fund AUM surges on elevated interest rates
- Equity fund flows pressured by passive and ETF competition
- Hermes ESG franchise drives international revenue and fee growth
- Fixed income mandates gain traction with pension and insurance allocators
| Net Income: 412.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.16 > 0.02 and ΔFCF/TA 2.80 > 1.0 |
| NWC/Revenue: 20.91% < 20% (prev 22.70%; Δ -1.80% < -1%) |
| CFO/TA 0.16 > 3% & CFO 374.0m > Net Income 412.2m |
| Net Debt (133.4m) to EBITDA (593.8m): 0.22 < 3 |
| Current Ratio: 2.59 > 1.5 & < 3 |
| Outstanding Shares: last quarter (71.9m) vs 12m ago -5.71% < -2% |
| Gross Margin: 71.55% > 18% (prev 66.62%; Δ 4.93% > 0.5%) |
| Asset Turnover: 86.60% > 50% (prev 78.15%; Δ 8.44% > 0%) |
| Interest Coverage Ratio: 44.32 > 6 (EBIT TTM 564.0m / Interest Expense TTM 12.7m) |
| A: 0.17 (Total Current Assets 660.5m - Total Current Liabilities 254.8m) / Total Assets 2.33b |
| B: 0.72 (Retained Earnings 1.67b / Total Assets 2.33b) |
| C: 0.25 (EBIT TTM 564.0m / Avg Total Assets 2.24b) |
| D: 1.34 (Book Value of Equity 1.25b / Total Liabilities 933.3m) |
| Altman-Z'' = 6.58 = AAA |
| DSRI: 1.05 (Receivables 123.8m/102.5m, Revenue 1.94b/1.68b) |
| GMI: 0.93 (GM 66.62% / 71.55%) |
| AQI: 1.07 (AQ_t 0.71 / AQ_t-1 0.66) |
| SGI: 1.15 (Revenue 1.94b / 1.68b) |
| TATA: 0.02 (NI 412.2m - CFO 374.0m) / TA 2.33b) |
| Beneish M = -2.90 (Cap -4..+1) = A |
As of August 23, 2026, the stock is trading at USD 63.70 with a total of 325,146 shares traded. Over the past week, the price has changed by -0.67%, over one month by +11.47%, over three months by +18.98% and over the past year by +24.13%.
Current recommended Stop Loss: 61.20 (which is 3.9% or 1.5 ATR below the current price).
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 | 59.9 | -6% |
P/E Trailing = 11.9201
P/E Forward = 12.3305
P/S = 2.4757
P/B = 3.8221
P/EG = 2.5169
Revenue TTM = 1.94b USD
EBIT TTM = 564.0m USD
EBITDA TTM = 593.8m USD
Long Term Debt = 348.4m USD (from longTermDebt, last fiscal year)
Short Term Debt = 20.0m USD (from shortTermDebt, last quarter)
Debt = 554.0m USD (from shortLongTermDebtTotal, last quarter) + Leases 102.1m
Net Debt = 133.4m USD (calculated: Debt 554.0m - CCE 420.6m)
Enterprise Value = 4.92b USD (4.79b + Debt 554.0m - CCE 420.6m)
Interest Coverage Ratio = 44.32 (Ebit TTM 564.0m / Interest Expense TTM 12.7m)
EV/FCF = 13.31x (Enterprise Value 4.92b / FCF TTM 369.8m)
FCF Yield = 7.51% (FCF TTM 369.8m / Enterprise Value 4.92b)
FCF Margin = 19.06% (FCF TTM 369.8m / Revenue TTM 1.94b)
Net Margin = 21.24% (Net Income TTM 412.2m / Revenue TTM 1.94b)
Gross Margin = 71.55% ((Revenue TTM 1.94b - Cost of Revenue TTM 552.1m) / Revenue TTM)
Gross Margin QoQ = 72.58% (prev 71.69%)
Tobins Q-Ratio = 2.11 (Enterprise Value 4.92b / Total Assets 2.33b)
Interest Expense / Debt = 2.30% (Interest Expense 12.7m / Debt 554.0m)
Taxrate = 24.92% (138.2m / 554.5m)
NOPAT = 423.5m (EBIT 564.0m * (1 - 24.92%))
Current Ratio = 2.59 (Total Current Assets 660.5m / Total Current Liabilities 254.8m)
Debt / Equity = 0.44 (Debt 554.0m / totalStockholderEquity, last quarter 1.25b)
Debt / EBITDA = 0.22 (Net Debt 133.4m / EBITDA 593.8m)
Debt / FCF = 0.36 (Net Debt 133.4m / FCF TTM 369.8m)
Total Stockholder Equity = 1.21b (last 4 quarters mean from totalStockholderEquity)
RoA = 18.40% (Net Income 412.2m / Total Assets 2.33b)
RoE = 34.06% (Net Income TTM 412.2m / Total Stockholder Equity 1.21b)
RoCE = 36.19% (EBIT 564.0m / Capital Employed (Equity 1.21b + L.T.Debt 348.4m))
RoIC = 21.19% (NOPAT 423.5m / Invested Capital 2.00b)
WACC = 7.26% (E(4.79b)/V(5.34b) * Re(7.90%) + D(554.0m)/V(5.34b) * Rd(2.30%) * (1-Tc(0.25)))
Discount Rate = 7.90% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -99.35 | Cagr: -4.98%
[DCF] Terminal Value 77.97% ; FCFF base≈334.4m ; Y1≈383.3m ; Y5≈564.1m
[DCF] Fair Price = 111.9 (EV 8.49b - Net Debt 133.4m = Equity 8.36b / Shares 74.7m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 87.62 | EPS CAGR: 24.58% | SUE: 0.64 | # QB: 0
Revenue Correlation: 91.11 | Revenue CAGR: 7.02% | SUE: 1.88 | # QB: 1
EPS current Quarter (2026-09-30): EPS=1.40 | Chg30d=+3.57% | Revisions=+57% | Analysts=4
EPS current Year (2026-12-31): EPS=5.52 | Chg30d=+4.92% | Revisions=+57% | GrowthEPS=+7.6% | GrowthRev=+10.0%
EPS next Year (2027-12-31): EPS=5.88 | Chg30d=+1.46% | Revisions=+57% | GrowthEPS=+6.6% | GrowthRev=+4.2%
[Analyst] Revisions Ratio: +80% (up=12, down=0)