FHI Stock Analysis: Federated Investors | NYSE
Asset Management | NYSE, USA | Market Cap: 4.297m USD | 12M Return: 31.4% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 35.2M
EPS Trend: 99.5%
Qual. Beats: 0
Rev. Trend: 90.1%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 10.5 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: 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 67.02%; Δ 2.96% > 0.5%) |
| Asset Turnover: 89.85% > 50% (prev 82.88%; Δ 6.98% > 0%) |
| Interest Coverage Ratio: 43.49 > 6 (EBIT TTM 554.0m / 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: 1.37 (Book Value of Equity 1.20b / Total Liabilities 881.0m) |
| Altman-Z'' = 7.86 = AAA |
| DSRI: 0.81 (Receivables 93.7m/103.0m, Revenue 1.86b/1.66b) |
| GMI: 0.96 (GM 67.02% / 69.98%) |
| 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 = -3.13 (Cap -4..+1) = AA |
As of July 08, 2026, the stock is trading at USD 58.32 with a total of 853,235 shares traded. Over the past week, the price has changed by +3.31%, over one month by +2.41%, over three months by +3.42% and over the past year by +31.43%.
Current recommended Stop Loss: 55.80 (which is 4.3% 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 | 56 | -4% |
P/E Trailing = 10.9903
P/E Forward = 10.8814
P/S = 2.3149
P/B = 3.5677
P/EG = 2.2214
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 = 4.20b USD (4.30b + Debt 552.6m - CCE 645.4m)
Interest Coverage Ratio = 43.49 (Ebit TTM 554.0m / Interest Expense TTM 12.7m)
EV/FCF = 9.48x (Enterprise Value 4.20b / FCF TTM 443.6m)
FCF Yield = 10.55% (FCF TTM 443.6m / Enterprise Value 4.20b)
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 = 1.96 (Enterprise Value 4.20b / Total Assets 2.14b)
Interest Expense / Debt = 2.31% (Interest Expense 12.7m / Debt 552.6m)
Taxrate = 24.96% (135.1m / 541.3m)
NOPAT = 415.7m (EBIT 554.0m * (1 - 24.96%))
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 = 20.27% (NOPAT 415.7m / Invested Capital 2.05b)
WACC = 7.19% (E(4.30b)/V(4.85b) * Re(7.89%) + D(552.6m)/V(4.85b) * Rd(2.31%) * (1-Tc(0.25)))
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: 99.53 | EPS CAGR: 22.82% | SUE: 0.79 | # QB: 0
Revenue Correlation: 90.09 | Revenue CAGR: 5.58% | SUE: 0.65 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.16 | Chg30d=+0.87% | Revisions=-57% | Analysts=4
EPS next Quarter (2026-09-30): EPS=1.30 | Chg30d=+0.39% | Revisions=-29% | Analysts=4
EPS current Year (2026-12-31): EPS=5.07 | Chg30d=+0.45% | Revisions=+0% | GrowthEPS=-1.1% | GrowthRev=+8.9%
EPS next Year (2027-12-31): EPS=5.64 | Chg30d=+0.45% | Revisions=-29% | GrowthEPS=+11.2% | GrowthRev=+5.0%
[Analyst] Revisions Ratio: -42% (up=4, down=12)