Federated Hermes, Inc.
FHI
Investment Advice
Mkt Cap
$2.637BPE
10.09Debt
$347.8MCash
$381.2MEV
$2.604BFCF
$308.5MP/E Ratio
10.09Debt
$347.8MCash
$381.2MEV
$2.604BFCF
$308.5MFederated Hermes, Inc. is a publicly owned investment manager. 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.
Sector
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DCF
Discounted Cash Flow Valuation of Federated Hermes, Inc.
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $308.5M | $318.8M | $329.5M | $340.5M | $351.8M | $363.5M | $375.7M | $388.2M | $401.2M | $414.5M | $428.4M | $4.284B |
| DCF | $277.2M | $249.1M | $223.9M | $201.1M | $180.7M | $162.4M | $145.9M | $131.1M | $117.8M | $105.9M | $1.059B | |
| Value | $2.854B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 6.5%
Earnings Stability 53%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | 17% | 18% | 18% | 25% | 19% | 20% | 22% | 20% | 16% | 16% |
| ROA | 21% | 24% | 30% | 29% | 21% | 19% | 22% | 19% | 17% | 17% |
| ROE | 24% | 25% | 34% | 37% | 25% | 25% | 28% | 23% | 22% | 24% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +20.18%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is -1.21%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +21.06%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -1.87%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +26.54%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is -2.2%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | - | - | - | - | - | - | - | 1.40 | 1.09 | 1.13 |
| Debt Equity | - | - | - | - | - | - | - | 0.20 | 0.33 | 0.32 |
| MIN | ||||||||||
| Graham Stability | - | - | 100% | 100% | 99% | 100% | 100% | 99% | 82% | 82% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 1.13.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is -0.31.
What is the Graham’s Stability?
Graham’s Stability measure stands at 0.82.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2015 | 12-2017 | 12-2019 | 12-2021 | Trend |
|---|---|---|---|---|---|
| Revenue | 6.6% | 5.6% | 2.9% | 11% | -0.15% |
| Net Income | 4.9% | -4% | -4.6% | -12% | -2.2% |
| Stockholders Equity | 7.1% | 6.6% | 0.14% | -6.1% | -0.87% |
| FCF | 5% | 4.2% | -0.033% | 100% | 5.7% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +5.56%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is -0.15%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is -4.05%.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is -2.2%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is +6.56%.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -0.87%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +4.17%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is +5.71%.