Federated Hermes, Inc.

Finance
Investment Managers
www.federatedhermes.com

Earnings Score
Moat Score
Safety Score

Market Cap $3.25B
PE 12
Debt $348.17M
Cash $388.04M
EV $3.21B
FCF $342.40M

Earnings

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Sales & Net Margins

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Earnings	$281.70M
EBIT	$413.63M
ROE	26%
ROA	21%
FCF	$342.40M
Equity	$1.08B
Growth Stability	82%
PE	11.52
PEG	-3.83
PB	3.02
P/FCF	9.48
P/S	1.96
Price/Cash	0.12
Debt/Equity	0.32
Debt/FCF	1.02
Net Margins	23%
Op. Margins	25%
Earnings CAGR	3%
Sales Growth YoY	7%
Sales Growth QoQ	-0%
Sales CAGR	5%
FCF CAGR	4%
Equity CAGR	7%
Earnings Stability	0.21
Earnings Growth YoY	35%
Earnings Growth QoQ	19%
Earnings CAGR 5Y	-3%

Sales CAGR 5Y	4%
FCF CAGR 5Y	4%
Equity CAGR 5Y	-1%
Earnings CAGR 3Y	7%
Sales CAGR 3Y	7%
FCF CAGR 3Y	14%
Equity CAGR 3Y	3%
Market Cap	$3.25B
Revenue	$1.66B
Dividend Yield	6%
Payout Ratio	66%
Assets	$2.00B
Total Debt	$348.17M
Cash	$388.04M
Shares Outstanding	77.3M
EV	3.21B
Earnings Score	8%
Moat Score	97%
Safety Score	94%
Final Score	66%
Working Capital	455.58M
Current Ratio	3.04
Shares Growth 3y	-4%
Equity Growth QoQ	-2%
Equity Growth YoY	-6%

Assets & ROA

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Stockholders Equity & ROE

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Federated provides asset management services for institutional and individual investors. The company had $631.1 billion in managed assets at the end of March 2022, composed of equity (14%), multi-asset (1%), fixed-income (14%), alternative (4%), and money market (67%) funds. That said, the firm's cash-management operations are expected to generate around 35% of Federated's revenue this year, compared with 38%, 16%, and 7%, respectively, for the firm's equity, fixed-income, and alternatives/multi-asset operations. From a channel perspective, the company's products are distributed via trust banks, wealth managers and retail broker/dealers (60% of AUM), institutional investors (27%), and international clients (13%).

SEC Filings

Direct access to Federated Hermes, Inc. (FHI) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2025
- 10-Q Mar 31
2024
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Federated Hermes, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Federated Hermes, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 3%

Stability 21%

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Federated Hermes, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Federated Hermes, Inc..

Years

Calculation mode

= $4.4B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$342M	$355M	$369M	$382M	$397M	$412M	$427M	$443M	$460M	$477M	$495M	$4.9B
DCF		$323M	$305M	$287M	$271M	$256M	$241M	$227M	$214M	$202M	$191M	$1.9B
Value	$4.4B

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	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Net Margins	18%	18%	25%	19%	20%	22%	20%	16%	18%	16%	23%
ROA	-	30%	29%	21%	19%	22%	19%	17%	20%	18%	21%
ROE	-	34%	37%	25%	25%	28%	23%	22%	25%	23%	26%

Good Net Margins (22.81%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

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	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	TTM
Debt over FCF	-	-	-	-	-	-	1.4	1.09	1.14	1.02	1.02
Debt over Equity	-	-	-	-	-	-	0.2	0.33	0.31	0.32	0.32
Growth Stability	-	-	-	99%	100%	100%	99%	82%	100%	100%	82%

Good Debt/FCF ratio (1.02)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.32)

The company is not overleveraged and has a good balance between equity and debt.

Neutral Graham’s Stability (82%)

The company has a stability in its earnings that is not too good nor too bad.

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	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	12/2024	CAGR 5Y
Revenue YoY growth	-	23%	-4%	3%	17%	9%	-10%	11%	11%	1%	4%
Earnings YoY growth	-	23%	39%	-24%	24%	20%	-17%	-12%	25%	-10%	-3%
Equity YoY growth	-	-8%	28%	13%	21%	9%	-2%	-6%	8%	-3%	-1%
FCF YoY growth	-	6%	9%	-27%	69%	12%	-56%	100%	-5%	13%	4%