Federated Hermes, Inc.

Finance
Investment Managers
www.federatedhermes.com

Earnings Score
Moat Score
Safety Score

Market Cap $3.31B
PE 13
Debt $348.04M
Cash $378.62M
EV $3.28B
FCF $343.86M

Earnings

loading chart...

Sales & Net Margins

loading chart...

Earnings	$254.15M
EBIT	$386.58M
ROE	23%
ROA	19%
FCF	$343.86M
Equity	$1.08B
Growth Stability	82%
PE	13.04
PEG	-4.29
PB	3.06
P/FCF	9.64
P/S	2.07
Price/Cash	0.11
Debt/Equity	0.32
Debt/FCF	1.01
Net Margins	15%
Op. Margins	24%
Earnings CAGR	4%
Sales Growth YoY	1%
Sales Growth QoQ	1%
Sales CAGR	6%
FCF CAGR	3%
Equity CAGR	8%
Earnings Stability	0.32
Earnings Growth YoY	19%
Earnings Growth QoQ	359%
Earnings CAGR 5Y	-3%

Sales CAGR 5Y	4%
FCF CAGR 5Y	0%
Equity CAGR 5Y	-0%
Earnings CAGR 3Y	10%
Sales CAGR 3Y	10%
FCF CAGR 3Y	30%
Equity CAGR 3Y	2%
Market Cap	$3.31B
Revenue	$1.60B
Dividend Yield	6%
Payout Ratio	72%
Assets	$2.04B
Total Debt	$348.04M
Cash	$378.62M
Shares Outstanding	78.69M
EV	3.28B
Earnings Score	11%
Moat Score	95%
Safety Score	94%
Final Score	67%
Working Capital	460.05M
Current Ratio	2.75
Shares Growth 3y	-4%
Equity Growth QoQ	7%
Equity Growth YoY	-2%

Assets & ROA

loading chart...

Stockholders Equity & ROE

loading chart...

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.

2024
- 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
2022
- 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?

Loading chart...

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 4%

Stability 32%

loading chart...

Federated Hermes, Inc. Discounted Cash Flow

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

Years

Calculation mode

= $4.3B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$344M	$355M	$366M	$378M	$390M	$402M	$415M	$428M	$442M	$456M	$471M	$4.7B
DCF		$323M	$303M	$284M	$266M	$250M	$234M	$220M	$206M	$194M	$182M	$1.8B
Value	$4.3B

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	12/2023	TTM
Net Margins	17%	18%	18%	25%	19%	20%	22%	20%	16%	18%	15%
ROA	-	24%	30%	29%	21%	19%	22%	19%	17%	20%	19%
ROE	-	25%	34%	37%	25%	25%	28%	23%	22%	25%	23%

Good Net Margins (14.55%)

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	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	-	-	-	-	-	1.4	1.09	1.14	1.01
Debt over Equity	-	-	-	-	-	-	-	0.2	0.33	0.31	0.32
Growth Stability	-	-	-	100%	99%	100%	100%	99%	82%	100%	82%

Good Debt/FCF ratio (1.01)

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	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	8%	23%	-4%	3%	17%	9%	-10%	11%	11%	4%
Earnings YoY growth	-	14%	23%	39%	-24%	24%	20%	-17%	-12%	25%	-3%
Equity YoY growth	-	6%	-8%	28%	13%	21%	9%	-2%	-6%	8%	-0%
FCF YoY growth	-	24%	6%	9%	-27%	69%	12%	-56%	100%	-5%	0%