A Business at a Glance
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FEDERATED HERMES, INC.
FHI
$4.3B
Mkt Cap
$57.92
+1.06%
FEDERATED HERMES, INC. (FHI) has a current P/E ratio of 11.3, compared to its historical median P/E of 9.2. The stock is currently considered Expensive based on its historical valuation range.
FEDERATED HERMES, INC. (FHI) has a 5-year average return on invested capital (ROIC) of 20.0%. This indicates strong capital allocation and a potential competitive advantage.
FEDERATED HERMES, INC. (FHI) has a market capitalization of $4.2B. It is classified as a mid-cap stock.
Yes, FEDERATED HERMES, INC. (FHI) pays a dividend with a trailing twelve-month yield of 2.51%. The company also returns capital through share buybacks, with a buyback yield of 4.93%.
Based on historical P/E analysis, FEDERATED HERMES, INC. (FHI) appears expensive. The current P/E of 11.3 is 22% above its historical median of 9.2. The estimated fair value CAGR (P/E method) is 6.1%.
FEDERATED HERMES, INC. (FHI) operates in the Investment Advice industry, within the Financials sector.
FEDERATED HERMES, INC. (FHI) reported annual revenue of $1.8 billion in its most recent fiscal year, based on SEC EDGAR filings.
Federated Hermes is a global active investment manager with $902.6 billion in assets under management as of December 31, 2025, operating a single investment management segment that earns revenue primarily through investment advisory fees based on AUM. The company sponsors and manages 176 Federated Hermes Funds across multiple asset classes—including 22 money market funds ($508.4 billion AUM), 46 equity funds ($55.0 billion AUM), 52 fixed-income funds ($46.0 billion AUM), 51 alternative/private markets funds ($12.1 billion AUM), and five multi-asset funds ($2.9 billion AUM)—as well as $278.3 billion in Separate Account assets for institutional clients, high-net-worth individuals, pension plans, corporations, and other third-party sponsors. The business model is asset-light, with fees typically based on AUM under advisory agreements that are generally terminable upon notice; distribution occurs through unaffiliated broker-dealers, banks, and financial intermediaries serving retail investors, corporations, and retirement plans across domestic and international markets. Federated Hermes differentiates through fundamental investment analysis integrated with governance, environmental, and social factors, and provides complementary stewardship, real estate development, and renewable energy project development services. The company's competitive position is reinforced by its scale in money market funds (approximately 7.11% market share as of Q3 2025), its multi-decade heritage since 1955, and its ability to offer a broad range of strategies across geographies including the U.S., Ireland, the U.K., Luxembourg, Guernsey, Jersey, Australia, and the Cayman Islands.
【Digital innovation and private markets growth】 Management expects approximately $1.4 billion in net inflows to private market strategies in 2026, including direct lending, private equity, and trade finance, reflecting ongoing fundraising momentum across multiple vintages of direct lending and private equity co-invest funds. The firm is prioritizing digital product development aligned with its core strengths in liquidity management, including the upcoming launch of a Money Market Management Digital Treasury Fund designed to support both traditional and on-chain distribution for institutional investors and stablecoin issuers. Management's 2026 outlook assumes a single 25 basis point rate cut by the Federal Reserve, which could result in single-digit AUM gains from an environmental standpoint, though the firm expects positive operating leverage if equity and money market flows continue at 2025 levels. The company remains committed to innovation in the digital asset space and expects ongoing growth in money market fund assets, with continued focus on capturing market share in its core competencies.
No forward guidance provided.
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.9B | 1.8B | 1.6B | 1.6B | 1.4B | 1.3B |
| Net Income | 381M | 385M | 257M | 285M | 228M | 259M |
| EPS | $5.08 | $5.13 | $3.23 | $3.40 | $2.65 | $2.75 |
| Free Cash Flow | 305M | 295M | 343M | 304M | 320M | 160M |
| ROIC | 36.1% | 25.8% | 17.6% | 19.9% | 16.7% | 20.2% |
| Gross Margin | - | - | - | - | - | - |
| Debt/Equity | 0.29 | 0.29 | 0.32 | 0.31 | 0.33 | 0.40 |
| Dividends/Share | $1.45 | $1.33 | $2.21 | $1.11 | $1.08 | $1.08 |
| Operating Income | 508M | 514M | 361M | 388M | 337M | 366M |
| Operating Margin | 27.4% | 28.5% | 22.1% | 24.1% | 23.3% | 28.2% |
| ROE | 31.6% | 33.6% | 23.1% | 26.2% | 21.1% | 23.1% |
| Shares Outstanding | 73M | 75M | 79M | 84M | 86M | 94M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 859M | 927M | 1.1B | 1.1B | 1.1B | 1.3B | 1.4B | 1.3B | 1.4B | 1.6B | 1.6B | 1.8B | 1.9B |
| Gross Margin | 63.3% | 62.1% | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 285M | 287M | 296M | 289M | 355M | 442M | 503M | 532M | 513M | 563M | 540M | 578M | 589M |
| EBIT | 238M | 279M | 336M | 342M | 330M | 348M | 418M | 366M | 337M | 388M | 361M | 514M | 508M |
| Op. Margin | 27.7% | 30.2% | 29.4% | 31.0% | 29.1% | 26.2% | 28.9% | 28.2% | 23.3% | 24.1% | 22.1% | 28.5% | 27.4% |
| Net Income | 143M | 163M | 201M | 280M | 212M | 262M | 314M | 259M | 228M | 285M | 257M | 385M | 381M |
| Net Margin | 16.7% | 17.6% | 17.6% | 25.4% | 18.6% | 19.8% | 21.7% | 19.9% | 15.7% | 17.7% | 15.7% | 21.4% | 20.5% |
| Non-Recurring | 6.5M | -3.4M | -1.1M | 7.7M | -298K | 1.1M | -1.4M | 7.0M | -4.8M | -260K | 1.6M | 10M | 10M |
| Returns on Capital | |||||||||||||
| ROIC | 23.9% | 24.9% | 31.1% | 36.1% | 23.7% | 27.6% | 27.6% | 20.2% | 16.7% | 19.9% | 17.6% | 25.8% | 36.1% |
| ROE | 24.4% | 26.0% | 32.4% | 41.3% | 26.2% | 27.6% | 28.8% | 23.1% | 21.1% | 26.2% | 23.1% | 33.6% | 31.6% |
| ROA | 12.6% | 14.0% | 17.2% | 23.5% | 15.3% | 15.3% | 15.9% | 12.7% | 11.3% | 13.8% | 12.3% | 17.9% | 17.8% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 192M | 233M | 266M | 387M | 206M | 335M | 373M | 170M | 324M | 312M | 347M | 297M | 312M |
| Free Cash Flow | 184M | 227M | 253M | 378M | 189M | 320M | 360M | 160M | 320M | 304M | 343M | 295M | 305M |
| Owner Earnings | 161M | 201M | 234M | 354M | 165M | 286M | 317M | 111M | 262M | 251M | 296M | 246M | 228M |
| CapEx | 8.8M | 6.0M | 13M | 9.8M | 17M | 15M | 14M | 10M | 4.4M | 7.9M | 4.0M | 2.8M | 6.6M |
| Maint. CapEx | 10M | 9.2M | 9.7M | 11M | 17M | 24M | 30M | 29M | 28M | 27M | 22M | 22M | 54M |
| Growth CapEx | 0 | 0 | 3.1M | 0 | 187K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| D&A | 10M | 9.2M | 9.7M | 11M | 17M | 24M | 30M | 29M | 28M | 27M | 22M | 22M | 54M |
| CapEx/OCF | 4.6% | 2.6% | 5.1% | 2.5% | 8.4% | 4.5% | 3.6% | 6.1% | 1.3% | 2.5% | 1.2% | 0.9% | 2.1% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 105M | 105M | 205M | 102M | 107M | 109M | 208M | 106M | 98M | 98M | 185M | 105M | 106M |
| Dividend Yield | 5.9% | 5.2% | 11.1% | 5.3% | 5.7% | 4.8% | 10.8% | 4.2% | 3.9% | 3.6% | 6.9% | 3.1% | 2.5% |
| Share Buybacks | 27M | 54M | 82M | 49M | 29M | 16M | 67M | 228M | 218M | 177M | 138M | 263M | 207M |
| Buyback Yield | 1.3% | 2.8% | 4.2% | 1.9% | 1.5% | 0.6% | 2.8% | 7.3% | 7.8% | 6.6% | 4.1% | 6.2% | 4.9% |
| Stock-Based Comp | 22M | 23M | 22M | 23M | 24M | 25M | 27M | 30M | 35M | 34M | 29M | 29M | 30M |
| Debt Repayment | 0 | 0 | 0 | 483K | 0 | 0 | 125M | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | -33M | -89M | -10M | 16M | -17M | -154M | -145M | 204M | 11M | -35M | -156M | -234M | -165M |
| Cash & Equiv. | 115M | 173M | 105M | 316M | 157M | 249M | 302M | 233M | 337M | 383M | 504M | 583M | 514M |
| Long-Term Debt | 26M | 26M | 26M | 170M | N/A | N/A | 100M | 223M | 348M | 348M | 348M | 348M | 348M |
| Debt/Equity | 0.37 | 0.35 | 0.38 | 0.45 | 0.16 | 0.10 | 0.15 | 0.40 | 0.33 | 0.31 | 0.32 | 0.29 | 0.29 |
| Interest Coverage | 1.1 | 1.2 | 0.9 | 1.0 | 1.1 | 69.1 | 156.1 | 205.2 | 30.4 | 31.0 | 28.5 | 40.4 | 39.9 |
| Equity | 609M | 648M | 595M | 761M | 857M | 1.0B | 1.1B | 1.1B | 1.0B | 1.1B | 1.1B | 1.2B | 1.2B |
| Total Assets | 1.1B | 1.2B | 1.2B | 1.2B | 1.5B | 1.9B | 2.1B | 2.0B | 2.0B | 2.1B | 2.1B | 2.2B | 2.1B |
| Total Liabilities | 527M | 529M | 528M | 440M | 504M | 627M | 687M | 841M | 913M | 948M | 934M | 966M | 881M |
| Intangibles | 4.1M | 2.7M | 3.6M | 77M | 340M | 446M | 482M | 471M | 409M | 409M | 328M | 332M | 325M |
| Retained Earnings | 505M | 546M | 530M | 697M | 792M | 930M | 1.0B | 1.2B | 1.0B | 1.2B | 1.3B | 1.5B | 1.6B |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | |||||||||||||
| EPS | 1.42 | 1.62 | 2.03 | 2.87 | 2.18 | 2.69 | 3.23 | 2.75 | 2.65 | 3.40 | 3.23 | 5.13 | 5.08 |
| Owner EPS | 1.59 | 2.00 | 2.36 | 3.63 | 1.70 | 2.93 | 3.26 | 1.18 | 3.04 | 2.99 | 3.72 | 3.28 | 3.14 |
| Book Value | 6.03 | 6.43 | 6.00 | 7.80 | 8.82 | 10.69 | 11.70 | 11.81 | 12.17 | 13.46 | 13.78 | 15.94 | 16.58 |
| Cash Flow/Share | 1.91 | 2.31 | 2.68 | 3.97 | 2.12 | 3.44 | 3.84 | 1.81 | 3.77 | 3.72 | 4.36 | 3.96 | 5.97 |
| Dividends/Share | 1.00 | 1.00 | 2.00 | 1.00 | 1.06 | 1.08 | 2.08 | 1.08 | 1.08 | 1.11 | 2.21 | 1.33 | 1.45 |
| Shares Out. | 101.0M | 100.7M | 99.2M | 97.5M | 97.1M | 97.4M | 97.2M | 94.3M | 85.9M | 83.8M | 79.5M | 75.1M | 72.7M |
| Valuation | |||||||||||||
| P/E Ratio | 14.3 | 11.2 | 9.3 | 8.8 | 8.8 | 9.2 | 7.2 | 11.6 | 11.7 | 9.0 | 12.4 | 10.5 | 11.4 |
| P/FCF | 11.2 | 8.0 | 7.4 | 6.6 | 9.9 | 7.5 | 6.3 | 18.9 | 8.3 | 8.5 | 9.3 | 13.7 | 13.8 |
| EV/EBIT | 8.9 | 6.5 | 5.7 | 6.7 | 5.8 | 6.3 | 4.5 | 7.9 | 7.4 | 5.9 | 7.4 | 6.6 | 8.0 |
| Price/Book | 3.5 | 2.9 | 3.3 | 3.4 | 2.3 | 2.4 | 2.1 | 2.8 | 2.7 | 2.4 | 3.0 | 3.5 | 3.5 |
| Price/Sales | 2.2 | 2.3 | 1.7 | 1.8 | 1.7 | 1.8 | 1.4 | 2.0 | 1.8 | 1.8 | 1.7 | 1.9 | 2.3 |
| FCF Yield | 8.6% | 11.9% | 13.1% | 14.7% | 9.7% | 12.8% | 15.3% | 5.1% | 11.4% | 11.3% | 10.3% | 7.0% | 7.3% |
| Market Cap | 2.1B | 1.9B | 1.9B | 2.6B | 1.9B | 2.5B | 2.4B | 3.1B | 2.8B | 2.7B | 3.3B | 4.2B | 4.2B |
| Avg. Price | 17.60 | 20.03 | 18.62 | 19.60 | 19.44 | 23.19 | 19.79 | 26.75 | 29.15 | 32.20 | 33.64 | 44.56 | 57.92 |
| Year-End Price | 20.35 | 18.14 | 18.80 | 25.37 | 19.26 | 24.69 | 23.30 | 32.02 | 31.05 | 30.67 | 39.95 | 53.78 | 57.92 |
FEDERATED HERMES, INC. passes 5 of 9 quality checks, suggesting mixed fundamentals.
FEDERATED HERMES, INC. trades at 11.3x trailing earnings, compared to its 15-year median P/E of 9.2x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 0.0x vs a median of 8.4x. The company's 5-year average ROIC is 20.0%. Total shareholder yield (dividends + buybacks) is 7.4%. At current prices, the estimated annualized return to fair value is +397.7%.
FEDERATED HERMES, INC. (FHI) has a net profit margin of 21.4%. This is a strong margin indicating high profitability.
FEDERATED HERMES, INC. (FHI) generated $295 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
FEDERATED HERMES, INC. (FHI) has a debt-to-equity ratio of 0.29. This indicates a conservatively financed balance sheet.
FEDERATED HERMES, INC. (FHI) reported earnings per share (EPS) of $5.13 in its most recent fiscal year.
FEDERATED HERMES, INC. (FHI) has a return on equity (ROE) of 33.6%. This indicates the company generates strong returns for shareholders.
The Ledger Terminal provides 16 years of financial data for FEDERATED HERMES, INC. (FHI), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
FEDERATED HERMES, INC. (FHI) has a book value per share of $15.94, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects approximately $1.4 billion in net inflows to private market strategies in 2026, including direct lending, private equity, and trade finance, reflecting ongoing fundraising momentum across multiple vintages of direct lending and private equity co-invest funds. The firm is prioritizing digital product development aligned with its core strengths in liquidity management, including the upcoming launch of a Money Market Management Digital Treasury Fund designed to support both traditional and on-chain distribution for institutional investors and stablecoin issuers. Management's 2026 outlook assumes a single 25 basis point rate cut by the Federal Reserve, which could result in single-digit AUM gains from an environmental standpoint, though the firm expects positive operating leverage if equity and money market flows continue at 2025 levels. The company remains committed to innovation in the digital asset space and expects ongoing growth in money market fund assets, with continued focus on capturing market share in its core competencies.