A Business at a Glance
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ITEM 1 – BUSINESS Federated Hermes, Inc., a Pennsylvania corporation, together with its consolidated subsidiaries (collectively, Federated Hermes) is a global leader in active investing with $902.6 billion in assets under management (AUM or managed assets) at December 31, 2025. Federated Hermes has been in the investment management business since 1955 and is one of the largest investment managers in the United States (U.S.). Federated Hermes also provides stewardship services to customers seeking a range of solutions for engagement, as well as real estate development and renewable energy project development services.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 1.8B | 1.8B | 1.6B | 1.6B | 1.4B | 1.3B |
| Net Income | 385M | 385M | 257M | 285M | 228M | 259M |
| EPS | $5.13 | $5.13 | $3.23 | $3.40 | $2.65 | $2.75 |
| Free Cash Flow | 295M | 295M | 343M | 304M | 320M | 160M |
| ROIC | 39.6% | 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 | $1.40 | $1.33 | $2.21 | $1.11 | $1.08 | $1.08 |
| Operating Income | 514M | 514M | 361M | 388M | 337M | 366M |
| Operating Margin | 28.5% | 28.5% | 22.1% | 24.1% | 23.3% | 28.2% |
| ROE | 32.2% | 33.6% | 23.1% | 26.2% | 21.1% | 23.1% |
| Shares Outstanding | 75M | 75M | 79M | 84M | 86M | 94M |
FEDERATED HERMES, INC. passes 5 of 9 quality checks, suggesting mixed fundamentals.
FEDERATED HERMES, INC. trades at 11.4x 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 8.4%. At current prices, the estimated annualized return to fair value is +475.6%.
FEDERATED HERMES, INC. (FHI) has a current P/E ratio of 11.4, 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 $4.4B. It is classified as a mid-cap stock.
Yes, FEDERATED HERMES, INC. (FHI) pays a dividend with a trailing twelve-month yield of 2.40%. The company also returns capital through share buybacks, with a buyback yield of 6.00%.
Based on historical P/E analysis, FEDERATED HERMES, INC. (FHI) appears expensive. The current P/E of 11.4 is 23% above its historical median of 9.2. The estimated fair value CAGR (P/E method) is 6.4%.
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, 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.