Stock AnalizFederated Hermes, Inc. FHI
Investment Managers · data as of November 13, 2026
Federated Hermes, Inc. (FHI) is a financial company listed in the US with a market value of about $4.7B. In the twelve months to September 30, 2026 it had revenue of $2.0B and net income of $401M, a net margin of 20.3%.
Its overall Stock Analiz score is 4.0 out of 5 (excellent). The strongest part is value (5/5); the weakest is future growth (2/5).
Key numbers: a P/E of 11.5, a price to free cash flow of 12.2, 5-year revenue growth of 4% a year, a 5-year average ROIC of 19%. A discounted cash flow model with moderate assumptions puts its intrinsic value about 39% above the current price.
Score: 4.0 / 5
Checks passed
- P/E below 25
- P/E below the industry median
- P/FCF below 20
- Price below intrinsic value (DCF, moderate assumptions)
- PEG below 1.5
- Revenue growth above 10% last year
- Profit margin improving
- 5-year average ROIC above 12%
Checks not passed
- 3-year revenue growth above 10% a year
- 3-year free cash flow growth above 10% a year
- Strong R&D investment or growth above 20%
- 5-year EPS growth above 10% a year
- 5-year revenue growth above 8% a year
Valuation
Growth and quality
Financials, last 10 years
| Fiscal year | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $2.0B | $1.8B | $1.6B | $1.6B | $1.4B | $1.3B | $1.4B | $1.3B | $1.1B | $1.1B | $1.1B |
| Net income | $401M | $403M | $268M | $299M | $239M | $270M | $326M | $272M | $220M | $291M | $209M |
| Free cash flow | $386M | $295M | $343M | $304M | $320M | $160M | $360M | $320M | $189M | $378M | $253M |
| EPS (diluted) | $5.53 | $5.13 | $3.23 | $3.40 | $2.65 | $2.75 | $3.23 | $2.69 | $2.18 | $2.87 | $2.03 |
| Net margin | 20.3% | 22.4% | 16.4% | 18.6% | 16.6% | 20.8% | 22.5% | 20.5% | 19.4% | 26.4% | 18.3% |
| ROIC | — | 23.5% | 16.3% | 18.1% | 17.2% | 18.1% | 24.7% | 22.7% | 28.9% | 30.7% | 36.7% |
From the company’s 10-K and 10-Q filings with the SEC. TTM = trailing twelve months.
What analysts expect
The average 12-month price target from 7 analysts is $61.00, 4% below the current price; targets range from $56.00 to $65.00; the consensus rating is “Hold”; expected EPS is $5.64 for the fiscal year ending December 31, 2026.
Frequently asked questions
What is Federated Hermes’s P/E ratio?
About 11.5, based on the last twelve months of diluted earnings per share (forward P/E about 11.0).
Is Federated Hermes stock undervalued?
Our DCF model with moderate assumptions puts its intrinsic value about 39% above the current market value. A model is a range, not a promise; try your own assumptions in the DCF calculator.
Does Federated Hermes pay a dividend?
Yes. The dividend yield is about 2.35%, and it has paid dividends for 10 years in our data.
Is Federated Hermes a good stock to buy?
We do not give buy or sell advice. Federated Hermes scores 4.0 out of 5 on our five checks (value, growth, track record, financial health and shareholder returns); the checks above show why.
Similar companies
Generated from SEC filings, analyst consensus estimates and market prices, rebuilt every day. Educational information, not investment advice.