Federated Hermes, Inc. (FHI) 10-Year Financial Performance & Capital Metrics

FHI • • Banking & Credit

Financial ServicesAsset ManagementTraditional Asset ManagementGlobal Diversified Asset Managers

AboutFederated Hermes, Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to individuals, including high net worth individuals, banking or thrift institutions, investment companies, pension and profit sharing plans, pooled investment vehicles, charitable organizations, state or municipal government entities, and registered investment advisors. Through its subsidiaries, it manages separate client-focused equity, fixed income, balanced and money market mutual funds along with separate client-focused equity, fixed income, money market, and balanced portfolios. Through its subsidiaries, the firm invests in the public equity and fixed income markets across the globe. It invests in growth and value stocks of small-cap, mid-cap, and large-cap companies. The firm makes its fixed income investments in ultra-short, short-term, and intermediate-term mortgage-backed, U.S. Government, U.S. corporate, high yield, and municipal securities. It employs both fundamental and quantitative analysis to make its equity investments. Federated Hermes, Inc. was founded in 1955 and is based in Pittsburgh, Pennsylvania with additional offices in New York City and London, United Kingdom.Show more

Net Interest Income $26M +308.2%
Total Revenue $1.63B +1.4%
Net Income $268M -10.3%
Return on Equity 23.28% -11.9%
Net Interest Margin 1.25% +309.9%
Efficiency Ratio 44.74% +9.3%
ROA 12.82% -11.6%
Equity / Assets 55.2% +0.5%
Book Value per Share 14.49 +5.3%
Tangible BV/Share 0.23 +130.4%
Debt/Equity 0.40 +1.2%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Excellent 3Y average ROE of 23.6%
✓Strong Piotroski F-Score: 7/9
✓Efficient operations: 44.7% efficiency ratio
✓Well capitalized: 55.2% equity/assets
✓Healthy dividend yield of 4.4%
✓Share count reduced 5.3% through buybacks

✗Weaknesses

✗Weak NIM of 1.3%

Price & Volume

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Growth Metrics

Revenue CAGR

10Y6.63%

5Y4.23%

3Y7.87%

TTM-

Profit (Net Income) CAGR

10Y6.04%

5Y-0.3%

3Y-0.24%

TTM43.34%

EPS CAGR

10Y8.57%

5Y3.73%

3Y5.51%

TTM54.02%

ROCE

10Y Avg24.92%

5Y Avg21.17%

3Y Avg20.29%

Latest20.03%

Peer Comparison

Global Diversified Asset Managers

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
SIISprott Inc.	2.97B	115.19	60.31	19.02%	29.28%	14.59%	2.27%
EMBJEmbraer S.A.	13.36B	73.93	38.51	21.38%	5.51%	10.43%	3.03%	0.78
BENFranklin Resources, Inc.	13.54B	25.97	28.54	3.45%	5.98%	3.61%	6.73%	0.94
BLKBlackRock, Inc.	179.4B	1156.65	27.53	14.27%	31.21%	9.86%	2.62%	0.29
IVZInvesco Ltd.	13.08B	29.39	24.91	6.13%	12.77%	6.75%	8.57%	0.48
SEICSEI Investments Company	10.6B	86.54	19.62	10.7%	27.35%	28.87%	5.34%	0.01
JHGJanus Henderson Group plc	7.15B	47.89	18.71	17.67%	16.53%	9.41%	9.57%	0.10
STTState Street Corporation	38.07B	136.29	16.60	19.64%	12.23%	10.78%		1.45

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Net Interest Income+	-4.3M	-4.17M	-4.77M	-5.88M	-5.04M	4.12M	1.39M	-2.1M	-12.52M	26.07M
NII Growth %	0.55%	0.03%	-0.14%	-0.23%	0.14%	1.82%	-0.66%	-2.52%	-4.96%	3.08%
Net Interest Margin %	-	-	-	-	-	-	-	-	-	-
Interest Income	0	0	0	0	0	4.12M	3.17M	8.97M	0	26.07M
Interest Expense	4.3M	4.17M	4.77M	5.88M	5.04M	0	1.78M	11.07M	12.52M	0
Loan Loss Provision	282.63M	292.29M	284.44M	348.88M	437.11M	503.4M	530.71M	501.64M	550.87M	540.49M
Non-Interest Income+	926.61M	1.14B	1.1B	1.14B	1.33B	1.44B	1.3B	1.44B	1.61B	1.61B
Non-Interest Income %	-	-	-	-	-	-	-	-	-	-
Total Revenue+	926.61M	1.14B	1.1B	1.14B	1.33B	1.45B	1.3B	1.45B	1.61B	1.63B
Revenue Growth %	0.08%	0.23%	-0.04%	0.03%	0.17%	0.09%	-0.1%	0.11%	0.11%	0.01%
Non-Interest Expense	360.23M	511.22M	472.2M	450.63M	536.82M	526.72M	401.68M	596.3M	658.64M	730.14M
Efficiency Ratio	-	-	-	-	-	-	-	-	-	-
Operating Income+	279.45M	335.68M	341.51M	330.28M	347.93M	418.15M	366.27M	336.8M	387.55M	361.47M
Operating Margin %	-	-	-	-	-	-	-	-	-	-
Operating Income Growth %	0.17%	0.2%	0.02%	-0.03%	0.05%	0.2%	-0.12%	-0.08%	0.15%	-0.07%
Pretax Income+	274.91M	340.93M	352M	296.17M	365.27M	446.06M	376.29M	306.22M	411.33M	381.61M
Pretax Margin %	-	-	-	-	-	-	-	-	-	-
Income Tax+	102.92M	119.42M	57.1M	73.88M	88.15M	110.03M	103.98M	71.66M	106.55M	113.18M
Effective Tax Rate %	-	-	-	-	-	-	-	-	-	-
Net Income+	169.81M	208.92M	291.34M	220.3M	272.34M	326.36M	270.29M	239.5M	298.98M	268.31M
Net Margin %	-	-	-	-	-	-	-	-	-	-
Net Income Growth %	0.14%	0.23%	0.39%	-0.24%	0.24%	0.2%	-0.17%	-0.11%	0.25%	-0.1%
Net Income (Continuing)	171.99M	221.51M	294.9M	222.3M	277.13M	336.02M	272.31M	234.56M	304.78M	268.43M
EPS (Diluted)+	1.62	2.03	2.87	2.27	2.69	3.23	2.75	2.65	3.40	3.23
EPS Growth %	0.14%	0.25%	0.41%	-0.21%	0.19%	0.2%	-0.15%	-0.04%	0.28%	-0.05%
EPS (Basic)	1.62	2.03	2.87	2.27	2.69	3.25	2.77	2.65	3.40	3.23
Diluted Shares Outstanding	100.48M	99.12M	97.41M	96.95M	97.26M	96.42M	93.6M	85.76M	83.86M	79.43M

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash & Short Term Investments+	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Cash & Due from Banks	172.63M	104.84M	316.26M	156.83M	249.17M	301.82M	233.33M	336.78M	383.18M	504.44M
Short Term Investments	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Total Investments+	244.77M	266.69M	127.15M	33.66M	95.16M	143.85M	193.35M	184.97M	177.5M	136.6M
Investments Growth %	-0.02%	0.09%	-0.52%	-0.74%	1.83%	0.51%	0.34%	-0.04%	-0.04%	-0.23%
Long-Term Investments	70.58M	70.38M	73.88M	594K	3.7M	6.9M	0	0	0	0
Accounts Receivables	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Goodwill & Intangibles+	-	-	-	-	-	-	-	-	-	-
Goodwill	659.32M	659.19M	660.04M	809.61M	774.53M	800.27M	798.87M	800.42M	807.16M	804.82M
Intangible Assets	4.59M	3.57M	76.88M	339.64M	446.23M	481.75M	471.21M	409.16M	409.45M	327.88M
PP&E (Net)	35.74M	39.28M	37.67M	53.23M	152.24M	174.69M	155.27M	128.6M	129.98M	130.28M
Other Assets	56.88M	62.21M	57.22M	37.11M	42.15M	21.89M	33.39M	31.27M	34.53M	40.36M
Total Current Assets	395.83M	359.76M	437.27M	304.1M	461.28M	575.34M	559.45M	651.03M	720.73M	781.35M
Total Non-Current Assets	791.38M	795.35M	794.14M	1.24B	1.42B	1.49B	1.46B	1.37B	1.38B	1.3B
Total Assets+	1.19B	1.16B	1.23B	1.54B	1.88B	2.06B	2.02B	2.02B	2.1B	2.08B
Asset Growth %	0.04%	-0.03%	0.07%	0.25%	0.22%	0.1%	-0.02%	0%	0.04%	-0.01%
Return on Assets (ROA)	0.15%	0.18%	0.24%	0.16%	0.16%	0.17%	0.13%	0.12%	0.15%	0.13%
Accounts Payable	0	0	47.59M	56.11M	69.01M	61.74M	64.02M	73.9M	88.29M	97.21M
Total Debt+	191.25M	165.75M	170M	135M	221.12M	212.77M	346.07M	452.78M	457.94M	461.97M
Net Debt	18.62M	60.91M	-146.26M	-21.83M	-28.06M	-89.05M	112.74M	116M	74.76M	-42.47M
Long-Term Debt	191.25M	165.75M	170M	135M	100M	75M	223.35M	347.58M	347.84M	348.11M
Short-Term Debt	25.5M	25.5M	0	0	0	0	0	0	0	0
Other Liabilities	28.88M	54.35M	53.73M	222.22M	188.51M	224.49M	241.64M	221.16M	218.75M	199.5M
Total Current Liabilities	159.21M	162.54M	128.85M	181.18M	230.71M	265.45M	270.71M	257.41M	287.34M	289.19M
Total Non-Current Liabilities	379.02M	396.79M	341.35M	505.38M	396.05M	421.41M	570.26M	655.55M	660.4M	644.77M
Total Liabilities	538.23M	559.32M	470.19M	686.56M	626.76M	686.86M	840.97M	912.97M	947.75M	933.96M
Total Equity+	650.13M	596.74M	791.38M	1.04B	1.25B	1.37B	1.18B	1.11B	1.15B	1.15B
Equity Growth %	0.07%	-0.08%	0.33%	0.31%	0.21%	0.1%	-0.14%	-0.06%	0.04%	-0%
Equity / Assets (Capital Ratio)	-	-	-	-	-	-	-	-	-	-
Return on Equity (ROE)	0.27%	0.34%	0.42%	0.24%	0.24%	0.25%	0.21%	0.21%	0.26%	0.23%
Book Value per Share	6.47	6.02	8.12	10.72	12.89	14.25	12.58	12.91	13.76	14.49
Tangible BV per Share	-	-	-	-	-	-	-	-	-	-
Common Stock	840.91M	851.17M	1.04B	1.14B	392.21M	418.86M	449.12M	441.14M	475M	503.52M
Additional Paid-in Capital	0	0	0	0	0	0	0	0	2K	0
Retained Earnings	545.78M	529.75M	697.36M	791.82M	930.35M	1.03B	1.19B	1.02B	1.19B	1.26B
Accumulated OCI	-4.61M	-523K	-790K	-14.62M	-249K	15.17M	16.36M	-45.68M	-19.91M	-32.08M
Treasury Stock	-191.94M	-255.38M	-278.73M	-287.34M	-281.03M	-324.73M	-538.46M	-365.36M	-521.4M	-632.84M
Preferred Stock	0	529.75M	697.36M	791.82M	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	233.18M	252.77M	270.38M	206.28M	334.94M	373.24M	170.38M	323.95M	311.83M	346.55M
Operating CF Growth %	0.21%	0.08%	0.07%	-0.24%	0.62%	0.11%	-0.54%	0.9%	-0.04%	0.11%
Net Income	171.99M	221.51M	294.9M	222.3M	277.13M	336.02M	272.31M	234.56M	304.78M	268.43M
Depreciation & Amortization	9.54M	9.58M	10.64M	17.09M	25.92M	28.56M	30.01M	28.09M	26.87M	22.43M
Deferred Taxes	19.26M	17.5M	-59.27M	12.26M	7.45M	18.17M	19.03M	-18.72M	4.25M	-14.94M
Other Non-Cash Items	-2.5M	-5.53M	14.93M	25.41M	-32.36M	-32.68M	-177.97M	40.56M	-45.88M	24.27M
Working Capital Changes	12.21M	-12.73M	-13.32M	-94.67M	23.85M	-12.29M	-12.7M	3.96M	-12.14M	17.57M
Cash from Investing+	-5.73M	-8.19M	117.97M	-174.44M	-94.68M	-24.82M	10.82M	-32.36M	-30.61M	64.25M
Purchase of Investments	-5.46M	-3.35M	-8.13M	-7.27M	-103.44M	-25.51M	-9.43M	-22.64M	0	-76.09M
Sale/Maturity of Investments	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	0	0
Net Investment Activity	-	-	-	-	-	-	-	-	-	-
Acquisitions	0	0	-4.35M	-157.38M	-21.59M	-11.32M	26.56M	-27.98M	0	-3.24M
Other Investing	295K	-8.2M	15.15M	211K	-45.02M	-6.96M	-139.52M	-55.3M	-22.7M	143.57M
Cash from Financing+	-170.09M	-312.37M	-176.92M	-186.12M	-152.68M	-295.14M	-249.47M	-168.51M	-243.09M	-286.4M
Dividends Paid	-104.63M	-205.47M	-101.51M	-106.94M	-109.15M	-207.76M	-105.76M	-97.92M	-98.09M	-184.81M
Share Repurchases	-53.87M	-81.77M	-48.64M	-29.25M	-15.74M	-66.76M	-228.35M	-218.14M	-177.07M	-137.62M
Stock Issued	0	0	0	0	0	0	0	0	0	0
Net Stock Activity	-	-	-	-	-	-	-	-	-	-
Debt Issuance (Net)	-1000K	-1000K	-1000K	-1000K	-1000K	-1000K	1000K	1000K	0	0
Other Financing	13.9M	373K	-5.52M	-14.93M	7.21M	4.39M	-63.71M	20.89M	32.07M	36.03M
Net Change in Cash+	57.36M	-67.79M	211.43M	-159.38M	92.08M	59.12M	-70.58M	102.9M	46M	120.61M
Exchange Rate Effect	0	0	0	-1000K	1000K	1000K	-1000K	-1000K	1000K	-1000K
Cash at Beginning	115.27M	172.63M	104.84M	316.81M	157.43M	249.51M	308.63M	238.05M	340.95M	386.95M
Cash at End	172.63M	104.84M	316.26M	157.43M	249.51M	308.63M	238.05M	340.95M	386.95M	507.57M
Interest Paid	3.98M	3.49M	4.11M	5.32M	4.61M	2.39M	1.13M	7.18M	11.65M	11.59M
Income Taxes Paid	77.25M	104.58M	118.41M	61.57M	72.61M	98.73M	91.92M	85.58M	108.64M	125.87M
Free Cash Flow+	227.16M	239.93M	260.58M	189.01M	319.89M	359.74M	159.96M	319.58M	303.92M	342.53M
FCF Growth %	0.24%	0.06%	0.09%	-0.27%	0.69%	0.12%	-0.56%	1%	-0.05%	0.13%

Banking Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	26.95%	33.51%	41.98%	24.06%	23.75%	24.84%	21.19%	20.96%	26.44%	23.28%
Return on Assets (ROA)	14.59%	17.84%	24.42%	15.88%	15.91%	16.56%	13.25%	11.86%	14.51%	12.82%
Net Interest Margin	-0.36%	-0.36%	-0.39%	-0.38%	-0.27%	0.2%	0.07%	-0.1%	-0.6%	1.25%
Efficiency Ratio	38.88%	44.71%	42.81%	39.68%	40.46%	36.37%	30.89%	41.24%	40.92%	44.74%
Equity / Assets	54.76%	51.66%	64.27%	67.35%	66.66%	66.67%	58.33%	54.81%	54.91%	55.2%
Book Value / Share	6.47	6.02	8.12	10.72	12.89	14.25	12.58	12.91	13.76	14.49
NII Growth	55.27%	2.93%	-14.35%	-23.32%	14.41%	181.77%	-66.35%	-251.52%	-496.14%	308.2%
Dividend Payout	61.62%	98.35%	34.84%	48.54%	40.08%	63.66%	39.13%	40.88%	32.81%	68.88%

Revenue by Segment

	2018	2019	2020	2021	2022	2023	2024
Federated Hermes Funds	-	-	-	1.02B	1.19B	1.35B	1.37B
Federated Hermes Funds Growth	-	-	-	-	16.00%	13.43%	1.86%
Separate accounts	187.59M	221.76M	-	259.03M	238.64M	244.95M	240.42M
Separate accounts Growth	-	18.22%	-	-	-7.87%	2.65%	-1.85%
Other	6.05M	-	-	-	-	16.03M	17.97M
Other Growth	-	-	-	-	-	-	12.10%
Administrative Service	199.27M	-	318.15M	-	-	-	-
Administrative Service Growth	-	-	-	-	-	-	-
Federated Funds	942.04M	1.09B	-	-	-	-	-
Federated Funds Growth	-	16.04%	-	-	-	-	-
Financial Service, Other	6.05M	-	-	-	-	-	-
Financial Service, Other Growth	-	-	-	-	-	-	-

Revenue by Geography

	2018	2019	2020	2021	2022	2023	2024
UNITED STATES	1.01B	1.1B	1.17B	953.62M	1.16B	1.29B	1.38B
UNITED STATES Growth	-	9.25%	6.28%	-18.36%	21.58%	11.44%	7.17%
Non-US	129.73M	227.92M	280.25M	346.83M	286.44M	317.62M	247.53M
Non-US Growth	-	75.69%	22.96%	23.76%	-17.41%	10.88%	-22.06%

Frequently Asked Questions

Valuation & Price

Federated Hermes, Inc. (FHI) has a price-to-earnings (P/E) ratio of 16.5x. This is roughly in line with market averages.

Growth & Financials

Federated Hermes, Inc. (FHI) grew revenue by 1.4% over the past year. Growth has been modest.

Yes, Federated Hermes, Inc. (FHI) is profitable, generating $381.0M in net income for fiscal year 2024 (16.4% net margin).

Dividend & Returns

Yes, Federated Hermes, Inc. (FHI) pays a dividend with a yield of 4.36%. This makes it attractive for income-focused investors.

Federated Hermes, Inc. (FHI) has a return on equity (ROE) of 23.3%. This is excellent, indicating efficient use of shareholder capital.

Industry Metrics

Federated Hermes, Inc. (FHI) has a net interest margin (NIM) of 1.3%. NIM has been under pressure due to interest rate environment.

Federated Hermes, Inc. (FHI) has an efficiency ratio of 44.7%. This is excellent, indicating strong cost control.

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