Federated Hermes, Inc. (FHI) Financial Ratios
29 years of historical data (1997–2025) · Financial Services · Asset Management
EV/EBITDA
↓
7.82
-3% vs avg
5yr avg: 8.05
30Y Low4.8·High21.1
P/FCF
↓
15.23
+19% vs avg
5yr avg: 12.78
30Y Low5.7·High29.9
P/B Ratio
↑
3.51
↑+24% vs avg
5yr avg: 2.84
30Y Low2.0·High24.0
ROE
↑
33.4%
↓+33% vs avg
5yr avg: 25.1%
30Y Low21%·High379%
Debt/EBITDA
↓
0.82
↓-22% vs avg
5yr avg: 1.05
30Y Low0.2·High4.7
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
FHI Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Federated Hermes, Inc. trades at 11.5x earnings, roughly in line with its 5-year average of 12.0x, sitting at the 21st percentile of its historical range. Compared to the Financial Services sector median P/E of 13.6x, the stock trades at a discount of 15%. On a free-cash-flow basis, the stock trades at 15.2x P/FCF, 19% above the 5-year average of 12.8x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $4.5B | $3.9B | $3.3B | $2.8B | $3.1B | $3.5B | $2.8B | $3.2B | $2.6B | $3.5B | $2.8B |
| Enterprise Value | $4.4B | $3.8B | $3.2B | $2.9B | $3.2B | $3.6B | $2.7B | $3.1B | $2.6B | $3.4B | $2.9B |
| P/E Ratio → | 11.51 | 10.15 | 12.73 | 9.96 | 13.70 | 13.67 | 8.94 | 12.12 | 11.70 | 12.57 | 13.93 |
| P/S Ratio | 2.48 | 2.16 | 2.00 | 1.76 | 2.15 | 2.70 | 1.92 | 2.39 | 2.27 | 3.19 | 2.45 |
| P/B Ratio | 3.51 | 3.10 | 2.84 | 2.46 | 2.81 | 2.99 | 2.03 | 2.53 | 2.48 | 4.44 | 4.70 |
| P/FCF | 15.23 | 13.28 | 9.53 | 9.34 | 9.74 | 21.99 | 7.74 | 9.91 | 13.62 | 13.49 | 11.68 |
| P/OCF | 15.09 | 13.15 | 9.42 | 9.11 | 9.61 | 20.64 | 7.46 | 9.46 | 12.48 | 13.00 | 11.09 |
P/E links to full P/E history page with 30-year chart
FHI EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Federated Hermes, Inc.'s enterprise value stands at 7.8x EBITDA, roughly in line with its 5-year average of 8.0x. The Financial Services sector median is 11.4x, placing the stock at a 31% discount on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.09 | 1.97 | 1.81 | 2.23 | 2.79 | 1.86 | 2.37 | 2.25 | 3.05 | 2.50 |
| EV / EBITDA | 7.82 | 6.79 | 8.40 | 7.03 | 8.85 | 9.16 | 6.02 | 8.36 | 7.35 | 9.57 | 8.29 |
| EV / EBIT | 8.15 | 6.75 | 8.17 | 7.27 | 8.77 | 9.91 | 6.45 | 9.03 | 7.73 | 9.86 | 8.53 |
| EV / FCF | — | 12.84 | 9.41 | 9.59 | 10.11 | 22.69 | 7.50 | 9.82 | 13.50 | 12.93 | 11.94 |
FHI Profitability
Margins and return-on-capital ratios measuring operating efficiency
Federated Hermes, Inc. earns an operating margin of 29.5%, above the Financial Services sector average of 20.3%. Operating margins have expanded from 24.1% to 29.5% over the past 3 years, signaling improving operational efficiency. Return on equity of 33.4% is exceptionally high — well above the sector median of 9.0%. ROIC of 24.1% represents excellent returns on invested capital versus a sector median of 5.4%.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 73.6% | 73.6% | 66.9% | 65.0% | 64.5% | 59.1% | 65.2% | 66.7% | 68.8% | 73.8% | 74.1% |
| Operating Margin | 29.5% | 29.5% | 22.1% | 24.1% | 23.3% | 28.2% | 28.9% | 26.2% | 29.1% | 31.0% | 29.4% |
| Net Profit Margin | 22.3% | 22.3% | 16.4% | 18.6% | 16.6% | 20.8% | 22.5% | 20.5% | 19.4% | 26.4% | 18.3% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 33.4% | 33.4% | 23.3% | 26.4% | 21.0% | 21.2% | 24.8% | 23.8% | 24.1% | 42.0% | 33.5% |
| ROA | 18.4% | 18.4% | 12.8% | 14.5% | 11.9% | 13.3% | 16.6% | 15.9% | 15.9% | 24.4% | 17.8% |
| ROIC | 24.1% | 24.1% | 16.8% | 18.3% | 16.4% | 17.7% | 20.5% | 19.7% | 23.2% | 29.7% | 31.4% |
| ROCE | 26.3% | 26.3% | 20.0% | 21.7% | 19.2% | 20.7% | 24.3% | 23.1% | 26.8% | 32.6% | 33.2% |
FHI Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Federated Hermes, Inc. carries a Debt/EBITDA ratio of 0.8x, which is very conservative (81% below the sector average of 4.3x). The company holds a net cash position — cash of $584M exceeds total debt of $457M, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns. Interest coverage of 44.0x signals virtually no risk of debt distress — earnings comfortably cover interest obligations.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.36 | 0.36 | 0.40 | 0.40 | 0.41 | 0.29 | 0.15 | 0.18 | 0.13 | 0.21 | 0.28 |
| Debt / EBITDA | 0.82 | 0.82 | 1.20 | 1.11 | 1.24 | 0.87 | 0.47 | 0.59 | 0.39 | 0.48 | 0.48 |
| Net Debt / Equity | — | -0.10 | -0.04 | 0.06 | 0.10 | 0.10 | -0.06 | -0.02 | -0.02 | -0.18 | 0.10 |
| Net Debt / EBITDA | -0.23 | -0.23 | -0.11 | 0.18 | 0.32 | 0.28 | -0.20 | -0.07 | -0.06 | -0.42 | 0.18 |
| Debt / FCF | — | -0.43 | -0.12 | 0.25 | 0.36 | 0.70 | -0.25 | -0.09 | -0.12 | -0.56 | 0.25 |
| Interest Coverage | 44.00 | 44.00 | — | 32.01 | 33.26 | 205.19 | — | 69.07 | 56.12 | 71.56 | 80.44 |
Net cash position: cash ($584M) exceeds total debt ($457M)
FHI Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Federated Hermes, Inc.'s current ratio of 41.26x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The current ratio has improved from 2.51x to 41.26x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 41.26 | 41.26 | 2.70 | 2.51 | 2.53 | 2.07 | 2.17 | 2.00 | 1.68 | 3.39 | 2.21 |
| Quick Ratio | 41.26 | 41.26 | 2.70 | 2.51 | 2.53 | 2.07 | 2.17 | 2.00 | 1.68 | 3.39 | 2.21 |
| Cash Ratio | 28.98 | 28.98 | 1.74 | 1.33 | 1.31 | 0.86 | 1.14 | 1.08 | 0.87 | 2.45 | 0.65 |
| Asset Turnover | — | 0.79 | 0.78 | 0.77 | 0.72 | 0.64 | 0.70 | 0.71 | 0.74 | 0.90 | 0.99 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
FHI Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Federated Hermes, Inc. returns 8.2% to shareholders annually — split between a 2.4% dividend yield and 5.9% buyback yield. The payout ratio of 26.0% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 8.7% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.4% | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | 26.0% | 26.0% | 68.9% | 32.8% | 40.9% | 39.1% | 63.7% | 40.1% | 48.5% | 34.8% | 98.3% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 8.7% | 9.9% | 7.9% | 10.0% | 7.3% | 7.3% | 11.2% | 8.3% | 8.5% | 8.0% | 7.2% |
| FCF Yield | 6.6% | 7.5% | 10.5% | 10.7% | 10.3% | 4.5% | 12.9% | 10.1% | 7.3% | 7.4% | 8.6% |
| Buyback Yield | 5.9% | — | — | — | — | — | — | — | — | — | — |
| Total Shareholder Yield | 8.2% | — | — | — | — | — | — | — | — | — | — |
| Shares Outstanding | — | $75M | $79M | $84M | $86M | $94M | $96M | $97M | $97M | $97M | $99M |
Peer Comparison
Compare FHI with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 FHIYou | $4B | 11.5 | 7.8 | 15.2 | 73.6% | 29.5% | 33.4% | 24.1% | 0.8 |
 BEN | $17B | 36.3 | 23.7 | 18.8 | 80.3% | 6.9% | 3.7% | 1.6% | 11.7 |
 IVZ | $13B | -17.6 | 16.8 | 8.7 | 43.2% | -10.9% | -2.0% | -2.3% | 8.2 |
 VRTS | $948M | 7.1 | 16.2 | — | 74.9% | 17.4% | 13.5% | 3.0% | 13.9 |
 DHIL | $473M | 9.8 | 110.4 | — | 96.0% | 38.4% | 28.8% | 1.3% | 103.4 |
 GROW | $39M | -124.0 | — | — | 41.7% | -35.3% | -0.7% | -4.7% | — |
 BLK | $174B | 29.6 | 23.0 | 46.3 | 55.5% | 29.1% | 10.0% | 7.5% | 1.9 |
 TROW | $23B | 11.6 | 8.0 | 15.8 | 62.7% | 29.9% | 17.8% | 13.3% | 0.3 |
 AMG | $9B | 15.5 | 12.2 | 9.4 | 86.0% | 31.8% | 15.8% | 8.1% | 2.8 |
 CLFD | $554M | -69.7 | 65.6 | 22.4 | 33.7% | 1.4% | -3.0% | 0.6% | 1.1 |
 CNS | $4B | 25.1 | 20.4 | — | 57.5% | 31.3% | 25.4% | 17.9% | 0.7 |
| Financial Services Median | — | 13.6 | 11.4 | 11.1 | 64.1% | 20.3% | 9.0% | 5.4% | 4.3 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Includes 30+ ratios · 29 years · Updated daily
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FHI — Frequently Asked Questions
Quick answers to the most common questions about buying FHI stock.
What is Federated Hermes, Inc.'s P/E ratio?
Federated Hermes, Inc.'s current P/E ratio is 11.5x. The historical average is 15.3x. This places it at the 21th percentile of its historical range.
What is Federated Hermes, Inc.'s EV/EBITDA?
Federated Hermes, Inc.'s current EV/EBITDA is 7.8x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.6x.
What is Federated Hermes, Inc.'s ROE?
Federated Hermes, Inc.'s return on equity (ROE) is 33.4%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 54.1%.
Is FHI stock overvalued?
Based on historical data, Federated Hermes, Inc. is trading at a P/E of 11.5x. This is at the 21th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Federated Hermes, Inc.'s dividend yield?
Federated Hermes, Inc.'s current dividend yield is 2.36% with a payout ratio of 26.0%.
What are Federated Hermes, Inc.'s profit margins?
Federated Hermes, Inc. has 73.6% gross margin and 29.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
How much debt does Federated Hermes, Inc. have?
Federated Hermes, Inc.'s Debt/EBITDA ratio is 0.8x, indicating low leverage. A ratio below 2x is generally considered financially healthy.