📊 FHI Key Takeaways
Is FHI a Good Investment? Thesis Analysis
Federated Hermes demonstrates exceptional financial health with strong profitability (22.4% net margin), robust return on equity (33.7%), and solid revenue growth (10.3% YoY). The company generates substantial free cash flow ($294.6M) with conservative leverage (0.29x debt/equity), positioning it well for sustainable operations and shareholder returns.
Why Buy FHI? Key Strengths
- Excellent net profit margin of 22.4% with net income growth of 4.7% YoY demonstrating pricing power and operational efficiency
- Strong return metrics with ROE of 33.7% and ROA of 18.1% indicating superior capital deployment and asset utilization
- Healthy balance sheet with low leverage (0.29x debt/equity), substantial cash position ($582.5M), and strong liquidity (2.75x current ratio)
- Consistent free cash flow generation ($294.6M) representing 16.4% FCF margin, enabling reinvestment and capital allocation flexibility
- Double-digit revenue growth (10.3% YoY) in investment advisory sector indicates market demand and competitive positioning
FHI Investment Risks to Consider
- Operating margin of 28.5% is strong but dependent on asset management industry cyclicality and market conditions affecting Assets Under Management (AUM)
- Significant insider activity (12 Form 4 filings in 90 days) warrants monitoring for potential insider concerns or strategic transactions
- Asset-management-dependent business model creates revenue sensitivity to market volatility and client redemptions that may not be captured in current metrics
Key Metrics to Watch
- Assets Under Management (AUM) growth and composition by strategy type
- Client retention and net inflows/outflows as leading indicators of recurring revenue quality
- Operating margin trends as proxy for operational leverage and cost discipline
- Free cash flow consistency and deployment strategy for capital allocation
FHI Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.75x current ratio provides a solid financial cushion.
FHI Profitability Ratios
FHI vs Default Sector
How FEDERATED HERMES, INC. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is FHI Overvalued or Undervalued?
Based on fundamental analysis, FEDERATED HERMES, INC. appears fundamentally strong relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
FHI Balance Sheet & Liquidity
FHI 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: FEDERATED HERMES, INC.'s revenue has grown significantly by 24% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.40 reflects profitable operations.
FHI Growth Metrics (YoY)
FHI Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $408.5M | $87.5M | $1.06 |
| Q2 2025 | $402.6M | $21.0M | $0.20 |
| Q1 2025 | $396.4M | $75.0M | $0.89 |
| Q3 2024 | $402.7M | $75.0M | $0.86 |
| Q2 2024 | $402.6M | $21.0M | $0.20 |
| Q1 2024 | $382.2M | $69.6M | $0.78 |
| Q3 2023 | $381.1M | $69.5M | $0.78 |
| Q2 2023 | $366.0M | $57.7M | $0.64 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
FHI Capital Allocation
FHI SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for FEDERATED HERMES, INC. (CIK: 0001056288)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FHI
What is the AI rating for FHI?
FEDERATED HERMES, INC. (FHI) has an AI rating of STRONG BUY with 88% confidence, based on fundamental analysis of SEC EDGAR filings.
What are FHI's key strengths?
Claude: Excellent net profit margin of 22.4% with net income growth of 4.7% YoY demonstrating pricing power and operational efficiency. Strong return metrics with ROE of 33.7% and ROA of 18.1% indicating superior capital deployment and asset utilization.
What are the risks of investing in FHI?
Claude: Operating margin of 28.5% is strong but dependent on asset management industry cyclicality and market conditions affecting Assets Under Management (AUM). Significant insider activity (12 Form 4 filings in 90 days) warrants monitoring for potential insider concerns or strategic transactions.
What is FHI's revenue and growth?
FEDERATED HERMES, INC. reported revenue of $1.8B.
Does FHI pay dividends?
FEDERATED HERMES, INC. pays dividends, with $104.9M distributed to shareholders in the trailing twelve months.
Where can I find FHI SEC filings?
Official SEC filings for FEDERATED HERMES, INC. (CIK: 0001056288) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FHI's EPS?
FEDERATED HERMES, INC. has a diluted EPS of $5.13.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FHI a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, FEDERATED HERMES, INC. has a STRONG BUY rating with 88% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is FHI stock overvalued or undervalued?
Valuation metrics for FHI: ROE of 33.7% (sector avg: 15%), net margin of 22.4% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy FHI stock in 2026?
Our dual AI analysis gives FEDERATED HERMES, INC. a combined STRONG BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is FHI's free cash flow?
FEDERATED HERMES, INC.'s operating cash flow is $297.3M, with capital expenditures of $2.8M. FCF margin is 16.4%.
How does FHI compare to other Default stocks?
Vs Default sector averages: Net margin 22.4% (avg: 12%), ROE 33.7% (avg: 15%), current ratio 2.75 (avg: 1.8).