# Federated Hermes Inc. (FHI) fundamentals

Data as of 2026-11-04. NYSE, United States. Sector: Financial Services / Capital Markets. Price $62.16, market value $4.6 billion.

## Valuation
- **P/E (trailing): 11.2×** (5-yr avg 10.9×, 3-yr avg 10.4×). Federated Hermes Inc. trades at 11.2× trailing earnings, close to its own five-year average of 10.9×. The Financial Services median in the September 2026 study was 13.1×. Forward P/E is 10.4×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.18**. A PEG of 0.18 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 2.3×**. Each dollar of revenue is priced at 2.3×.
- **Price / book: 3.4×**. The shares trade at 3.4× book value; book value is a meaningful part of the valuation.
- **Free-cash-flow yield: 8.4%** (5-yr avg 9.5%). Free cash flow equals 8.4% of the market value, in line with its five-year average of 9.5%. Above 5% is generally attractive.
- **Earnings yield: 8.9%**. The inverse of the P/E: 8.9% of the price is earned each year.

## Profitability
- **Operating margin: 27.8%**. 27.8% of revenue is left after running the business, an exceptional level.
- **Net margin: 22.4%**. 22.4% of each dollar of sales reaches the bottom line.
- **Return on equity: 33.7%**. 33.7% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 45.0%**. Return on all capital, debt included, is 45.0%: comfortably above what that capital costs.
- **Return on assets: 18.8%**. Each dollar of assets produces 18.8% of profit; low single digits are normal for banks and insurers.

## Growth
- **Revenue growth (1 yr): 10.3%** (3-yr 7.6%/yr, 5-yr 4.5%/yr). Revenue grew 10.3% over the last year, against 4.5% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 58.8%** (3-yr 24.6%/yr, 5-yr 9.7%/yr). Earnings per share rose 58.8%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): -2.7%/yr**. Free cash flow has compounded at -2.7% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.
- **Cash and short-term investments: $583 million**. Leverage ratios are shown differently for banks and insurers, whose balance sheets are built on deposits and reserves; use return on equity and the regulatory capital in the filings instead.

## Dividends
- **Dividend yield: 2.45%** ($1.44 per share, trailing). Federated Hermes Inc. yields 2.45%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 26%** (28% of free cash flow). 26% of earnings goes out as dividends, leaving room to keep raising it.
- **Dividend growth (5 yr): -8.6%/yr** (1-yr -39.8%). The dividend has not grown over five years.

## Analyst view
- **Analyst consensus: hold** (7 analysts). 7 analysts cover Federated Hermes Inc.; the consensus is hold, with an average price target of $60.00 (-3% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 31.7%** (YTD 21.8%, 3-mo -2.2%). The shares are up 31.7% over twelve months including dividends.
- **From 52-week high: -7.5%** (31.4% above the low). Trading 8% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 72**. An RSI of 72 is in overbought territory; short-term pullbacks are common from here.
- **Beta (1 yr): 0.63** (volatility 25%). Beta of 0.63 against the S&P 500: the shares move much less than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=FHI · Page: https://foliofundamentals.com/stocks/fhi

Not investment advice.