Federated Hermes (FHI) Stock Fundamentals, Analysis & Risk Signals

Health score, price, valuation, risk signals, and key metrics at a glance.

Federated Hermes

NYSE•Financial Services•Asset Management

$56.69-1.56(-0.03%)Pre-market

Market Cap

$4.05B

P/E

9.8x

P/S

2.1x

P/B

3.2x

Federated Hermes, Inc. is a publicly owned investment manager. 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; Chicago, Illinois and London, United Kingdom.

How this company scores

ExcellentMetricSide Score: 91/100

Strongest: Profitability (25/25); weakest: Balance Sheet & Red Flags (20/25).

Profitability25/25

Growth23/25

Balance Sheet & Red Flags20/25

Cash & Earnings Quality23/25

Strengths

Growing revenueRising free cash flowStrong marginsHigh ROE

Valuation vs. 5-year range

Today's multiple positioned against its own trailing range — a visual premium/discount check.

P/E · 9.8x5y range 9.1x – 12.7x

Currently near its 20-quarter median.

P/S · 2.1x5y range 1.8x – 2.5x

Currently near its 20-quarter median.

P/B · 3.2x5y range 2.5x – 3.4x

Watch items

Data-driven signals worth keeping an eye on across the last 8 quarters

Some Concerns

Earnings Quality

Watch

FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.

Price & Volume

Market Cap $4.05B

Metrics at a Glance

as of June 2026

Revenue & Profit

Revenue, EBITDA, operating income, net income, EPS, and shares

TTM Revenue: $1.93B
Q. Revenue: $502.78M
TTM EBITDA: $524.24M
TTM Op. Income: $524.24M
Q. Op. Income: $132.88M
TTM Net Income: $411.86M
Q. Net Income: $104.32M
EPS: $1.38
Shares Out.: $71.94M

$1.93B in TTM revenue grew 15.0% YoY, reaching $502.78M last quarter. TTM EBITDA of $524.24M and TTM operating income of $524.24M show growth is flowing through to the bottom line. TTM net income of $411.86M means revenue is converting into profit. Across the last 8 quarters, TTM revenue has risen for 7 consecutive quarters — an improving trend.

Margins

Gross, EBITDA, operating, and net margin trends

EBITDA Margin: 26.4%
Op. Margin: 26.4%
Net Margin: 20.7%

Op. margin of 26.4% is down 1.1% YoY — costs are rising relative to revenue. Net margin at 20.7% Over the past year, operating margin is down 4% — an improving trend.

Price Ratios

P/E, P/S, P/B, EV/EBITDA, FCF yield, and earnings yield

P/E Ratio: 9.8x
P/S Ratio: 2.1x
P/B Ratio: 3.2x

At 9.8x P/E, the stock trades below typical market levels. P/S of 2.1x and P/B of 3.2x provide additional context. P/E sits below typical market levels while revenue is growing. Over the past year, P/E is up 8% — an improving trend.

Assets & Liabilities

Total assets, cash, debt, book value, and leverage

Total Assets: $2.33B
Cash: $301.73M
Long-Term Debt: $348.50M
Book Value: $1.25B
D/E Ratio: 0.3
Debt/EBITDA: 2.6

With $2.33B in assets and $348.50M in long-term debt, D/E is 0.3and book value is $1.25B — a conservative capital structure with a cushion to weather downturns. Across the last 8 quarters, debt/equity has fallen for 5 consecutive quarters — an improving trend.

Cash Flow

Operating cash flow, free cash flow, FCF margin, and earnings quality

Op. Cash Flow: $80.88M
TTM Free Cash Flow: $366.94M
FCF Margin: 19.0%
FCF / Net Income: 0.9

TTM FCF of $366.94M on $80.88M in operating cash flow. The FCF / Net Income ratio of 0.9x means free cash flow covers net income — earnings are backed by cash. Across the last 8 quarters, free cash flow has risen for 3 consecutive quarters — an improving trend.