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Earnings transcript
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FHI
Federated Hermes, Inc.
$55.05
-0.98
(-1.75%)
| Exchange: | NYSE |
| Market Cap: | 4.179B |
| Shares Outstanding: | 128.5M |
Delayed data
About The Company
| Sector: | Financial ServicesView sector performance | |||||
| Industry: | Asset ManagementView industry performance | |||||
| CEO: | John Christopher Donahue | |||||
| Full Time Employees: | 2091 | |||||
| Address: |
| |||||
| Website: | https://www.federatedhermes.com |
Federated Hermes, Inc. (FHI) is a publicly listed holding company primarily engaged in asset management. Through its extensive network of subsidiaries, the firm delivers specialized financial services to a wide array of clients. These include high-net-worth individuals, banking and thrift institutions, investment companies, pension and profit-sharing plans, pooled investment vehicles, charitable organizations, state and municipal governmental entities, and registered investment advisors. FHI is responsible for managing a variety of investment products, including client-focused mutual funds across equity, fixed income, balanced, and money market categories, alongside bespoke portfolios in similar asset classes. The company’s investment reach extends to public equity and fixed income markets worldwide. Its equity strategies involve investing in growth and value stocks of small, mid, and large-capitalization firms. Within fixed income, FHI allocates capital to ultra-short, short-term, and intermediate-term mortgage-backed securities, U.S. Government debt, corporate bonds, high-yield instruments, and municipal securities. To identify equity opportunities, the firm utilizes a combination of fundamental and quantitative analysis. Federated Hermes, Inc. was founded in 1955 and maintains its principal offices in Pittsburgh, Pennsylvania, complemented by presences in New York City and London, United Kingdom.
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Revenue Segmentation
FHI full analysis
Welcome to MARKETSNAP’s SWOT analysis for Federated Hermes, Inc., or FHI as you might know it on the ticker. If you’re not too familiar with this name, let me give you the quick rundown. Federated Hermes is a powerhouse in the asset management space, operating within the financial services sector, specifically in the investment management industry. They’ve got a global presence, managing a wide range of assets for institutional and individual investors. Think mutual funds, ETFs, and alternative investments—they’ve got…
Industry Peers
| TICKER | COMPANY | MKT CAP | P/E | FWD P/E | ROIC |
|---|---|---|---|---|---|
| FHI | Federated Hermes, Inc. | 4.2B | 10.4 | 10.1 | 18.8% |
 OTF | Blue Owl Technology Finance Corp. | 4.2B | 7.2 | 7.1 | 559.2% |
 HLNE | Hamilton Lane Incorporated | 4.6B | 12.9 | 13.7 | 19.0% |
 HASI | HA Sustainable Infrastructure Capital,… | 4.7B | 55.3 | 12.2 | -0.1% |
 CNS | Cohen & Steers, Inc. | 3.5B | 21.2 | 20.1 | 18.2% |
 OBDC | Blue Owl Capital Corporation | 5.0B | 18.1 | 7.8 | 3.7% |
EPS
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Earnings Call
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Key takeaways
Short, structured highlights from the call so you can focus on what matters.
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Login — it's freeIncome Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 1,609,574 | 1,632,093 | 1,800,663 |
| Gross Profit | 1,046,186 | 1,091,607 | 1,222,977 |
| EBITDA | 427,600 | 416,703 | 536,142 |
| Operating Income | 387,549 | 361,467 | 513,882 |
| Net Income | 298,980 | 268,314 | 403,299 |
(* All numbers are in thousands)
Balance Sheet
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Total Assets | 2,101,844 | 2,084,684 | 2,229,337 |
| Total Liabilities | 947,747 | 933,964 | 965,860 |
| Total Stockholders Equity | 1,128,252 | 1,095,206 | 1,196,948 |
| Total Debt | 457,942 | 461,967 | 348,369 |
| Cash and Cash Equivalents | 383,180 | 504,441 | 724,297 |
(* All numbers are in thousands)
Cash Flow Statement
| Year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Operating Cash Flow | 311,831 | 346,554 | 0 |
| Capital Expenditure | -7,915 | -4,024 | 0 |
| Free Cash Flow | 303,916 | 342,530 | 0 |
| Net Income | 304,781 | 268,430 | 403,299 |
| Net Change in Cash | 45,999 | 120,613 | -507,567 |
(* All numbers are in thousands)
Analyst Estimates
| Fiscal Year | 2029 | Research Access | Research Access | Research Access | Research Access |
|---|---|---|---|---|---|
| Estimated Revenue (Low) | 2,337,829.666 | Research Access | Research Access | Research Access | Research Access |
| Estimated Revenue (High) | 2,383,984.882 | Research Access | Research Access | Research Access | Research Access |
| Estimated Revenue (Avg) | 2,357,600 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (Low) | 730,454.385 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (High) | 748,855.516 | Research Access | Research Access | Research Access | Research Access |
| Estimated Ebitda (Avg) | 738,336.488 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (Low) | 524,487.815 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (High) | 537,983.073 | Research Access | Research Access | Research Access | Research Access |
| Estimated Net Income (Avg) | 530,268.493 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (Low) | 827,828.946 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (High) | 844,172.576 | Research Access | Research Access | Research Access | Research Access |
| Estimated SGA Expense (Avg) | 834,829.650 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (Avg) | 7.060 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (High) | 7.160 | Research Access | Research Access | Research Access | Research Access |
| Estimated EPS (Low) | 6.980 | Research Access | Research Access | Research Access | Research Access |
| Number of Analysts (Estimated Revenue) | 1 | Research Access | Research Access | Research Access | Research Access |
| Number of Analysts (Estimated EPS) | 1 | Research Access | Research Access | Research Access | Research Access |
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Current Key Metrics
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Login — it's freeSWOT Analysis
Strengths (preview)
- Record Assets Under Management (AUM): As highlighted in the Q2 2025 earnings call transcript, Federated Hermes reported record AUM, indicating strong investor confidence and effective asset management strategies, which bolster the company’s market position.
- Solid Financial Performance: Key metrics such as revenue, gross profit, and net income from recent income statements reflect consistent operational efficiency, supported by a healthy net profit margin (TTM) and positive free cash flow yield (TTM), demonstrating financial stability.
- Strong Industry Positioning: Performance data shows FHI outperforming industry averages over multiple timeframes (e.g., perf1y, perf5y), suggesting competitive strength within the asset management sector and resilience against sector-wide fluctuations.
- Experienced Leadership: The earnings call summary underscores strategic focus under the current CEO, with proactive measures to address market challenges, enhancing long-term growth prospects through disciplined management.
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At what price to buy it? -
Intrinsic Value Calculator
Based on current fundamentals and analyst forecasts, MarketSnap estimates FHI intrinsic value between $44.50 – $74.58 per share. This depends on revenue growth, margins, and discount rate.
This is an automatic estimate. The most reliable way to know fair value for your own assumptions is to run the calculator below.
Common questions about FHI valuation
Is Federated Hermes, Inc. (FHI) overvalued or undervalued right now?
MarketSnap estimates intrinsic value for Federated Hermes, Inc. (FHI) using its proprietary valuation methodology, which incorporates discounted cash flow (DCF) analysis together with long-term earnings and fundamentals assumptions. By comparing intrinsic value to the current market price, long-term investors can see whether the stock screens as potentially overvalued, fairly valued, or undervalued today.
Is FHI a buy, hold, or sell for long-term investors?
MarketSnap does not give one-word “buy” or “sell” calls. Instead, it shows whether FHI trades at a premium or discount to its estimated intrinsic value, how sensitive that value is to growth and margin assumptions, and how the stock fits into a diversified, long-term portfolio so investors can make their own buy, hold, or sell decision.
What is FHI’s P/E ratio?
You can see FHI’s trailing P/E (TTM) and forward P/E estimates in the Current Key Metrics and Forward P/E Ratios sections above. The P/E ratio compares the current share price to earnings per share and helps investors gauge valuation relative to earnings.
How is intrinsic value calculated for FHI?
MarketSnap uses its own valuation framework—not a generic spreadsheet DCF alone. Future cash flows and earnings are projected, discounted, and combined with MarketSnap’s methodology so intrinsic value reflects fundamentals and long-term assumptions. You can run your own inputs and see the result using the Intrinsic Value Calculator above.
Is FHI a good long-term investment?
Whether FHI fits a long-term portfolio depends on your assumptions about growth, margins, and risk. MarketSnap provides the metrics, intrinsic value calculator, and SWOT context so you can form your own view rather than rely on a single buy/sell rating.
FHI
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Daily snapshot
-1.75
Trading Metrics:
| Open: | 56.41 | Previous Close: | 56.03 | |
| Day Low: | 54.82 | Day High: | 56.61 | |
| Year Low: | 46.66 | Year High: | 67.2 | |
| Price Avg 50: | 60.6 | Price Avg 200: | 57.15 | |
| Volume: | 924726 | Average Volume: | 624876 |
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