Bull Rankings model

Federated Hermes, Inc. (FHI) stock analysis

Asset Management. Scored on the same transparent model behind the daily rankings.

★
FHI
Federated Hermes, Inc. · Asset Management
88.7Asset manager strength
$55.05Oct 13 close$4.1B
1Y Target$59.43Analyst consensus · 7 analysts
5Y Target$75.03Compound horizon
10Y Target$96.22Long-dated conviction
Rev+10.3%
B
Revenue +10.3% — at or above S&P median
P/E10.3x
A-
P/E 10.3 — cheaper than most Financial Services peers (≈25th pctile)
ROE31.1%
A
ROE 31.1% — world-class capital efficiency
P/B3.20
C
P/B 3.20 — expensive; pricing in strong ROE
Yield2.5%
B
Yield 2.5% — modest income

Targets: 1-year is analyst consensus where covered, 5- and 10-year are model estimates; the DCF is a cross-check, not a target. Methodology

Financial strength · 88.7 / 100
Profitability100.0
Value (P/E)94.6
Income62.3

A peer-relative read for asset managers on profitability (ROE), valuation, and covered income — the quality-growth (FCF/ROIC) screen doesn't apply to balance-sheet businesses. Not comparable to the 0–100 quality-growth score shown on other stocks.

Entry · Margin of safety
52-week rangeMid-range
18% off the 12-month high

Model-generatedFrom reported fundamentals, checked against the figures above · Editorial standards

Why now
Asset Management · market cap $4.1b. 18% off the 52-week high of $67.20. Revenue growing +10%, comfortably above the S&P median. 7 sell-side analysts rate this a Hold with a mean 1-yr target of $59.43 (implying +8% upside).
Moat
Net margin 21% sits well above the S&P median (~11%) — suggests structural pricing advantage or cost discipline competitors can't quickly close. ROE 31% — top-decile capital efficiency. Either pricing leverage, low capital intensity, or aggressive buybacks; the durability story depends on which.
Risk
Balance-sheet financial — book value, net interest margin, and credit loss provisions are the lever points; a rates regime change or a deterioration in the loan book moves the stock more than EPS does.
Horizon
1-3 yr $59.43 (7-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $75.03 at ~6% CAGR — dividend + buyback compounding. 10 yr $96.22 if the moat survives secular pressure.
Score history · FHI

Not enough history yet — the model records FHI's score after each daily run, and the chart appears once a few days have accumulated.

FHI at a glance

FINANCIAL STRENGTH · ASSET MANAGERPROFITABILITY100VALUE95COVERED INCOME6288.7/100 on our peer scale — not the quality-growth score.
PRICE IN ITS 52-WEEK RANGE$55.1LOW $46.7HIGH $67.2Trading at the 41st percentile of its 52-week range ($46.7–$67.2).
ONE-YEAR MOVE VS ITS BETAFLATThis stock+8%Trailing one-year price change. Price history is not an inputto the Bull Rankings score.

Same audited fundamentals as the score, unless a card says otherwise.

Analyst estimate revisions

30-day change-0.3%
90-day change+0.5%
Forward EPS estimate$5.83

Over the last 90 days, what analysts expect FHI to earn is essentially unchanged. The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

Estimates move both ways and are not part of the Bull Rankings score. Biggest movers →

Position sizing · FHI
Shares to buy
36
Position size
$1,982
4.0% of portfolio
Stop price
$41.29
25% below $55.05
$ at risk if stopped
$495.45
budget $500.00 · 1% of portfolio

Math only: excludes commissions, slippage and gap risk. Inputs stay in your browser.

Federated Hermes, Inc. (FHI): score, valuation & FAQ

Federated Hermes, Inc. (FHI) is an Asset Management company. As a bank, insurer or REIT it runs on a different financial model from the rest of the market, so Bull Rankings grades it on a sector-appropriate card — price-to-book, dividend yield, payout ratio and cash-flow coverage — rather than the 0–100 quality-growth score used elsewhere. The read below is a transparent screen, not a buy recommendation.

Its strongest graded signals are ROE (A) and P/E (A-).

Is FHI a good stock to buy?

Bull Rankings grades FHI on a sector-appropriate card — price-to-book, dividend yield, payout and cash-flow coverage — rather than a single quality-growth score. That is driven by ROE (A) and P/E (A-). A score is a quantitative screen of Federated Hermes, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

How does Bull Rankings grade FHI?

As a bank, insurer or REIT, FHI isn't given a quality-growth score — signals like free cash flow, debt-to-equity and P/E don't translate cleanly to a balance-sheet business. Instead it's graded on a sector-appropriate card: price-to-book, dividend yield, payout ratio and operating-cash-flow coverage, where it rates strongest on ROE (A) and P/E (A-).

Is FHI overvalued or undervalued?

We don't publish a discounted-cash-flow value for FHI, and not because the business is unprofitable. For a lender, insurer or property trust, "free cash flow" measures balance-sheet growth rather than owner earnings — loan originations and repayments run through operating cash flow — so discounting it would produce a confident-looking number with nothing behind it. FHI is judged on book value, return on equity and income cover instead, which is what the financial-strength card shows.

What are the main risks of investing in FHI?

Balance-sheet financial — book value, net interest margin, and credit loss provisions are the lever points; a rates regime change or a deterioration in the loan book moves the stock more than EPS does.

New to these metrics? See the guides and the methodology.

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