Federated Hermes, Inc. (FHI) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Federated Hermes, Inc.

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AllianceBernstein Holding LP

Why is Federated Hermes, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 25.26%

The company has declared Positive results for the last 3 consecutive quarters

NET PROFIT(HY) At USD 183.48 MM has Grown at 55.4%
ROCE(HY) Highest at 32.69%
RAW MATERIAL COST(Y) Fallen by -0.01% (YoY)

With ROE of 28.29%, it has a fair valuation with a 3.60 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 22.95%, its profits have risen by 4.4% ; the PEG ratio of the company is 1.3

Real-Time Research Report

Verdict Report

How much should you buy?

Overall Portfolio exposure to Federated Hermes, Inc. should be less than 10%
Overall Portfolio exposure to Capital Markets should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Capital Markets)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Federated Hermes, Inc. for you?

Low Risk, High Return

Absolute

Risk Adjusted

Volatility

Federated Hermes, Inc.

22.93%

2.74

22.44%

S&P 500

21.51%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.59%

EBIT Growth (5y)

4.51%

EBIT to Interest (avg)

89.34

Debt to EBITDA (avg)

Negative Net Debt

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

Tax Ratio

28.13%

Dividend Payout Ratio

25.93%

Pledged Shares

Institutional Holding

99.63%

ROCE (avg)

68.16%

ROE (avg)

25.26%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.14

EV to EBIT

7.91

EV to EBITDA

7.59

EV to Capital Employed

8.98

EV to Sales

2.34

PEG Ratio

0.28

Dividend Yield

ROCE (Latest)

113.52%

ROE (Latest)

32.23%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

No Trend

Bullish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 373.99 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 17.19 times

DIVIDEND PER SHARE(HY)

Highest at USD 17.19

INTEREST COVERAGE RATIO(Q)

Highest at 4,796.61

RAW MATERIAL COST(Y)

Fallen by 1.51% (YoY

NET SALES(Q)

Highest at USD 504.2 MM

PRE-TAX PROFIT(Q)

Highest at USD 144.03 MM

-1What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 27.46%

Here's what is working for Federated Hermes, Inc.

Interest Coverage Ratio

Highest at 4,796.61

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Debtors Turnover Ratio

Highest at 17.19 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at USD 17.19 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Operating Cash Flow

Highest at USD 373.99 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 504.2 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Pre-Tax Profit

Highest at USD 144.03 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Raw Material Cost

Fallen by 1.51% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 8.04 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Depreciation

At USD 8.04 MM has Grown at 53.07%

period on period (QoQ)

MOJO Watch

The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales

Depreciation (USD MM)

Here's what is not working for Federated Hermes, Inc.

Dividend Payout Ratio

Lowest at 27.46%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)