FHI
Federated Hermes, Inc.
FHI's fundamentals are mixed: revenue grew 13%, while its operating margin held steady at 28%. At 11x earnings, it's trading right at its usual valuation. Analysts expect earnings growth.
FHI Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Strong | |
| N/A | |
| N/A |
FHI's revenue and profitability are currently healthy. Free cash flow and net leverage aren't meaningful measures for financial services companies like FHI.
FHI PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Cheap | 9.5x | $52.45 | -17% |
| Fair | 11x | $62.14 | -2.2% |
| Current | 11x | $63.52 | — |
| Forward | 11x | $63.52 | — |
| Expensive | 13x | $71.76 | +13% |
Historical ranges are pointers, not guarantees.
FHI's PE is in its fair range at 11.5x. If earnings grow as analysts expect, today's price would be 10.8x next year's earnings.
FHI Forward outlook
| Metric | Outlook |
|---|---|
| Improving | |
| Growth | |
| Growth | |
| Strongly improving | |
| Limited | |
| Moderate |
Analysts expect earnings and revenue growth for FHI, with profitability improving.
FHI Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $5.89 | +6.6% |
| Q3 2026 | $5.53 | +14% |
| Q2 2026 | $5.37 | +18% |
| Q1 2026 | $5.15 | +43% |
| Q4 2025 | $5.13 | +59% |
| Q3 2025 | $4.83 | +56% |
| Q2 2025 | $4.55 | +57% |
| Q1 2025 | $3.59 | +2.3% |
| Q4 2024 | $3.23 | -5% |
FHI earned $5.53 per share over the past year, up 14% from the year before.
FHI Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $507.3M | +8.1% |
| Q2 2026 | $502.8M | +18% |
| Q1 2026 | $479M | +13% |
| Q4 2025 | $482.8M | +14% |
| Q3 2025 | $469.4M | +15% |
| Q2 2025 | $424.8M | +5.5% |
| Q1 2025 | $423.5M | +6.9% |
| Q4 2024 | $424.7M | +8.5% |
FHI's revenue has grown year over year for nine quarters in a row: $507M last quarter, up 8.1% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 30% | +2.6 points |
| Q2 2026 | 26% | -1.1 points |
| Q1 2026 | 26% | -4.7 points |
| Q4 2025 | 28% | +2.1 points |
| Q3 2025 | 28% | +0.2 points |
| Q2 2025 | 28% | +17 points |
| Q1 2025 | 31% | +6.2 points |
| Q4 2024 | 26% | -0.2 points |
FHI's operating margin was 30% last quarter, up 2.6 points from the same quarter a year ago.
FHI Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $120.2M | +18% |
| Q2 2026 | $79.7M | +343% |
| Q1 2026 | $24M | +80% |
| Q4 2025 | $161.6M | +28% |
| Q3 2025 | $101.6M | -15% |
| Q2 2025 | $18M | -78% |
| Q1 2025 | $13.3M | -1% |
| Q4 2024 | $126.2M | -1% |
FHI's free cash flow was $386M over the past year, up 49% from the year before. Free cash flow isn't a meaningful measure for financial services companies like FHI.
FHI Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -1.3% | -950K shares |
| 1 year | -4.1% | -3.1M shares |
| 3 years | -15% | -12.7M shares |
| 5 years | -24% | -22.3M shares |
| Available history | -27% | -26.3M shares |
FHI has 71M diluted shares, down 4.1% from a year ago, with $263M in buybacks over the past year.
| Quarter | Spent |
|---|---|
| Q3 2026 | $57.4M |
| Q2 2026 | $64M |
| Q1 2026 | $64.7M |
| Q4 2025 | $77.1M |
| Q3 2025 | $21,000 |
| Q2 2025 | $65.5M |
| Q1 2025 | $120.1M |
| Q4 2024 | $23.4M |
FHI spent $263M buying back its own shares over the past year, up 26% from the year before.
FHI Net Leverage
FHI Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 61.8 | Neutral |
| Stochastic | 60.5 | Neutral |
FHI's weekly RSI is 62 (neutral) and its Stochastic is 60 (neutral).
FHI PE vs Financial Services Sector
| Metric | FHI | Sector median | Relative |
|---|---|---|---|
| PE | 11x | 13x | 12% below |
| PE % | 55 | 63 | 8 pts below |
FHI is trading at 11x earnings, a 12% discount to the Financial Services sector's median of 13x.
FHI Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $58.6 | 8.3% above |
| 20 week MA | $59.8 | 6.2% above |
| 50 week MA | $57.0 | 11% above |
| 100 week MA | $50.8 | 25% above |
| 200 week MA | $43.4 | 46% above |
FHI is in an uptrend: it's above all five of its weekly moving averages, and 46% above its 200-week average.
FHI Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $32.7 | $28.5 | -13% |
| 2021 | $28.5 | $37.4 | +31% |
| 2022 | $37.4 | $35.7 | -4.4% |
| 2023 | $35.7 | $33.9 | -5.2% |
| 2024 | $33.9 | $41.4 | +22% |
| 2025 | $41.4 | $54.1 | +31% |
| 2026 YTD | $54.1 | $63.5 | +17% |
FHI has finished lower in three of the last six years. It's up 17% so far in 2026.