Federated Hermes Inc. Common Stock (FHI)

FairStock Score: 81/100 — HIGH CONVICTION

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look at Federated Hermes as a fee-based asset manager whose main asset is client trust. It serves many types of clients, and its money-market and fixed-income franchises can generate recurring revenue. The filed numbers show real recent momentum: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $502.8M, net income $104.3M and diluted EPS $1.38. That compares well with fiscal Q2 2025, ended 2025-06-30, when revenue was $424.8M, net income $91.0M and diluted EPS $1.16. For full FY2025, revenue was $1.8B, net income $403.3M and diluted EPS $5.13, up from FY2024 revenue of $1.6B, net income $268.3M and diluted EPS $3.23. The balance sheet is conservative: debt-to-equity is 0.32, the Altman Z-Score is 4.47, and FairStock shows ROE of 31.14%. Free cash flow is $305.3M, a 7.7% yield on the $4.0B market cap. At $55.05 on 2026-10-13, FairStock shows P/E 10.23, P/B 3.14, EV/EBITDA 6.77, PEG 0.39 and dividend yield 2.52%. That is not demanding if profits hold. But Graham would note the price is 25.28% above the $43.94 Graham Number, and the Piotroski F-Score is only 5/9. FairStock calls it a SLOW GROWER because five-year profit growth was 4.3% a year and revenue 4.5%, even though recent quarters are stronger. My read: a high-quality, cash-generative asset manager at a reasonable earnings multiple, but not a classic Graham bargain, with the key question being whether recent growth persists.

In plain English: Federated Hermes manages investments such as money market, bond and stock funds for individuals and institutions. The business looks financially strong: it earns solid profits, carries little debt and turns a good amount of profit into cash. At $55.05, the stock looks reasonably priced compared with earnings, but it is above a simple accounting-value estimate, so it is not an obvious bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer