Federated Hermes Inc Class B FHI

Morningstar Rating
$56.07 −0.09 (0.16%)
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Company Report

Inflows Into Money Market Funds Have Been Driving Most of Federated's Improved Results

Poor relative active fund performance, the growth of low-cost index-based products, and the expanding power of the retail-advised channel have left firms like Federated more dependent on market gains to increase their assets under management, or AUM. We believe there will always be room for active management, but the advantage of getting and retaining placement on platforms will go to asset managers with greater scale, established brands, solid long-term performance, and reasonable fees.

Price vs Fair Value

FHI is trading at a LOCK|$<jrFZ$ premium.
Price
$56.16
Fair Value
Gr#
Uncertainty
LOCK|^R
1-Star Price
LOCK|.^D
5-Star Price
LOCK|.%Y
Economic Moat
LOCK|?M
Capital Allocation
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Bulls Say, Bears Say

Bulls

With $676.9 billion in money market assets at the end of June 2026, Federated is one of the largest domestic money market managers, despite holding less than 10% of the market.

Bears

With 61% of money market AUM in government agency and Treasury funds, Federated has had to waive fees on a large part of its business during periods of extremely low interest rates.

News

Trading Information

Previous Close Price
$56.16
Day Range
$56.03–56.96
52-Week Range
$46.66–67.20
Bid/Ask
$50.01 / $56.71
Shares Outstanding
74.66M
Market Cap
$4.19B
Volume/Avg
552,956 / 609,408

Key Statistics

Price/Earnings (Normalized)
10.44
Price/Sales
2.12
Dividend Yield (Trailing)
2.56%
Dividend Yield (Forward)
2.56%
Dividend Payment Schedule
Feb, May, Aug, Nov
Total Yield
7.47%

Company Profile

Federated Hermes provides asset management services for institutional and individual investors. The firm had $911.6 billion in managed assets at the end of the second quarter of 2026, composed of equity (12%), multi-asset (less than 1%), fixed-income (11%), alternative (2%), and money market (74%) funds. The company's cash management operations are expected to generate around 52% of Federated's revenue this year, compared with 30%, 10%, and 8%, respectively, for the equity, fixed-income, and alternatives/multi-asset/other operations. The company's products are distributed via trust banks, wealth managers, and retail broker/dealers (67% of AUM), institutional investors (26%), and international clients (7%).
Sector
Financial Services
Industry
Asset Management
Stock Style Box
Small Core
Total Number of Employees
2,091

Competitors

Valuation

Metric
FHI
IVZ
BEN
Price/Earnings (Normalized)
10.4412.1211.60
Price/Book Value
3.361.351.41
Price/Sales
2.122.001.80
Price/Cash Flow
11.437.5318.31
Price/Earnings
FHI
IVZ
BEN

Financial Strength

Metric
FHI
IVZ
BEN
Quick Ratio
2.376.822.84
Current Ratio
2.596.822.84
Interest Coverage
44.57−2.0518.11
Quick Ratio
FHI
IVZ
BEN

Profitability

Metric
FHI
IVZ
BEN
Return on Assets (Normalized)
15.92%4.12%4.49%
Return on Equity (Normalized)
29.50%11.11%12.50%
Return on Invested Capital (Normalized)
20.66%5.80%5.01%
Return on Assets
FHI
IVZ
BEN

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