There was little in no-moat-rated Federated Hermes first-quarter results that would alter our long-term view of the firm. We are leaving our $38 per share fair value estimate in place and view the company's shares as being slightly to modestly undervalued right now.
With $560.0 billion in money market assets at the end of December 2023, Federated is one of the largest domestic money market managers, despite holding less than 10% of the market.
Federated's prime money market AUM, which generates higher fees than its other cash management offerings, has been negatively affected by the adoption of floating NAVs, redemption fees and other restrictions.
|
Metric
|
FHI
|
IVZ
|
AMG
|
|---|---|---|---|
Price/Earnings (Normalized) | 9.62 | 9.72 | 8.19 |
Price/Book Value | 2.47 | 0.45 | 1.48 |
Price/Sales | 1.71 | 1.16 | 3.29 |
Price/Cash Flow | 8.49 | 4.96 | 6.13 |
|
Metric
|
FHI
|
IVZ
|
AMG
|
|---|---|---|---|
Quick Ratio | 2.38 | 2.30 | 2.61 |
Current Ratio | 2.51 | 2.30 | 2.61 |
Interest Coverage | 33.86 | −3.05 | 9.82 |
|
Metric
|
FHI
|
IVZ
|
AMG
|
|---|---|---|---|
Return on Assets (Normalized) | 14.43% | 2.34% | 8.01% |
Return on Equity (Normalized) | 26.85% | 6.19% | 21.13% |
Return on Invested Capital (Normalized) | 19.03% | 2.82% | 11.08% |
|
Ticker
|
Name
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|
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BEN
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