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Federated Hermes

DB:3KC
Snowflake Description

Flawless balance sheet 6 star dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
3KC
DB
$2B
Market Cap
  1. Home
  2. DE
  3. Diversified Financials
Company description

Federated Hermes, Inc. is a publicly owned asset management holding company. The last earnings update was 42 days ago. More info.


Add to Portfolio Compare Print
  • Federated Hermes is a fund or ETF! Currently our data availability for these is poor, we only recommend using them as part of a portfolio.
  • Federated Hermes has significant price volatility in the past 3 months.
3KC Share Price and Events
7 Day Returns
2.4%
DB:3KC
-3.5%
DE Capital Markets
-3%
DE Market
1 Year Returns
-38%
DB:3KC
-11.3%
DE Capital Markets
-20.6%
DE Market
3KC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Federated Hermes (3KC) 2.4% -34.9% -41.7% -38% -31.3% -48.1%
DE Capital Markets -3.5% -21.2% -17.8% -11.3% -27.2% -56.6%
DE Market -3% -19.1% -26.2% -20.6% -25.6% -30.7%
1 Year Return vs Industry and Market
  • 3KC underperformed the Capital Markets industry which returned -11.3% over the past year.
  • 3KC underperformed the Market in Germany which returned -20.6% over the past year.
Price Volatility
3KC
Industry
5yr Volatility vs Market

3KC Value

 Is Federated Hermes undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Federated Hermes to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Federated Hermes.

DB:3KC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $8.23 * 29.2%
$2.40
Book Value of Equity per Share Median Book Value from the past 5 years. $8.23
Discount Rate (Cost of Equity) See below 4.4%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:3KC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Capital Markets Unlevered Beta Simply Wall St/ S&P Global 0.74
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.745 (1 + (1- 21%) (12.86%))
0.88
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.88
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (0.88 * 5.44%)
4.4%

Discounted Cash Flow Calculation for DB:3KC using Excess Returns Model Model

The calculations below outline how an intrinsic value for Federated Hermes is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

DB:3KC Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (29.2% – 4.4%) * $8.23)
$2.04
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $2.04 / (4.4% - -0.39%)
$42.69
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $8.23 + $42.69
$50.92
DB:3KC Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:3KC represents 0.94969x of NYSE:FHI
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.94969x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 50.92 x 0.94969
€48.36
Value per share (EUR) From above. €48.36
Current discount Discount to share price of €16.80
= -1 x (€16.80 - €48.36) / €48.36
65.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Federated Hermes is available for.
Intrinsic value
>50%
Share price is €16.8 vs Future cash flow value of €48.36
Current Discount Checks
For Federated Hermes to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Federated Hermes's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Federated Hermes's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Federated Hermes's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Federated Hermes's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:3KC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $2.69
NYSE:FHI Share Price ** NYSE (2020-04-03) in USD $17.69
Germany Capital Markets Industry PE Ratio Median Figure of 17 Publicly-Listed Capital Markets Companies 22.18x
Germany Market PE Ratio Median Figure of 401 Publicly-Listed Companies 16.57x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Federated Hermes.

DB:3KC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:FHI Share Price ÷ EPS (both in USD)

= 17.69 ÷ 2.69

6.56x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Federated Hermes is good value based on earnings compared to the DE Capital Markets industry average.
  • Federated Hermes is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Federated Hermes's expected growth come at a high price?
Raw Data
DB:3KC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 6.56x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
-3.3%per year
Germany Capital Markets Industry PEG Ratio Median Figure of 7 Publicly-Listed Capital Markets Companies 1.53x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.18x

*Line of best fit is calculated by linear regression .

DB:3KC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 6.56x ÷ -3.3%

-1.97x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Federated Hermes earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Federated Hermes's assets?
Raw Data
DB:3KC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $10.70
NYSE:FHI Share Price * NYSE (2020-04-03) in USD $17.69
Germany Capital Markets Industry PB Ratio Median Figure of 32 Publicly-Listed Capital Markets Companies 1.66x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.44x
DB:3KC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:FHI Share Price ÷ Book Value per Share (both in USD)

= 17.69 ÷ 10.70

1.65x

* Primary Listing of Federated Hermes.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Federated Hermes is good value based on assets compared to the DE Capital Markets industry average.
X
Value checks
We assess Federated Hermes's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Capital Markets industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Capital Markets industry average (and greater than 0)? (1 check)
  5. Federated Hermes has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

3KC Future Performance

 How is Federated Hermes expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-3.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Federated Hermes expected to grow at an attractive rate?
  • Federated Hermes's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Federated Hermes's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.
  • Federated Hermes's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:3KC Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:3KC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts -3.3%
DB:3KC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts -0%
Germany Capital Markets Industry Earnings Growth Rate Market Cap Weighted Average 37.7%
Germany Capital Markets Industry Revenue Growth Rate Market Cap Weighted Average 0.9%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.2%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:3KC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:3KC Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31
2021-12-31 1,325 326 245 7
2020-12-31 1,332 295 248 7
2020-04-03
DB:3KC Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 1,327 335 262
2019-09-30 1,276 330 242
2019-06-30 1,244 182 229
2019-03-31 1,179 175 206
2018-12-31 1,136 206 212
2018-09-30 1,107 279 279
2018-06-30 1,076 427 276
2018-03-31 1,093 402 290
2017-12-31 1,103 387 280
2017-09-30 1,115 275 207
2017-06-30 1,131 260 206
2017-03-31 1,145 260 205

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Federated Hermes's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Federated Hermes's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:3KC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Federated Hermes Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:3KC Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 2.10 2.10 2.10 1.00
2021-12-31 2.52 3.25 1.87 9.00
2020-12-31 2.51 3.20 1.99 9.00
2020-04-03
DB:3KC Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 2.69
2019-09-30 2.49
2019-06-30 2.36
2019-03-31 2.13
2018-12-31 2.18
2018-09-30 2.88
2018-06-30 2.84
2018-03-31 2.98
2017-12-31 2.87
2017-09-30 2.12
2017-06-30 2.10
2017-03-31 2.08

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Federated Hermes is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Federated Hermes's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Federated Hermes has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

3KC Past Performance

  How has Federated Hermes performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Federated Hermes's growth in the last year to its industry (Capital Markets).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Federated Hermes's year on year earnings growth rate has been positive over the past 5 years.
  • Federated Hermes's 1-year earnings growth exceeds its 5-year average (23.8% vs 11.7%)
  • Federated Hermes's earnings growth has exceeded the DE Capital Markets industry average in the past year (23.8% vs 5.7%).
Earnings and Revenue History
Federated Hermes's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Federated Hermes Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:3KC Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 1,326.89 262.11 516.71
2019-09-30 1,276.09 242.15 491.81
2019-06-30 1,244.36 229.22 476.94
2019-03-31 1,178.88 206.20 452.93
2018-12-31 1,135.68 211.74 436.77
2018-09-30 1,106.77 279.23 431.87
2018-06-30 1,076.47 276.20 428.19
2018-03-31 1,093.28 290.20 442.13
2017-12-31 1,102.92 279.92 456.88
2017-09-30 1,114.52 207.39 479.77
2017-06-30 1,130.82 206.05 494.16
2017-03-31 1,144.76 205.35 500.03
2016-12-31 1,143.37 201.29 499.49
2016-09-30 1,097.11 192.93 459.28
2016-06-30 1,036.81 182.48 418.60
2016-03-31 978.20 171.99 380.24
2015-12-31 926.61 163.20 345.37
2015-09-30 900.83 155.48 331.00
2015-06-30 883.42 149.14 326.99
2015-03-31 868.28 144.44 325.30
2014-12-31 859.25 143.41 323.17
2014-09-30 856.11 144.91 322.32
2014-06-30 851.07 145.10 320.98
2014-03-31 861.89 148.58 323.80
2013-12-31 878.37 156.11 340.00
2013-09-30 908.47 162.65 345.10
2013-06-30 935.07 180.18 356.77

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Federated Hermes has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Federated Hermes used its assets more efficiently than the DE Capital Markets industry average last year based on Return on Assets.
  • Federated Hermes's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Federated Hermes's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Capital Markets industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Federated Hermes has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

3KC Health

 How is Federated Hermes's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Federated Hermes's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Federated Hermes is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Federated Hermes's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Federated Hermes's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 4.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Federated Hermes Company Filings, last reported 3 months ago.

DB:3KC Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 1,253.37 100.00 340.64
2019-09-30 1,149.99 120.00 309.01
2019-06-30 1,114.52 125.00 227.01
2019-03-31 1,083.94 130.00 162.11
2018-12-31 1,039.63 135.00 190.49
2018-09-30 1,020.11 160.00 157.06
2018-06-30 820.11 178.00 417.56
2018-03-31 828.27 165.00 377.56
2017-12-31 791.38 170.00 369.54
2017-09-30 682.79 175.00 328.27
2017-06-30 662.29 178.50 282.78
2017-03-31 642.88 184.88 277.65
2016-12-31 627.15 191.25 301.15
2016-09-30 710.84 197.63 380.51
2016-06-30 698.78 204.00 352.45
2016-03-31 688.73 210.38 342.02
2015-12-31 657.71 216.75 346.82
2015-09-30 646.16 223.13 321.76
2015-06-30 644.25 229.50 299.88
2015-03-31 629.01 235.88 279.63
2014-12-31 613.35 242.25 297.34
2014-09-30 674.04 249.81 352.28
2014-06-30 604.83 257.30 263.60
2014-03-31 592.52 269.33 256.71
2013-12-31 581.86 276.25 292.18
2013-09-30 640.36 293.39 350.51
2013-06-30 604.66 305.40 302.95
  • Federated Hermes's level of debt (8%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (39.5% vs 8% today).
  • Debt is well covered by operating cash flow (334.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 592.7x coverage).
X
Financial health checks
We assess Federated Hermes's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Federated Hermes has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

3KC Dividends

 What is Federated Hermes's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.11%
Current annual income from Federated Hermes dividends. Estimated to be 7.31% next year.
If you bought €2,000 of Federated Hermes shares you are expected to receive €122 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Federated Hermes's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.69%).
  • Federated Hermes's dividend is above the markets top 25% of dividend payers in Germany (4.85%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:3KC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
Germany Capital Markets Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 3.3%
Germany Market Average Dividend Yield Market Cap Weighted Average of 318 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:3KC Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 1.25 2.00
2021-12-31 1.45 9.00
2020-12-31 1.15 9.00
2020-04-03
DB:3KC Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-21 1.080 5.114
2020-01-30 1.080 2.969
2019-11-01 1.080 3.222
2019-10-24 1.080 3.433
2019-07-31 1.080 3.363
2019-07-25 1.080 3.090
2019-05-01 1.080 3.371
2019-04-25 1.080 3.431
2018-10-25 1.080 3.958
2018-07-27 1.080 4.606
2018-07-26 1.080 4.624
2018-04-27 1.080 4.462
2018-04-26 1.080 3.739
2017-10-26 1.000 3.007
2017-07-27 1.000 3.505
2017-04-28 1.000 3.663
2017-04-27 1.000 3.645
2017-02-24 1.000 3.770
2017-01-26 1.000 3.774
2016-10-28 1.000 3.622
2016-10-27 1.000 3.773
2016-04-29 1.000 3.276
2016-04-28 1.000 3.174
2015-10-23 1.000 3.546
2015-10-22 1.000 3.286
2015-07-24 1.000 3.228
2015-07-23 1.000 2.986
2015-04-24 1.000 2.924
2015-04-23 1.000 2.882
2014-10-23 1.000 3.058
2014-07-24 1.000 3.390
2014-04-25 1.000 3.423
2014-01-24 1.000 3.547
2013-10-24 1.000 3.600
2013-07-26 1.000 3.590
2013-04-25 0.960 3.569
2012-10-25 0.960 4.334
2012-07-26 0.960 4.603
2012-04-26 0.960 4.588
2012-01-26 0.960 4.724
2011-10-27 0.960 5.808
2011-04-28 0.960 4.668
2011-01-27 0.960 3.593
2010-10-28 0.960 3.763
2010-07-22 0.960 4.329
2010-01-28 0.960 4.024
2009-10-22 0.960 3.590
2009-07-23 0.960 3.681

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Federated Hermes's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.9x coverage).
X
Income/ dividend checks
We assess Federated Hermes's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Federated Hermes afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Federated Hermes has a total score of 6/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

3KC Management

 What is the CEO of Federated Hermes's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
John Donahue
COMPENSATION $5,708,688
AGE 70
TENURE AS CEO 21.9 years
CEO Bio

Mr. John Christopher Donahue is Chief Executive Officer and President at Federated Hermes, Inc. since May 1998, Chairman since April 28, 2016 and Director since May 1998. He is Chairman and Member of the Management Board of Federated MDTA LLC. Mr. Donahue joined the Federated in 1972 and is President and Chief Operating Officer from 1993 to 1998. He is responsible for determining and developing firm's long term strategies and goals. He is Chairman and Director of Federated Equity Management Company of Pennsylvania. Previously, Mr. Donahue is the President at Federated Investment Counseling. He is Chairman at Federated Investment Management Company and previously is the President and Chief Executive Officer. He is Chairman at Passport Research, Ltd and previously is the President and Chief Executive Officer. Mr. Donahue was also the President and Chief Executive Officer at Federated Global Investment Management Corp. Mr. Donahue is Chairman of MDT Advisers, The Benedictine Society, Federated Global Investment Management Corp. He is Chairman of Lumen Institute, and Saint Vincent College. Mr. Donahue is graduate of Princeton University and the University of Pittsburgh School of Law.

CEO Compensation
  • John's compensation has been consistent with company performance over the past year, both up more than 20%.
  • John's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Federated Hermes management team in years:

14.3
Average Tenure
60
Average Age
  • The average tenure for the Federated Hermes management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

John Donahue

TITLE
President
COMPENSATION
$6M
AGE
70
TENURE
21.9 yrs

Thomas Donahue

TITLE
VP, Treasurer
COMPENSATION
$5M
AGE
60
TENURE
22.3 yrs

John Fisher

TITLE
VP & Director
COMPENSATION
$6M
AGE
63

Gordon Ceresino

TITLE
Vice Chairman
COMPENSATION
$4M
AGE
61
TENURE
13.3 yrs

Paul Uhlman

TITLE
VP, Federated Hermes Inc. & President
COMPENSATION
$3M
AGE
52
TENURE
3.8 yrs

Mary Ochson

TITLE
Head of the Tax-Free Money Market Investment Area
AGE
66
TENURE
16 yrs

Richard Novak

TITLE
VP, Assistant Treasurer & Principal Accounting Officer
AGE
56
TENURE
7.3 yrs

Ray Hanley

TITLE
Senior Vice President

Steven Van Meter

TITLE
VP & Chief Compliance Officer
AGE
44
TENURE
4.8 yrs

Peter Germain

TITLE
Executive VP
AGE
60
TENURE
15.3 yrs
Board of Directors Tenure

Average tenure and age of the Federated Hermes board of directors in years:

4
Average Tenure
61.5
Average Age
  • The tenure for the Federated Hermes board of directors is about average.
Board of Directors

John Donahue

TITLE
President
COMPENSATION
$6M
AGE
70
TENURE
4 yrs

Thomas Donahue

TITLE
VP, Treasurer
COMPENSATION
$5M
AGE
60
TENURE
4 yrs

John Fisher

TITLE
VP & Director
COMPENSATION
$6M
AGE
63
TENURE
4 yrs

Michael Farrell

TITLE
Lead Independent Director
COMPENSATION
$150K
AGE
69
TENURE
3 yrs

Joseph Bartolacci

TITLE
Independent Director
COMPENSATION
$140K
AGE
59
TENURE
3.5 yrs

Marie Jones

TITLE
Independent Director
COMPENSATION
$140K
AGE
56
TENURE
6 yrs
Who owns this company?
Recent Insider Trading
  • Federated Hermes individual insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
17. Mar 20 Buy Marie Jones Individual 16. Mar 20 16. Mar 20 1,000 €15.27 €15,265
09. Mar 20 Sell Gordon Ceresino Individual 09. Mar 20 09. Mar 20 -10,271 €21.28 €-218,592
09. Mar 20 Sell John Fisher Individual 09. Mar 20 09. Mar 20 -19,275 €20.98 €-404,457
09. Mar 20 Sell Richard Novak Individual 09. Mar 20 09. Mar 20 -708 €21.42 €-15,167
09. Mar 20 Sell Peter Germain Individual 09. Mar 20 09. Mar 20 -2,693 €21.45 €-57,776
09. Mar 20 Sell Paul Uhlman Individual 09. Mar 20 09. Mar 20 -7,601 €21.28 €-161,714
09. Mar 20 Sell Saker Nusseibeh Individual 09. Mar 20 09. Mar 20 -2,120 €21.37 €-45,306
09. Mar 20 Sell Stephen Van Meter Individual 09. Mar 20 09. Mar 20 -244 €21.19 €-5,169
06. Feb 20 Sell Thomas Donahue Individual 06. Feb 20 06. Feb 20 -30,000 €33.96 €-1,018,855
06. Feb 20 Sell Peter Germain Individual 04. Feb 20 04. Feb 20 -7,025 €33.97 €-238,661
25. Nov 19 Sell John Donahue Individual 21. Nov 19 22. Nov 19 -113,000 €30.04 €-3,386,012
12. Nov 19 Sell Peter Germain Individual 08. Nov 19 08. Nov 19 -7,000 €30.89 €-216,241
12. Nov 19 Sell Richard Novak Individual 11. Nov 19 11. Nov 19 -11,800 €30.43 €-359,076
05. Nov 19 Sell John Fisher Individual 04. Nov 19 04. Nov 19 -8,478 €29.57 €-250,656
05. Nov 19 Sell Gordon Ceresino Individual 04. Nov 19 04. Nov 19 -6,001 €29.53 €-177,213
05. Nov 19 Sell Stephen Van Meter Individual 04. Nov 19 04. Nov 19 -611 €29.41 €-17,971
05. Nov 19 Sell Paul Uhlman Individual 04. Nov 19 04. Nov 19 -4,182 €29.50 €-123,376
05. Nov 19 Sell Richard Novak Individual 04. Nov 19 04. Nov 19 -1,234 €29.52 €-36,425
05. Nov 19 Sell Peter Germain Individual 04. Nov 19 04. Nov 19 -1,708 €29.56 €-50,489
05. Aug 19 Sell Stephen Van Meter Individual 02. Aug 19 02. Aug 19 -73 €30.52 €-2,228
01. Aug 19 Sell Paul Uhlman Individual 31. Jul 19 31. Jul 19 -40,000 €31.59 €-1,263,435
17. Jun 19 Sell Paul Uhlman Individual 17. Jun 19 17. Jun 19 -1,007 €28.33 €-28,528
30. May 19 Sell Peter Germain Individual 28. May 19 28. May 19 -258 €27.62 €-7,126
22. May 19 Sell John Fisher Individual 21. May 19 21. May 19 -100,000 €27.71 €-2,771,099
15. May 19 Sell Stephen Van Meter Individual 14. May 19 14. May 19 -2,284 €27.42 €-62,618
X
Management checks
We assess Federated Hermes's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Federated Hermes has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

3KC News

Simply Wall St News

3KC Company Info

Description

Federated Hermes, Inc. is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to individuals, including high net worth individuals, banking or thrift institutions, investment companies, pension and profit sharing plans, pooled investment vehicles, charitable organizations, state or municipal government entities, and registered investment advisors. Through its subsidiaries, it manages separate client-focused equity, fixed income, balanced and money market mutual funds along with separate client-focused equity, fixed income, money market, and balanced portfolios. Through its subsidiaries, the firm invests in the public equity and fixed income markets across the globe. It invests in growth and value stocks of small-cap, mid-cap, and large-cap companies. The firm makes its fixed income investments in ultra-short, short-term, and intermediate-term mortgage-backed, U.S. Government, U.S. corporate, high yield, and municipal securities. It employs both fundamental and quantitative analysis to make its equity investments. Federated Hermes, Inc. was founded in 1955 and is based in Pittsburgh, Pennsylvania with additional offices in New York City and London, United Kingdom.

Details
Name: Federated Hermes, Inc.
3KC
Exchange: DB
Founded: 1955
$1,580,783,902
97,204,733
Website: http://www.federatedinvestors.com
Address: Federated Hermes, Inc.
Federated Investors Tower,
1001 Liberty Avenue,
Pittsburgh,
Pennsylvania, 15222,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE FHI Class B Common Shares New York Stock Exchange US USD 14. May 1998
DB 3KC Class B Common Shares Deutsche Boerse AG DE EUR 14. May 1998
Number of employees
Current staff
Staff numbers
1,826
Federated Hermes employees.
Industry
Asset Management and Custody Banks
Diversified Financials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/03 23:26
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/04/01
Last earnings filing: 2020/02/21
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.