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Federated Investors Inc B (FHI)

Upturn stock ratingUpturn stock rating
$46.6
Last Close (24-hour delay)
Profit since last BUY13.08%
upturn advisory
Consider higher Upturn Star rating
BUY since 48 days
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Upturn Advisory Summary

07/14/2025: FHI (2-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

rating

Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

Number of Analysts

rating

8 Analysts rated it

Limited analyst coverage, niche firm, research info may be scarce.

1 Year Target Price $42.29

1 Year Target Price $42.29

Analysts Price Target For last 52 week
$42.29 Target price
52w Low $31.04
Current$46.6
52w High $46.84

Analysis of Past Performance

Type Stock
Historic Profit 22.07%
Avg. Invested days 49
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 4.0
Stock Returns Performance Upturn Returns Performance 3.0
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 07/14/2025

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 3.65B USD
Price to earnings Ratio 12.87
1Y Target Price 42.29
Price to earnings Ratio 12.87
1Y Target Price 42.29
Volume (30-day avg) 8
Beta 0.72
52 Weeks Range 31.04 - 46.84
Updated Date 07/14/2025
52 Weeks Range 31.04 - 46.84
Updated Date 07/14/2025
Dividends yield (FY) 3.07%
Basic EPS (TTM) 3.59

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin 17.74%
Operating Margin (TTM) 31.11%

Management Effectiveness

Return on Assets (TTM) 14.02%
Return on Equity (TTM) 25.15%

Valuation

Trailing PE 12.87
Forward PE 11.1
Enterprise Value 3571031964
Price to Sales(TTM) 2.2
Enterprise Value 3571031964
Price to Sales(TTM) 2.2
Enterprise Value to Revenue 2.15
Enterprise Value to EBITDA 7.96
Shares Outstanding 79093904
Shares Floating 72031860
Shares Outstanding 79093904
Shares Floating 72031860
Percent Insiders 4.09
Percent Institutions 81.49

ai summary icon Upturn AI SWOT

Federated Investors Inc B

stock logo

Company Overview

overview logo History and Background

Federated Investors was founded in 1955 in Pittsburgh, Pennsylvania. It has grown from a small investment firm to one of the largest investment managers in the U.S., managing trillions in assets across a range of investment strategies. In 2018, Federated Investors acquired Hermes Investment Management. In February 2024, Federated Hermes has $690.3 billion in assets under management.

business area logo Core Business Areas

  • Equity: Actively manages equity portfolios across various market capitalizations and investment styles, including growth, value, and dividend-focused strategies.
  • Fixed Income: Offers a broad array of fixed income strategies, including government, corporate, municipal, and high-yield bond funds.
  • Alternative Investments: Provides alternative investment solutions such as private equity, real estate, and hedge funds, targeting institutional investors and high-net-worth individuals.
  • Liquidity Management: Specializes in cash management and short-duration fixed income products for corporations, institutions, and individuals.

leadership logo Leadership and Structure

The company is led by J. Christopher Donahue, President and Chief Executive Officer. The organizational structure comprises various investment teams specializing in different asset classes and strategies, supported by a centralized operations and distribution platform.

Top Products and Market Share

overview logo Key Offerings

  • Product Name 1: Money Market Funds: Federated Hermes is one of the largest providers of money market funds in the U.S. Estimated to manage over $350 billion in assets. Competitors include BlackRock, Vanguard, and Fidelity.
  • Product Name 2: Fixed Income Funds: Actively manages a variety of fixed-income products. Market share data is difficult to precisely define given the breadth of the fixed income market, but Federated Hermes is a significant player. Competitors include PIMCO, BlackRock, and Capital Group.

Market Dynamics

industry overview logo Industry Overview

The asset management industry is highly competitive and affected by market volatility, interest rate changes, regulatory changes, and investor sentiment. It is experiencing a trend towards passive investing, consolidation, and increased focus on ESG factors.

Positioning

Federated Hermes is a well-established asset manager with a strong reputation, particularly in cash management and fixed income. Its competitive advantages include its diverse product offerings, experienced investment teams, and extensive distribution network.

Total Addressable Market (TAM)

The global asset management market is estimated to be over $100 trillion. Federated Hermes captures a fraction of the TAM, with room for growth through expansion into new markets and product development.

Upturn SWOT Analysis

Strengths

  • Strong brand recognition
  • Diverse product offerings
  • Experienced management team
  • Extensive distribution network
  • Solid track record in cash management and fixed income

Weaknesses

  • Exposure to market volatility
  • Dependence on key personnel
  • Potential for regulatory changes
  • Competition from larger asset managers
  • High operating expenses due to active management strategies

Opportunities

  • Expanding into new markets
  • Developing new products and services
  • Acquiring smaller asset managers
  • Leveraging technology to improve efficiency
  • Capitalizing on the growing demand for ESG investments

Threats

  • Increased competition from passive investment strategies
  • Market downturns
  • Rising interest rates
  • Changes in regulatory requirements
  • Loss of key personnel

Competitors and Market Share

competitor logo Key Competitors

  • BLK
  • VANG
  • TROW
  • JPM

Competitive Landscape

Federated Hermes competes with larger asset managers like BlackRock and Vanguard, as well as specialized firms. Its competitive advantages include its strong cash management expertise and diverse product offerings. However, it faces challenges from lower-cost passive investment strategies.

Major Acquisitions

Hermes Investment Management

  • Year: 2018
  • Acquisition Price (USD millions): 426
  • Strategic Rationale: Expanded Federated Hermes' capabilities in ESG investing and international markets.

Growth Trajectory and Initiatives

Historical Growth: Federated Hermes has experienced steady growth over the past decade, driven by organic growth and acquisitions.

Future Projections: Analysts project continued growth of 5-7% per year, driven by expansion into new markets and product development.

Recent Initiatives: Recent initiatives include expanding ESG offerings, integrating Hermes Investment Management, and investing in technology.

Summary

Federated Hermes is a well-established asset manager with a strong brand and a diverse product line. The company's expertise in cash management and fixed income provides a solid foundation, while its ESG initiatives position it for future growth. Competition from passive investment strategies and market volatility are key challenges to watch out for. Federated Hermes looks to be well positioned to stay competitive in this market.

Peer Comparison

Sources and Disclaimers

Data Sources:

  • Company SEC Filings
  • Analyst Reports
  • Industry Publications
  • Federated Hermes Website

Disclaimers:

The information provided is for informational purposes only and should not be construed as investment advice. Market share data is based on estimates and may not be precise. Financial data is based on historical performance and is not indicative of future results.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.

About Federated Investors Inc B

Exchange NYSE
Headquaters Pittsburgh, PA, United States
IPO Launch date 1998-05-14
President, CEO & Chairman Mr. John Christopher Donahue
Sector Financial Services
Industry Asset Management
Full time employees 2000
Full time employees 2000

Federated Hermes, Inc. is a publicly owned investment manager. 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.