MeritValue

FEDERATED HERMES, INC.

FHIdata completeness 100%18 fiscal years on file

Data notes: no data for concept 'interestExpense'

The thesis, from the filings

FEDERATED HERMES, INC. earns about 29% on invested capital, far above its ~9% cost of capital, and has bought back 20% of its shares over 5 years — the marks of a durable business run for its owners. The estimate methods put fair value between $37.29 and $60.94 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$1.3B1$1.45B2$1.61B3$1.63B3$1.8B3
Net income$270.3M4$239.5M5$299M6$268.3M6$403.3M6
Operating cash flow$170.4M7$323.9M8$311.8M9$346.6M9$297.3M9
Capital expenditure$10.4M10$4.37M11$7.92M12$4.02M12$2.76M12
Free cash flow (derived)$160M7$319.6M8$303.9M9$342.5M9$294.6M9
Total debt$223.4M13$347.6M14$347.8M15$348.1M16$348.4M16
Cash & equivalents$233.3M17$336.8M18$383.2M19$504.4M19$582.5M19
Diluted shares93.8M85.8M83.9M79.4M75.1M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$159.37
your share of equity
Profit it earned you last year
$53.7
Free cash flow it threw off
$39.22
Debt you’d be carrying
$46.39

10 shares is a claim on $159.37 of net worth that earned you $53.7 and generated $39.22 of cash last year, against $46.39 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
29% avg · 5y
FY21 25%FY22 22%FY23 28%FY24 29%FY25 43%

It earned about 29% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
−20% shares · 5y

Share count is down 20% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has risen 56% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $37.29 and $60.94 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$56.58
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$303.9M
DCF · Growth Exit 5Y
$60.94
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$303.9M
Earnings Power Value
$37.29
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$270.3M
  • growthAssumed0.0%
Graham Number
$42.89
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years0.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $60.94
The three cases
Bear0.0%$60.94
Base0.0%$60.94
Bull5.0%$74.93

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 0.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001056288-24-000006 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001056288-25-000004 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001056288-26-000007 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2021-12-31 · accession 0001056288-24-000006 (NetIncomeLoss)
  5. 10-K · period ending 2022-12-31 · accession 0001056288-25-000004 (NetIncomeLoss)
  6. 10-K · period ending 2023-12-31 · accession 0001056288-26-000007 (NetIncomeLoss)
  7. 10-K · period ending 2021-12-31 · accession 0001056288-24-000006 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2022-12-31 · accession 0001056288-25-000004 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2023-12-31 · accession 0001056288-26-000007 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2021-12-31 · accession 0001056288-24-000006 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2022-12-31 · accession 0001056288-25-000004 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2023-12-31 · accession 0001056288-26-000007 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2021-12-31 · accession 0001056288-23-000006 (LongTermDebt)
  14. 10-K · period ending 2022-12-31 · accession 0001056288-24-000006 (LongTermDebt)
  15. 10-K · period ending 2023-12-31 · accession 0001056288-25-000004 (LongTermDebt)
  16. 10-K · period ending 2024-12-31 · accession 0001056288-26-000007 (LongTermDebt)
  17. 10-K · period ending 2021-12-31 · accession 0001056288-24-000006 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2022-12-31 · accession 0001056288-25-000004 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2023-12-31 · accession 0001056288-26-000007 (CashAndCashEquivalentsAtCarryingValue)