Federated Hermes Inc Dossier
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SectorFinancials IndustryAsset Management Beta (adjusted)0.77 Intrinsic Value $90.12median of 6 methods · middle span $46-$245based on filings through 30 Jun 2026 Market Price $56.16Price as of 1 Oct 2026 Significantly undervaluedIntrinsic value is 60% above the market price −50% · IV below pricenear fair value ±15%IV above price · +50% marker beyond scale (+60%) Data confidence Sign in to view data confidence Market Cap $4.2B Enterprise Value $4.2B Shares Outstanding 71.1M diluted Moat Rating Wide Next Earnings Date22 Oct 2026 Last ex-dividend7 Aug 2026 All prices and values are periodic snapshots, not live quotes. Source dates are shown for reference. ThesisStreet consensus, scenarios, merits, risks, and invalidation triggers Thesis Summary Federated Hermes, Inc. (NYSE: FHI) represents a compelling investment opportunity as a pure-play active asset manager with a highly resilient, diversified business model. The company has achieved record assets under management (AUM) of $907.1 billion, driven by its market-leading money market franchise and strong momentum in its quantitative equity offerings (MDT suite). While rising operating expenses and volatile performance fees present near-term headwinds, FHI's robust balance sheet, consistent capital return via dividends and share repurchases, and strategic inorganic expansion (such as the 80% majority stake acquisition of FCP Fund Manager in April 2026) position it well for long-term value creation. This section is the 12-month view: analyst targets and the probability-weighted scenarios built from them. The intrinsic value at the top of this page answers a different question: what the business is worth today. Street view · analyst 12-month targets Low · most bearish analyst$55.00 Mean target$59.86 High · most bullish analyst$65.00 Our research · scenarios, merits, risks, and invalidation triggersResearch as of 18 Sep 2026 Scenarios · 12-month scenario targets Bear CaseDownside scenario $55.00 Rapid decline in interest rates triggers outflows from money market funds back into bank deposits or other assets, while equity market volatility depresses long-term asset valuations. Continued escalation in operating expenses further compresses operating margins. Base CaseCentral scenario $59.86 Matches the consensus meanSteady organic growth in money market and equity assets, with moderate expense pressures from distribution and incentive compensation. The company maintains its strong capital return profile, supported by consistent cash flows and a solid liquidity position. Bull CaseUpside scenario $65.00 Accelerated inflows into high-margin equity and alternative strategies, combined with sustained high interest rates that keep money market assets highly attractive. Successful integration of FCP Fund Manager drives rapid expansion in private markets, leading to operating margin expansion and multiple rerating. Scenarios are anchored to street consensus at the research date, with our probabilities and rationale. Key Investment Merits
Key Investment Risks
Thesis Invalidation Triggers
All scenarios are estimates and subject to change. Past performance is not indicative of future results. Quality Pillars MembersThis section is available to registered members. Create a free account or sign in to unlock the full breakdown. Explore this dossierValuationIntrinsic value, the six-method breakdown, peer medians, and your assumptions sandbox.Financial SnapshotRevenue, profitability, returns, balance sheet, dividends, and the filing-level detail.Qualitative AnalysisBusiness overview, strategic initiatives, and mergers, acquisitions & partnerships.Outlook & Key DatesForward estimates, reporting calendar, and the monitoring framework. |