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Federated Hermes FHI

Federated Hermes scores excellent on business quality (8.1 of 10). Here is why, in plain words, and what our sealed record shows.

Last price$56.52Oct 10, 2026
Business qualityExcellent
Next earningsOct 29, 2026, after the close
Insiders, 90 daysSelling

Why it matters

  1. What Federated Hermes does

    Federated Hermes manages investment funds, earning fees from institutional and retail clients on trillions of assets. It turns asset management into steady cash flow.

  2. What it does best

    Federated Hermes delivers exceptional cost discipline, driving a gross margin of 95.3% that sits in the top decile of its sector. This efficiency stems from scale and sticky institutional client relationships that are difficult for rivals to chip away at.

  3. The main risk

    Shareholder distributions rely entirely on consistent asset management inflows. If market downturns shrink assets under management, fee revenue contracts directly, putting pressure on the free cash flow that funds these substantial buybacks.

Quality, check by check

Scored against its own industry, from company filings.

ProfitabilityStrong

Gross margin sits at 95.3% with an operating margin of 27.5%, pointing to high efficiency. The business scales profitably as assets grow.

MoatStrong

The moat relies on deeply embedded institutional relationships, locking in clients through specialized asset management. Gross margin ranks in the top decile of its sector at 95.3%, protecting pricing power.

GrowthSteady

Revenue grew to $1.9 billion, maintaining a steady expansion rate that builds on historical gains from past years.

Financial healthStrong

Debt-to-equity sits at 0.3, backed by interest coverage of 42.0x making debt servicing effortless. Free cash flow reached $367 million, showing the balance sheet is getting stronger.

Insiders

Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.

2 sold $768K outside pre-planned sales.

Our sealed record on FHI

Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.

The first sealed verdicts appear here on Oct 11, 2026.

Questions

Is FHI a good business?

Federated Hermes scores excellent on the Cluenex quality check (8.1 of 10), measured against its own industry. Profitability is strong, moat strong, growth steady and financial health strong.

Are insiders buying FHI?

In the last 90 days of SEC Form 4 filings: 2 sold $768K outside pre-planned sales.

When does FHI report earnings?

Oct 29, 2026, after the close.

For members

See FHI today

  • Today's verdict on FHI, and why
  • Fair value with cautious, base and optimistic cases
  • The exact price that would change the verdict
  • Which stocks each signal names, the night it fires
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Cite this page: Cluenex, “Federated Hermes (FHI)”, https://cluenex.com/stocks/fhi/, data as of Oct 10, 2026.