FHI (Federated Hermes) EBIT: $554 Mil (TTM As of Mar. 2026)


FHI Federated Hermes Inc FHI
98 GF Score
Price $56.43
GF Value $50.18
Valuation Modestly Overvalued
! 6 Warning Signs
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What is Federated Hermes EBIT?

Federated Hermes FHI -4.76% 98 EBIT is $554 Mil as of Mar. 2026. GuruFocus rates FHI with a GF Score™ of 98/100 and a GF Value™ of $50.18 (Modestly Overvalued). The stock has 6 warning signs investors should review.

Federated Hermes's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was $133 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was $554 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Federated Hermes's annualized ROC % for the quarter that ended in Mar. 2026 was 25.20%. Federated Hermes's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 446.62%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Federated Hermes's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 13.36%.


Federated Hermes  (NYSE:FHI) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Federated Hermes's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=519.012 * ( 1 - 26.06% )/( (1580.64 + 1465.132)/ 2 )
=383.7574728/1522.886
=25.20 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2229.337 - 99.046 - ( 724.297 - max(0, 314.141 - 863.792+724.297))
=1580.64

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=2143.807 - 130.785 - ( 645.417 - max(0, 240.68 - 788.57+645.417))
=1465.132

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Federated Hermes's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=531.816/( ( (120.631 + max(-196.724, 0)) + (117.523 + max(-122, 0)) )/ 2 )
=531.816/( ( 120.631 + 117.523 )/ 2 )
=531.816/119.077
=446.62 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(47.553 + 0 + 49.717) - (99.046 + 0 + 194.948)
=-196.724

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(50.336 + 0 + 49.456) - (130.785 + 0 + 91.007)
=-122

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Federated Hermes's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=553.992/4147.367
=13.36 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Federated Hermes EBIT Related Terms


Federated Hermes EBIT Historical Data

* Premium members only.

The historical data trend for Federated Hermes's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Federated Hermes EBIT Chart

Federated Hermes Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 378.08 317.30 423.85 394.27 560.26

Federated Hermes Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 139.22 134.00 143.51 143.53 132.95

FHI vs DNP, STEP, UTG: EBIT Comparison

For the Asset Management subindustry, Federated Hermes's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Federated Hermes EV-to-EBIT vs Asset Management Industry

For the Asset Management industry and Financial Services sector, Federated Hermes's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Federated Hermes's EV-to-EBIT falls into.


FHI
98GF Score
Federated Hermes Inc FHI
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Federated Hermes EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $554 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of $554 Mil mean?
Federated Hermes (FHI) has a EBIT of $554 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Federated Hermes.
Is Federated Hermes' EBIT too high?
Federated Hermes' current EBIT is $554 Mil. Overall, Federated Hermes has a GF Score™ of 98/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Federated Hermes' EBIT compare to DNP and STEP?
Federated Hermes' EBIT of $554 Mil can be compared against companies in the Asset Management industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for an Asset Management company?
A good EBIT depends on the Asset Management industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Federated Hermes. Federated Hermes's current EBIT is $554 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Federated Hermes stock overvalued right now?
Based on GuruFocus' analysis, Federated Hermes (FHI) is currently considered Modestly Overvalued. The stock's GF Value™ is $50.18, compared to a current price of $56.43 — trading 12.5% above its estimated fair value. The current EBIT is $554 Mil. Federated Hermes' overall GF Score™ is 98/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Federated Hermes (FHI), the current EBIT is $554 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Federated Hermes (FHI) Overvalued in 2026?

Based on GuruFocus' analysis, Federated Hermes stock appears to be overvalued. The current stock price of $56.43 is trading 12.5% above its estimated GF Value™ of $50.18. GuruFocus considers Federated Hermes to be Modestly Overvalued.

Key valuation signals for FHI:

  • EBIT: $554 Mil
  • GF Value™: $50.18 vs. price of $56.43 (12.5% above fair value)
  • GF Score™: 98/100 with 6 warning signs

No single metric tells the full story. See the FHI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Federated Hermes Business Description

Other Exchanges 3KC:Germany
Address 1001 Liberty Avenue, Pittsburgh, PA, USA, 15222-3779
Federated Hermes provides asset management services for institutional and individual investors. The firm had $902.6 billion in managed assets at the end of 2025, composed of equity (11%), multi-asset (less than 1%), fixed-income (11%), alternative (2%), and money market (76%) funds. The firm's cash management operations are expected to generate around 55% of Federated's revenue this year, compared with 27%, 10%, and 8%, respectively, for the equity, fixed-income, and alternatives/multi-asset/other operations. The company's products are distributed via trust banks, wealth managers, and retail broker/dealers (68% of AUM), institutional investors (25%), and international clients (7%).
98GF Score

Get the complete analysis for FHI

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$56.43
Price
$50.18
GF Value