Federated HermesFHI -5.89%98 EBITDA Margin % is 28.86% as of Mar. 2026, which is 5% below its 10-year median of 30.40. 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. Among 668 Asset Management companies, Federated Hermes ranks better than 51.05% on this metric.
EBITDA Margin % is calculated as EBITDA divided by its Revenue. Federated Hermes's EBITDA for the
three
months ended in Mar. 2026 was $138 Mil. Federated Hermes's Revenue for the
three
months ended in Mar. 2026 was $479 Mil. Therefore, Federated Hermes's EBITDA margin for the quarter that ended in Mar. 2026 was 28.86%.
EBITDA Margin % is the ratio of EBITDA divided by net sales or Revenue. It is an performance metric measuring company's operating profitability. EBITDA Margin takes depreciation and amortization, interest expense and tax into account, which makes it easy to compare the relative profitability of companies of different sizes in the same industry.
Federated Hermes EBITDA Margin % Related Terms
Federated Hermes EBITDA Margin % Historical Data
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The historical data trend for Federated Hermes's EBITDA Margin % 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.
For the Asset Management subindustry, Federated Hermes's EBITDA Margin %, along with its competitors' market caps and EBITDA Margin % 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 EBITDA Margin % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Federated Hermes's EBITDA Margin % distribution charts can be found below:
* The bar in red indicates where Federated Hermes's EBITDA Margin % falls into.
* 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 (FHI) has a EBITDA Margin % of 28.86% as of Mar. 2026. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Federated Hermes and its competitors. This is near median its historical median of 30.40. Over the past decade, Federated Hermes' EBITDA Margin % has ranged from 23.89 to 33.05. According to the industry distribution chart, Federated Hermes ranks #327 out of 668 companies in the Asset Management industry, placing it in the top 49%.
Is Federated Hermes' EBITDA Margin % too high?
Federated Hermes' current EBITDA Margin % of 28.86% is near median its 10-year median of 30.40. Over the past 10 years, this metric has ranged from a low of 23.89 to a high of 33.05. The Asset Management industry median EBITDA Margin % is 30.12. Federated Hermes' value of 28.86% is 4.2% below this industry median. Based on the distribution chart, Federated Hermes ranks #327 out of 668 companies in the Asset Management industry, which is above the industry midpoint. 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' EBITDA Margin % compare to DNP and STEP?
According to the Asset Management industry distribution chart, Federated Hermes ranks #327 out of 668 companies for EBITDA Margin %. This puts Federated Hermes in the upper half of its industry. The industry median EBITDA Margin % is 30.12. Federated Hermes' value of 28.86% is 4.2% below this benchmark. Historically, Federated Hermes' own EBITDA Margin % has ranged from 23.89 to 33.05 over the past decade. While the company's 10-year median is 30.40 vs. the industry median of 30.12, Federated Hermes has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBITDA Margin % for an Asset Management company?
The median EBITDA Margin % among Asset Management companies is 30.12, based on 668 companies in the industry. Companies in the top quartile (top 25%) have a EBITDA Margin % significantly above this median, while those in the bottom quartile fall well below. However, EBITDA Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Federated Hermes's current EBITDA Margin % of 28.86% is 4.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBITDA Margin % mean?
A high EBITDA Margin % can signal that a stock is expensive relative to its fundamentals. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Federated Hermes and its competitors. For the Asset Management industry, the median EBITDA Margin % is 30.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Federated Hermes's current EBITDA Margin % is 28.86%, which is near median its own 10-year median of 30.40. 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 $55.76 — trading 11.1% above its estimated fair value. The current EBITDA Margin % is 28.86%, which is near median its 10-year median of 30.40 and 4.2% below the Asset Management industry median of 30.12. 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 EBITDA Margin % calculated?
EBITDA Margin % is calculated from a company's financial statements. For Federated Hermes (FHI), the current EBITDA Margin % is 28.86% 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 $55.76 is trading 11.1% above its estimated GF Value™ of $50.18.
GuruFocus considers Federated Hermes to be Modestly Overvalued.
Key valuation signals for FHI:
EBITDA Margin %: 28.86% (near median its 10-year median of 30.40)
GF Value™: $50.18 vs. price of $55.76 (11.1% above fair value)
Industry Position: 4.2% below the Asset Management median (#327 of 668)
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 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%).
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