Federated HermesFHI -4.84%98 FCF Margin % is 5.01% as of Mar. 2026, which is 77% below its 10-year median of 21.55. 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 1,465 Asset Management companies, Federated Hermes ranks better than 52.01% on this metric.
The historical rank and industry rank for Federated Hermes's FCF Margin % or its related term are showing as below:
FHI'
s FCF Margin % Range Over the Past 10 Years
Min: 12.3 Med: 21.55 Max: 34.23
Current: 16.45
During the past 13 years, the highest FCF Margin % of Federated Hermes was 34.23%. The lowest was 12.30%. And the median was 21.55%.
FHI's FCF Margin % is ranked better than 52.01% of 1465
companies
in the Asset Management industry
Industry Median: 14.69
vs FHI: 16.45
Federated Hermes FCF Margin % Related Terms
Federated Hermes FCF Margin % Historical Data
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The historical data trend for Federated Hermes's FCF 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 FCF Margin %, along with its competitors' market caps and FCF 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 FCF Margin % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Federated Hermes's FCF Margin % distribution charts can be found below:
* The bar in red indicates where Federated Hermes's FCF 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 FCF Margin % of 5.01% as of Mar. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Federated Hermes and its competitors. This is 77% below median its historical median of 21.55. Over the past decade, Federated Hermes' FCF Margin % has ranged from 12.30 to 34.23. According to the industry distribution chart, Federated Hermes ranks #703 out of 1465 companies in the Asset Management industry, placing it in the top 48%.
Is Federated Hermes' FCF Margin % too high?
Federated Hermes' current FCF Margin % of 5.01% is 77% below median its 10-year median of 21.55. Over the past 10 years, this metric has ranged from a low of 12.30 to a high of 34.23. The Asset Management industry median FCF Margin % is 14.69. Federated Hermes' value of 5.01% is 65.9% below this industry median. Based on the distribution chart, Federated Hermes ranks #703 out of 1465 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' FCF Margin % compare to DNP and STEP?
According to the Asset Management industry distribution chart, Federated Hermes ranks #703 out of 1465 companies for FCF Margin %. This puts Federated Hermes in the upper half of its industry. The industry median FCF Margin % is 14.69. Federated Hermes' value of 5.01% is 65.9% below this benchmark. Historically, Federated Hermes' own FCF Margin % has ranged from 12.30 to 34.23 over the past decade. While the company's 10-year median is 21.55 vs. the industry median of 14.69, 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 FCF Margin % for an Asset Management company?
The median FCF Margin % among Asset Management companies is 14.69, based on 1,465 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Federated Hermes's current FCF Margin % of 5.01% is 65.9% 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 FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Federated Hermes and its competitors. For the Asset Management industry, the median FCF Margin % is 14.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Federated Hermes's current FCF Margin % is 5.01%, which is 77% below median its own 10-year median of 21.55. 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 $56.38 — trading 12.4% above its estimated fair value. The current FCF Margin % is 5.01%, which is 77% below median its 10-year median of 21.55 and 65.9% below the Asset Management industry median of 14.69. 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 FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For Federated Hermes (FHI), the current FCF Margin % is 5.01% 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 $56.38 is trading 12.4% above its estimated GF Value™ of $50.18.
GuruFocus considers Federated Hermes to be Modestly Overvalued.
Key valuation signals for FHI:
FCF Margin %: 5.01% (77% below median its 10-year median of 21.55)
GF Value™: $50.18 vs. price of $56.38 (12.4% above fair value)
Industry Position: 65.9% below the Asset Management median (#703 of 1465)
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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