Federated HermesFHI -1.88%95 FCF Yield % is 7.12 as of Jun. 30, 2026, which is 27% below its 10-year median of 9.82. GuruFocus rates FHI with a GF Score™ of 95/100 and a GF Value™ of $50.17 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,510 Asset Management companies, Federated Hermes ranks better than 68.28% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Federated Hermes FCF Yield % Related Terms
Federated Hermes FCF Yield % Historical Data
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The historical data trend for Federated Hermes's FCF Yield % 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 Yield %, along with its competitors' market caps and FCF Yield % 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 Yield % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Federated Hermes's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Federated Hermes's FCF Yield % 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 Yield % of 7.12 as of Jun. 30, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Federated Hermes and its competitors. This is 27% below median its historical median of 9.82. Over the past decade, Federated Hermes' FCF Yield % has ranged from 4.41 to 20.66. According to the industry distribution chart, Federated Hermes ranks #479 out of 1510 companies in the Asset Management industry, placing it in the top 31.7%.
Is Federated Hermes' FCF Yield % too high?
Federated Hermes' current FCF Yield % of 7.12 is 27% below median its 10-year median of 9.82. Over the past 10 years, this metric has ranged from a low of 4.41 to a high of 20.66. The Asset Management industry median FCF Yield % is 2.11. Federated Hermes' value of 7.12 is 237.4% above this industry median. Based on the distribution chart, Federated Hermes ranks #479 out of 1510 companies in the Asset Management industry, which is above the industry midpoint. Overall, Federated Hermes has a GF Score™ of 95/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Federated Hermes' FCF Yield % compare to DNP and CNS?
According to the Asset Management industry distribution chart, Federated Hermes ranks #479 out of 1510 companies for FCF Yield %. This puts Federated Hermes in the upper half of its industry. The industry median FCF Yield % is 2.11. Federated Hermes' value of 7.12 is 237.4% above this benchmark. Historically, Federated Hermes' own FCF Yield % has ranged from 4.41 to 20.66 over the past decade. While the company's 10-year median is 9.82 vs. the industry median of 2.11, Federated Hermes has consistently been above 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 Yield % for an Asset Management company?
The median FCF Yield % among Asset Management companies is 2.11, based on 1,510 companies in the industry. Companies in the top quartile (top 25%) have a FCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Federated Hermes's current FCF Yield % of 7.12 is 237.4% above 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 Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Federated Hermes and its competitors. For the Asset Management industry, the median FCF Yield % is 2.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Federated Hermes's current FCF Yield % is 7.12, which is 27% below median its own 10-year median of 9.82. 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 $50.17, compared to a current price of $56.45 — trading 12.5% above its estimated fair value. The current FCF Yield % is 7.12, which is 27% below median its 10-year median of 9.82 and 237.4% above the Asset Management industry median of 2.11. Federated Hermes' overall GF Score™ is 95/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Federated Hermes (FHI), the current FCF Yield % is 7.12 as of Jun. 30, 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 $56.45 is trading 12.5% above its estimated GF Value™ of $50.17.
GuruFocus considers Federated Hermes to be Modestly Overvalued.
Key valuation signals for FHI:
FCF Yield %: 7.12 (27% below median its 10-year median of 9.82)
GF Value™: $50.17 vs. price of $56.45 (12.5% above fair value)
Industry Position: 237.4% above the Asset Management median (#479 of 1510)
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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