Federated HermesFHI -1.88%95 Gross Margin % is 67.82% as of Mar. 2026, which is 2% above its 10-year median of 66.78. 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 550 Asset Management companies, Federated Hermes ranks better than 58.36% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Federated Hermes had a gross margin of 67.82% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Federated Hermes Gross Margin % Related Terms
Federated Hermes Gross Margin % Historical Data
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The historical data trend for Federated Hermes's Gross 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 Gross Margin %, along with its competitors' market caps and Gross 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 Gross Margin % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Federated Hermes's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Federated Hermes's Gross 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Federated Hermes (FHI) has a Gross Margin % of 67.82% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Federated Hermes and its competitors. This is near median its historical median of 66.78. Over the past decade, Federated Hermes' Gross Margin % has ranged from 59.05 to 74.07. According to the industry distribution chart, Federated Hermes ranks #229 out of 550 companies in the Asset Management industry, placing it in the top 41.6%.
Is Federated Hermes' Gross Margin % too high?
Federated Hermes' current Gross Margin % of 67.82% is near median its 10-year median of 66.78. Over the past 10 years, this metric has ranged from a low of 59.05 to a high of 74.07. The Asset Management industry median Gross Margin % is 57.90. Federated Hermes' value of 67.82% is 17.1% above this industry median. Based on the distribution chart, Federated Hermes ranks #229 out of 550 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' Gross Margin % compare to DNP and CNS?
According to the Asset Management industry distribution chart, Federated Hermes ranks #229 out of 550 companies for Gross Margin %. This puts Federated Hermes in the upper half of its industry. The industry median Gross Margin % is 57.90. Federated Hermes' value of 67.82% is 17.1% above this benchmark. Historically, Federated Hermes' own Gross Margin % has ranged from 59.05 to 74.07 over the past decade. While the company's 10-year median is 66.78 vs. the industry median of 57.90, 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 Gross Margin % for an Asset Management company?
The median Gross Margin % among Asset Management companies is 57.90, based on 550 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Federated Hermes's current Gross Margin % of 67.82% is 17.1% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Federated Hermes and its competitors. For the Asset Management industry, the median Gross Margin % is 57.90 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Federated Hermes's current Gross Margin % is 67.82%, which is near median its own 10-year median of 66.78. 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 Gross Margin % is 67.82%, which is near median its 10-year median of 66.78 and 17.1% above the Asset Management industry median of 57.90. 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 Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Federated Hermes (FHI), the current Gross Margin % is 67.82% 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 $56.45 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:
Gross Margin %: 67.82% (near median its 10-year median of 66.78)
GF Value™: $50.17 vs. price of $56.45 (12.5% above fair value)
Industry Position: 17.1% above the Asset Management median (#229 of 550)
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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