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Federated HermesFRA:3KC 86 Interest Coverage is 44.09 as of Jun. 2026, which is 16% above its 10-year median of 38.13. GuruFocus rates FRA:3KC with a GF Score™ of 86/100 and a GF Value™ of €47.58 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 480 Asset Management companies, Federated Hermes ranks worse than 51.88% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Federated Hermes's
Operating Income
for the
three
months ended in Jun. 2026 was €121 Mil. Federated Hermes's Interest Expense for the
three
months ended in Jun. 2026 was €-3 Mil.
Federated Hermes's interest coverage for the quarter that ended in Jun. 2026 was 44.09.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Federated Hermes's Interest Coverage or its related term are showing as below:
FRA:3KC'
s Interest Coverage Range Over the Past 10 Years
Min: 32.06 Med: 38.13 Max: 212.94
Current: 42.51
FRA:3KC's Interest Coverage is ranked worse than 51.88% of 480
companies
in the Asset Management industry
Industry Median: 45.97
vs FRA:3KC: 42.51
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Federated Hermes Interest Coverage Related Terms
Federated Hermes Interest Coverage Historical Data
* Premium members only.
The historical data trend for Federated Hermes's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:3KC vs OTF, DNP, CNS: Interest Coverage Comparison
For the Asset Management subindustry, Federated Hermes's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Federated Hermes's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Federated Hermes's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (FRA:3KC) has a Interest Coverage of 44.09 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Federated Hermes and its competitors. This is 16% above median its historical median of 38.13. Over the past decade, Federated Hermes' Interest Coverage has ranged from 32.06 to 212.94. According to the industry distribution chart, Federated Hermes ranks #249 out of 480 companies in the Asset Management industry, placing it in the top 51.9%.
Is Federated Hermes' Interest Coverage too high?
Federated Hermes' current Interest Coverage of 44.09 is 16% above median its 10-year median of 38.13. Over the past 10 years, this metric has ranged from a low of 32.06 to a high of 212.94. The Asset Management industry median Interest Coverage is 45.97. Federated Hermes' value of 44.09 is 4.1% below this industry median. Based on the distribution chart, Federated Hermes ranks #249 out of 480 companies in the Asset Management industry, which is below the industry midpoint. Overall, Federated Hermes has a GF Score™ of 86/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Federated Hermes' Interest Coverage compare to OTF and DNP?
According to the Asset Management industry distribution chart, Federated Hermes ranks #249 out of 480 companies for Interest Coverage. This places Federated Hermes in the lower half of its industry. The industry median Interest Coverage is 45.97. Federated Hermes' value of 44.09 is 4.1% below this benchmark. Historically, Federated Hermes' own Interest Coverage has ranged from 32.06 to 212.94 over the past decade. While the company's 10-year median is 38.13 vs. the industry median of 45.97, 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 Interest Coverage for an Asset Management company?
The median Interest Coverage among Asset Management companies is 45.97, based on 480 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Federated Hermes's current Interest Coverage of 44.09 is 4.1% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Federated Hermes and its competitors. For the Asset Management industry, the median Interest Coverage is 45.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Federated Hermes's current Interest Coverage is 44.09, which is 16% above median its own 10-year median of 38.13. 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 (FRA:3KC) is currently considered Modestly Overvalued. The stock's GF Value™ is €47.58, compared to a current price of €54.50 — trading 14.5% above its estimated fair value. The current Interest Coverage is 44.09, which is 16% above median its 10-year median of 38.13 and 4.1% below the Asset Management industry median of 45.97. Federated Hermes' overall GF Score™ is 86/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Federated Hermes (FRA:3KC), the current Interest Coverage is 44.09 as of Jun. 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 (FRA:3KC) Overvalued in 2026?
Based on GuruFocus' analysis, Federated Hermes stock appears to be overvalued.
The current stock price of €54.50 is trading 14.5% above its estimated GF Value™ of €47.58.
GuruFocus considers Federated Hermes to be Modestly Overvalued.
Key valuation signals for FRA:3KC:
Interest Coverage: 44.09 (16% above median its 10-year median of 38.13)
GF Value™: €47.58 vs. price of €54.50 (14.5% above fair value)
Industry Position: 4.1% below the Asset Management median (#249 of 480)
No single metric tells the full story. See the FRA:3KC 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%).
86GF Score
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