Federated Hermes (FRA:3KC) Moat Score: 5/10 (As of Jul. 03, 2026)


FRA:3KC Federated Hermes Inc FRA:3KC
85 GF Score
Price €48.00
GF Value €43.23
Valuation Modestly Overvalued
! 6 Warning Signs
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What is Federated Hermes Moat Score?

Federated Hermes FRA:3KC +0.42% 85 Moat Score is 5 as of Jul. 03, 2026. GuruFocus rates FRA:3KC with a GF Score™ of 85/100 and a GF Value™ of €43.23 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,695 Asset Management companies, Federated Hermes ranks better than 98.05% on this metric.

Federated Hermes has the Moat Score of 5, which implies that the company might have Narrow Moat - Solid narrow moat.

Federated Hermes has Narrow Moat: Federated Hermes Inc has a solid narrow moat due to its strong brand and customer loyalty in asset management. It benefits from economies of scale and a robust distribution network. However, the competitive landscape limits its pricing power and market share sustainability, preventing a wide moat classification.

Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more.

The company's Moat Score is based on these criteria:

1. Market leadership and sustainable market share
2. Network effects and significant customer switching costs
3. Valuable intellectual property and patents
4. Strong brand strength and deep customer loyalty
5. Durable cost advantages (e.g., economies of scale, proprietary technology)
6. Significant regulatory barriers and exclusive licenses
7. Superior distribution network
8. Strong and sustainable pricing power
9. Consistent and impactful innovation and R&D capabilities

Based on the research, GuruFocus believes Federated Hermes might have Narrow Moat - Solid narrow moat.

Federated Hermes  (FRA:3KC) Moat Score Explanation

The Moat Score ranges from 0 to 10, with 10 as the highest. GuruFocus divided Moat Score into following 8 categories:

Moat Score Moat Level
10Wide Moat - Exceptionally dominant and durable wide moat
8 - 9Wide Moat - Clear and robust wide moat
7Wide Moat - Entry-level wide moat, clearly possessing durable advantages
6Narrow Moat - Strong narrow moat, clearly distinguishable but not wide
5Narrow Moat - Solid narrow moat
4Narrow Moat - Discernible but modest moat
1 - 3No Moat - Very weak/transient advantages
0No Moat - No discernible moat

Federated Hermes Moat Score Related Terms

FRA:3KC vs DNP, CNS, MAIN: Moat Score Comparison

For the Asset Management subindustry, Federated Hermes's Moat Score, along with its competitors' market caps and Moat Score 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 Moat Score vs Asset Management Industry

For the Asset Management industry and Financial Services sector, Federated Hermes's Moat Score distribution charts can be found below:

* The bar in red indicates where Federated Hermes's Moat Score falls into.


FRA:3KC
85GF Score
Federated Hermes Inc FRA:3KC
Moat Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Frequently Asked Questions Learn more about Moat Score →
What does a Moat Score of 5 mean?
Federated Hermes (FRA:3KC) has a Moat Score of 5 as of Jul. 03, 2026. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. According to the industry distribution chart, Federated Hermes ranks #33 out of 1695 companies in the Asset Management industry, placing it in the top 1.9%.
Is Federated Hermes' Moat Score too high?
Federated Hermes' current Moat Score is 5. Based on the distribution chart, Federated Hermes ranks #33 out of 1695 companies in the Asset Management industry, which is in the top quartile — a strong position relative to peers. Overall, Federated Hermes has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Federated Hermes' Moat Score compare to DNP and CNS?
According to the Asset Management industry distribution chart, Federated Hermes ranks #33 out of 1695 companies for Moat Score. This places Federated Hermes in the top 2% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Moat Score for an Asset Management company?
A good Moat Score depends on the Asset Management industry context. However, Moat Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Moat Score mean?
A high Moat Score can signal that a stock is expensive relative to its fundamentals. Moat Score is a ranking system developed by GuruFocus to assess a company's ability to sustain a competitive advantage, rated on a scale from 0 to 10. It takes into account key factors such as market leadership, cost advantages, network effects, customer switching costs, and more. Federated Hermes's current Moat Score is 5. 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 €43.23, compared to a current price of €48.00 — trading 11% above its estimated fair value. The current Moat Score is 5. Federated Hermes' overall GF Score™ is 85/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Moat Score calculated?
Moat Score is calculated from a company's financial statements. For Federated Hermes (FRA:3KC), the current Moat Score is 5 as of Jul. 03, 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 €48.00 is trading 11% above its estimated GF Value™ of €43.23. GuruFocus considers Federated Hermes to be Modestly Overvalued.

Key valuation signals for FRA:3KC:

  • Moat Score: 5
  • GF Value™: €43.23 vs. price of €48.00 (11% above fair value)
  • GF Score™: 85/100 with 6 warning signs

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 Business Description

Other Exchanges FHI:USA
Address 1001 Liberty Avenue, Pittsburgh, PA, USA, 15222-3779
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%).
85GF Score

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Moat Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€48.00
Price
€43.23
GF Value