Federated HermesFHI -5.48%98 Net Margin % is 20.12% as of Mar. 2026, which is 1% above its 10-year median of 19.96. 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 1,579 Asset Management companies, Federated Hermes ranks worse than 71.12% on this metric.
The historical rank and industry rank for Federated Hermes's Net Margin % or its related term are showing as below:
FHI'
s Net Margin % Range Over the Past 10 Years
Min: 16.44 Med: 19.96 Max: 26.42
Current: 21.47
FHI's Net Margin % is ranked worse than 71.12% of 1579
companies
in the Asset Management industry
Industry Median: 84.88
vs FHI: 21.47
Federated Hermes (NYSE:FHI) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Federated Hermes Net Margin % Related Terms
Federated Hermes Net Margin % Historical Data
* Premium members only.
The historical data trend for Federated Hermes's Net 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 Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Federated Hermes's Net Margin % distribution charts can be found below:
* The bar in red indicates where Federated Hermes's Net 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 Net Margin % of 20.12% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Federated Hermes and its competitors. This is near median its historical median of 19.96. Over the past decade, Federated Hermes' Net Margin % has ranged from 16.44 to 26.42. According to the industry distribution chart, Federated Hermes ranks #1123 out of 1579 companies in the Asset Management industry, placing it in the top 71.1%.
Is Federated Hermes' Net Margin % too high?
Federated Hermes' current Net Margin % of 20.12% is near median its 10-year median of 19.96. Over the past 10 years, this metric has ranged from a low of 16.44 to a high of 26.42. The Asset Management industry median Net Margin % is 84.88. Federated Hermes' value of 20.12% is 76.3% below this industry median. Based on the distribution chart, Federated Hermes ranks #1123 out of 1579 companies in the Asset Management industry, which is below 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' Net Margin % compare to DNP and STEP?
According to the Asset Management industry distribution chart, Federated Hermes ranks #1123 out of 1579 companies for Net Margin %. This places Federated Hermes in the lower half of its industry. The industry median Net Margin % is 84.88. Federated Hermes' value of 20.12% is 76.3% below this benchmark. Historically, Federated Hermes' own Net Margin % has ranged from 16.44 to 26.42 over the past decade. While the company's 10-year median is 19.96 vs. the industry median of 84.88, 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 Net Margin % for an Asset Management company?
The median Net Margin % among Asset Management companies is 84.88, based on 1,579 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Federated Hermes's current Net Margin % of 20.12% is 76.3% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Federated Hermes and its competitors. For the Asset Management industry, the median Net Margin % is 84.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Federated Hermes's current Net Margin % is 20.12%, which is near median its own 10-year median of 19.96. 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 $56.01 — trading 11.6% above its estimated fair value. The current Net Margin % is 20.12%, which is near median its 10-year median of 19.96 and 76.3% below the Asset Management industry median of 84.88. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Federated Hermes (FHI), the current Net Margin % is 20.12% 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 $56.01 is trading 11.6% above its estimated GF Value™ of $50.18.
GuruFocus considers Federated Hermes to be Modestly Overvalued.
Key valuation signals for FHI:
Net Margin %: 20.12% (near median its 10-year median of 19.96)
GF Value™: $50.18 vs. price of $56.01 (11.6% above fair value)
Industry Position: 76.3% below the Asset Management median (#1123 of 1579)
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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