Federated HermesFHI -2.18%95 OCF Yield % is 7.44 as of Jul. 01, 2026, which is 27% below its 10-year median of 10.20. GuruFocus rates FHI with a GF Score™ of 95/100 and a GF Value™ of $50.24 (Fairly Valued). The stock has 5 warning signs investors should review. Among 1,509 Asset Management companies, Federated Hermes ranks better than 67.26% on this metric.
OCF Yield % is calculated as Cash Flow from Operations divided by Market Capitalization. It is a financial solvency ratio that compares the operating cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, OCF 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 operating 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 OCF Yield % Related Terms
Federated Hermes OCF Yield % Historical Data
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The historical data trend for Federated Hermes's OCF 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 OCF Yield %, along with its competitors' market caps and OCF 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 OCF Yield % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Federated Hermes's OCF Yield % distribution charts can be found below:
* The bar in red indicates where Federated Hermes's OCF 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 OCF Yield % of 7.44 as of Jul. 01, 2026. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on Federated Hermes and its competitors. This is 27% below median its historical median of 10.20. Over the past decade, Federated Hermes' OCF Yield % has ranged from 4.70 to 21.63. According to the industry distribution chart, Federated Hermes ranks #494 out of 1509 companies in the Asset Management industry, placing it in the top 32.7%.
Is Federated Hermes' OCF Yield % too high?
Federated Hermes' current OCF Yield % of 7.44 is 27% below median its 10-year median of 10.20. Over the past 10 years, this metric has ranged from a low of 4.70 to a high of 21.63. The Asset Management industry median OCF Yield % is 2.72. Federated Hermes' value of 7.44 is 173.5% above this industry median. Based on the distribution chart, Federated Hermes ranks #494 out of 1509 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 Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Federated Hermes' OCF Yield % compare to DNP and CNS?
According to the Asset Management industry distribution chart, Federated Hermes ranks #494 out of 1509 companies for OCF Yield %. This puts Federated Hermes in the upper half of its industry. The industry median OCF Yield % is 2.72. Federated Hermes' value of 7.44 is 173.5% above this benchmark. Historically, Federated Hermes' own OCF Yield % has ranged from 4.70 to 21.63 over the past decade. While the company's 10-year median is 10.20 vs. the industry median of 2.72, 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 OCF Yield % for an Asset Management company?
The median OCF Yield % among Asset Management companies is 2.72, based on 1,509 companies in the industry. Companies in the top quartile (top 25%) have a OCF Yield % significantly above this median, while those in the bottom quartile fall well below. However, OCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Federated Hermes's current OCF Yield % of 7.44 is 173.5% 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 OCF Yield % mean?
A high OCF Yield % can signal that a stock is expensive relative to its fundamentals. OCF Yield is calculated as Cash Flow from Operations divided by Market Capitalization. View historical data on Federated Hermes and its competitors. For the Asset Management industry, the median OCF Yield % is 2.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Federated Hermes's current OCF Yield % is 7.44, which is 27% below median its own 10-year median of 10.20. 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 Fairly Valued. The stock's GF Value™ is $50.24, compared to a current price of $55.22 — trading 9.9% above its estimated fair value. The current OCF Yield % is 7.44, which is 27% below median its 10-year median of 10.20 and 173.5% above the Asset Management industry median of 2.72. Federated Hermes' overall GF Score™ is 95/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is OCF Yield % calculated?
OCF Yield % is calculated from a company's financial statements. For Federated Hermes (FHI), the current OCF Yield % is 7.44 as of Jul. 01, 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 $55.22 is trading 9.9% above its estimated GF Value™ of $50.24.
GuruFocus considers Federated Hermes to be Fairly Valued.
Key valuation signals for FHI:
OCF Yield %: 7.44 (27% below median its 10-year median of 10.20)
GF Value™: $50.24 vs. price of $55.22 (9.9% above fair value)
Industry Position: 173.5% above the Asset Management median (#494 of 1509)
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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