Federated HermesFHI -3.58%98 Pretax Margin % is 27.09% as of Mar. 2026, which is 4% below its 10-year median of 28.24. 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 71.44% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Federated Hermes Pretax Margin % Related Terms
Federated Hermes Pretax Margin % Historical Data
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The historical data trend for Federated Hermes's Pretax 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 Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Federated Hermes's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Federated Hermes's Pretax 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 Pretax Margin % of 27.09% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Federated Hermes and its competitors. This is near median its historical median of 28.24. Over the past decade, Federated Hermes' Pretax Margin % has ranged from 21.18 to 31.92. According to the industry distribution chart, Federated Hermes ranks #1128 out of 1579 companies in the Asset Management industry, placing it in the top 71.4%.
Is Federated Hermes' Pretax Margin % too high?
Federated Hermes' current Pretax Margin % of 27.09% is near median its 10-year median of 28.24. Over the past 10 years, this metric has ranged from a low of 21.18 to a high of 31.92. The Asset Management industry median Pretax Margin % is 89.43. Federated Hermes' value of 27.09% is 69.7% below this industry median. Based on the distribution chart, Federated Hermes ranks #1128 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' Pretax Margin % compare to DNP and STEP?
According to the Asset Management industry distribution chart, Federated Hermes ranks #1128 out of 1579 companies for Pretax Margin %. This places Federated Hermes in the lower half of its industry. The industry median Pretax Margin % is 89.43. Federated Hermes' value of 27.09% is 69.7% below this benchmark. Historically, Federated Hermes' own Pretax Margin % has ranged from 21.18 to 31.92 over the past decade. While the company's 10-year median is 28.24 vs. the industry median of 89.43, 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 Pretax Margin % for an Asset Management company?
The median Pretax Margin % among Asset Management companies is 89.43, based on 1,579 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Federated Hermes's current Pretax Margin % of 27.09% is 69.7% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Federated Hermes and its competitors. For the Asset Management industry, the median Pretax Margin % is 89.43 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Federated Hermes's current Pretax Margin % is 27.09%, which is near median its own 10-year median of 28.24. 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 $57.13 — trading 13.9% above its estimated fair value. The current Pretax Margin % is 27.09%, which is near median its 10-year median of 28.24 and 69.7% below the Asset Management industry median of 89.43. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Federated Hermes (FHI), the current Pretax Margin % is 27.09% 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 $57.13 is trading 13.9% above its estimated GF Value™ of $50.18.
GuruFocus considers Federated Hermes to be Modestly Overvalued.
Key valuation signals for FHI:
Pretax Margin %: 27.09% (near median its 10-year median of 28.24)
GF Value™: $50.18 vs. price of $57.13 (13.9% above fair value)
Industry Position: 69.7% below the Asset Management median (#1128 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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