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Federated HermesFRA:3KC -0.96%94 Return-on-Tangible-Asset is 38.51% as of Mar. 2026, which is 6% below its 10-year median of 40.76. GuruFocus rates FRA:3KC with a GF Score™ of 94/100 and a GF Value™ of €44.32. The stock has 6 warning signs investors should review. Among 1,635 Asset Management companies, Federated Hermes ranks better than 97.06% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Federated Hermes's annualizedNet Income for the quarter that ended in Mar. 2026 was €333 Mil. Federated Hermes's average total tangible assets for the quarter that ended in Mar. 2026 was €866 Mil. Therefore, Federated Hermes's annualized Return-on-Tangible-Asset for the quarter that ended in Mar. 2026 was 38.51%.
The historical rank and industry rank for Federated Hermes's Return-on-Tangible-Asset or its related term are showing as below:
FRA:3KC'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: 29.21 Med: 40.76 Max: 59.05
Current: 41.43
During the past 13 years, Federated Hermes's highest Return-on-Tangible-Asset was 59.05%. The lowest was 29.21%. And the median was 40.76%.
FRA:3KC's Return-on-Tangible-Asset is ranked better than 97.06% of 1635
companies
in the Asset Management industry
Industry Median: 4.23
vs FRA:3KC: 41.43
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
Federated Hermes Return-on-Tangible-Asset Related Terms
Federated Hermes Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for Federated Hermes's Return-on-Tangible-Asset 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.
FRA:3KC vs DNP, CNS, MAIN: Return-on-Tangible-Asset Comparison
For the Asset Management subindustry, Federated Hermes's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Federated Hermes's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where Federated Hermes's Return-on-Tangible-Asset 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
What does a Return-on-Tangible-Asset of 38.51% mean?
Federated Hermes (FRA:3KC) has a Return-on-Tangible-Asset of 38.51% as of Mar. 2026. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Federated Hermes and its competitors. This is near median its historical median of 40.76. Over the past decade, Federated Hermes' Return-on-Tangible-Asset has ranged from 29.21 to 59.05. According to the industry distribution chart, Federated Hermes ranks #48 out of 1635 companies in the Asset Management industry, placing it in the top 2.9%.
Is Federated Hermes' Return-on-Tangible-Asset too high?
Federated Hermes' current Return-on-Tangible-Asset of 38.51% is near median its 10-year median of 40.76. Over the past 10 years, this metric has ranged from a low of 29.21 to a high of 59.05. The Asset Management industry median Return-on-Tangible-Asset is 4.23. Federated Hermes' value of 38.51% is 810.4% above this industry median. Based on the distribution chart, Federated Hermes ranks #48 out of 1635 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 94/100, reflecting its overall financial health beyond just this single metric.
How does Federated Hermes' Return-on-Tangible-Asset compare to DNP and CNS?
According to the Asset Management industry distribution chart, Federated Hermes ranks #48 out of 1635 companies for Return-on-Tangible-Asset. This places Federated Hermes in the top 3% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Asset is 4.23. Federated Hermes' value of 38.51% is 810.4% above this benchmark. Historically, Federated Hermes' own Return-on-Tangible-Asset has ranged from 29.21 to 59.05 over the past decade. While the company's 10-year median is 40.76 vs. the industry median of 4.23, 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 Return-on-Tangible-Asset for an Asset Management company?
The median Return-on-Tangible-Asset among Asset Management companies is 4.23, based on 1,635 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Asset significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Asset should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Federated Hermes's current Return-on-Tangible-Asset of 38.51% is 810.4% 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on Federated Hermes and its competitors. For the Asset Management industry, the median Return-on-Tangible-Asset is 4.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Federated Hermes's current Return-on-Tangible-Asset is 38.51%, which is near median its own 10-year median of 40.76. 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?
Federated Hermes (FRA:3KC) has a current Return-on-Tangible-Asset of 38.51%. The stock's GF Value™ is €44.32, compared to a current price of €51.50 — trading 16.2% above its estimated fair value. The current Return-on-Tangible-Asset is 38.51%, which is near median its 10-year median of 40.76 and 810.4% above the Asset Management industry median of 4.23. Federated Hermes' overall GF Score™ is 94/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For Federated Hermes (FRA:3KC), the current Return-on-Tangible-Asset is 38.51% 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 (FRA:3KC) Overvalued in 2026?
Based on GuruFocus' analysis, Federated Hermes stock appears to be overvalued.
The current stock price of €51.50 is trading 16.2% above its estimated GF Value™ of €44.32.
Key valuation signals for FRA:3KC:
Return-on-Tangible-Asset: 38.51% (near median its 10-year median of 40.76)
GF Value™: €44.32 vs. price of €51.50 (16.2% above fair value)
Industry Position: 810.4% above the Asset Management median (#48 of 1635)
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%).
94GF Score
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Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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