Federated HermesFRA:3KC 83 Return-on-Tangible-Equity is 1,772.45% as of Mar. 2026. GuruFocus rates FRA:3KC with a GF Score™ of 83/100 and a GF Value™ of €43.28 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,589 Asset Management companies, Federated Hermes ranks better than 99.94% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Federated Hermes's annualized net income for the quarter that ended in Mar. 2026 was €333 Mil. Federated Hermes's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €19 Mil. Therefore, Federated Hermes's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 1,772.45%.
The historical rank and industry rank for Federated Hermes's Return-on-Tangible-Equity or its related term are showing as below:
FRA:3KC'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0 Med: 0 Max: 0
Current: Negative Tangible Equity
FRA:3KC's Return-on-Tangible-Equity is ranked better than 99.94% of 1589
companies
in the Asset Management industry
Industry Median: 7.18
vs FRA:3KC: Negative Tangible Equity
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Federated Hermes Return-on-Tangible-Equity Related Terms
Federated Hermes Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Federated Hermes's Return-on-Tangible-Equity 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-Equity Comparison
For the Asset Management subindustry, Federated Hermes's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Federated Hermes's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Federated Hermes's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 1,772.45% mean?
Federated Hermes (FRA:3KC) has a Return-on-Tangible-Equity of 1,772.45% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Federated Hermes and its competitors. According to the industry distribution chart, Federated Hermes ranks #1 out of 1589 companies in the Asset Management industry, placing it in the top 0.099999999999994%.
Is Federated Hermes' Return-on-Tangible-Equity too high?
Federated Hermes' current Return-on-Tangible-Equity is 1,772.45%. The Asset Management industry median Return-on-Tangible-Equity is 7.18. Federated Hermes' value of 1,772.45% is 24585.9% above this industry median. Based on the distribution chart, Federated Hermes ranks #1 out of 1589 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 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Federated Hermes' Return-on-Tangible-Equity compare to DNP and CNS?
According to the Asset Management industry distribution chart, Federated Hermes ranks #1 out of 1589 companies for Return-on-Tangible-Equity. This places Federated Hermes in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.18. Federated Hermes' value of 1,772.45% is 24585.9% above this benchmark. 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-Equity for an Asset Management company?
The median Return-on-Tangible-Equity among Asset Management companies is 7.18, based on 1,589 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Federated Hermes's current Return-on-Tangible-Equity of 1,772.45% is 24585.9% 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Federated Hermes and its competitors. For the Asset Management industry, the median Return-on-Tangible-Equity is 7.18 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Federated Hermes's current Return-on-Tangible-Equity is 1,772.45%. 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 €43.28, compared to a current price of €50.50 — trading 16.7% above its estimated fair value. The current Return-on-Tangible-Equity is 1,772.45% and 24585.9% above the Asset Management industry median of 7.18. Federated Hermes' overall GF Score™ is 83/100 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-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Federated Hermes (FRA:3KC), the current Return-on-Tangible-Equity is 1,772.45% 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 €50.50 is trading 16.7% above its estimated GF Value™ of €43.28.
GuruFocus considers Federated Hermes to be Modestly Overvalued.
Key valuation signals for FRA:3KC:
Return-on-Tangible-Equity: 1,772.45%
GF Value™: €43.28 vs. price of €50.50 (16.7% above fair value)
Industry Position: 24585.9% above the Asset Management median (#1 of 1589)
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%).
83GF Score
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