Federated HermesFHI +1.60%96 ROA % is 17.63% as of Mar. 2026, which is 11% above its 10-year median of 15.90. GuruFocus rates FHI with a GF Score™ of 96/100 and a GF Value™ of $50.17 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 1,635 Asset Management companies, Federated Hermes ranks better than 87.52% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Federated Hermes's annualizedNet Income for the quarter that ended in Mar. 2026 was $386 Mil.
Federated Hermes's average Total Assets over the quarter that ended in Mar. 2026 was $2,187 Mil. Therefore, Federated Hermes's annualized ROA % for the quarter that ended in Mar. 2026 was 17.63%.
The historical rank and industry rank for Federated Hermes's ROA % or its related term are showing as below:
FHI'
s ROA % Range Over the Past 10 Years
Min: 11.86 Med: 15.9 Max: 24.42
Current: 18.61
During the past 13 years, Federated Hermes's highest ROA % was 24.42%. The lowest was 11.86%. And the median was 15.90%.
FHI's ROA % is ranked better than 87.52% of 1635
companies
in the Asset Management industry
Industry Median: 3.97
vs FHI: 18.61
Federated Hermes (NYSE:FHI) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Federated Hermes ROA % Related Terms
Federated Hermes ROA % Historical Data
* Premium members only.
The historical data trend for Federated Hermes's ROA % 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 ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Federated Hermes's ROA % distribution charts can be found below:
* The bar in red indicates where Federated Hermes's ROA % 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 ROA %, the net income of the last fiscal year and the average total 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.
ROA % is displayed in the 30-year financial page.
Federated Hermes (FHI) has a ROA % of 17.63% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Federated Hermes and its competitors. This is 11% above median its historical median of 15.90. Over the past decade, Federated Hermes' ROA % has ranged from 11.86 to 24.42. According to the industry distribution chart, Federated Hermes ranks #204 out of 1635 companies in the Asset Management industry, placing it in the top 12.5%.
Is Federated Hermes' ROA % too high?
Federated Hermes' current ROA % of 17.63% is 11% above median its 10-year median of 15.90. Over the past 10 years, this metric has ranged from a low of 11.86 to a high of 24.42. The Asset Management industry median ROA % is 3.97. Federated Hermes' value of 17.63% is 344.1% above this industry median. Based on the distribution chart, Federated Hermes ranks #204 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 96/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Federated Hermes' ROA % compare to DNP and STEP?
According to the Asset Management industry distribution chart, Federated Hermes ranks #204 out of 1635 companies for ROA %. This places Federated Hermes in the top 13% of its industry — outperforming the majority of peers. The industry median ROA % is 3.97. Federated Hermes' value of 17.63% is 344.1% above this benchmark. Historically, Federated Hermes' own ROA % has ranged from 11.86 to 24.42 over the past decade. While the company's 10-year median is 15.90 vs. the industry median of 3.97, 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 ROA % for an Asset Management company?
The median ROA % among Asset Management companies is 3.97, based on 1,635 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Federated Hermes's current ROA % of 17.63% is 344.1% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Federated Hermes and its competitors. For the Asset Management industry, the median ROA % is 3.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Federated Hermes's current ROA % is 17.63%, which is 11% above median its own 10-year median of 15.90. 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 $50.17, compared to a current price of $57.12 — trading 13.9% above its estimated fair value. The current ROA % is 17.63%, which is 11% above median its 10-year median of 15.90 and 344.1% above the Asset Management industry median of 3.97. Federated Hermes' overall GF Score™ is 96/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Federated Hermes (FHI), the current ROA % is 17.63% 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 $57.12 is trading 13.9% above its estimated GF Value™ of $50.17.
GuruFocus considers Federated Hermes to be Modestly Overvalued.
Key valuation signals for FHI:
ROA %: 17.63% (11% above median its 10-year median of 15.90)
GF Value™: $50.17 vs. price of $57.12 (13.9% above fair value)
Industry Position: 344.1% above the Asset Management median (#204 of 1635)
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%).
96GF Score
Get the complete analysis for FHI
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FHI has been successfully added to your 
