FHI (Federated Hermes) ROCE %: 27.86% (As of Mar. 2026)

What is Federated Hermes ROCE %?

Federated Hermes FHI -4.84% 98 ROCE % is 27.86% as of Mar. 2026. 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.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Federated Hermes's annualized ROCE % for the quarter that ended in Mar. 2026 was 27.86%.

Federated Hermes (NYSE:FHI) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Federated Hermes ROCE % Related Terms

Federated Hermes ROCE % Historical Data

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The historical data trend for Federated Hermes's ROCE % 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.

Federated Hermes ROCE % Chart

Federated Hermes Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Dec25

ROCE %

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21.34

18.08

23.69

21.84

30.20

Federated Hermes Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
ROCE %	Get a 7-Day Free Trial															31.16	28.93	29.81	29.89	27.86

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Federated Hermes Inc FHI

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Federated Hermes ROCE % Calculation

Federated Hermes's annualized ROCE % for the fiscal year that ended in Dec. 2025 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2025 )		(A: Dec. 2024 )		(A: Dec. 2025 )
	=	560.258	/	( ( (2084.684 - 289.193)	+	(2229.337 - 314.141) )	/ 2 )
	=	560.258	/	( (1795.491	+	1915.196)	/ 2 )
	=	560.258	/	1855.3435
	=	30.20 %

Federated Hermes's ROCE % of for the quarter that ended in Mar. 2026 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2026 )		(Q: Dec. 2025 )		(Q: Mar. 2026 )
	=	531.816	/	( ( (2229.337 - 314.141)	+	(2143.807 - 240.68) )	/ 2 )
	=	531.816	/	( ( 1915.196	+	1903.127 )	/ 2 )
	=	531.816	/	1909.1615
	=	27.86 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 27.86% mean?

Federated Hermes (FHI) has a ROCE % of 27.86% as of Mar. 2026.

Is Federated Hermes' ROCE % too high?

Federated Hermes' current ROCE % is 27.86%. The Asset Management industry median ROCE % is 4.46. Federated Hermes' value of 27.86% is 524.7% above this industry median. 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' ROCE % compare to DNP and STEP?

Federated Hermes' ROCE % of 27.86% can be compared against companies in the Asset Management industry. The industry median ROCE % is 4.46. Federated Hermes' value of 27.86% is 524.7% 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 ROCE % for an Asset Management company?

The median ROCE % among Asset Management companies is 4.46, based on 707 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Federated Hermes's current ROCE % of 27.86% is 524.7% 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Asset Management industry, the median ROCE % is 4.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Federated Hermes's current ROCE % is 27.86%. 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 $56.38 — trading 12.4% above its estimated fair value. The current ROCE % is 27.86% and 524.7% above the Asset Management industry median of 4.46. 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 ROCE % calculated?

ROCE % is calculated from a company's financial statements. For Federated Hermes (FHI), the current ROCE % is 27.86% 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 $56.38 is trading 12.4% above its estimated GF Value™ of $50.18. GuruFocus considers Federated Hermes to be Modestly Overvalued.

Key valuation signals for FHI:

ROCE %: 27.86%
GF Value™: $50.18 vs. price of $56.38 (12.4% above fair value)
GF Score™: 98/100 with 6 warning signs
Industry Position: 524.7% above the Asset Management median

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 Business Description

Industry Financial Services Asset Management

Comparable Companies DNP STEP UTG HLNE MAIN CNS AB NEA GBDC OTF BLK BX OSTO:INVE A TSX:BN KKR TSX:BAM APO STT OSTO:EQT AMP

Other Exchanges 3KC:Germany

Address 1001 Liberty Avenue, Pittsburgh, PA, USA, 15222-3779

Website https://www.federatedhermes.com

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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ROCE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$56.38

Price

$50.18

GF Value

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