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Federated HermesFRA:3KC -1.94%85 3-Year ROIIC % is 387.62 as of Dec. 2025, which is 6572% above its 10-year median of 5.81. GuruFocus rates FRA:3KC with a GF Score™ of 85/100 and a GF Value™ of €43.43 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 653 Asset Management companies, Federated Hermes ranks better than 96.78% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Federated Hermes's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 387.62%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Federated Hermes's 3-Year ROIIC % or its related term are showing as below:
FRA:3KC's 3-Year ROIIC % is ranked better than 96.78% of 653
companies
in the Asset Management industry
Industry Median: 2.09
vs FRA:3KC: 387.62
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Federated Hermes 3-Year ROIIC % Related Terms
Federated Hermes 3-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Federated Hermes's 3-Year ROIIC % 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: 3-Year ROIIC % Comparison
For the Asset Management subindustry, Federated Hermes's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Asset Management Industry
For the Asset Management industry and Financial Services sector, Federated Hermes's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Federated Hermes's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Federated Hermes (FRA:3KC) has a 3-Year ROIIC % of 387.62 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Federated Hermes and its competitors. This is 6572% above median its historical median of 5.81. According to the industry distribution chart, Federated Hermes ranks #21 out of 653 companies in the Asset Management industry, placing it in the top 3.2%.
Is Federated Hermes' 3-Year ROIIC % too high?
Federated Hermes' current 3-Year ROIIC % of 387.62 is 6572% above median its 10-year median of 5.81. The Asset Management industry median 3-Year ROIIC % is 2.09. Federated Hermes' value of 387.62 is 18446.4% above this industry median. Based on the distribution chart, Federated Hermes ranks #21 out of 653 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 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Federated Hermes' 3-Year ROIIC % compare to DNP and CNS?
According to the Asset Management industry distribution chart, Federated Hermes ranks #21 out of 653 companies for 3-Year ROIIC %. This places Federated Hermes in the top 3% of its industry — outperforming the majority of peers. The industry median 3-Year ROIIC % is 2.09. Federated Hermes' value of 387.62 is 18446.4% above this benchmark. While the company's 10-year median is 5.81 vs. the industry median of 2.09, 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 3-Year ROIIC % for an Asset Management company?
The median 3-Year ROIIC % among Asset Management companies is 2.09, based on 653 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Federated Hermes's current 3-Year ROIIC % of 387.62 is 18446.4% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Federated Hermes and its competitors. For the Asset Management industry, the median 3-Year ROIIC % is 2.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Federated Hermes's current 3-Year ROIIC % is 387.62, which is 6572% above median its own 10-year median of 5.81. 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 €43.43, compared to a current price of €50.50 — trading 16.3% above its estimated fair value. The current 3-Year ROIIC % is 387.62, which is 6572% above median its 10-year median of 5.81 and 18446.4% above the Asset Management industry median of 2.09. Federated Hermes' overall GF Score™ is 85/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Federated Hermes (FRA:3KC), the current 3-Year ROIIC % is 387.62 as of Dec. 2025. 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 16.3% above its estimated GF Value™ of €43.43.
GuruFocus considers Federated Hermes to be Modestly Overvalued.
Key valuation signals for FRA:3KC:
3-Year ROIIC %: 387.62 (6572% above median its 10-year median of 5.81)
GF Value™: €43.43 vs. price of €50.50 (16.3% above fair value)
Industry Position: 18446.4% above the Asset Management median (#21 of 653)
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%).
85GF Score
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