Stock fact sheet · data as of
Federated Hermes, Inc. (FHI): fair value, margin of safety and Wheel Score
Financial Services · Asset Management · United States · Defensive
Is FHI undervalued?
Federated Hermes, Inc. (FHI) closed at 56.47 on 16 Oct 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 90.61, which puts the price 38% below it. 6 of the 9 models value the shares above the current price. A gap this wide is rare in our universe of ~7,400 US stocks and is exactly what the Value part of the Wheel Score rewards; it is also where the question "why is it this cheap?" matters most.
There is a wide gap between DDM (21.19) and Graham Growth (145.65). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files FHI under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for FHI
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 108.76 | +93% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 47.21 | -16% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 145.65 | +158% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 50.22 | -11% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 101.88 | +80% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 139.51 | +147% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 137.65 | +144% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 21.19 | -62% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 63.43 | +12% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -2.62 | -105% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 60.00 | +6% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Federated Hermes, Inc. scores 6 of 9 on the Piotroski F-score: a middling result that passes the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. On durability FHI scores 7.1/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are high - ROIC 24.4%, ROE 33.7%, ROA 17.6% - with debt at 0.38 times equity and a free-cash-flow yield of 8.6%.
The dividend yield is 2.55% at a payout ratio of 26%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Federated Hermes Funds 84%, Separate accounts 14%, Other 2% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 6 / 9 | ROIC | 24.4% |
|---|---|---|---|
| GLS Moat | 7.1 / 10 | ROE | 33.7% |
| Debt / equity | 0.38 | ROA | 17.6% |
| Free-cash-flow yield | 8.6% | Payout ratio | 26% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 86: Prime
With a Wheel Score of 86, Federated Hermes, Inc. sits in the Prime band - price, quality and premium all line up for the wheel strategy. The parts: Value 25/25, Health 13/20, Moat 11/15, Premium 20/20, Stability 17/20. A high score is a ranking, not a signal: it says nothing about timing, the earnings date or your position size.
Implied volatility is 38% on the near-the-money contracts 20-60 days out - inside the 35-60% range the Wheel Score pays full marks for: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 760 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 1.1M shares a day on a market cap of $4.2B, with a beta of 0.64 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 17 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 25 / 25 | 38% margin of safety | |
| Health | 13 / 20 | Piotroski 6/9 | |
| Moat | 11 / 15 | moat 7.1/10 | |
| Premium | 20 / 20 | implied volatility 38% | |
| Stability | 17 / 20 | 1.1M shares/day, $4.2B cap, beta 0.64 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Federated Hermes, Inc. reports earnings on 29 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Asset Management
The 12 companies below are the closest to Federated Hermes, Inc. by market cap within the Asset Management industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
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| FAKTX American Funds 2015 Target Date Retirement Fd Cl F-1 | 13.21 | 192.52 | +93% | 39No options | $4.2B |
| TCLNX Nuveen Lifecycle 2030 Fund Retirement | 17.25 | 11.42 | -51% | 25No options | $4.2B |
| OTF Blue Owl Technology Finance Corp. | 9.44 | 47.48 | +80% | 39No options | $4.3B |
| ARTYX Artisan Developing World Fund - Investor Shares | 23.06 | - | - | 37No options | $4.1B |
| BMRRX BlackRock Mid-Cap Growth Equity Portfolio | 23.58 | 163.05 | +86% | 39No options | $4.5B |
| PRFRX T. Rowe Price Floating Rate Fund, Inc. | 9.01 | 4.63 | -95% | 30No options | $4.0B |
| FIVLX Fidelity International Value Fund | 15.02 | 5.61 | -168% | 25No options | $4.5B |
| HLNE Hamilton Lane Incorporated | 83.50 | 158.24 | +47% | 89Prime | $4.6B |
| JOBBX JPMorgan SmartRetirement Blend 2040 Fund Class R5 | 39.72 | 26.89 | -48% | 17No options | $3.8B |
| HASI HA Sustainable Infrastructure Capital, Inc. | 36.80 | 27.99 | -31% | 56Fair | $4.7B |
| AQMIX AQR Managed Futures Strategy Fund | 11.21 | 2.39 | -369% | 30No options | $3.7B |
| TMH Toyota Motor Corporation ADRhedged | 49.78 | 44.36 | -12% | 51Fair | $3.7B |
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A free GLS Equity account gets you nightly fair value and the Wheel Score on ~7,400 US stocks, a watchlist, the scanner preview and the Sunday Scan - the same eight-rule screen, emailed every week. Pro adds the full put and call scanners, unlimited watchlists with alerts and the trade journal.
Start free See the Sunday ScanQuestions about FHI
Is FHI undervalued right now?
By the GLS models, yes: at 56.47 the stock is 38% below the average fair value of 90.61 (data as of 16 Oct 2026). Whether the discount is deserved is the question to research next.
What is the Wheel Score of FHI and what does it mean?
FHI scores 86 out of 100 (Prime). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for FHI?
90.61 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Federated Hermes, Inc. report earnings next?
The next earnings report is due on 29 Oct 2026 (after the close), 13 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does FHI have listed options, and how liquid are they?
Yes. The nightly snapshot found 180 listed contracts with 760 open interest across all expiries and implied volatility of 38% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.