Stock fact sheet · data as of
Federated Hermes, Inc. (FHI): fair value, margin of safety and Wheel Score
Ticker symbol FHI · Financial Services · Asset Management · United States · Blend Quality
Is FHI undervalued?
Federated Hermes, Inc. (FHI) closed at 65.73 on 5 Nov 2026. The GLS average fair value - the simple average of the 9 valuation models that produced a positive number - is 91.30, so the price sits 28% below it. 5 of the 9 models value the shares above the current price. A margin of safety between 10% and 30% is where most of the Sunday Scan candidates come from.
There is a wide gap between DDM (21.19) and 10 Cap (154.36). 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.
Ranked against every other company we cover, neither cheapness nor growth clearly wins for FHI, so the nightly engine files it under Blend (value score 49, growth score 56, out of 100). It also carries the Quality tag (Quality = moat 7.5+ out of 10 and Piotroski 7+).
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 | 110.52 | +68% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 49.19 | -25% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 129.86 | +98% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 41.26 | -37% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 97.77 | +49% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 154.36 | +135% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 151.81 | +131% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 21.19 | -68% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 65.73 | -0% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -2.64 | -104% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 60.50 | -8% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Federated Hermes, Inc. scores 7 of 9 on the Piotroski F-score, the nine yes/no tests of profitability, leverage and efficiency on the latest annual accounts - a strong reading that passes the "Piotroski 6 or more" Wheel Trade Filter with room to spare. A GLS Moat score of 9.1/10 puts FHI among the more durable businesses we track: over up to ten years its returns on capital have stayed high, its margins steady and its balance sheet sound.
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 8.3%.
The dividend yield is 2.19% 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 86%, Separate accounts 14%, Other 1% (quarter Q3 FY2026).
Institutional ownership scores 10/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 7 / 9 | ROIC | 24.4% |
|---|---|---|---|
| GLS Moat | 9.1 / 10 | ROE | 33.7% |
| Debt / equity | 0.38 | ROA | 17.6% |
| Free-cash-flow yield | 8.3% | Payout ratio | 26% |
| Institutions | 10 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 55: Fair
A Wheel Score of 55 keeps Federated Hermes, Inc. under 70, the mark only a stock that passes all 9 Wheel Trade Filters can reach: it fails filter 1, options that actually trade - options too quiet (111 open interest, 98 a day). The parts: value strong, premium strong, moat strong, health good, red flags strong, option trading weak, stability good.
Implied volatility is 35% on the near-the-money contracts 20-60 days out - inside the 35-60% sweet spot the Wheel Score rewards most: enough premium to be worth selling, not so much that the risk is unpaid. Chain open interest is thin - 111 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 875k shares a day on a market cap of $4.9B, with a beta of 0.65 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score rates that good.
| Filter | Wheel Trade Filter | Result | Detail |
|---|---|---|---|
| 1 | Options that actually trade | Fails | options too quiet (111 open interest, 98 a day) |
| 2 | A real business, not a gamble | Passes | Profitable over the last twelve months - not a speculative stock, fund or note |
| 3 | Below fair value | Passes | Trading below the nine-model average fair value (margin of safety above 0) |
| 4 | Financially healthy | Passes | Piotroski F-score 6 or more out of 9 (a company with no score on file passes) |
| 5 | Can repay its debt | Passes | Long-term debt repaid from 3 years of operating cash flow or less (6 for real estate and utilities; banks and insurers are not judged on it) |
| 6 | No serious red flags | Passes | Red Flags score 60 or more out of 100 (earnings, margins, debt, analysts, filings and price checked the same way for every stock) |
| 7 | A premium worth selling | Passes | Implied volatility 25-80% (enough premium, not a lottery ticket) |
| 8 | Big enough | Passes | Market cap $1 billion or more |
| 9 | Not a penny stock | Passes | Share price $5 or more |
| How it ranks | Rating | From | |
|---|---|---|---|
| Value | Strong | 28% below fair value | |
| Premium | Strong | implied volatility 35% | |
| Moat | Strong | moat 9.1/10 | |
| Health | Good | Piotroski 7/9 | |
| Red Flags | Strong | Red Flags score 100/100 | |
| Option trading | Weak | 98 contracts a day, 111 open interest | |
| Stability | Good | beta 0.65, $4.9B company |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls: a stock must pass all 9 Wheel Trade Filters to score 70, and the score then ranks the ones that pass; the Sunday Scan is the top 10. It is updated nightly and is not a recommendation. How the Wheel Score works · the walkthrough lesson shows how it fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 28 Jan 2027, 84 days away - outside the window of a 30-45-day put sold today. The shares go ex-dividend on 6 Nov 2026 (0.3800 per share), so a covered call sold before then carries a small early-assignment risk around that date.
No analyst upgrades or downgrades were recorded in the last 30 days.
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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|---|---|---|---|---|---|
| JSEAX JPMorgan International Equity A | 23.69 | 20.34 | -16% | 10No options | $5.0B |
| HASI HA Sustainable Infrastructure Capital, Inc. | 40.38 | 27.99 | -44% | 35Weak | $5.2B |
| JANIX Janus Henderson Triton Fund Class D | 28.81 | 45.34 | +36% | 30No options | $5.3B |
| OTF Blue Owl Technology Finance Corp. | 9.79 | 44.91 | +78% | 32No options | $4.5B |
| FELTX Fidelity Advisor Semiconductors Fund | 135.70 | 1,989.48 | +93% | 26No options | $4.5B |
| HLNE Hamilton Lane Incorporated | 94.99 | 143.57 | +34% | 54Fair | $5.3B |
| OBDC Blue Owl Capital Corporation | 10.76 | 34.88 | +69% | 84Good | $5.3B |
| TILHX Nuveen Large Cap Growth Fund I | 28.90 | 23.10 | -25% | 12No options | $5.4B |
| BMRRX BlackRock Mid-Cap Growth Equity Portfolio | 21.99 | 163.05 | +87% | 24No options | $4.4B |
| FIVLX Fidelity International Value Fund | 15.27 | 5.61 | -172% | 12No options | $5.4B |
| MAIN Main Street Capital Corporation | 57.62 | 94.56 | +39% | 34Weak | $5.4B |
| CGABL The Carlyle Group Inc. 4.625% Subordinated Notes due 2061 | 15.40 | 15.02 | -3% | 14No options | $5.5B |
⚖ Compare FHI with 7 of them All Financial Services stocks →
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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 top 10 stocks that pass all 9 Wheel Trade Filters, 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, moderately: at 65.73 the stock trades 28% below the average fair value of 91.30 (data as of 5 Nov 2026).
What is the Wheel Score of FHI and what does it mean?
FHI scores 55 out of 100 (Fair) - it fails Wheel Trade Filter 1. The Wheel Score ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned - in two parts: the 9 pass/fail Wheel Trade Filters (busy options, a real business, below fair value, Piotroski 6 or more, debt it can repay, a Red Flags score of 60 or more, implied volatility of 25-80%, a $1 billion company, $5 a share) and a ranking of how strongly a stock passes on value, premium, moat, health, red flags, option trading and stability. A stock that fails any filter stays under 70; 70-84 is Good, 85 and above is Prime. The Sunday Scan is the top 10 that pass, sorted by Wheel Score.
What is the GLS fair value for FHI?
91.30 per share as of 5 Nov 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 28 Jan 2027, 84 days from the data date of 5 Nov 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 92 listed contracts with 111 open interest across all expiries and implied volatility of 35% 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.