ValueInvest_Pro

Investing idea nr. 4 FHI

Long
ValueInvest_Pro Updated   
NYSE:FHI   Federated Hermes, Inc.
Hello everyone,

this article is about Federated Hermes Inc. This is asset-management company, which work in investing and consulting too.

Ticker: FHI
Index: SP500
Sector: Finance and asset management
HQ: 1001 Liberty Avenue, Pittsburgh, PA, USA, 15222-3779
Local offices: UK, USA, Canada, Europe


This company is interesting for investing because:

1. She is under goverment control (SEC and European regulators). It means, that company is more strong and can cover her payments and debts.
2. Broad offer of products. It gives diverse incoming, which can cover each other.
3. Wise and flexible money and investing management, which give a possibility to use loans, unlike other companies.
4. Buy out own stocks makes positions of the company stronger.
5. High ROA (16,36%) and ROE (28,72%) show good asset-management and long-term competitive advantage of this company.
6. Current ratio is more than 1. That means, that company do not have risk becoming bankrupt.
7. Company show real results of activity. PE is close to Price-to-Free-Cash-Flow.
8. Results are only from operating activity (PE = PE without NRI).
9. She don't have critical debt level (Debt-to-Equity = 19%, that is less then critical level in 40%).
10. Company had audit by Ernst & Young. She cares about trust from investors.

Price at publication moment was 25,65. VSA analysis show this levels for buying:

Level 1: 24.5 — 26.5
Level 2: 23 - 24
Level 3: 21.5 — 22.5

This company have good chances to strong, stable grow, which is based on real value and is good for including into the portfolio. They have good asset management, wise investing activity and is under government control.

Wish You have good profits and lucky investing.

Financial analyst and advisor,
Valerii Selin.
Comment:
As my dear users see, our stock came lower that any previous level. And after that get higher to the price 31. That is mean, that we have 6$ profit per stock.

We can wait for next move, caused by fundamental factors.

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