FII – Market expectations are for Uniform ROA to decline, but management is confident about Hermes, valuations, and their long-only business
December 11, 2019
- Federated Investors, Inc. (FII:USA) currently trades below historical averages relative to UAFRS-based (Uniform) Earnings, with a 12.2x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident about Hermes, valuations, and their long-only business
- Specifically, management is confident Hermes’ EOS assets under administration increased to $781mn in Q3 2019, and they are confident their growing long-only business is driving revenue and net income. Furthermore, they are confident they have an outside adviser to help value their P&L mark-ups and markdowns.