FII  Federated Investors Inc.

Exchange

NYSE

Sector

Finance

Industry

Investment Managers

Market Cap.

3.04B

Vuru Grade

71.78/100

Current Price

$31.13
-0.16 (-0.51%)

Growth Price

$21.07
Overvalued by 32.31%

Stability Price

$46.78
Undervalued by 50.26%

Company Metrics

  • P/E 14.82
  • P/S 2.7
  • P/B 4.83
  • EPS 2.1
  • Cash ROIC 7.98%
  • Cash Ratio -
  • Dividend 1 / 3.2%
  • Avg. Vol. 609,458.00
  • Shares 97.65M
  • Market Cap. 3.04B

Company Description

Federated Investors, Inc. is a publicly owned investment manager. The firm provides its services to individuals, including high net worth individuals, banking or thrift institutions, investment companies, pension and profit sharing plans, pooled investment vehicles, charitable organizations, state or municipal government entities, and registered investment advisors. Through its subsidiaries, it ma... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Federated Investors: A Sustainable And Attractive Dividend
Seeking Alpha - Oct 18, 2017
Federated Investors, Inc. (FII) offers an attractive dividend supported by a sustainable payout ratio and profitability combined with a strong history of management returning excess cash to shareholders via dividends, making it a sustainable and ...
Federated Investors (NYSE:FII) Moves On Deutsche Bank Initiation. How Much Are ... - BZ Weekly
Simmons Bank Has $6.02 Million Position in Federated Investors, Inc. (NYSE:FII) - The Ledger Gazette
Federated Investors, Inc. Announces Third Quarter 2017 Earnings and Conference ...
PR Newswire (press release) - Oct 5, 2017
PITTSBURGH, Oct. 5, 2017 /PRNewswire/ -- Federated Investors, Inc. (NYSE: FII), one of the nation's largest investment managers, will report financial and operating results for the quarter ended Sept.
Brokerages Anticipate Federated Investors, Inc. (FII) Will Post Quarterly ... - The Ledger Gazette
Federated Investors, Inc. (FII) Downgraded by Zacks Investment Research to Hold - TrueBlueTribune
Federated Investors, Inc. (FII) Stake Lifted by Northern Trust Corp
TrueBlueTribune - 8 hours ago
Federated Investors logo Northern Trust Corp increased its holdings in shares of Federated Investors, Inc. (NYSE:FII) by 3.9% during the second quarter, according to its most recent filing with the Securities and Exchange Commission (SEC).
Profund Advisors LLC Sells 5283 Shares of Federated Investors, Inc. (NYSE:FII) - The Ledger Gazette
Federated Investors, Inc. (FII) PT Set at $28.00 by Royal Bank Of Canada - Week Herald
Mondelez International, Inc. (NASDAQ:MDLZ) Stake Increased by Federated ...
TrueBlueTribune - 6 hours ago
Mondelez International logo Federated Investors Inc. PA grew its position in Mondelez International, Inc. (NASDAQ:MDLZ) by 22.2% in the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission.
Trading Sheet: Reviewing the Levels for Federated Investors, Inc. (NYSE:FII)
Concord Register - 4 hours ago
Federated Investors, Inc. (NYSE:FII) has a current EV or Enterprise Value of 3212556. The EV displays how the market assigns value to a firm as a whole.
ConocoPhillips (COP) Position Cut by Federated Investors Inc. PA
StockNewsTimes - 10 hours ago
ConocoPhillips logo Federated Investors Inc. PA decreased its position in ConocoPhillips (NYSE:COP) by 55.7% during the 2nd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission.
Federated Investors (FII) & Virtus Investment Partners (VRTS) Financial Analysis
Dispatch Tribunal - 9 hours ago
Federated Investors (NYSE: FII) and Virtus Investment Partners (NASDAQ:VRTS) are both finance companies, but which is the better business?
Federated Investors Inc. (FII) Moves Lower on Volume Spike for October 03
Equities.com - Oct 3, 2017
Federated Investors Inc. (FII) traded on unusually high volume on Oct. 03, as the stock lost 0.3% to close at $30.12. On the day, Federated Investors Inc. saw 874,015 shares trade hands on 5,744 trades. Considering that the stock averages only a daily ...
In Good Financial Health? – BioCryst Pharmaceuticals, Inc. (BCRX), Federated ... - USA Commerce Daily
Federated Investors Inc. PA Sells 42046 Shares of Emerson Electric Company (EMR)
The Ledger Gazette - 7 hours ago
Emerson Electric logo Federated Investors Inc. PA decreased its position in Emerson Electric Company (NYSE:EMR) by 74.7% in the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission.
US Bancorp (USB) Shares Sold by Federated Investors Inc. PA
Dispatch Tribunal - 10 hours ago
U.S. Bancorp logo Federated Investors Inc. PA lowered its stake in U.S. Bancorp (NYSE:USB) by 83.6% during the second quarter, according to its most recent 13F filing with the SEC.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for FII to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate FII's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$31.13 Current Price

$21.07 Growth Price (DCF)

Overvalued by 32.31%


Growth Rate Assumed by Market: 12.79%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$46.78 Stability Price (EPV)

Undervalued by 50.26%


Discount Rate: 15.0%

$28.17 Book Price

Overvalued by 9.52%


Poor Cash Return on Invested Capital over the past 5 years

FII has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

FII has only created $7.98 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow - - - 227.16M 239.93M
divided by
Invested Capital 1.09B 1.14B 1.14B 1.19B 1.16B
Cash ROIC - - - 19.13% 20.77%

Excellent Return on Equity over the past 5 years

Over the past 5 years, FII has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

FII has generated $30.49 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 188.09M 162.18M 149.24M 169.81M 208.92M
divided by
Stockholders' Equity 495.43M 566.12M 609.49M 647.82M 594.83M
Return on Equity 37.96% 28.65% 24.49% 26.21% 35.12%

Good Business Performance over the past 10 years

It's likely FII has been unable to maintain profitability in tough economic times, making it a somewhat cyclical business. The other possibility is FII has expended significant capital on items such as property, plant and equipment in specific years. Look for correlations.

FII has created positive free cash flow for 7 or 8 of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 319.31M 300.65M 248.38M 208.08M 113.49M - - - 227.16M 239.93M

Good Balance Sheet

FII's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash - - - - - - - - - -
Current Assets - - - - - - - - - -
Total Assets 840.97M 846.61M 912.43M 1.15B 1.15B 1.09B 1.14B 1.14B 1.19B 1.16B
Current Liabilities - - - - - - - - - -
Total Liabilities 266.96M 423.24M 384.23M 661.71M 608.90M 594.63M 569.68M 531.03M 539.39M 560.28M
Stockholder' Equity 574.02M 423.37M 528.21M 491.80M 541.96M 495.43M 566.12M 609.49M 647.82M 594.83M
Current Ratio - - - - - - - - - -
TL-to-TA 0.32 0.50 0.42 0.57 0.53 0.55 0.50 0.47 0.45 0.49

Low or No Reinvestment of Profits over the past 10 years

FII has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to FII operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 1.19B 1.03B 1.11B 1.04B 1.07B 984.51M 1.02B 505.39M 545.79M 529.75M
Retained Earnings Growth - -13.50% 7.40% -6.20% 3.22% -7.98% 3.87% -50.58% 7.99% -2.94%

Potential Competitive Advantage over the past 10 years

FII potentially has a competitive advantage. This could be strong branding, the ability to keep costs low, or some other characteristic that is hard to replicate. Look at its future prospects to determine sustainability and whether the economic moat will strengthen.

$18.21 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 217.47M 224.32M 197.29M 179.11M 150.91M 188.09M 162.18M 149.24M 169.81M 208.92M
divided by
Revenue 1.13B 1.22B 1.18B 958.82M 901.37M 945.71M 878.37M 859.25M 926.61M 1.14B
Net Profit Margin 19.29% 18.31% 16.76% 18.68% 16.74% 19.89% 18.46% 17.37% 18.33% 18.27%

Weak Pricing Power over the past 10 years

FII is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that FII has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $- of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit - - - - - - - - - -
divided by
Revenue 1.13B 1.22B 1.18B 958.82M 901.37M 945.71M 878.37M 859.25M 926.61M 1.14B
Gross Margin - - - - - - - - - -

Low Capital Intensity over the past 10 years

FII has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that FII may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

5.72% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 7.69M 8.13M 26.21M 7.87M - 8.68M 10.32M 8.85M 6.03M 12.84M
divided by
Net Income 217.47M 224.32M 197.29M 179.11M 150.91M 188.09M 162.18M 149.24M 169.81M 208.92M
Capital Expenditure Ratio 3.54% 3.62% 13.28% 4.39% - 4.61% 6.36% 5.93% 3.55% 6.15%

Very Strong Dividend History over the past 10 years

FII has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests FII is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid 88.76M 375.65M 98.50M 228.65M 99.96M 256.75M 191.20M 117.24M 110.31M 205.47M
divided by
Shares Outstanding 102.58M 100.86M 100.06M 99.99M 100.63M 100.31M 100.67M 100.72M 100.48M 99.12M
Dividend Paid Per Share 0.87 3.72 0.98 2.29 0.99 2.56 1.90 1.16 1.10 2.07
Price at Year End 33.22 13.98 24.13 24.76 14.96 19.84 28.47 33.19 28.80 28.28
Dividend Yield 2.60% 26.64% 4.08% 9.24% 6.64% 12.90% 6.67% 3.51% 3.81% 7.33%

Strong History of Stock Buybacks over the past 10 years

FII has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 102.58M 100.86M 100.06M 99.99M 100.63M 100.31M 100.67M 100.72M 100.48M 99.12M
Stock Bought Back - 1.71% 0.80% 0.06% -0.63% 0.32% -0.35% -0.05% 0.24% 1.37%
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