FII  Federated Investors Inc.

Exchange

NYSE

Sector

Finance

Industry

Investment Managers

Market Cap.

2.73B

Vuru Grade

71.78/100

Current Price

$27.91
+0.15 (+0.54%)

Growth Price

$21.04
Overvalued by 24.62%

Stability Price

$46.70
Undervalued by 67.33%

Company Metrics

  • P/E 13.41
  • P/S 2.37
  • P/B 4.43
  • EPS 2.08
  • Cash ROIC 7.98%
  • Cash Ratio -
  • Dividend 1.00 / 3.60 %
  • Avg. Vol. 732,367.00
  • Shares 97.81M
  • Market Cap. 2.73B

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

Institutional Investors Are Betting On Federated Investors Inc (NYSE:FII)
Weekly Register - 21 hours ago
Federated Investors Inc (NYSE:FII) institutional sentiment decreased to 1.2 in 2016 Q4. Its down -0.15, from 1.35 in 2016Q3.
Federated Investors, Inc. (FII) Rating Increased to Hold at BidaskClub - Sports Perspectives
Federated Investors Inc. - Receive News & Ratings Daily - BBNS
Federated Investors Inc. (FII) Moves Higher on Volume Spike for June 23
Equities.com - Jun 23, 2017
Federated Investors Inc. (FII) traded on unusually high volume on Jun. 23, as the stock gained 0.62% to close at $27.75. On the day, Federated Investors Inc. saw 1.21 million shares trade hands on 3,948 trades. Considering that the stock averages only ...
Federated Investors, Inc. (NYSE:FII) Runs 0.65% For the Week - Concord Register
Analysts Set Federated Investors, Inc. (FII) Price Target at $24.20 - The Cerbat Gem
Price Alert: Federated Investors Inc (NYSE:FII) Stock Nears Resistance ...
CML News - Jun 21, 2017
Price Alert: Federated Investors Inc (NYSE:FII) has now crossed into technical strength -- watch the technical oscillators for momentum gaps.
Risk Malaise Alert in Option Market: Federated Investors Inc Implied Price ...
CML News - Jun 15, 2017
Before we dive into any analysis we simply note that Federated Investors Inc (NYSE:FII) risk is actually priced pretty low by the option market as of right now.
Federated Investors Inc. (FII) Moves Higher on Volume Spike for May 31
Equities.com - May 31, 2017
Federated Investors Inc. (FII) traded on unusually high volume on May. 31, as the stock gained 0.99% to close at $26.56. On the day, Federated Investors Inc. saw 1.56 million shares trade hands on 9,535 trades. Considering that the stock averages only ...
Federated Investors Inc (FII) Shares Sold by Huntington National Bank - The Cerbat Gem
Federated Investors, Inc. (FII) And Its Technical Chart Is On Show
NY Stock News - May 29, 2017
Federated Investors, Inc. (FII) is looking very interesting as a trading opportunity right now. The technical setup offers the best window into what traders can expect whether they are bullish on the play or bearish.
Brokerages Set Federated Investors, Inc. (FII) Price Target at $22.40
Markets Daily - Jun 27, 2017
Federated Investors logo Federated Investors, Inc. (NYSE:FII) has received an average recommendation of “Hold” from the eight ratings firms that are presently covering the company, Marketbeat reports.
The Ameritas Investment Partners Inc. Purchases 3089 Shares of Federated ... - BangaloreWeekly
Advantus Capital Management Inc Buys 290 Shares of Federated Investors, Inc. (FII) - Chaffey Breeze
Stock Alert: Federated Investors Inc Stock Volatility Hits A Weakened Level
CML News - Jun 10, 2017
Before we cover the full analysis we make a quick alert here that Federated Investors Inc (NYSE:FII) has seen its stock price move at a reduced level.
Were Analysts Bearish Federated Investors Inc (NYSE:FII) This Week? - Weekly Register
Federated Investors, Inc. (FII) Position Increased by GoodHaven Capital ... - The Cerbat Gem
Federated Investors Inc (NYSE:FII) Sentiment Improved, Because
Press Telegraph - 21 hours ago
Federated Investors Inc (NYSE:FII) institutional sentiment decreased to 1.2 in 2016 Q4. Its down -0.15, from 1.35 in 2016Q3.
Federated Investment Management Company Recommends Reorganization of Closed ...
PR Newswire (press release) - Jun 20, 2017
Federated Investors, Inc. (NYSE: FII) is one of the largest investment managers in the United States, managing $361.7 billion in assets as of March 31, 2017.
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.

$27.91 Current Price

$21.04 Growth Price (DCF)

Overvalued by 24.62%


Growth Rate Assumed by Market: 9.48%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$46.70 Stability Price (EPV)

Undervalued by 67.33%


Discount Rate: 15.0%

$28.17 Book Price

Fairly valued


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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