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Exploring KORN FERRY (NYSE:KFY)s quality characteristics.

By Mill Chart

Last update: Apr 2, 2024

In this article we will dive into KORN FERRY (NYSE:KFY) as a possible candidate for quality investing. Investors should always do their own research, but we noticed KORN FERRY showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Why NYSE:KFY may be interesting for quality investors.

  • KORN FERRY has achieved substantial revenue growth over the past 5 years, with a 9.5% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
  • KORN FERRY exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 26.95% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
  • With a favorable Debt/Free Cash Flow Ratio of 1.86, KORN FERRY showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
  • KORN FERRY exhibits impressive Profit Quality (5-year) with a 174.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • With a robust 5-year EBIT growth of 12.2%, KORN FERRY showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
  • KORN FERRY has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

How does the complete fundamental picture look for NYSE:KFY?

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to KFY. KFY was compared to 81 industry peers in the Professional Services industry. KFY gets an excellent profitability rating and is at the same time showing great financial health properties. KFY has a decent growth rate and is not valued too expensively.

For an up to date full fundamental analysis you can check the fundamental report of KFY

More quality stocks can be found in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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