Is NYSE:KFY suited for quality investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if KORN FERRY (NYSE:KFY) is suited for quality investing. Investors should of course do their own research, but we spotted KORN FERRY showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of KORN FERRY

• Over the past 5 years, KORN FERRY has experienced impressive revenue growth, with 7.21% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• The ROIC excluding cash and goodwill of KORN FERRY stands at 34.01%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• With a favorable Debt/Free Cash Flow Ratio of 1.75, 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.
• With a robust Profit Quality (5-year) ratio of 160.0%, KORN FERRY highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• The 5-year EBIT growth of KORN FERRY has been remarkable, with 15.48% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• KORN FERRY demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental Analysis Observations

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Overall KFY gets a fundamental rating of 6 out of 10. We evaluated KFY against 81 industry peers in the Professional Services industry. KFY has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. KFY has a decent growth rate and is not valued too expensively.

Our latest full fundamental report of KFY contains the most current fundamental analsysis.

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.