KORN FERRY (KFY) Stock Fundamental Analysis
NYSE:KFY - New York Stock Exchange, Inc. - US5006432000 - Common Stock
KFY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 82 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year KFY was profitable.
In the past year KFY had a positive cash flow from operations.
In the past 5 years KFY has always been profitable.
KFY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KFY has a better Return On Assets (6.91%) than 67.09% of its industry peers.
KFY has a better Return On Equity (13.71%) than 62.03% of its industry peers.
The Return On Invested Capital of KFY (8.15%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for KFY is below the industry average of 13.48%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.91% | ||
| ROE | 13.71% | ||
| ROIC | 8.15% |
ROA(3y)6.48%
ROA(5y)5.38%
ROE(3y)14.22%
ROE(5y)11.87%
ROIC(3y)11.01%
ROIC(5y)9.47%
1.3 Margins
Looking at the Profit Margin, with a value of 8.89%, KFY belongs to the top of the industry, outperforming 81.01% of the companies in the same industry.
In the last couple of years the Profit Margin of KFY has grown nicely.
KFY has a Operating Margin of 11.17%. This is in the better half of the industry: KFY outperforms 78.48% of its industry peers.
In the last couple of years the Operating Margin of KFY has grown nicely.
KFY's Gross Margin of 88.72% is amongst the best of the industry. KFY outperforms 96.20% of its industry peers.
KFY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.17% | ||
| PM (TTM) | 8.89% | ||
| GM | 88.72% |
OM growth 3Y0.31%
OM growth 5Y7.72%
PM growth 3Y-1.08%
PM growth 5Y2.91%
GM growth 3Y-2.65%
GM growth 5Y-1.24%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KFY is creating some value.
KFY has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, KFY has less shares outstanding
KFY has a better debt/assets ratio than last year.
2.2 Solvency
KFY has an Altman-Z score of 3.18. This indicates that KFY is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.18, KFY perfoms like the industry average, outperforming 51.90% of the companies in the same industry.
The Debt to FCF ratio of KFY is 1.46, which is an excellent value as it means it would take KFY, only 1.46 years of fcf income to pay off all of its debts.
KFY has a better Debt to FCF ratio (1.46) than 77.22% of its industry peers.
KFY has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
KFY has a Debt to Equity ratio (0.22) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.46 | ||
| Altman-Z | 3.18 |
ROIC/WACC0.88
WACC9.23%
2.3 Liquidity
A Current Ratio of 2.07 indicates that KFY has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.07, KFY is doing good in the industry, outperforming 77.22% of the companies in the same industry.
A Quick Ratio of 2.07 indicates that KFY has no problem at all paying its short term obligations.
KFY has a Quick ratio of 2.07. This is in the better half of the industry: KFY outperforms 77.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.07 | ||
| Quick Ratio | 2.07 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.59% over the past year.
KFY shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.26% yearly.
Looking at the last year, KFY shows a very negative growth in Revenue. The Revenue has decreased by -22.77% in the last year.
Measured over the past years, KFY shows a small growth in Revenue. The Revenue has been growing by 7.21% on average per year.
EPS 1Y (TTM)18.59%
EPS 3Y19.56%
EPS 5Y5.26%
EPS Q2Q%24.74%
Revenue 1Y (TTM)-22.77%
Revenue growth 3Y15.38%
Revenue growth 5Y7.21%
Sales Q2Q%-4.21%
3.2 Future
Based on estimates for the next years, KFY will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.86% on average per year.
KFY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.99% yearly.
EPS Next Y12.16%
EPS Next 2Y11.98%
EPS Next 3Y11.86%
EPS Next 5YN/A
Revenue Next Year-2.47%
Revenue Next 2Y1.39%
Revenue Next 3Y2.99%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.95, KFY is valued correctly.
Based on the Price/Earnings ratio, KFY is valued a bit cheaper than the industry average as 78.48% of the companies are valued more expensively.
KFY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.29.
KFY is valuated correctly with a Price/Forward Earnings ratio of 13.12.
Based on the Price/Forward Earnings ratio, KFY is valued a bit cheaper than 79.75% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, KFY is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.95 | ||
| Fwd PE | 13.12 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KFY is valued cheaply inside the industry as 81.01% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, KFY is valued cheaply inside the industry as 88.61% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.37 | ||
| EV/EBITDA | 8.56 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of KFY may justify a higher PE ratio.
PEG (NY)1.23
PEG (5Y)2.84
EPS Next 2Y11.98%
EPS Next 3Y11.86%
5. Dividend
5.1 Amount
KFY has a Yearly Dividend Yield of 2.12%. Purely for dividend investing, there may be better candidates out there.
KFY's Dividend Yield is rather good when compared to the industry average which is at 1.82. KFY pays more dividend than 87.34% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, KFY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
5.2 History
The dividend of KFY is nicely growing with an annual growth rate of 20.17%!
KFY has been paying a dividend for at least 10 years, so it has a reliable track record.
As KFY did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)20.17%
Div Incr Years4
Div Non Decr Years9
5.3 Sustainability
KFY pays out 30.51% of its income as dividend. This is a sustainable payout ratio.
KFY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP30.51%
EPS Next 2Y11.98%
EPS Next 3Y11.86%
KORN FERRY
NYSE:KFY (1/22/2025, 12:57:47 PM)
70.55
-0.66 (-0.93%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners96.25%
Inst Owner Change0.04%
Ins Owners1.18%
Ins Owner Change-1.57%
Market Cap3.64B
Analysts82.22
Price Target83.13 (17.83%)
Short Float %2.16%
Short Ratio3.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
Yearly Dividend1.04
Dividend Growth(5Y)20.17%
DP30.51%
Div Incr Years4
Div Non Decr Years9
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.67%
Min EPS beat(2)-1.15%
Max EPS beat(2)4.5%
EPS beat(4)3
Avg EPS beat(4)5.23%
Min EPS beat(4)-1.15%
Max EPS beat(4)10.99%
EPS beat(8)6
Avg EPS beat(8)4.72%
EPS beat(12)9
Avg EPS beat(12)4.5%
EPS beat(16)13
Avg EPS beat(16)12.44%
Revenue beat(2)1
Avg Revenue beat(2)-0.24%
Min Revenue beat(2)-1.13%
Max Revenue beat(2)0.65%
Revenue beat(4)2
Avg Revenue beat(4)-0.24%
Min Revenue beat(4)-1.13%
Max Revenue beat(4)0.65%
Revenue beat(8)6
Avg Revenue beat(8)0.74%
Revenue beat(12)9
Avg Revenue beat(12)1.66%
Revenue beat(16)13
Avg Revenue beat(16)3.6%
PT rev (1m)2.84%
PT rev (3m)4.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.05%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.95 | ||
| Fwd PE | 13.12 | ||
| P/S | 1.33 | ||
| P/FCF | 13.37 | ||
| P/OCF | 11.35 | ||
| P/B | 2.05 | ||
| P/tB | 4.59 | ||
| EV/EBITDA | 8.56 |
EPS(TTM)4.72
EY6.69%
EPS(NY)5.38
Fwd EY7.62%
FCF(TTM)5.28
FCFY7.48%
OCF(TTM)6.22
OCFY8.81%
SpS53.15
BVpS34.47
TBVpS15.37
PEG (NY)1.23
PEG (5Y)2.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.91% | ||
| ROE | 13.71% | ||
| ROCE | 10.91% | ||
| ROIC | 8.15% | ||
| ROICexc | 11.05% | ||
| ROICexgc | 21.05% | ||
| OM | 11.17% | ||
| PM (TTM) | 8.89% | ||
| GM | 88.72% | ||
| FCFM | 9.93% |
ROA(3y)6.48%
ROA(5y)5.38%
ROE(3y)14.22%
ROE(5y)11.87%
ROIC(3y)11.01%
ROIC(5y)9.47%
ROICexc(3y)17.79%
ROICexc(5y)15.2%
ROICexgc(3y)41.95%
ROICexgc(5y)34.61%
ROCE(3y)14.73%
ROCE(5y)12.67%
ROICexcg growth 3Y10.94%
ROICexcg growth 5Y5.6%
ROICexc growth 3Y7.02%
ROICexc growth 5Y6.04%
OM growth 3Y0.31%
OM growth 5Y7.72%
PM growth 3Y-1.08%
PM growth 5Y2.91%
GM growth 3Y-2.65%
GM growth 5Y-1.24%
F-Score8
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.46 | ||
| Debt/EBITDA | 1.03 | ||
| Cap/Depr | 61.55% | ||
| Cap/Sales | 1.77% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.29% | ||
| Profit Quality | 111.7% | ||
| Current Ratio | 2.07 | ||
| Quick Ratio | 2.07 | ||
| Altman-Z | 3.18 |
F-Score8
WACC9.23%
ROIC/WACC0.88
Cap/Depr(3y)83.87%
Cap/Depr(5y)75.39%
Cap/Sales(3y)2.1%
Cap/Sales(5y)2.02%
Profit Quality(3y)137.69%
Profit Quality(5y)159.59%
High Growth Momentum
Growth
EPS 1Y (TTM)18.59%
EPS 3Y19.56%
EPS 5Y5.26%
EPS Q2Q%24.74%
EPS Next Y12.16%
EPS Next 2Y11.98%
EPS Next 3Y11.86%
EPS Next 5YN/A
Revenue 1Y (TTM)-22.77%
Revenue growth 3Y15.38%
Revenue growth 5Y7.21%
Sales Q2Q%-4.21%
Revenue Next Year-2.47%
Revenue Next 2Y1.39%
Revenue Next 3Y2.99%
Revenue Next 5YN/A
EBIT growth 1Y-8.78%
EBIT growth 3Y15.74%
EBIT growth 5Y15.48%
EBIT Next Year51.8%
EBIT Next 3Y21.12%
EBIT Next 5YN/A
FCF growth 1Y-28.01%
FCF growth 3Y1.27%
FCF growth 5Y1.53%
OCF growth 1Y-28.02%
OCF growth 3Y4.14%
OCF growth 5Y1.87%