KORN FERRY (KFY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KFY - US5006432000 - Common Stock
66.07 USD
-0.41 (-0.62%)
66.07 USD
0 (0%)
Overall KFY gets a fundamental rating of 7 out of 10. We evaluated KFY against 87 industry peers in the Professional Services industry. KFY scores excellent points on both the profitability and health parts. This is a solid base for a good stock. KFY is not valued too expensively and it also shows a decent growth rate. KFY also has an excellent dividend rating. These ratings could make KFY a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year KFY was profitable.
KFY had a positive operating cash flow in the past year.
Each year in the past 5 years KFY has been profitable.
KFY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.80%, KFY is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
KFY has a better Return On Equity (13.06%) than 63.22% of its industry peers.
KFY has a Return On Invested Capital of 9.24%. This is in the better half of the industry: KFY outperforms 66.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KFY is below the industry average of 12.17%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.8% | ||
| ROE | 13.06% | ||
| ROIC | 9.24% |
ROA(3y)5.51%
ROA(5y)5.88%
ROE(3y)11.68%
ROE(5y)12.77%
ROIC(3y)9.27%
ROIC(5y)9.69%
1.3 Margins
KFY's Profit Margin of 8.84% is fine compared to the rest of the industry. KFY outperforms 77.01% of its industry peers.
KFY's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 13.01%, KFY is doing good in the industry, outperforming 77.01% of the companies in the same industry.
In the last couple of years the Operating Margin of KFY has grown nicely.
Looking at the Gross Margin, with a value of 88.37%, KFY belongs to the top of the industry, outperforming 96.55% of the companies in the same industry.
In the last couple of years the Gross Margin of KFY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.01% | ||
| PM (TTM) | 8.84% | ||
| GM | 88.37% |
OM growth 3Y-10.91%
OM growth 5Y1.62%
PM growth 3Y-10.01%
PM growth 5Y10.87%
GM growth 3Y-2.33%
GM growth 5Y-1.06%
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.
The number of shares outstanding for KFY has been reduced compared to 5 years ago.
Compared to 1 year ago, KFY has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.20 indicates that KFY is not in any danger for bankruptcy at the moment.
KFY's Altman-Z score of 3.20 is fine compared to the rest of the industry. KFY outperforms 60.92% of its industry peers.
The Debt to FCF ratio of KFY is 1.42, which is an excellent value as it means it would take KFY, only 1.42 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.42, KFY is in the better half of the industry, outperforming 72.41% of the companies in the same industry.
KFY has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
KFY's Debt to Equity ratio of 0.21 is in line compared to the rest of the industry. KFY outperforms 59.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | 3.2 |
ROIC/WACC1.11
WACC8.36%
2.3 Liquidity
KFY has a Current Ratio of 2.21. This indicates that KFY is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.21, KFY is doing good in the industry, outperforming 75.86% of the companies in the same industry.
KFY has a Quick Ratio of 2.21. This indicates that KFY is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.21, KFY is in the better half of the industry, outperforming 75.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 2.21 |
3. Growth
3.1 Past
KFY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.28%, which is quite good.
KFY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.91% yearly.
The Revenue for KFY has decreased by -19.68% in the past year. This is quite bad
Measured over the past years, KFY shows a small growth in Revenue. The Revenue has been growing by 6.91% on average per year.
EPS 1Y (TTM)12.28%
EPS 3Y-7.74%
EPS 5Y10.91%
EPS Q2Q%11.02%
Revenue 1Y (TTM)-19.68%
Revenue growth 3Y1.46%
Revenue growth 5Y6.91%
Sales Q2Q%5.08%
3.2 Future
KFY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.73% yearly.
The Revenue is expected to grow by 4.66% on average over the next years.
EPS Next Y8.09%
EPS Next 2Y8.45%
EPS Next 3Y9.73%
EPS Next 5YN/A
Revenue Next Year4.35%
Revenue Next 2Y4.38%
Revenue Next 3Y4.66%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
A Price/Earnings ratio of 13.14 indicates a correct valuation of KFY.
78.16% of the companies in the same industry are more expensive than KFY, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.46. KFY is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 11.46, the valuation of KFY can be described as reasonable.
KFY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KFY is cheaper than 79.31% of the companies in the same industry.
KFY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.14 | ||
| Fwd PE | 11.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KFY is valued cheaply inside the industry as 86.21% of the companies are valued more expensively.
KFY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KFY is cheaper than 79.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.38 | ||
| EV/EBITDA | 6.99 |
4.3 Compensation for Growth
KFY's 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)1.62
PEG (5Y)1.2
EPS Next 2Y8.45%
EPS Next 3Y9.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.89%, KFY has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.11, KFY pays a better dividend. On top of this KFY pays more dividend than 87.36% of the companies listed in the same industry.
KFY's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
5.2 History
The dividend of KFY is nicely growing with an annual growth rate of 31.50%!
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)31.5%
Div Incr Years4
Div Non Decr Years9
5.3 Sustainability
KFY pays out 36.45% of its income as dividend. This is a sustainable payout ratio.
The dividend of KFY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP36.45%
EPS Next 2Y8.45%
EPS Next 3Y9.73%
66.07
-0.41 (-0.62%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners99.73%
Inst Owner Change3.58%
Ins Owners0.74%
Ins Owner Change-0.58%
Market Cap3.46B
Revenue(TTM)2.79B
Net Income(TTM)247.01M
Analysts82.22
Price Target82.62 (25.05%)
Short Float %3.11%
Short Ratio4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
Yearly Dividend1.62
Dividend Growth(5Y)31.5%
DP36.45%
Div Incr Years4
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.33%
Min EPS beat(2)3.72%
Max EPS beat(2)4.94%
EPS beat(4)3
Avg EPS beat(4)2.99%
Min EPS beat(4)-1.15%
Max EPS beat(4)4.94%
EPS beat(8)7
Avg EPS beat(8)4.34%
EPS beat(12)10
Avg EPS beat(12)4.25%
EPS beat(16)13
Avg EPS beat(16)4.84%
Revenue beat(2)2
Avg Revenue beat(2)1.99%
Min Revenue beat(2)1.79%
Max Revenue beat(2)2.19%
Revenue beat(4)3
Avg Revenue beat(4)1.16%
Min Revenue beat(4)-1.14%
Max Revenue beat(4)2.19%
Revenue beat(8)6
Avg Revenue beat(8)0.77%
Revenue beat(12)10
Avg Revenue beat(12)1.34%
Revenue beat(16)13
Avg Revenue beat(16)1.94%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.67%
EPS NY rev (1m)0%
EPS NY rev (3m)1.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.14 | ||
| Fwd PE | 11.46 | ||
| P/S | 1.24 | ||
| P/FCF | 12.38 | ||
| P/OCF | 9.77 | ||
| P/B | 1.83 | ||
| P/tB | 3.94 | ||
| EV/EBITDA | 6.99 |
EPS(TTM)5.03
EY7.61%
EPS(NY)5.76
Fwd EY8.72%
FCF(TTM)5.34
FCFY8.08%
OCF(TTM)6.76
OCFY10.23%
SpS53.33
BVpS36.12
TBVpS16.79
PEG (NY)1.62
PEG (5Y)1.2
Graham Number63.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.8% | ||
| ROE | 13.06% | ||
| ROCE | 12.3% | ||
| ROIC | 9.24% | ||
| ROICexc | 12.22% | ||
| ROICexgc | 22.35% | ||
| OM | 13.01% | ||
| PM (TTM) | 8.84% | ||
| GM | 88.37% | ||
| FCFM | 10.01% |
ROA(3y)5.51%
ROA(5y)5.88%
ROE(3y)11.68%
ROE(5y)12.77%
ROIC(3y)9.27%
ROIC(5y)9.69%
ROICexc(3y)14.32%
ROICexc(5y)15.61%
ROICexgc(3y)33.58%
ROICexgc(5y)35.79%
ROCE(3y)12.34%
ROCE(5y)12.9%
ROICexgc growth 3Y-17.99%
ROICexgc growth 5Y3.52%
ROICexc growth 3Y-16.94%
ROICexc growth 5Y2.44%
OM growth 3Y-10.91%
OM growth 5Y1.62%
PM growth 3Y-10.01%
PM growth 5Y10.87%
GM growth 3Y-2.33%
GM growth 5Y-1.06%
F-Score8
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.42 | ||
| Debt/EBITDA | 0.89 | ||
| Cap/Depr | 89.44% | ||
| Cap/Sales | 2.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.26% | ||
| Profit Quality | 113.19% | ||
| Current Ratio | 2.21 | ||
| Quick Ratio | 2.21 | ||
| Altman-Z | 3.2 |
F-Score8
WACC8.36%
ROIC/WACC1.11
Cap/Depr(3y)83.88%
Cap/Depr(5y)75.95%
Cap/Sales(3y)2.23%
Cap/Sales(5y)2.05%
Profit Quality(3y)131.86%
Profit Quality(5y)146.92%
High Growth Momentum
Growth
EPS 1Y (TTM)12.28%
EPS 3Y-7.74%
EPS 5Y10.91%
EPS Q2Q%11.02%
EPS Next Y8.09%
EPS Next 2Y8.45%
EPS Next 3Y9.73%
EPS Next 5YN/A
Revenue 1Y (TTM)-19.68%
Revenue growth 3Y1.46%
Revenue growth 5Y6.91%
Sales Q2Q%5.08%
Revenue Next Year4.35%
Revenue Next 2Y4.38%
Revenue Next 3Y4.66%
Revenue Next 5YN/A
EBIT growth 1Y-0.7%
EBIT growth 3Y-9.61%
EBIT growth 5Y8.64%
EBIT Next Year41.06%
EBIT Next 3Y17.22%
EBIT Next 5YN/A
FCF growth 1Y20.62%
FCF growth 3Y-12.61%
FCF growth 5Y9.16%
OCF growth 1Y17.55%
OCF growth 3Y-10.11%
OCF growth 5Y9.05%
KORN FERRY / KFY FAQ
Can you provide the ChartMill fundamental rating for KORN FERRY?
ChartMill assigns a fundamental rating of 7 / 10 to KFY.
Can you provide the valuation status for KORN FERRY?
ChartMill assigns a valuation rating of 6 / 10 to KORN FERRY (KFY). This can be considered as Fairly Valued.
What is the profitability of KFY stock?
KORN FERRY (KFY) has a profitability rating of 7 / 10.
Can you provide the financial health for KFY stock?
The financial health rating of KORN FERRY (KFY) is 8 / 10.
What is the earnings growth outlook for KORN FERRY?
The Earnings per Share (EPS) of KORN FERRY (KFY) is expected to grow by 8.09% in the next year.