KORN FERRY (KFY)
US5006432000 - Common Stock
Taking everything into account, KFY scores 7 out of 10 in our fundamental rating. KFY was compared to 81 industry peers in the Professional Services industry. Both the health and profitability get an excellent rating, making KFY a very profitable company, without any liquidiy or solvency issues. KFY has a correct valuation and a medium growth rate. This makes KFY very considerable for quality investing!
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.
In the past 5 years KFY always reported a positive cash flow from operatings.
1.2 Ratios
KFY has a Return On Assets of 6.60%. This is in the better half of the industry: KFY outperforms 68.83% of its industry peers.
KFY's Return On Equity of 12.98% is in line compared to the rest of the industry. KFY outperforms 59.74% of its industry peers.
The Return On Invested Capital of KFY (9.81%) is better than 64.94% of its industry peers.
KFY had an Average Return On Invested Capital over the past 3 years of 11.01%. This is in line with the industry average of 12.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.6% | ||
| ROE | 12.98% | ||
| ROIC | 9.81% |
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
KFY has a Profit Margin of 6.55%. This is in the better half of the industry: KFY outperforms 75.32% of its industry peers.
KFY's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 10.52%, KFY is in the better half of the industry, outperforming 76.62% of the companies in the same industry.
KFY's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 88.26%, KFY belongs to the best of the industry, outperforming 94.81% 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 | 10.52% | ||
| PM (TTM) | 6.55% | ||
| GM | 88.26% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KFY is still creating some value.
KFY has less shares outstanding than it did 1 year ago.
KFY has less shares outstanding than it did 5 years ago.
The debt/assets ratio for KFY has been reduced compared to a year ago.
2.2 Solvency
KFY has an Altman-Z score of 3.61. This indicates that KFY is financially healthy and has little risk of bankruptcy at the moment.
KFY has a better Altman-Z score (3.61) than 64.94% of its industry peers.
KFY has a debt to FCF ratio of 1.41. This is a very positive value and a sign of high solvency as it would only need 1.41 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.41, KFY is doing good in the industry, outperforming 77.92% of the companies in the same industry.
KFY has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
KFY's Debt to Equity ratio of 0.23 is in line compared to the rest of the industry. KFY outperforms 58.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 3.61 |
ROIC/WACC1.14
WACC8.63%
2.3 Liquidity
A Current Ratio of 2.15 indicates that KFY has no problem at all paying its short term obligations.
KFY has a Current ratio of 2.15. This is in the better half of the industry: KFY outperforms 75.32% of its industry peers.
A Quick Ratio of 2.15 indicates that KFY has no problem at all paying its short term obligations.
The Quick ratio of KFY (2.15) is better than 75.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.15 |
3. Growth
3.1 Past
KFY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.90%.
The Earnings Per Share has been growing slightly by 5.26% on average over the past years.
The Revenue has grown by 21.32% in the past year. This is a very strong growth!
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)0.9%
EPS 3Y19.56%
EPS 5Y5.26%
EPS Q2Q%19.19%
Revenue 1Y (TTM)21.32%
Revenue growth 3Y15.38%
Revenue growth 5Y7.21%
Sales Q2Q%-3.47%
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 12.82% on average per year.
KFY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.61% yearly.
EPS Next Y13.52%
EPS Next 2Y12.38%
EPS Next 3Y12.82%
EPS Next 5YN/A
Revenue Next Year-1.47%
Revenue Next 2Y2.18%
Revenue Next 3Y3.61%
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 accelerating.
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 16.89, KFY is valued correctly.
KFY's Price/Earnings ratio is a bit cheaper when compared to the industry. KFY is cheaper than 70.13% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.65. KFY is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 13.97 indicates a correct valuation of KFY.
Based on the Price/Forward Earnings ratio, KFY is valued a bit cheaper than 74.03% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.56. KFY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.89 | ||
| Fwd PE | 13.97 |
4.2 Price Multiples
KFY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KFY is cheaper than 79.22% of the companies in the same industry.
KFY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KFY is cheaper than 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.99 | ||
| EV/EBITDA | 8.14 |
4.3 Compensation for Growth
KFY's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
KFY has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as KFY's earnings are expected to grow with 12.82% in the coming years.
PEG (NY)1.25
PEG (5Y)3.21
EPS Next 2Y12.38%
EPS Next 3Y12.82%
5. Dividend
5.1 Amount
KFY has a Yearly Dividend Yield of 1.93%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.81, KFY pays a better dividend. On top of this KFY pays more dividend than 85.71% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, KFY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
5.2 History
On average, the dividend of KFY grows each year by 20.17%, which is quite nice.
KFY has paid a dividend for at least 10 years, which is a reliable track record.
KFY has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)20.17%
Div Incr Years3
Div Non Decr Years8
5.3 Sustainability
KFY pays out 28.37% 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.
DP28.37%
EPS Next 2Y12.38%
EPS Next 3Y12.82%
KORN FERRY
NYSE:KFY (11/20/2024, 8:04:00 PM)
After market: 75.67 0 (0%)75.67
+0.1 (+0.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.94B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.89 | ||
| Fwd PE | 13.97 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.25
PEG (5Y)3.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.6% | ||
| ROE | 12.98% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 10.52% | ||
| PM (TTM) | 6.55% | ||
| GM | 88.26% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.01
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.15 | ||
| Quick Ratio | 2.15 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)0.9%
EPS 3Y19.56%
EPS 5Y
EPS Q2Q%
EPS Next Y13.52%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)21.32%
Revenue growth 3Y15.38%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y