KORN FERRY (KFY)
US5006432000 - Common Stock
Taking everything into account, KFY scores 6 out of 10 in our fundamental rating. KFY was compared to 80 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.
1. Profitability
1.1 Basic Checks
KFY had positive earnings in the past year.
In the past year KFY had a positive cash flow from operations.
KFY had positive earnings in each of the past 5 years.
KFY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KFY has a Return On Assets of 6.91%. This is in the better half of the industry: KFY outperforms 66.23% of its industry peers.
Looking at the Return On Equity, with a value of 13.71%, KFY is in the better half of the industry, outperforming 61.04% of the companies in the same industry.
KFY's Return On Invested Capital of 8.15% is in line compared to the rest of the industry. KFY outperforms 57.14% of its industry peers.
KFY had an Average Return On Invested Capital over the past 3 years of 11.01%. This is significantly below the industry average of 18.16%.
| 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
The Profit Margin of KFY (8.89%) is better than 80.52% of its industry peers.
KFY's Profit Margin has improved in the last couple of years.
The Operating Margin of KFY (11.17%) is better than 77.92% of its industry peers.
KFY's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 88.72%, KFY belongs to the best of the industry, outperforming 96.10% of the companies in the same industry.
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
KFY has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, KFY has less shares outstanding
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
KFY has an Altman-Z score of 3.10. This indicates that KFY is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.10, KFY perfoms like the industry average, outperforming 50.65% 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's Debt to FCF ratio of 1.46 is fine compared to the rest of the industry. KFY outperforms 76.62% 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.
With a Debt to Equity ratio value of 0.22, KFY perfoms like the industry average, outperforming 58.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.46 | ||
| Altman-Z | 3.1 |
ROIC/WACC0.88
WACC9.23%
2.3 Liquidity
KFY has a Current Ratio of 2.07. This indicates that KFY is financially healthy and has no problem in meeting its short term obligations.
KFY has a Current ratio of 2.07. This is in the better half of the industry: KFY outperforms 76.62% of its industry peers.
A Quick Ratio of 2.07 indicates that KFY has no problem at all paying its short term obligations.
KFY's Quick ratio of 2.07 is fine compared to the rest of the industry. KFY outperforms 76.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.07 | ||
| Quick Ratio | 2.07 |
3. Growth
3.1 Past
KFY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.59%, which is quite good.
Measured over the past 5 years, KFY shows a small growth in Earnings Per Share. The EPS has been growing by 5.26% on average per year.
The Revenue for KFY has decreased by -22.77% in the past year. This is quite bad
The Revenue has been growing slightly by 7.21% on average over the past years.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.10, which indicates a correct valuation of KFY.
79.22% of the companies in the same industry are more expensive than KFY, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.73, KFY is valued a bit cheaper.
KFY is valuated correctly with a Price/Forward Earnings ratio of 12.37.
KFY's Price/Forward Earnings ratio is rather cheap when compared to the industry. KFY is cheaper than 80.52% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, KFY is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 12.37 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KFY indicates a rather cheap valuation: KFY is cheaper than 83.12% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, KFY is valued cheaper than 87.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.61 | ||
| EV/EBITDA | 7.93 |
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.
PEG (NY)1.16
PEG (5Y)2.68
EPS Next 2Y11.98%
EPS Next 3Y11.86%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.22%, KFY has a reasonable but not impressive dividend return.
KFY's Dividend Yield is rather good when compared to the industry average which is at 1.84. KFY pays more dividend than 88.31% of the companies in the same industry.
KFY's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
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 (12/20/2024, 8:21:12 PM)
After market: 66.56 0 (0%)66.56
-0.04 (-0.06%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners96.25%
Inst Owner Change0.57%
Ins Owners1.18%
Ins Owner Change-0.28%
Market Cap3.43B
Analysts82.22
Price Target80.83 (21.44%)
Short Float %1.92%
Short Ratio2.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.22% |
Dividend Growth(5Y)20.17%
DP30.51%
Div Incr Years4
Div Non Decr Years9
Ex-Date
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)0%
PT rev (3m)2.92%
EPS NQ rev (1m)1.05%
EPS NQ rev (3m)1.05%
EPS NY rev (1m)-1.2%
EPS NY rev (3m)-0.25%
Revenue NQ rev (1m)-3.69%
Revenue NQ rev (3m)-3.69%
Revenue NY rev (1m)-1.02%
Revenue NY rev (3m)-1.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 12.37 | ||
| P/S | 1.25 | ||
| P/FCF | 12.61 | ||
| P/OCF | 10.71 | ||
| P/B | 1.93 | ||
| P/tB | 4.33 | ||
| EV/EBITDA | 7.93 |
EPS(TTM)4.72
EY7.09%
EPS(NY)5.38
Fwd EY8.08%
FCF(TTM)5.28
FCFY7.93%
OCF(TTM)6.22
OCFY9.34%
SpS53.15
BVpS34.47
TBVpS15.37
PEG (NY)1.16
PEG (5Y)2.68
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 | 3.1 |
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 Year49.84%
EBIT Next 3Y20.97%
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%