KORN FERRY (KFY) Stock Fundamental Analysis
USA - NYSE:KFY - US5006432000 - Common Stock
66.37 USD
+1.02 (+1.56%)
66.37 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 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. KFY also has an excellent dividend rating. This makes KFY very considerable for dividend 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.
KFY had positive earnings in each of the past 5 years.
In the past 5 years KFY always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 6.80%, KFY is doing good in the industry, outperforming 67.82% of the companies in the same industry.
With a decent Return On Equity value of 13.06%, KFY is doing good in the industry, outperforming 62.07% of the companies in the same industry.
With a decent Return On Invested Capital value of 9.24%, KFY is doing good in the industry, outperforming 66.67% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KFY is below the industry average of 13.25%.
| 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 has a Profit Margin of 8.84%. This is amongst the best in the industry. KFY outperforms 80.46% of its industry peers.
In the last couple of years the Profit Margin of KFY has grown nicely.
With a decent Operating Margin value of 13.01%, KFY is doing good in the industry, outperforming 78.16% of the companies in the same industry.
KFY's Operating Margin has improved in the last couple of years.
KFY's Gross Margin of 88.37% is amongst the best of the industry. KFY outperforms 96.55% of its industry peers.
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
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.
Compared to 5 years ago, KFY has less shares outstanding
Compared to 1 year ago, KFY has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.18 indicates that KFY is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.18, KFY is doing good in the industry, outperforming 62.07% of the companies in the same industry.
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.
KFY has a better Debt to FCF ratio (1.42) than 72.41% of its industry peers.
KFY has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.21, KFY is doing good in the industry, outperforming 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | 3.18 |
ROIC/WACC1.11
WACC8.33%
2.3 Liquidity
A Current Ratio of 2.21 indicates that KFY has no problem at all paying its short term obligations.
KFY has a better Current ratio (2.21) than 79.31% of its industry peers.
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.
KFY's Quick ratio of 2.21 is fine compared to the rest of the industry. KFY outperforms 79.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 2.21 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.28% over the past year.
KFY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.91% yearly.
KFY shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -19.68%.
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.
Based on estimates for the next years, KFY will show a small growth in Revenue. The Revenue will grow by 4.66% on average per year.
EPS Next Y7.6%
EPS Next 2Y8.3%
EPS Next 3Y9.73%
EPS Next 5YN/A
Revenue Next Year4.2%
Revenue Next 2Y4.31%
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
With a Price/Earnings ratio of 13.19, KFY is valued correctly.
KFY's Price/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/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.13.
The Price/Forward Earnings ratio is 11.55, which indicates a very decent valuation of KFY.
77.01% of the companies in the same industry are more expensive than KFY, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.35, KFY is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.19 | ||
| Fwd PE | 11.55 |
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 85.06% of the companies listed in the same industry.
75.86% of the companies in the same industry are more expensive than KFY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.44 | ||
| EV/EBITDA | 6.86 |
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)1.74
PEG (5Y)1.21
EPS Next 2Y8.3%
EPS Next 3Y9.73%
5. Dividend
5.1 Amount
KFY has a Yearly Dividend Yield of 2.94%.
Compared to an average industry Dividend Yield of 4.44, KFY pays a better dividend. On top of this KFY pays more dividend than 89.66% of the companies listed in the same industry.
KFY's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
5.2 History
The dividend of KFY is nicely growing with an annual growth rate of 31.50%!
KFY has paid a dividend for at least 10 years, which is 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.
KFY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP36.45%
EPS Next 2Y8.3%
EPS Next 3Y9.73%
66.37
+1.02 (+1.56%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners100.62%
Inst Owner Change0.46%
Ins Owners0.85%
Ins Owner Change-0.58%
Market Cap3.48B
Revenue(TTM)2.79B
Net Income(TTM)247.01M
Analysts82.22
Price Target85.43 (28.72%)
Short Float %2.41%
Short Ratio2.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.94% |
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)-0.3%
EPS NQ rev (3m)2.67%
EPS NY rev (1m)1.46%
EPS NY rev (3m)-0.57%
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 | 13.19 | ||
| Fwd PE | 11.55 | ||
| P/S | 1.24 | ||
| P/FCF | 12.44 | ||
| P/OCF | 9.82 | ||
| P/B | 1.84 | ||
| P/tB | 3.95 | ||
| EV/EBITDA | 6.86 |
EPS(TTM)5.03
EY7.58%
EPS(NY)5.75
Fwd EY8.66%
FCF(TTM)5.34
FCFY8.04%
OCF(TTM)6.76
OCFY10.19%
SpS53.33
BVpS36.12
TBVpS16.79
PEG (NY)1.74
PEG (5Y)1.21
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 | 3.18 |
F-Score8
WACC8.33%
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 Y7.6%
EPS Next 2Y8.3%
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 Year4.2%
Revenue Next 2Y4.31%
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 7.6% in the next year.