KORN FERRY (KFY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KFY - US5006432000 - Common Stock
67.1 USD
+0.45 (+0.68%)
67.1 USD
0 (0%)
Taking everything into account, KFY scores 7 out of 10 in our fundamental rating. KFY was compared to 86 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on KFY. KFY also has an excellent dividend rating. With these ratings, KFY could be worth investigating further for value and dividend investing!.
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.
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 better Return On Assets (6.94%) than 68.60% of its industry peers.
With a decent Return On Equity value of 13.30%, KFY is doing good in the industry, outperforming 62.79% of the companies in the same industry.
KFY's Return On Invested Capital of 9.51% is fine compared to the rest of the industry. KFY outperforms 66.28% of its industry peers.
KFY had an Average Return On Invested Capital over the past 3 years of 9.27%. This is below the industry average of 12.04%.
The 3 year average ROIC (9.27%) for KFY is below the current ROIC(9.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.94% | ||
| ROE | 13.3% | ||
| ROIC | 9.51% |
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
Looking at the Profit Margin, with a value of 9.10%, KFY is in the better half of the industry, outperforming 75.58% of the companies in the same industry.
In the last couple of years the Profit Margin of KFY has grown nicely.
KFY has a better Operating Margin (13.24%) than 75.58% of its industry peers.
In the last couple of years the Operating Margin of KFY has grown nicely.
With an excellent Gross Margin value of 88.04%, KFY belongs to the best of the industry, outperforming 97.67% 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 | 13.24% | ||
| PM (TTM) | 9.1% | ||
| GM | 88.04% |
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.
Compared to 1 year ago, KFY has less shares outstanding
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 3.18. This indicates that KFY is financially healthy and has little risk of bankruptcy at the moment.
KFY has a Altman-Z score of 3.18. This is in the better half of the industry: KFY outperforms 61.63% of its industry peers.
KFY has a debt to FCF ratio of 1.46. This is a very positive value and a sign of high solvency as it would only need 1.46 years to pay back of all of its debts.
KFY's Debt to FCF ratio of 1.46 is fine compared to the rest of the industry. KFY outperforms 75.58% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that KFY is not too dependend on debt financing.
KFY has a Debt to Equity ratio (0.20) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.46 | ||
| Altman-Z | 3.18 |
ROIC/WACC1.14
WACC8.37%
2.3 Liquidity
A Current Ratio of 2.14 indicates that KFY has no problem at all paying its short term obligations.
The Current ratio of KFY (2.14) is better than 77.91% of its industry peers.
KFY has a Quick Ratio of 2.14. This indicates that KFY is financially healthy and has no problem in meeting its short term obligations.
KFY has a Quick ratio of 2.14. This is in the better half of the industry: KFY outperforms 77.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.14 | ||
| Quick Ratio | 2.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.11% over the past year.
Measured over the past years, KFY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.91% on average per year.
KFY shows a small growth in Revenue. In the last year, the Revenue has grown by 3.65%.
The Revenue has been growing slightly by 6.91% on average over the past years.
EPS 1Y (TTM)9.11%
EPS 3Y-7.74%
EPS 5Y10.91%
EPS Q2Q%9.92%
Revenue 1Y (TTM)3.65%
Revenue growth 3Y1.46%
Revenue growth 5Y6.91%
Sales Q2Q%7.02%
3.2 Future
The Earnings Per Share is expected to grow by 9.73% on average over the next years. This is quite good.
KFY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.66% yearly.
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.
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
With a Price/Earnings ratio of 13.03, KFY is valued correctly.
Based on the Price/Earnings ratio, KFY is valued cheaper than 80.23% of the companies in the same industry.
KFY is valuated cheaply when we compare the Price/Earnings ratio to 26.57, which is the current average of the S&P500 Index.
KFY is valuated reasonably with a Price/Forward Earnings ratio of 11.64.
KFY's Price/Forward Earnings ratio is rather cheap when compared to the industry. KFY is cheaper than 82.56% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.04, KFY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.03 | ||
| Fwd PE | 11.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KFY is valued cheaper than 88.37% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KFY is valued cheaply inside the industry as 81.40% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.9 | ||
| EV/EBITDA | 6.47 |
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)1.61
PEG (5Y)1.19
EPS Next 2Y8.45%
EPS Next 3Y9.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.77%, KFY has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.52, KFY pays a better dividend. On top of this KFY pays more dividend than 87.21% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.88, KFY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
5.2 History
On average, the dividend of KFY grows each year by 31.50%, which is quite nice.
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
37.03% of the earnings are spent on dividend by KFY. This is a low number and sustainable payout ratio.
The dividend of KFY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP37.03%
EPS Next 2Y8.45%
EPS Next 3Y9.73%
67.1
+0.45 (+0.68%)
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 Cap3.52B
Revenue(TTM)2.84B
Net Income(TTM)258.50M
Analysts82.22
Price TargetN/A
Short Float %2.8%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
Yearly Dividend1.62
Dividend Growth(5Y)31.5%
DP37.03%
Div Incr Years4
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.65%
Min EPS beat(2)0.37%
Max EPS beat(2)4.94%
EPS beat(4)4
Avg EPS beat(4)3.37%
Min EPS beat(4)0.37%
Max EPS beat(4)4.94%
EPS beat(8)7
Avg EPS beat(8)4.3%
EPS beat(12)10
Avg EPS beat(12)4.27%
EPS beat(16)13
Avg EPS beat(16)4.21%
Revenue beat(2)2
Avg Revenue beat(2)1.51%
Min Revenue beat(2)1.22%
Max Revenue beat(2)1.79%
Revenue beat(4)4
Avg Revenue beat(4)1.75%
Min Revenue beat(4)1.22%
Max Revenue beat(4)2.19%
Revenue beat(8)6
Avg Revenue beat(8)0.74%
Revenue beat(12)10
Avg Revenue beat(12)1.07%
Revenue beat(16)13
Avg Revenue beat(16)1.68%
PT rev (1m)-3.28%
PT rev (3m)-3.28%
EPS NQ rev (1m)1.15%
EPS NQ rev (3m)0.82%
EPS NY rev (1m)0.46%
EPS NY rev (3m)1.55%
Revenue NQ rev (1m)0.8%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.03 | ||
| Fwd PE | 11.64 | ||
| P/S | 1.24 | ||
| P/FCF | 12.9 | ||
| P/OCF | 9.94 | ||
| P/B | 1.81 | ||
| P/tB | 3.75 | ||
| EV/EBITDA | 6.47 |
EPS(TTM)5.15
EY7.68%
EPS(NY)5.76
Fwd EY8.59%
FCF(TTM)5.2
FCFY7.75%
OCF(TTM)6.75
OCFY10.06%
SpS54.24
BVpS37.11
TBVpS17.9
PEG (NY)1.61
PEG (5Y)1.19
Graham Number65.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.94% | ||
| ROE | 13.3% | ||
| ROCE | 12.65% | ||
| ROIC | 9.51% | ||
| ROICexc | 13.01% | ||
| ROICexgc | 24.24% | ||
| OM | 13.24% | ||
| PM (TTM) | 9.1% | ||
| GM | 88.04% | ||
| FCFM | 9.59% |
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-Score7
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.46 | ||
| Debt/EBITDA | 0.84 | ||
| Cap/Depr | 85.04% | ||
| Cap/Sales | 2.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75% | ||
| Profit Quality | 105.44% | ||
| Current Ratio | 2.14 | ||
| Quick Ratio | 2.14 | ||
| Altman-Z | 3.18 |
F-Score7
WACC8.37%
ROIC/WACC1.14
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)9.11%
EPS 3Y-7.74%
EPS 5Y10.91%
EPS Q2Q%9.92%
EPS Next Y8.09%
EPS Next 2Y8.45%
EPS Next 3Y9.73%
EPS Next 5YN/A
Revenue 1Y (TTM)3.65%
Revenue growth 3Y1.46%
Revenue growth 5Y6.91%
Sales Q2Q%7.02%
Revenue Next Year4.35%
Revenue Next 2Y4.38%
Revenue Next 3Y4.66%
Revenue Next 5YN/A
EBIT growth 1Y22.79%
EBIT growth 3Y-9.61%
EBIT growth 5Y8.64%
EBIT Next Year41.53%
EBIT Next 3Y17.22%
EBIT Next 5YN/A
FCF growth 1Y15.66%
FCF growth 3Y-12.61%
FCF growth 5Y9.16%
OCF growth 1Y17.59%
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 7 / 10 to KORN FERRY (KFY). This can be considered as Undervalued.
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.