Should you consider KORN FERRY (NYSE:KFY) for quality investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if KORN FERRY (NYSE:KFY) is suited for quality investing. Investors should of course do their own research, but we spotted KORN FERRY showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Why KFY may be interesting for quality investors.

• KFY has achieved substantial revenue growth over the past 5 years, with a 7.21% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• KFY exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 25.29% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• KFY maintains a healthy Debt/Free Cash Flow Ratio of 1.26, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
• With a robust Profit Quality (5-year) ratio of 160.0%, KFY highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• With a robust 5-year EBIT growth of 15.48%, KFY showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• The EBIT 5-year growth of KFY has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

Fundamental analysis of KFY

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

Overall KFY gets a fundamental rating of 6 out of 10. We evaluated KFY against 83 industry peers in the Professional Services industry. KFY scores excellent on profitability, but there are some minor concerns on its financial health. KFY scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, KFY could be worth investigating further for value investing!.

Check the latest full fundamental report of KFY for a complete fundamental analysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.