Analyzing KORN FERRY (NYSE:KFY)'s Dividend Potential.

Our stock screener has singled out KORN FERRY (NYSE:KFY) as a promising choice for dividend investors. KFY not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

Evaluating Dividend: KFY

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. KFY has been assigned a 7 for dividend:

• KFY's Dividend Yield is rather good when compared to the industry average which is at 2.38. KFY pays more dividend than 91.46% of the companies in the same industry.
• KFY's Dividend Yield is a higher than the S&P500 average which is at 2.44.
• 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.
• As KFY did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
• KFY pays out 31.25% of its income as dividend. This is a sustainable payout ratio.

ChartMill's Evaluation of Health

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. KFY scores a 7 out of 10:

• An Altman-Z score of 3.00 indicates that KFY is not in any danger for bankruptcy at the moment.
• KFY has a debt to FCF ratio of 1.26. This is a very positive value and a sign of high solvency as it would only need 1.26 years to pay back of all of its debts.
• With a decent Debt to FCF ratio value of 1.26, KFY is doing good in the industry, outperforming 76.83% of the companies in the same industry.
• KFY has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
• KFY's Current ratio of 1.90 is fine compared to the rest of the industry. KFY outperforms 75.61% of its industry peers.
• KFY has a better Quick ratio (1.90) than 75.61% of its industry peers.

Exploring KFY's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For KFY, the assigned 7 is a significant indicator of profitability:

• KFY has a Return On Assets of 6.67%. This is in the better half of the industry: KFY outperforms 64.63% of its industry peers.
• KFY has a Return On Equity of 13.58%. This is in the better half of the industry: KFY outperforms 62.20% of its industry peers.
• The Return On Invested Capital of KFY (8.88%) is better than 63.41% of its industry peers.
• The Profit Margin of KFY (8.88%) is better than 79.27% of its industry peers.
• KFY's Profit Margin has improved in the last couple of years.
• With an excellent Operating Margin value of 12.26%, KFY belongs to the best of the industry, outperforming 81.71% of the companies in the same industry.
• KFY's Operating Margin has improved in the last couple of years.
• KFY has a better Gross Margin (88.65%) than 95.12% of its industry peers.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of KFY

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.