KORN FERRY (KFY) Stock Fundamental Analysis
NYSE:KFY - New York Stock Exchange, Inc. - US5006432000 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to KFY. KFY was compared to 81 industry peers in the Professional Services industry. KFY scores excellent points on both the profitability and health parts. This is a solid base for a good stock. KFY scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings would make KFY suitable for value 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.
Each year in the past 5 years KFY has been profitable.
KFY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 6.67%, KFY is doing good in the industry, outperforming 65.43% of the companies in the same industry.
KFY has a Return On Equity of 13.58%. This is in the better half of the industry: KFY outperforms 60.49% of its industry peers.
With a decent Return On Invested Capital value of 8.88%, KFY is doing good in the industry, outperforming 65.43% of the companies in the same industry.
KFY had an Average Return On Invested Capital over the past 3 years of 11.01%. This is in line with the industry average of 12.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.67% | ||
| ROE | 13.58% | ||
| ROIC | 8.88% |
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
KFY has a better Profit Margin (8.88%) than 80.25% of its industry peers.
KFY's Profit Margin has improved in the last couple of years.
KFY has a Operating Margin of 12.26%. This is amongst the best in the industry. KFY outperforms 82.72% of its industry peers.
KFY's Operating Margin has improved in the last couple of years.
KFY's Gross Margin of 88.65% is amongst the best of the industry. KFY outperforms 96.30% of its industry peers.
KFY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.26% | ||
| PM (TTM) | 8.88% | ||
| GM | 88.65% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KFY is creating some value.
KFY has less shares outstanding than it did 1 year ago.
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
An Altman-Z score of 3.01 indicates that KFY is not in any danger for bankruptcy at the moment.
KFY has a Altman-Z score (3.01) which is in line with its industry peers.
The Debt to FCF ratio of KFY is 1.26, which is an excellent value as it means it would take KFY, only 1.26 years of fcf income to pay off all of its debts.
KFY has a Debt to FCF ratio of 1.26. This is in the better half of the industry: KFY outperforms 75.31% of its industry peers.
A Debt/Equity ratio of 0.22 indicates that KFY is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.22, KFY is in line with its industry, outperforming 59.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.26 | ||
| Altman-Z | 3.01 |
ROIC/WACC1.03
WACC8.64%
2.3 Liquidity
A Current Ratio of 1.90 indicates that KFY should not have too much problems paying its short term obligations.
KFY's Current ratio of 1.90 is fine compared to the rest of the industry. KFY outperforms 71.60% of its industry peers.
KFY has a Quick Ratio of 1.90. This is a normal value and indicates that KFY is financially healthy and should not expect problems in meeting its short term obligations.
KFY has a better Quick ratio (1.90) than 71.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.9 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.80% over the past year.
The Earnings Per Share has been growing slightly by 5.26% on average over the past years.
Looking at the last year, KFY shows a very negative growth in Revenue. The Revenue has decreased by -22.57% in the last year.
Measured over the past years, KFY shows a small growth in Revenue. The Revenue has been growing by 7.21% on average per year.
EPS 1Y (TTM)19.8%
EPS 3Y19.56%
EPS 5Y5.26%
EPS Q2Q%11.21%
Revenue 1Y (TTM)-22.57%
Revenue growth 3Y15.38%
Revenue growth 5Y7.21%
Sales Q2Q%0.01%
3.2 Future
The Earnings Per Share is expected to grow by 12.24% on average over the next years. This is quite good.
Based on estimates for the next years, KFY will show a small growth in Revenue. The Revenue will grow by 2.54% on average per year.
EPS Next Y13.95%
EPS Next 2Y8.8%
EPS Next 3Y12.24%
EPS Next 5YN/A
Revenue Next Year-2.04%
Revenue Next 2Y0.02%
Revenue Next 3Y2.54%
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
With a Price/Earnings ratio of 15.26, KFY is valued correctly.
KFY's Price/Earnings ratio is a bit cheaper when compared to the industry. KFY is cheaper than 77.78% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.32, KFY is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 14.55, the valuation of KFY can be described as correct.
KFY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KFY is cheaper than 72.84% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, KFY is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.26 | ||
| Fwd PE | 14.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KFY is valued cheaper than 85.19% of the companies in the same industry.
KFY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KFY is cheaper than 81.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.06 | ||
| EV/EBITDA | 7.18 |
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 excellent profitability rating of KFY may justify a higher PE ratio.
A more expensive valuation may be justified as KFY's earnings are expected to grow with 12.24% in the coming years.
PEG (NY)1.09
PEG (5Y)2.9
EPS Next 2Y8.8%
EPS Next 3Y12.24%
5. Dividend
5.1 Amount
KFY has a Yearly Dividend Yield of 2.79%. Purely for dividend investing, there may be better candidates out there.
KFY's Dividend Yield is rather good when compared to the industry average which is at 2.09. KFY pays more dividend than 90.12% of the companies in the same industry.
KFY's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
5.2 History
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.
KFY has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)20.17%
Div Incr Years4
Div Non Decr Years9
5.3 Sustainability
31.25% of the earnings are spent on dividend by KFY. This is a low number and sustainable payout ratio.
KFY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.25%
EPS Next 2Y8.8%
EPS Next 3Y12.24%
NYSE:KFY (6/18/2025, 10:51:47 AM)
73.87
+7.11 (+10.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners98.98%
Inst Owner Change-1.78%
Ins Owners1.02%
Ins Owner Change0%
Market Cap3.82B
Analysts82.22
Price Target80.07 (8.39%)
Short Float %2.62%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.79% |
Yearly Dividend1.04
Dividend Growth(5Y)20.17%
DP31.25%
Div Incr Years4
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.65%
Min EPS beat(2)-1.15%
Max EPS beat(2)4.45%
EPS beat(4)3
Avg EPS beat(4)4.7%
Min EPS beat(4)-1.15%
Max EPS beat(4)10.99%
EPS beat(8)6
Avg EPS beat(8)4.07%
EPS beat(12)9
Avg EPS beat(12)4.36%
EPS beat(16)13
Avg EPS beat(16)7.33%
Revenue beat(2)1
Avg Revenue beat(2)0.33%
Min Revenue beat(2)-1.14%
Max Revenue beat(2)1.79%
Revenue beat(4)2
Avg Revenue beat(4)0.09%
Min Revenue beat(4)-1.14%
Max Revenue beat(4)1.79%
Revenue beat(8)6
Avg Revenue beat(8)0.77%
Revenue beat(12)9
Avg Revenue beat(12)1.46%
Revenue beat(16)13
Avg Revenue beat(16)2.98%
PT rev (1m)-0.32%
PT rev (3m)-3.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)1.6%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.03%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.26 | ||
| Fwd PE | 14.55 | ||
| P/S | 1.39 | ||
| P/FCF | 12.06 | ||
| P/OCF | 10.3 | ||
| P/B | 2.13 | ||
| P/tB | 4.92 | ||
| EV/EBITDA | 7.18 |
EPS(TTM)4.84
EY6.55%
EPS(NY)5.08
Fwd EY6.87%
FCF(TTM)6.12
FCFY8.29%
OCF(TTM)7.17
OCFY9.71%
SpS53.07
BVpS34.71
TBVpS15
PEG (NY)1.09
PEG (5Y)2.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.67% | ||
| ROE | 13.58% | ||
| ROCE | 11.87% | ||
| ROIC | 8.88% | ||
| ROICexc | 12.49% | ||
| ROICexgc | 25.29% | ||
| OM | 12.26% | ||
| PM (TTM) | 8.88% | ||
| GM | 88.65% | ||
| FCFM | 11.54% |
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 Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.26 | ||
| Debt/EBITDA | 0.96 | ||
| Cap/Depr | 67.86% | ||
| Cap/Sales | 1.97% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.07% | ||
| Profit Quality | 129.99% | ||
| Current Ratio | 1.9 | ||
| Quick Ratio | 1.9 | ||
| Altman-Z | 3.01 |
F-Score8
WACC8.64%
ROIC/WACC1.03
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)19.8%
EPS 3Y19.56%
EPS 5Y5.26%
EPS Q2Q%11.21%
EPS Next Y13.95%
EPS Next 2Y8.8%
EPS Next 3Y12.24%
EPS Next 5YN/A
Revenue 1Y (TTM)-22.57%
Revenue growth 3Y15.38%
Revenue growth 5Y7.21%
Sales Q2Q%0.01%
Revenue Next Year-2.04%
Revenue Next 2Y0.02%
Revenue Next 3Y2.54%
Revenue Next 5YN/A
EBIT growth 1Y-0.07%
EBIT growth 3Y15.74%
EBIT growth 5Y15.48%
EBIT Next Year54.06%
EBIT Next 3Y21.12%
EBIT Next 5YN/A
FCF growth 1Y4.65%
FCF growth 3Y1.27%
FCF growth 5Y1.53%
OCF growth 1Y-0.7%
OCF growth 3Y4.14%
OCF growth 5Y1.87%