KORN FERRY (KFY) Stock Fundamental Analysis
USA - NYSE:KFY - US5006432000 - Common Stock
68.4 USD
+0.13 (+0.19%)
68.4 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to KFY. KFY was compared to 82 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 is not valued too expensively and it also shows a decent growth rate.
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.
KFY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KFY has a better Return On Assets (6.80%) than 65.85% of its industry peers.
KFY has a Return On Equity (13.06%) which is comparable to the rest of the industry.
KFY has a better Return On Invested Capital (9.24%) than 63.41% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KFY is below the industry average of 13.40%.
| 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
Looking at the Profit Margin, with a value of 8.84%, KFY is in the better half of the industry, outperforming 79.27% of the companies in the same industry.
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 76.83% 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 96.34% 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
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 3.23 indicates that KFY is not in any danger for bankruptcy at the moment.
KFY has a Altman-Z score of 3.23. This is comparable to the rest of the industry: KFY outperforms 58.54% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 1.42, KFY is in the better half of the industry, outperforming 73.17% of the companies in the same industry.
KFY has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
KFY has a Debt to Equity ratio of 0.21. This is in the better half of the industry: KFY outperforms 62.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | 3.23 |
ROIC/WACC1.12
WACC8.24%
2.3 Liquidity
A Current Ratio of 2.21 indicates that KFY has no problem at all paying its short term obligations.
The Current ratio of KFY (2.21) is better than 80.49% 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.
With an excellent Quick ratio value of 2.21, KFY belongs to the best of the industry, outperforming 80.49% of the companies in the same industry.
| 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.
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 very negative growth in Revenue. In the last year, the Revenue has decreased by -19.68%.
The Revenue has been growing slightly by 6.91% on average over the past years.
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.
The Revenue is expected to grow by 4.66% on average over the next years.
EPS Next Y6.05%
EPS Next 2Y8.32%
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
The EPS growth rate is stable: in the next years the growth will be about the same 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 13.60, KFY is valued correctly.
Based on the Price/Earnings ratio, KFY is valued a bit cheaper than 75.61% of the companies in the same industry.
KFY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.40.
A Price/Forward Earnings ratio of 11.90 indicates a reasonable valuation of KFY.
Based on the Price/Forward Earnings ratio, KFY is valued a bit cheaper than the industry average as 76.83% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of KFY to the average of the S&P500 Index (22.94), we can say KFY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.6 | ||
| Fwd PE | 11.9 |
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 85.37% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KFY indicates a somewhat cheap valuation: KFY is cheaper than 73.17% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.82 | ||
| EV/EBITDA | 7.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of KFY may justify a higher PE ratio.
PEG (NY)2.25
PEG (5Y)1.25
EPS Next 2Y8.32%
EPS Next 3Y9.73%
5. Dividend
5.1 Amount
KFY has a Yearly Dividend Yield of 2.73%. 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 3.90. KFY pays more dividend than 89.02% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, KFY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
5.2 History
On average, the dividend of KFY grows each year by 31.50%, 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.
Dividend Growth(5Y)31.5%
Div Incr Years4
Div Non Decr Years9
5.3 Sustainability
36.45% 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.
DP36.45%
EPS Next 2Y8.32%
EPS Next 3Y9.73%
68.4
+0.13 (+0.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners100.62%
Inst Owner Change-0.04%
Ins Owners0.85%
Ins Owner Change-0.54%
Market Cap3.58B
Analysts82.22
Price Target85.43 (24.9%)
Short Float %2.91%
Short Ratio4.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.73% |
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)1.71%
EPS NQ rev (3m)0.77%
EPS NY rev (1m)-0.37%
EPS NY rev (3m)-2%
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 | 13.6 | ||
| Fwd PE | 11.9 | ||
| P/S | 1.28 | ||
| P/FCF | 12.82 | ||
| P/OCF | 10.12 | ||
| P/B | 1.89 | ||
| P/tB | 4.07 | ||
| EV/EBITDA | 7.2 |
EPS(TTM)5.03
EY7.35%
EPS(NY)5.75
Fwd EY8.4%
FCF(TTM)5.34
FCFY7.8%
OCF(TTM)6.76
OCFY9.88%
SpS53.33
BVpS36.12
TBVpS16.79
PEG (NY)2.25
PEG (5Y)1.25
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%
ROICexcg growth 3Y-17.99%
ROICexcg 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 | 3.23 |
F-Score8
WACC8.24%
ROIC/WACC1.12
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 Y6.05%
EPS Next 2Y8.32%
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%