KORN FERRY (KFY)
US5006432000 - Common Stock
KFY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 81 industry peers in the Professional Services industry. KFY gets an excellent profitability rating and is at the same time showing great financial health properties. KFY has a decent growth rate and is not valued too expensively.
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.
Each year in the past 5 years KFY had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.46%, KFY is doing good in the industry, outperforming 66.25% of the companies in the same industry.
KFY has a Return On Equity of 11.39%. This is in the better half of the industry: KFY outperforms 61.25% of its industry peers.
The Return On Invested Capital of KFY (9.20%) is better than 66.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KFY is in line with the industry average of 12.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 11.39% | ||
| ROIC | 9.2% |
ROA(3y)6.2%
ROA(5y)5.35%
ROE(3y)13.75%
ROE(5y)11.59%
ROIC(3y)10.32%
ROIC(5y)9.01%
1.3 Margins
KFY has a better Profit Margin (5.48%) than 71.25% of its industry peers.
In the last couple of years the Profit Margin of KFY has remained more or less at the same level.
KFY's Operating Margin of 9.50% is fine compared to the rest of the industry. KFY outperforms 70.00% of its industry peers.
In the last couple of years the Operating Margin of KFY has grown nicely.
Looking at the Gross Margin, with a value of 87.91%, KFY belongs to the top of the industry, outperforming 95.00% of the companies in the same industry.
KFY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.5% | ||
| PM (TTM) | 5.48% | ||
| GM | 87.91% |
OM growth 3Y2.95%
OM growth 5Y2.47%
PM growth 3Y10.87%
PM growth 5Y-0.34%
GM growth 3Y-0.98%
GM growth 5Y-0.52%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KFY is still creating some value.
KFY has less shares outstanding than it did 1 year ago.
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 3.12. This indicates that KFY is financially healthy and has little risk of bankruptcy at the moment.
KFY has a Altman-Z score of 3.12. This is comparable to the rest of the industry: KFY outperforms 48.75% of its industry peers.
KFY has a debt to FCF ratio of 1.86. This is a very positive value and a sign of high solvency as it would only need 1.86 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.86, KFY is in the better half of the industry, outperforming 73.75% of the companies in the same industry.
KFY has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.23, KFY perfoms like the industry average, outperforming 58.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.86 | ||
| Altman-Z | 3.12 |
ROIC/WACC1.05
WACC8.76%
2.3 Liquidity
A Current Ratio of 1.83 indicates that KFY should not have too much problems paying its short term obligations.
KFY has a better Current ratio (1.83) than 75.00% of its industry peers.
A Quick Ratio of 1.83 indicates that KFY should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.83, KFY is in the better half of the industry, outperforming 76.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
KFY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -29.00%.
Measured over the past years, KFY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.56% on average per year.
The Revenue has grown by 24.10% in the past year. This is a very strong growth!
The Revenue has been growing by 9.50% on average over the past years. This is quite good.
EPS 1Y (TTM)-29%
EPS 3Y19.24%
EPS 5Y12.56%
EPS growth Q2Q5.94%
Revenue 1Y (TTM)24.1%
Revenue growth 3Y13.14%
Revenue growth 5Y9.5%
Revenue growth Q2Q-1.45%
3.2 Future
KFY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.43% yearly.
KFY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.62% yearly.
EPS Next Y-14.63%
EPS Next 2Y-2.49%
EPS Next 3Y3.43%
EPS Next 5YN/A
Revenue Next Year-1.72%
Revenue Next 2Y0.4%
Revenue Next 3Y2.62%
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 decreasing.
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
KFY is valuated correctly with a Price/Earnings ratio of 15.31.
Based on the Price/Earnings ratio, KFY is valued a bit cheaper than 78.75% of the companies in the same industry.
KFY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.55.
KFY is valuated correctly with a Price/Forward Earnings ratio of 13.15.
Based on the Price/Forward Earnings ratio, KFY is valued cheaper than 81.25% of the companies in the same industry.
KFY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.31 | ||
| Fwd PE | 13.15 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KFY is valued cheaply inside the industry as 91.25% of the companies are valued more expensively.
76.25% of the companies in the same industry are more expensive than KFY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.12 | ||
| EV/EBITDA | 6.69 |
4.3 Compensation for Growth
KFY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.22
EPS Next 2Y-2.49%
EPS Next 3Y3.43%
5. Dividend
5.1 Amount
KFY has a Yearly Dividend Yield of 2.18%.
KFY's Dividend Yield is rather good when compared to the industry average which is at 2.06. KFY pays more dividend than 88.75% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, KFY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
5.2 History
On average, the dividend of KFY grows each year by 9.05%, 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)9.05%
Div Incr Years3
Div Non Decr Years8
5.3 Sustainability
23.20% 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.
DP23.2%
EPS Next 2Y-2.49%
EPS Next 3Y3.43%
KORN FERRY
NYSE:KFY (5/2/2024, 3:15:00 PM)
After market: 61.87 0 (0%)61.87
+0.69 (+1.13%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.23B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.18% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.31 | ||
| Fwd PE | 13.15 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.46% | ||
| ROE | 11.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 9.5% | ||
| PM (TTM) | 5.48% | ||
| GM | 87.91% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.83 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-29%
EPS 3Y19.24%
EPS 5Y
EPS growth Q2Q
EPS Next Y-14.63%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)24.1%
Revenue growth 3Y13.14%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y