KORN FERRY (KFY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KFY - US5006432000 - Common Stock
65.46 USD
-0.79 (-1.19%)
65.46 USD
0 (0%)
Overall KFY gets a fundamental rating of 7 out of 10. We evaluated KFY against 87 industry peers in the Professional Services industry. KFY has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. KFY may be a bit undervalued, certainly considering the very reasonable score on growth Finally KFY also has an excellent dividend rating. This makes KFY very considerable for value and dividend investing!
1. Profitability
1.1 Basic Checks
KFY had positive earnings in the past year.
KFY had a positive operating cash flow in the past year.
In the past 5 years KFY has always been profitable.
In the past 5 years KFY always reported a positive cash flow from operatings.
1.2 Ratios
KFY's Return On Assets of 6.80% is fine compared to the rest of the industry. KFY outperforms 66.67% of its industry peers.
KFY has a better Return On Equity (13.06%) than 63.22% of its industry peers.
KFY has a better Return On Invested Capital (9.24%) than 66.67% of its industry peers.
KFY had an Average Return On Invested Capital over the past 3 years of 9.27%. This is below the industry average of 12.15%.
| 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
KFY's Profit Margin of 8.84% is fine compared to the rest of the industry. KFY outperforms 77.01% of its industry peers.
KFY's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 13.01%, KFY is doing good in the industry, outperforming 77.01% of the companies in the same industry.
In the last couple of years the Operating Margin of KFY has grown nicely.
KFY has a better Gross Margin (88.37%) than 96.55% of its industry peers.
KFY's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for KFY has been reduced compared to 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 3.18 indicates that KFY is not in any danger for bankruptcy at the moment.
KFY has a better Altman-Z score (3.18) than 60.92% of its industry peers.
KFY has a debt to FCF ratio of 1.42. This is a very positive value and a sign of high solvency as it would only need 1.42 years to pay back of all of its debts.
KFY has a Debt to FCF ratio of 1.42. This is in the better half of the industry: KFY outperforms 72.41% of its industry peers.
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 comparable to the rest of the industry: KFY outperforms 59.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | 3.18 |
ROIC/WACC1.12
WACC8.23%
2.3 Liquidity
KFY has a Current Ratio of 2.21. This indicates that KFY is financially healthy and has no problem in meeting its short term obligations.
KFY has a better Current ratio (2.21) than 75.86% of its industry peers.
A Quick Ratio of 2.21 indicates that KFY has no problem at all paying its short term obligations.
KFY has a better Quick ratio (2.21) than 75.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 2.21 |
3. Growth
3.1 Past
KFY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.28%, which is quite good.
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.
Looking at the last year, KFY shows a very negative growth in Revenue. The Revenue has decreased by -19.68% in the last year.
Measured over the past years, KFY shows a small growth in Revenue. The Revenue has been growing by 6.91% on average per year.
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 Y7.6%
EPS Next 2Y8.3%
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
The Price/Earnings ratio is 13.01, which indicates a correct valuation of KFY.
Based on the Price/Earnings ratio, KFY is valued a bit cheaper than the industry average as 79.31% of the companies are valued more expensively.
KFY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.15.
KFY is valuated reasonably with a Price/Forward Earnings ratio of 11.39.
79.31% of the companies in the same industry are more expensive than KFY, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.12. KFY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.01 | ||
| Fwd PE | 11.39 |
4.2 Price Multiples
86.21% of the companies in the same industry are more expensive than KFY, based on the Enterprise Value to EBITDA ratio.
KFY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KFY is cheaper than 80.46% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.27 | ||
| EV/EBITDA | 6.87 |
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 decent profitability rating of KFY may justify a higher PE ratio.
PEG (NY)1.71
PEG (5Y)1.19
EPS Next 2Y8.3%
EPS Next 3Y9.73%
5. Dividend
5.1 Amount
KFY has a Yearly Dividend Yield of 3.07%.
Compared to an average industry Dividend Yield of 4.43, KFY pays a better dividend. On top of this KFY pays more dividend than 87.36% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, KFY pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
5.2 History
On average, the dividend of KFY grows each year by 31.50%, which is quite nice.
KFY has been paying a dividend for at least 10 years, so it has 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 2Y8.3%
EPS Next 3Y9.73%
65.46
-0.79 (-1.19%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners100.62%
Inst Owner Change3.58%
Ins Owners0.85%
Ins Owner Change-0.58%
Market Cap3.43B
Revenue(TTM)2.79B
Net Income(TTM)247.01M
Analysts82.22
Price Target85.43 (30.51%)
Short Float %2.63%
Short Ratio3.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.07% |
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)0%
EPS NQ rev (3m)2.67%
EPS NY rev (1m)0%
EPS NY rev (3m)1.08%
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 | 13.01 | ||
| Fwd PE | 11.39 | ||
| P/S | 1.23 | ||
| P/FCF | 12.27 | ||
| P/OCF | 9.68 | ||
| P/B | 1.81 | ||
| P/tB | 3.9 | ||
| EV/EBITDA | 6.87 |
EPS(TTM)5.03
EY7.68%
EPS(NY)5.75
Fwd EY8.78%
FCF(TTM)5.34
FCFY8.15%
OCF(TTM)6.76
OCFY10.33%
SpS53.33
BVpS36.12
TBVpS16.79
PEG (NY)1.71
PEG (5Y)1.19
Graham Number63.93
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%
ROICexgc growth 3Y-17.99%
ROICexgc 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 | 3.18 |
F-Score8
WACC8.23%
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 Y7.6%
EPS Next 2Y8.3%
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%
KORN FERRY / KFY FAQ
Can you provide the ChartMill fundamental rating for KORN FERRY?
ChartMill assigns a fundamental rating of 7 / 10 to KFY.
Can you provide the valuation status for KORN FERRY?
ChartMill assigns a valuation rating of 7 / 10 to KORN FERRY (KFY). This can be considered as Undervalued.
What is the profitability of KFY stock?
KORN FERRY (KFY) has a profitability rating of 7 / 10.
Can you provide the financial health for KFY stock?
The financial health rating of KORN FERRY (KFY) is 8 / 10.
What is the earnings growth outlook for KORN FERRY?
The Earnings per Share (EPS) of KORN FERRY (KFY) is expected to grow by 7.6% in the next year.