KORN FERRY (KFY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KFY - US5006432000 - Common Stock
67.28 USD
-0.98 (-1.44%)
67.28 USD
0 (0%)
Taking everything into account, KFY scores 7 out of 10 in our fundamental rating. KFY was compared to 86 industry peers in the Professional Services industry. Both the health and profitability get an excellent rating, making KFY a very profitable company, without any liquidiy or solvency issues. KFY scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally KFY also has an excellent dividend rating. These ratings could make KFY a good candidate 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.
KFY had positive earnings in each of the past 5 years.
KFY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KFY has a better Return On Assets (6.94%) than 68.60% of its industry peers.
With a decent Return On Equity value of 13.30%, KFY is doing good in the industry, outperforming 62.79% of the companies in the same industry.
The Return On Invested Capital of KFY (9.51%) is better than 66.28% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KFY is below the industry average of 12.03%.
The 3 year average ROIC (9.27%) for KFY is below the current ROIC(9.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.94% | ||
| ROE | 13.3% | ||
| ROIC | 9.51% |
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 has a Profit Margin of 9.10%. This is in the better half of the industry: KFY outperforms 75.58% of its industry peers.
KFY's Profit Margin has improved in the last couple of years.
KFY's Operating Margin of 13.24% is fine compared to the rest of the industry. KFY outperforms 75.58% of its industry peers.
KFY's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 88.04%, KFY belongs to the top of the industry, outperforming 96.51% 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 | 13.24% | ||
| PM (TTM) | 9.1% | ||
| GM | 88.04% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KFY is still creating some value.
Compared to 1 year ago, KFY has less shares outstanding
The number of shares outstanding for KFY has been reduced compared to 5 years ago.
The debt/assets ratio for KFY has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.21 indicates that KFY is not in any danger for bankruptcy at the moment.
KFY has a Altman-Z score of 3.21. This is in the better half of the industry: KFY outperforms 61.63% of its industry peers.
KFY has a debt to FCF ratio of 1.46. This is a very positive value and a sign of high solvency as it would only need 1.46 years to pay back of all of its debts.
KFY has a Debt to FCF ratio of 1.46. This is in the better half of the industry: KFY outperforms 75.58% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that KFY is not too dependend on debt financing.
KFY has a Debt to Equity ratio (0.20) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.46 | ||
| Altman-Z | 3.21 |
ROIC/WACC1.13
WACC8.38%
2.3 Liquidity
KFY has a Current Ratio of 2.14. This indicates that KFY is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.14, KFY is doing good in the industry, outperforming 77.91% of the companies in the same industry.
A Quick Ratio of 2.14 indicates that KFY has no problem at all paying its short term obligations.
KFY has a better Quick ratio (2.14) than 77.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.14 | ||
| Quick Ratio | 2.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 9.11% over the past year.
KFY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.91% yearly.
Looking at the last year, KFY shows a small growth in Revenue. The Revenue has grown by 3.65% 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)9.11%
EPS 3Y-7.74%
EPS 5Y10.91%
EPS Q2Q%9.92%
Revenue 1Y (TTM)3.65%
Revenue growth 3Y1.46%
Revenue growth 5Y6.91%
Sales Q2Q%7.02%
3.2 Future
Based on estimates for the next years, KFY will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.73% on average per year.
Based on estimates for the next years, KFY will show a small growth in Revenue. The Revenue will grow by 4.66% on average per year.
EPS Next Y8.09%
EPS Next 2Y8.45%
EPS Next 3Y9.73%
EPS Next 5YN/A
Revenue Next Year4.35%
Revenue Next 2Y4.38%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.06 indicates a correct valuation of KFY.
77.91% of the companies in the same industry are more expensive than KFY, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of KFY to the average of the S&P500 Index (26.39), we can say KFY is valued rather cheaply.
A Price/Forward Earnings ratio of 11.67 indicates a reasonable valuation of KFY.
KFY's Price/Forward Earnings ratio is rather cheap when compared to the industry. KFY is cheaper than 81.40% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.84. KFY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.06 | ||
| Fwd PE | 11.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KFY is valued cheaply inside the industry as 88.37% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, KFY is valued cheaper than 81.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.93 | ||
| EV/EBITDA | 6.65 |
4.3 Compensation for Growth
The 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)1.61
PEG (5Y)1.2
EPS Next 2Y8.45%
EPS Next 3Y9.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.77%, KFY has a reasonable but not impressive dividend return.
KFY's Dividend Yield is rather good when compared to the industry average which is at 1.52. KFY pays more dividend than 87.21% of the companies in the same industry.
KFY's Dividend Yield is a higher than the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
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.
KFY has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)31.5%
Div Incr Years4
Div Non Decr Years9
5.3 Sustainability
KFY pays out 37.03% of its income as dividend. This is a sustainable payout ratio.
The dividend of KFY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP37.03%
EPS Next 2Y8.45%
EPS Next 3Y9.73%
67.28
-0.98 (-1.44%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners99.73%
Inst Owner Change3.58%
Ins Owners0.74%
Ins Owner Change-0.58%
Market Cap3.52B
Revenue(TTM)2.84B
Net Income(TTM)258.50M
Analysts82.22
Price Target82.62 (22.8%)
Short Float %2.8%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.77% |
Yearly Dividend1.62
Dividend Growth(5Y)31.5%
DP37.03%
Div Incr Years4
Div Non Decr Years9
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.65%
Min EPS beat(2)0.37%
Max EPS beat(2)4.94%
EPS beat(4)4
Avg EPS beat(4)3.37%
Min EPS beat(4)0.37%
Max EPS beat(4)4.94%
EPS beat(8)7
Avg EPS beat(8)4.3%
EPS beat(12)10
Avg EPS beat(12)4.27%
EPS beat(16)13
Avg EPS beat(16)4.21%
Revenue beat(2)2
Avg Revenue beat(2)1.51%
Min Revenue beat(2)1.22%
Max Revenue beat(2)1.79%
Revenue beat(4)4
Avg Revenue beat(4)1.75%
Min Revenue beat(4)1.22%
Max Revenue beat(4)2.19%
Revenue beat(8)6
Avg Revenue beat(8)0.74%
Revenue beat(12)10
Avg Revenue beat(12)1.07%
Revenue beat(16)13
Avg Revenue beat(16)1.68%
PT rev (1m)-3.28%
PT rev (3m)-3.28%
EPS NQ rev (1m)1.15%
EPS NQ rev (3m)0.82%
EPS NY rev (1m)0.46%
EPS NY rev (3m)1.55%
Revenue NQ rev (1m)0.8%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.06 | ||
| Fwd PE | 11.67 | ||
| P/S | 1.24 | ||
| P/FCF | 12.93 | ||
| P/OCF | 9.97 | ||
| P/B | 1.81 | ||
| P/tB | 3.76 | ||
| EV/EBITDA | 6.65 |
EPS(TTM)5.15
EY7.65%
EPS(NY)5.76
Fwd EY8.57%
FCF(TTM)5.2
FCFY7.73%
OCF(TTM)6.75
OCFY10.03%
SpS54.24
BVpS37.11
TBVpS17.9
PEG (NY)1.61
PEG (5Y)1.2
Graham Number65.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.94% | ||
| ROE | 13.3% | ||
| ROCE | 12.65% | ||
| ROIC | 9.51% | ||
| ROICexc | 13.01% | ||
| ROICexgc | 24.24% | ||
| OM | 13.24% | ||
| PM (TTM) | 9.1% | ||
| GM | 88.04% | ||
| FCFM | 9.59% |
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-Score7
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.46 | ||
| Debt/EBITDA | 0.84 | ||
| Cap/Depr | 85.04% | ||
| Cap/Sales | 2.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75% | ||
| Profit Quality | 105.44% | ||
| Current Ratio | 2.14 | ||
| Quick Ratio | 2.14 | ||
| Altman-Z | 3.21 |
F-Score7
WACC8.38%
ROIC/WACC1.13
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)9.11%
EPS 3Y-7.74%
EPS 5Y10.91%
EPS Q2Q%9.92%
EPS Next Y8.09%
EPS Next 2Y8.45%
EPS Next 3Y9.73%
EPS Next 5YN/A
Revenue 1Y (TTM)3.65%
Revenue growth 3Y1.46%
Revenue growth 5Y6.91%
Sales Q2Q%7.02%
Revenue Next Year4.35%
Revenue Next 2Y4.38%
Revenue Next 3Y4.66%
Revenue Next 5YN/A
EBIT growth 1Y22.79%
EBIT growth 3Y-9.61%
EBIT growth 5Y8.64%
EBIT Next Year41.53%
EBIT Next 3Y17.22%
EBIT Next 5YN/A
FCF growth 1Y15.66%
FCF growth 3Y-12.61%
FCF growth 5Y9.16%
OCF growth 1Y17.59%
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 8.09% in the next year.