DB:KFY

Stock Analysis Report

Executive Summary

Korn Ferry, together with its subsidiaries, provides talent management solutions worldwide.

Rewards

Trading at 53.2% below its fair value

Earnings are forecast to grow 18.35% per year

Earnings grew by 138.9% over the past year

Risk Analysis

No risks detected for KFY from our risk checks.


Snowflake Analysis

Very undervalued with solid track record.


Similar Companies

Share Price & News

How has Korn Ferry's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KFY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.8%

KFY

1.3%

DE Professional Services

1.7%

DE Market


1 Year Return

-10.0%

KFY

22.7%

DE Professional Services

15.0%

DE Market

Return vs Industry: KFY underperformed the German Professional Services industry which returned 22.7% over the past year.

Return vs Market: KFY underperformed the German Market which returned 15% over the past year.


Shareholder returns

KFYIndustryMarket
7 Day3.8%1.3%1.7%
30 Day-1.0%2.1%0.8%
90 Day10.9%10.1%3.7%
1 Year-9.1%-10.0%26.1%22.7%18.5%15.0%
3 Year39.0%35.1%48.7%36.8%17.1%6.9%
5 Year54.6%46.1%85.0%60.7%24.3%7.3%

Price Volatility Vs. Market

How volatile is Korn Ferry's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Korn Ferry undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KFY (€38.6) is trading below our estimate of fair value (€82.47)

Significantly Below Fair Value: KFY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KFY is good value based on its PE Ratio (12.8x) compared to the Professional Services industry average (21x).

PE vs Market: KFY is good value based on its PE Ratio (12.8x) compared to the German market (21.1x).


Price to Earnings Growth Ratio

PEG Ratio: KFY is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: KFY is good value based on its PB Ratio (1.8x) compared to the XE Professional Services industry average (2.2x).


Next Steps

Future Growth

How is Korn Ferry forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

18.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KFY's forecast earnings growth (18.3% per year) is above the savings rate (-0.4%).

Earnings vs Market: KFY's earnings (18.3% per year) are forecast to grow faster than the German market (13.3% per year).

High Growth Earnings: KFY's earnings are forecast to grow, but not significantly.

Revenue vs Market: KFY's revenue (6.8% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: KFY's revenue (6.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if KFY's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Korn Ferry performed over the past 5 years?

16.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KFY has high quality earnings.

Growing Profit Margin: KFY's current net profit margins (9.2%) are higher than last year (4%).


Past Earnings Growth Analysis

Earnings Trend: KFY's earnings have grown by 16.9% per year over the past 5 years.

Accelerating Growth: KFY's earnings growth over the past year (138.9%) exceeds its 5-year average (16.9% per year).

Earnings vs Industry: KFY earnings growth over the past year (138.9%) exceeded the Professional Services industry 7.1%.


Return on Equity

High ROE: KFY's Return on Equity (14.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Korn Ferry's financial position?


Financial Position Analysis

Short Term Liabilities: KFY's short term assets ($1.0B) exceed its short term liabilities ($450.5M).

Long Term Liabilities: KFY's short term assets ($1.0B) exceed its long term liabilities ($777.3M).


Debt to Equity History and Analysis

Debt Level: KFY's debt to equity ratio (21.6%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if KFY's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: KFY's debt is well covered by operating cash flow (68.7%).

Interest Coverage: KFY's interest payments on its debt are well covered by EBIT (21.4x coverage).


Balance Sheet

Inventory Level: KFY has a low level of unsold assets or inventory.

Debt Coverage by Assets: KFY's debt is covered by short term assets (assets are 3.9x debt).


Next Steps

Dividend

What is Korn Ferry's current dividend yield, its reliability and sustainability?

0.96%

Current Dividend Yield


Dividend Yield vs Market

company1.0%marketbottom25%1.3%markettop25%3.6%industryaverage2.4%forecastin3Years1.0%

Current dividend yield vs market & industry

Notable Dividend: KFY's dividend (0.96%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: KFY's dividend (0.96%) is low compared to the top 25% of dividend payers in the German market (3.59%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, KFY has been paying a dividend for less than 10 years.

Growing Dividend: KFY has only been paying a dividend for 5 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (12.3%), KFY's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KFY's dividends in 3 years are forecast to be thoroughly covered by earnings (10.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.9yrs

Average management tenure


CEO

Gary Burnison (58yo)

12.6yrs

Tenure

US$9,223,183

Compensation

Mr. Gary D. Burnison has been the President and Chief Executive Officer of Korn/Ferry International, holding company of The Whitehead Mann Partnership LLP and Korn/Ferry International Futurestep, Inc. sinc ...


CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD9.22M) is above average for companies of similar size in the German market ($USD1.49M).

Compensation vs Earnings: Gary's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gary Burnison
President12.6yrsUS$9.22m0.56% $12.0m
Robert Rozek
Executive VP8yrsUS$4.44m0.27% $5.8m
Mark Arian
Chief Executive Officer of Advisory0yrsUS$2.56m0.027% $564.2k
Byrne Mulrooney
Chief Executive Officer of RPO9.8yrsUS$3.43m0.20% $4.4m
Navnit Singh
Chairman & Country Head of India0yrsno datano data
Steve Newhall
Managing Partner0yrsno datano data
Juerg-Herbert Baertschi
Vice President of Operations0yrsno datano data
Bryan Ackermann
Chief Information Officer and Senior Vice President6.7yrsno datano data
Gregg Kvochak
Senior Vice President of Finance0yrsno datano data
Stewart Goldman
Senior Client Partner and Global Co-Head Of Risk & Compliance0yrsno datano data

8.9yrs

Average Tenure

58yo

Average Age

Experienced Management: KFY's management team is seasoned and experienced (8.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gary Burnison
President12.6yrsUS$9.22m0.56% $12.0m
Angel Martinez
Independent Director2.6yrsUS$200.98k0.014% $287.4k
Debra Perry
Independent Director12yrsUS$215.98k0.046% $980.7k
Christina Gold
Non-Executive Chairman of the Board1.1yrsUS$205.98k0.035% $745.0k
Len Lauer
Independent Director0.3yrsno datano data
Doyle Beneby
Independent Director4.4yrsUS$200.45kno data
Stefan Steger
Country Chairman of Switzerland0yrsno datano data
Jerry Leamon
Independent Director7.3yrsUS$220.98k0.032% $675.2k
Lori Robinson
Independent Director0.3yrsno datano data

3.5yrs

Average Tenure

62.5yo

Average Age

Experienced Board: KFY's board of directors are considered experienced (3.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Korn Ferry's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Korn Ferry
  • Ticker: KFY
  • Exchange: DB
  • Founded: 1969
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: US$2.305b
  • Listing Market Cap: US$2.127b
  • Shares outstanding: 55.23m
  • Website: https://www.kornferry.com

Number of Employees


Location

  • Korn Ferry
  • 1900 Avenue of the Stars
  • Suite 2600
  • Los Angeles
  • California
  • 90067
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KFYNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 1999
KFYDB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1999

Biography

Korn Ferry, together with its subsidiaries, provides talent management solutions worldwide. It operates through three segments: Executive Search, Advisory, and RPO (Recruitment Process Outsourcing) & Professional Search. The company provides executive search services to fill executive-level positions, such as board directors, chief executive officers, chief financial officers, chief operating officers, chief information officers, chief human resource officers, and other senior executive officers for clients in the industrial, financial services, life sciences/healthcare provider, consumer, technology, and educational/not-for-profit market sectors. It also offers organizational strategy, assessment and succession, and leadership development, as well as rewards and benefits to assist clients. In addition, the company provides RPO, project recruitment, and individual professional search and consulting services. It serves public and private companies, and middle market and emerging growth companies, as well as government and non-profit organizations. The company was formerly known as Korn/Ferry International and changed its name to Korn Ferry in January 2019. Korn Ferry was founded in 1969 and is based in Los Angeles, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 22:10
End of Day Share Price2020/02/17 00:00
Earnings2019/10/31
Annual Earnings2019/04/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.