NYSE:KFY

Stock Analysis Report

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Executive Summary

Korn Ferry, together with its subsidiaries, provides organizational consulting services worldwide. More Details


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: KFY's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-2.0%

KFY

-1.1%

US Professional Services

-0.06%

US Market


1 Year Return

1.3%

KFY

24.9%

US Professional Services

19.0%

US Market

Return vs Industry: KFY underperformed the US Professional Services industry which returned 26.1% over the past year.

Return vs Market: KFY underperformed the US Market which returned 19.1% over the past year.


Shareholder returns

KFYIndustryMarket
7 Day-2.0%-1.1%-0.06%
30 Day19.6%8.9%4.4%
90 Day27.2%9.3%6.3%
1 Year2.6%1.3%25.8%24.9%21.7%19.0%
3 Year-6.8%-9.7%61.8%57.2%46.4%36.7%
5 Year11.6%5.2%107.5%96.7%91.0%69.9%

Long-Term 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

Valuation

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

68.72x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KFY ($38.25) is trading above our estimate of fair value ($26.02)

Significantly Below Fair Value: KFY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KFY is poor value based on its PE Ratio (67.9x) compared to the US Professional Services industry average (22.6x).

PE vs Market: KFY is poor value based on its PE Ratio (67.9x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: KFY is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: KFY is good value based on its PB Ratio (1.7x) compared to the US Professional Services industry average (3x).


Next Steps

Future Growth

How is Korn Ferry forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

119.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KFY's forecast earnings growth (119.6% per year) is above the savings rate (2.2%).

Earnings vs Market: KFY's earnings (119.6% per year) are forecast to grow faster than the US market (21.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KFY's revenue (5.9% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: KFY's revenue (5.9% 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?

16.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KFY has a large one-off loss of $81.2M impacting its July 31 2020 financial results.

Growing Profit Margin: KFY's current net profit margins (1.7%) are lower than last year (9.4%).


Past Earnings Growth Analysis

Earnings Trend: KFY's earnings have grown by 16.1% per year over the past 5 years.

Accelerating Growth: KFY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KFY had negative earnings growth (-83.4%) over the past year, making it difficult to compare to the Professional Services industry average (-0.06%).


Return on Equity

High ROE: KFY's Return on Equity (2.7%) is considered low.


Next Steps

Financial Health

How is Korn Ferry's financial position?


Financial Position Analysis

Short Term Liabilities: KFY's short term assets ($1.1B) exceed its short term liabilities ($491.3M).

Long Term Liabilities: KFY's short term assets ($1.1B) exceed its long term liabilities ($908.8M).


Debt to Equity History and Analysis

Debt Level: KFY's debt to equity ratio (32.4%) 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 (64.4%).

Interest Coverage: KFY's interest payments on its debt are well covered by EBIT (7.8x coverage).


Balance Sheet


Next Steps

Dividend

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

1.03%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KFY's dividend (1.05%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: KFY's dividend (1.05%) is low compared to the top 25% of dividend payers in the US market (4.2%).


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 6 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (71%), KFY's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: KFY's dividends in 3 years are forecast to be well covered by earnings (19.1% payout ratio).


Next Steps

Management

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

9.7yrs

Average management tenure


CEO

Gary Burnison (59 yo)

13.33yrs

Tenure

US$4,442,985

Compensation

Mr. Gary D. Burnison has been the President and Chief Executive Officer at Korn Ferry since July 2007 and also has been its Executive Director at Korn Ferry June 5, 2007. He has been the President and Chie...


CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD4.44M) is about average for companies of similar size in the US market ($USD4.24M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gary Burnison
President13.33yrsUS$4.44m0.95%
$ 20.2m
Robert Rozek
Executive VP8.75yrsUS$2.02m0.44%
$ 9.3m
Mark Arian
Chief Executive Officer of Consultingno dataUS$1.23m0.14%
$ 3.1m
Byrne Mulrooney
Chief Executive Officer of RPO10.58yrsUS$1.73m0.34%
$ 7.2m
Navnit Singh
Chairman & Country Head of Indiano datano datano data
Steve Newhall
Managing Partnerno datano datano data
Juerg-Herbert Baertschi
Vice President of Operationsno datano datano data
Esther Colwill
President of Global Technology Practiceno datano datano data
Bryan Ackermann
Chief Information Officer and Senior Vice President7.42yrsno datano data
Gregg Kvochak
Senior Vice President of Financeno datano datano data
Stewart Goldman
Senior Client Partner and Global Co-Head Of Risk & Complianceno datano datano data
Jonathan Kuai
General Counselno datano datano data

9.7yrs

Average Tenure

59yo

Average Age

Experienced Management: KFY's management team is seasoned and experienced (9.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gary Burnison
President13.33yrsUS$4.44m0.95%
$ 20.2m
George Shaheen
Independent Director0.58yrUS$112.88k0.093%
$ 2.0m
Angel Martinez
Independent Director3.33yrsUS$243.93k0.021%
$ 451.1k
Debra Perry
Independent Director12.75yrsUS$261.43k0.054%
$ 1.1m
Christina Gold
Independent Non-Executive Chairman of the Board1.83yrsUS$486.43k0.043%
$ 911.0k
Doyle Beneby
Independent Director5.17yrsUS$264.20kno data
Stefan Steger
Country Chairman of Switzerlandno datano datano data
Jerry Leamon
Independent Director8yrsUS$263.93k0.040%
$ 841.0k
Lori Robinson
Independent Director1.08yrsUS$235.95k0.0077%
$ 162.6k

4.3yrs

Average Tenure

66.5yo

Average Age

Experienced Board: KFY's board of directors are considered experienced (4.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: KFY insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

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: NYSE
  • Founded: 1969
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: US$2.120b
  • Shares outstanding: 54.78m
  • 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 organizational consulting services worldwide. It operates through four segments: Consulting, Digital, Executive Search, and RPO (Recruitment Process Out...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 00:38
End of Day Share Price2020/11/23 00:00
Earnings2020/07/31
Annual Earnings2020/04/30


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.