Korn Ferry
Market Cap
US$2.1b
Last Updated
2020/11/24 00:38 UTC
Data Sources
Company Financials +
Executive Summary
Korn Ferry, together with its subsidiaries, provides organizational consulting services worldwide. More Details
Rewards
Risk Analysis
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
| KFY | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.0% | -1.1% | -0.06% |
| 30 Day | 19.6% | 8.9% | 4.4% |
| 90 Day | 27.2% | 9.3% | 6.3% |
| 1 Year | 2.6%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 Year | 11.6%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
2 months ago | Simply Wall St
Has Korn Ferry's (NYSE:KFY) Impressive Stock Performance Got Anything to Do With Its Fundamentals?3 months ago | Simply Wall St
Three Things You Should Check Before Buying Korn Ferry (NYSE:KFY) For Its Dividend3 months ago | Simply Wall St
Earnings Working Against Korn Ferry's (NYSE:KFY) Share PriceValuation
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
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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.
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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
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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).
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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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 13.33yrs | US$4.44m | 0.95% $ 20.2m | |
| Executive VP | 8.75yrs | US$2.02m | 0.44% $ 9.3m | |
| Chief Executive Officer of Consulting | no data | US$1.23m | 0.14% $ 3.1m | |
| Chief Executive Officer of RPO | 10.58yrs | US$1.73m | 0.34% $ 7.2m | |
| Chairman & Country Head of India | no data | no data | no data | |
| Managing Partner | no data | no data | no data | |
| Vice President of Operations | no data | no data | no data | |
| President of Global Technology Practice | no data | no data | no data | |
| Chief Information Officer and Senior Vice President | 7.42yrs | no data | no data | |
| Senior Vice President of Finance | no data | no data | no data | |
| Senior Client Partner and Global Co-Head Of Risk & Compliance | no data | no data | no data | |
| General Counsel | no data | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 13.33yrs | US$4.44m | 0.95% $ 20.2m | |
| Independent Director | 0.58yr | US$112.88k | 0.093% $ 2.0m | |
| Independent Director | 3.33yrs | US$243.93k | 0.021% $ 451.1k | |
| Independent Director | 12.75yrs | US$261.43k | 0.054% $ 1.1m | |
| Independent Non-Executive Chairman of the Board | 1.83yrs | US$486.43k | 0.043% $ 911.0k | |
| Independent Director | 5.17yrs | US$264.20k | no data | |
| Country Chairman of Switzerland | no data | no data | no data | |
| Independent Director | 8yrs | US$263.93k | 0.040% $ 841.0k | |
| Independent Director | 1.08yrs | US$235.95k | 0.0077% $ 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| KFY | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Feb 1999 |
| KFY | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Feb 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/11/24 00:38 |
| End of Day Share Price | 2020/11/23 00:00 |
| Earnings | 2020/07/31 |
| Annual Earnings | 2020/04/30 |
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.