Korn Ferry
Market Cap
US$1.4b
Last Updated
2020/03/31 01:39 UTC
Data Sources
Company Financials +
Executive Summary
Korn Ferry, together with its subsidiaries, provides talent management solutions worldwide.
Rewards
Risk Analysis
Snowflake Analysis
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
5.5%
KFY
5.0%
US Professional Services
5.3%
US Market
1 Year Return
-44.3%
KFY
-7.0%
US Professional Services
-10.7%
US Market
Return vs Industry: KFY underperformed the US Professional Services industry which returned -6.2% over the past year.
Return vs Market: KFY underperformed the US Market which returned -10.4% over the past year.
Shareholder returns
| KFY | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.5% | 5.0% | 5.3% |
| 30 Day | -27.3% | -16.6% | -13.6% |
| 90 Day | -40.0% | -17.6% | -19.8% |
| 1 Year | -43.7%-44.3% | -6.2%-7.0% | -8.9%-10.7% |
| 3 Year | -13.2%-15.7% | 22.3%18.5% | 15.5%8.0% |
| 5 Year | -17.9%-22.5% | 38.5%31.0% | 35.2%20.4% |
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
3 days ago | Simply Wall St
What Is Korn Ferry's (NYSE:KFY) P/E Ratio After Its Share Price Tanked?1 week ago | Simply Wall St
Korn Ferry (NYSE:KFY) Looks Interesting, And It's About To Pay A Dividend1 week ago | Simply Wall St
Trade Alert: The President Of Korn Ferry (NYSE:KFY), Gary Burnison, Has Just Spent US$51k Buying SharesValuation
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 ($25.44) is trading below our estimate of fair value ($90.86)
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 (9x) compared to the Professional Services industry average (12.7x).
PE vs Market: KFY is good value based on its PE Ratio (9x) compared to the US market (13.1x).
Price to Earnings Growth Ratio
PEG Ratio: KFY is poor value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: KFY is good value based on its PB Ratio (1.1x) compared to the US Professional Services industry average (1.7x).
Next Steps
Future Growth
How is Korn Ferry forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
8.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: KFY's forecast earnings growth (8.9% per year) is above the savings rate (1.7%).
Earnings vs Market: KFY's earnings (8.9% per year) are forecast to grow slower than the US market (12.2% per year).
High Growth Earnings: KFY's earnings are forecast to grow, but not significantly.
Revenue vs Market: KFY's revenue (3.6% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: KFY's revenue (3.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: KFY's Return on Equity is forecast to be low in 3 years time (12.1%).
Next Steps
Past Performance
How has Korn Ferry performed over the past 5 years?
19.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: KFY has high quality earnings.
Growing Profit Margin: KFY's current net profit margins (7.8%) are higher than last year (4.8%).
Past Earnings Growth Analysis
Earnings Trend: KFY's earnings have grown by 19.6% per year over the past 5 years.
Accelerating Growth: KFY's earnings growth over the past year (66.8%) exceeds its 5-year average (19.6% per year).
Earnings vs Industry: KFY earnings growth over the past year (66.8%) exceeded the Professional Services industry 13.9%.
Return on Equity
High ROE: KFY's Return on Equity (12.4%) 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 ($1.2B) exceed its short term liabilities ($560.4M).
Long Term Liabilities: KFY's short term assets ($1.2B) exceed its long term liabilities ($901.6M).
Debt to Equity History and Analysis
Debt Level: KFY's debt to equity ratio (30.8%) 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 (54.6%).
Interest Coverage: KFY's interest payments on its debt are well covered by EBIT (16.8x 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 3x debt).
Next Steps
Dividend
What is Korn Ferry's current dividend yield, its reliability and sustainability?
1.57%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: KFY's dividend (1.57%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.95%).
High Dividend: KFY's dividend (1.57%) is low compared to the top 25% of dividend payers in the US market (5.4%).
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 (14.2%), 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 (12.6% 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)
12.67s
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 US market ($USD4.58M).
Compensation vs Earnings: Gary's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 12.67yrs | US$9.22m | 0.57% $7.9m | |
| Executive VP | 8yrs | US$4.44m | 0.27% $3.8m | |
| Chief Executive Officer of Advisory | no data | US$2.56m | 0.027% $372.6k | |
| Chief Executive Officer of RPO | 9.83yrs | US$3.43m | 0.21% $2.9m | |
| 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 | |
| Chief Information Officer and Senior Vice President | 6.67yrs | 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 |
8.9yrs
Average Tenure
58yo
Average Age
Experienced Management: KFY's management team is seasoned and experienced (8.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 12.67yrs | US$9.22m | 0.57% $7.9m | |
| Independent Director | 2.67yrs | US$200.98k | 0.014% $189.7k | |
| Independent Director | 12yrs | US$215.98k | 0.046% $647.7k | |
| Non-Executive Chairman of the Board | 1.17yrs | US$205.98k | 0.035% $492.1k | |
| Independent Director | 0.42yr | no data | no data | |
| Independent Director | 4.42yrs | US$200.45k | no data | |
| Country Chairman of Switzerland | no data | no data | no data | |
| Independent Director | 7.25yrs | US$220.98k | 0.032% $446.0k | |
| Independent Director | 0.42yr | no data | no 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: 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$1.400b
- Shares outstanding: 55.04m
- 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 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/03/31 01:39 |
| End of Day Share Price | 2020/03/30 00:00 |
| Earnings | 2020/01/31 |
| Annual Earnings | 2019/04/30 |
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.