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KFY

Korn FerryNYSE:KFY Stock Report

Last Price

US$67.78

Market Cap

US$3.7b

7D

-7.5%

1Y

40.7%

Updated

20 Jan, 2022

Data

Company Financials +
KFY fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance5/6
Financial Health5/6
Dividends1/6

KFY Stock Overview

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

Korn Ferry Competitors

ManpowerGroup

NYSE:MAN

US$5.6b

Heidrick & Struggles International

NasdaqGS:HSII

US$829.3m

Kelly Services

NasdaqGS:KELY.A

US$673.1m

Recruiter.com Group

NasdaqCM:RCRT

US$34.3m

Price History & Performance

Summary of all time highs, changes and price drops for Korn Ferry
Historical stock prices
Current Share PriceUS$67.78
52 Week HighUS$84.68
52 Week LowUS$45.60
Beta1.5
1 Month Change-8.85%
3 Month Change-7.23%
1 Year Change40.68%
3 Year Change52.80%
5 Year Change133.40%
Change since IPO421.39%

Recent News & Updates

Jan 10
Do Korn Ferry's (NYSE:KFY) Earnings Warrant Your Attention?

Do Korn Ferry's (NYSE:KFY) Earnings Warrant Your Attention?

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Dec 26
Investors Will Want Korn Ferry's (NYSE:KFY) Growth In ROCE To Persist

Investors Will Want Korn Ferry's (NYSE:KFY) Growth In ROCE To Persist

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Shareholder Returns

KFYUS Professional ServicesUS Market
7D-7.5%-4.3%-4.0%
1Y40.7%1.8%6.6%

Return vs Industry: KFY exceeded the US Professional Services industry which returned 2.6% over the past year.

Return vs Market: KFY exceeded the US Market which returned 7.7% over the past year.

Price Volatility

Is KFY's price volatile compared to industry and market?
KFY volatility
KFY Average Weekly Movement5.1%
Professional Services Industry Average Movement6.2%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: KFY is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: KFY's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19697,889Gary Burnisonhttps://www.kornferry.com

Korn Ferry, together with its subsidiaries, provides organizational consulting services worldwide. It operates through four segments: Consulting, Digital, Executive Search, 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.

Korn Ferry Fundamentals Summary

How do Korn Ferry's earnings and revenue compare to its market cap?
KFY fundamental statistics
Market CapUS$3.69b
Earnings (TTM)US$262.31m
Revenue (TTM)US$2.26b

14.1x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
KFY income statement (TTM)
RevenueUS$2.26b
Cost of RevenueUS$1.63b
Gross ProfitUS$627.13m
ExpensesUS$364.82m
EarningsUS$262.31m

Last Reported Earnings

Oct 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.82
Gross Margin27.81%
Net Profit Margin11.63%
Debt/Equity Ratio26.6%

How did KFY perform over the long term?

See historical performance and comparison

Dividends

0.7%

Current Dividend Yield

9%

Payout Ratio

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 ($67.78) is trading below our estimate of fair value ($166.16)

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 (14.1x) compared to the US Professional Services industry average (23.1x).

PE vs Market: KFY is good value based on its PE Ratio (14.1x) compared to the US market (16.9x).


Price to Earnings Growth Ratio

PEG Ratio: KFY is poor value based on its PEG Ratio (9.6x)


Price to Book Ratio

PB vs Industry: KFY is good value based on its PB Ratio (2.5x) compared to the US Professional Services industry average (2.7x).


Future Growth

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

1.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KFY's forecast earnings growth (1.5% per year) is below the savings rate (2%).

Earnings vs Market: KFY's earnings (1.5% per year) are forecast to grow slower than the US market (13.1% per year).

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

Revenue vs Market: KFY's revenue (5.4% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: KFY's revenue (5.4% 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


Past Performance

How has Korn Ferry performed over the past 5 years?

14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KFY has high quality earnings.

Growing Profit Margin: KFY's current net profit margins (11.6%) are higher than last year (0.9%).


Past Earnings Growth Analysis

Earnings Trend: KFY's earnings have grown by 14.2% per year over the past 5 years.

Accelerating Growth: KFY's earnings growth over the past year (1579.6%) exceeds its 5-year average (14.2% per year).

Earnings vs Industry: KFY earnings growth over the past year (1579.6%) exceeded the Professional Services industry 33.6%.


Return on Equity

High ROE: KFY's Return on Equity (18.3%) is considered low.


Financial Health

How is Korn Ferry's financial position?


Financial Position Analysis

Short Term Liabilities: KFY's short term assets ($1.5B) exceed its short term liabilities ($697.1M).

Long Term Liabilities: KFY's short term assets ($1.5B) exceed its long term liabilities ($936.5M).


Debt to Equity History and Analysis

Debt Level: KFY has more cash than its total debt.

Reducing Debt: KFY's debt to equity ratio has increased from 25.2% to 26.6% over the past 5 years.

Debt Coverage: KFY's debt is well covered by operating cash flow (76.2%).

Interest Coverage: KFY's interest payments on its debt are well covered by EBIT (15.6x coverage).


Balance Sheet


Dividend

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

0.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KFY's dividend (0.71%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: KFY's dividend (0.71%) is low compared to the top 25% of dividend payers in the US market (3.49%).


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's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (8.9%), KFY's dividend payments are thoroughly covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of KFY's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

11.8yrs

Average management tenure


CEO

Gary Burnison (60 yo)

14.5yrs

Tenure

US$11,347,527

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 ($USD11.35M) is above average for companies of similar size in the US market ($USD5.15M).

Compensation vs Earnings: Gary's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: KFY's management team is seasoned and experienced (11.8 years average tenure).


Board Members

Experienced Board: KFY's board of directors are considered experienced (6.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: KFY insiders have only sold shares 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 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
  • Implied Market Cap: US$3.688b
  • Shares outstanding: 54.41m
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/20 23:56
End of Day Share Price2022/01/20 00:00
Earnings2021/10/31
Annual Earnings2021/04/30


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.