NYSE:KFY

Stock Analysis Report

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Market Cap

US$3.9b

Last Updated

2021/06/23 05:58 UTC

Data Sources

Company Financials +

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 less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: KFY's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

5.8%

KFY

0.08%

US Professional Services

-0.1%

US Market


1 Year Return

155.4%

KFY

33.7%

US Professional Services

39.0%

US Market

Return vs Industry: KFY exceeded the US Professional Services industry which returned 33% over the past year.

Return vs Market: KFY exceeded the US Market which returned 39% over the past year.


Shareholder returns

KFYIndustryMarket
7 Day5.8%0.08%-0.1%
30 Day9.1%-0.3%2.6%
90 Day17.1%10.7%8.0%
1 Year158.2%155.4%34.6%33.7%41.2%39.0%
3 Year22.0%18.4%63.6%59.2%62.4%52.3%
5 Year284.3%264.8%154.0%136.7%132.3%106.2%

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?

35.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KFY ($65.12) is trading below our estimate of fair value ($73.33)

Significantly Below Fair Value: KFY is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: KFY is poor value based on its PE Ratio (74.7x) compared to the US Professional Services industry average (28.4x).

PE vs Market: KFY is poor value based on its PE Ratio (74.7x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: KFY is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: KFY is good value based on its PB Ratio (2.7x) compared to the US Professional Services industry average (3.1x).


Future Growth

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

28.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KFY's forecast earnings growth (41.8% per year) is above the savings rate (2%).

Earnings vs Market: KFY's earnings (41.8% per year) are forecast to grow faster than the US market (15.7% per year).

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

Revenue vs Market: KFY's revenue (8.3% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: KFY's revenue (8.3% 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 (11.4%).


Past Performance

How has Korn Ferry performed over the past 5 years?

9.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KFY has a large one-off loss of $71.5M impacting its January 31 2021 financial results.

Growing Profit Margin: KFY's current net profit margins (2.7%) are lower than last year (7.8%).


Past Earnings Growth Analysis

Earnings Trend: KFY's earnings have grown by 10.5% 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 (-69.9%) over the past year, making it difficult to compare to the Professional Services industry average (18.7%).


Return on Equity

High ROE: KFY's Return on Equity (3.7%) is considered low.


Financial Health

How is Korn Ferry's financial position?


Financial Position Analysis

Short Term Liabilities: KFY's short term assets ($1.3B) exceed its short term liabilities ($635.4M).

Long Term Liabilities: KFY's short term assets ($1.3B) exceed its long term liabilities ($933.1M).


Debt to Equity History and Analysis

Debt Level: KFY's debt to equity ratio (30.5%) is considered satisfactory.

Reducing Debt: KFY's debt to equity ratio has increased from 14.3% to 30.5% over the past 5 years.

Debt Coverage: KFY's debt is well covered by operating cash flow (59.2%).

Interest Coverage: KFY's interest payments on its debt are well covered by EBIT (6.4x coverage).


Balance Sheet


Dividend

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

0.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KFY's dividend (0.61%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: KFY's dividend (0.61%) is low compared to the top 25% of dividend payers in the US market (3.44%).


Stability and Growth of Payments

Stable Dividend: KFY is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: KFY is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: KFY is not paying a notable dividend for the US market.


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?

11.2yrs

Average management tenure


CEO

Gary Burnison (59 yo)

13.92yrs

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 ($USD4.44M) is about average for companies of similar size in the US market ($USD5.35M).

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


Leadership Team

Experienced Management: KFY's management team is seasoned and experienced (11.2 years average tenure).


Board Members

Experienced Board: KFY's board of directors are considered experienced (4.8 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.


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$3.858b
  • Shares outstanding: 54.01m
  • 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


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 Analysis2021/06/23 05:58
End of Day Share Price2021/06/22 00:00
Earnings2021/04/30
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.