Korn Ferry Fundamental Analysis
Korn Ferry (KFY) shows moderate financial fundamentals with a PE ratio of 14.08, profit margin of 9.29%, and ROE of 13.94%. The company generates $2.9B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.6/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze KFY's fundamental strength across five key dimensions:
Efficiency Score
WeakKFY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentKFY trades at attractive valuation levels.
Growth Score
ModerateKFY shows steady but slowing expansion.
Financial Health Score
ExcellentKFY maintains a strong and stable balance sheet.
Profitability Score
WeakKFY struggles to sustain strong margins.
Key Financial Metrics
Is KFY Expensive or Cheap?
P/E Ratio
KFY trades at 14.08 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, KFY's PEG of 1.55 indicates fair valuation.
Price to Book
The market values Korn Ferry at 1.89 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.49 times EBITDA. This is generally considered low.
How Well Does KFY Make Money?
Net Profit Margin
For every $100 in sales, Korn Ferry keeps $9.29 as profit after all expenses.
Operating Margin
Core operations generate 13.07 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.94 in profit for every $100 of shareholder equity.
ROA
Korn Ferry generates $6.80 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Korn Ferry produces operating cash flow of $375.44M, showing steady but balanced cash generation.
Free Cash Flow
Korn Ferry produces free cash flow of $289.58M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $5.58 in free cash annually.
FCF Yield
KFY converts 7.57% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.08
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.55
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.89
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.28
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.01
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.12
vs 25 benchmark
How KFY Stacks Against Its Sector Peers
| Metric | KFY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.08 | 33.17 | Better (Cheaper) |
| ROE | 13.94% | 1178.00% | Weak |
| Net Margin | 9.29% | -29242.00% (disorted) | Weak |
| Debt/Equity | 0.28 | 0.74 | Strong (Low Leverage) |
| Current Ratio | 2.01 | 25.78 | Strong Liquidity |
| ROA | 6.80% | -1368598.00% (disorted) | Weak |
KFY outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Korn Ferry's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
EPS CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure
FCF CAGR
N/A
Industry Style: Cyclical, Value, Infrastructure