Korn Ferry

Consumer Discretionary
Diversified Commercial Services
www.kornferry.com

Earnings Score
Moat Score
Safety Score

Market Cap $3.70B
PE 20
Debt $397.14M
Cash $633.38M
EV $3.47B
FCF $281.28M

Earnings

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Sales & Net Margins

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Earnings	$182.08M
EBIT	$243.65M
ROE	10%
ROA	7%
FCF	$281.28M
Equity	$1.76B
Growth Stability	78%
PE	20.34
PEG	0.86
PB	2.11
P/FCF	13.17
P/S	1.34
Price/Cash	0.17
Debt/Equity	0.23
Debt/FCF	1.41
Net Margins	9%
Op. Margins	9%
Earnings CAGR	22%
Sales Growth YoY	-3%
Sales Growth QoQ	-2%
Sales CAGR	9%
FCF CAGR	28%
Equity CAGR	8%
Earnings Stability	0.36
Earnings Growth YoY	35%
Earnings Growth QoQ	-4%
Earnings CAGR 5Y	24%

Sales CAGR 5Y	12%
FCF CAGR 5Y	10%
Equity CAGR 5Y	9%
Earnings CAGR 3Y	6%
Sales CAGR 3Y	6%
FCF CAGR 3Y	-17%
Equity CAGR 3Y	6%
Market Cap	$3.70B
Revenue	$2.77B
Dividend Yield	2%
Payout Ratio	35%
Assets	$3.45B
Total Debt	$397.14M
Cash	$633.38M
Shares Outstanding	51.76M
EV	3.47B
Earnings Score	32%
Moat Score	87%
Safety Score	94%
Final Score	71%
Working Capital	757.46M
Current Ratio	2.15
Shares Growth 3y	-1%
Equity Growth QoQ	1%
Equity Growth YoY	4%

Assets & ROA

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Stockholders Equity & ROE

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Korn Ferry is a United States-based firm engaged in organizational consulting and management recruitment that helps clients fill mid- to high-level management positions. The company's segment includes Consulting; Digital; Executive Search and RPO and Professional Search.

SEC Filings

Direct access to Korn Ferry (KFY) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Jul 31
- 10-K Apr 30
- 10-Q Jan 31
2023
- 10-Q Oct 31
- 10-Q Jul 31
- 10-K Apr 30
- 10-Q Jan 31
2022
- 10-Q Oct 31
- 10-Q Jul 31
- 10-K Apr 30
- 10-Q Jan 31

Sector Comparison

How does Korn Ferry compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Korn Ferry compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 22%

Stability 36%

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Korn Ferry Discounted Cash Flow

Fully customizable DCF calculator online for Korn Ferry.

Years

Calculation mode

= $20B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$281M	$360M	$460M	$588M	$751M	$960M	$1.2B	$1.6B	$2B	$2.6B	$3.3B	$33B
DCF		$327M	$380M	$441M	$513M	$596M	$693M	$805M	$936M	$1.1B	$1.3B	$13B
Value	$20B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	04/2015	04/2016	04/2017	04/2018	04/2019	04/2020	04/2021	04/2022	04/2023	04/2024	TTM
Net Margins	8%	2%	5%	7%	5%	5%	6%	12%	7%	6%	9%
ROA	-	3%	6%	9%	6%	6%	5%	14%	9%	6%	7%
ROE	-	3%	8%	11%	8%	8%	8%	21%	12%	10%	10%

Net Margins (9.02%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	04/2015	04/2016	04/2017	04/2018	04/2019	04/2020	04/2021	04/2022	04/2023	04/2024	TTM
Debt over FCF	-	3.27	4.98	1.49	1.05	2.02	1.79	0.87	1.45	1.73	1.41
Debt over Equity	0	0.13	0.26	0.22	0.18	0.32	0.29	0.26	0.24	0.23	0.23
Growth Stability	-	-	-	100%	100%	98%	99%	100%	100%	78%	78%

Good Debt/FCF ratio (1.41)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.23)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (78%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	04/2015	04/2016	04/2017	04/2018	04/2019	04/2020	04/2021	04/2022	04/2023	04/2024	CAGR 5Y
Revenue YoY growth	-	26%	20%	12%	8%	0%	-8%	45%	8%	-2%	12%
Earnings YoY growth	-	-65%	172%	59%	-23%	2%	8%	186%	-36%	-19%	24%
Equity YoY growth	-	28%	4%	12%	2%	-2%	12%	13%	7%	5%	9%
FCF YoY growth	-	-50%	31%	216%	20%	-8%	13%	105%	-40%	-16%	10%