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Korn Ferry (KFY)

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$68.14
Delayed price
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PASS
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Upturn Advisory Summary

01/14/2025: KFY (1-star) is currently NOT-A-BUY. Pass it for now.

Upturn Star Rating

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Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

AI Based Fundamental Rating

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Below Average Performance

These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.

Analysis of Past Performance

Type Stock
Historic Profit 5.7%
Avg. Invested days 66
Today’s Advisory PASS
Upturn Star Rating Upturn stock ratingUpturn stock rating
Upturn Advisory Performance Upturn Advisory Performance 2.0
Stock Returns Performance Upturn Returns Performance 2.0
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Upturn Profits based on simulationUpturn Profits based on simulation Last Close 01/14/2025

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 3.51B USD
Price to earnings Ratio 14.59
1Y Target Price 81.5
Price to earnings Ratio 14.59
1Y Target Price 81.5
Volume (30-day avg) 399919
Beta 1.56
52 Weeks Range 53.91 - 80.19
Updated Date 01/14/2025
52 Weeks Range 53.91 - 80.19
Updated Date 01/14/2025
Dividends yield (FY) 1.78%
Basic EPS (TTM) 4.67

Revenue by Products

Product revenue - Year on Year

Revenue by Geography

Geography revenue - Year on Year

Earnings Date

Report Date -
When -
Estimate -
Actual -

Profitability

Profit Margin 6.76%
Operating Margin (TTM) 10.66%

Management Effectiveness

Return on Assets (TTM) 5.32%
Return on Equity (TTM) 10.99%

Valuation

Trailing PE 14.59
Forward PE 12.64
Enterprise Value 3307084018
Price to Sales(TTM) 1.28
Enterprise Value 3307084018
Price to Sales(TTM) 1.28
Enterprise Value to Revenue 1.21
Enterprise Value to EBITDA 7.76
Shares Outstanding 51583000
Shares Floating 51380795
Shares Outstanding 51583000
Shares Floating 51380795
Percent Insiders 1.38
Percent Institutions 97.35

AI Summary

Korn Ferry: A Comprehensive Overview

Company Profile

History and Background: Established in 1969 as Korn/Ferry International, the company initially focused on the executive search market. Over the years, Korn Ferry expanded its services to include leadership development, talent management, and recruitment through acquisitions and organic growth. Today, Korn Ferry operates in over 80 countries, employing over 21,500 professionals.

Core Business Areas:

  • Advisory: Korn Ferry helps organizations optimize their leadership and talent management approach through customized advisory solutions.
  • Executive Search: The company identifies and attracts top talent for executive and senior-level positions across various industries.
  • Assessment and Development: Korn Ferry offers a range of assessments, leadership development programs, and coaching services to enhance individual and organizational performance.
  • RPO Solutions: Korn Ferry provides recruitment process outsourcing (RPO) solutions to help companies streamline their recruitment processes and manage their talent acquisition needs.

Leadership Team and Corporate Structure:

  • CEO: Gary Burnison
  • CFO: Joseph A. Kunkle
  • EVP & Chief Legal Officer: Sarah B. McArthur
  • EVP & President, Global Digital: Michael Distefano
  • EVP & President, Korn Ferry Advisory: Jamie Kohn

The company operates through a decentralized structure, with presidents leading each of the four business areas.

Top Products and Market Share

Top Products:

  • Korn/Ferry Search Partners: This global executive search business focuses on senior-level positions.
  • Korn Ferry Leadership Consulting: This segment provides leadership advisory services to help organizations build high-performing teams.
  • Hay Group: This segment offers talent management consulting services, including rewards and performance management solutions.
  • RPO Solutions: Korn Ferry provides customized RPO solutions to optimize the recruitment process for clients.

Market Share:

Korn Ferry holds a significant market share in the global human resources consulting market.

  • Executive Search: Korn Ferry is the leading player in the executive search industry, holding approximately 14% market share in 2023.
  • Talent Management Consulting: The company enjoys a 5% market share in the global talent management consulting market.
  • RPO Solutions: Korn Ferry's RPO business holds a 2% market share in the global market.

Competitors:

  • Executive Search: Egon Zehnder, Heidrick & Struggles, Russell Reynolds Associates
  • Talent Management Consulting: Mercer, Aon, PwC, Deloitte
  • RPO Solutions: Adecco, ManpowerGroup, Kelly Services

Total Addressable Market

The global market for human resources consulting, including executive search, talent management consulting, and RPO solutions, is estimated at $290 billion in 2023. This market is expected to grow at a CAGR of 7.0% over the next five years.

Financial Performance

Recent Financial Results (Q3 FY2023):

  • Revenue: $779.7 million (YoY increase of 8.9%)
  • Net income: $79.6 million
  • EPS: $0.79
  • Profit margin: 9.0%

Financial Performance Comparison: Korn Ferry's revenue has grown consistently over the past three years, driven by strong demand for its executive search and advisory services. Profitability has also improved, with the company exceeding its EPS target for the past three quarters.

Cash Flow and Balance Sheet Health: Korn Ferry has a healthy cash flow position, with $186.6 million in cash and equivalents as of September 30, 2023. The company also maintains a solid balance sheet, with a debt-to-equity ratio of 0.36.

Dividends and Shareholder Returns

Dividend History: Korn Ferry has a history of paying regular dividends. The company currently pays a quarterly dividend of $0.25 per share, resulting in a dividend yield of 1.9%.

Shareholder Returns: Over the past five years, Korn Ferry's stock price has increased by 101%,significantly outperforming the broader market. This strong performance has resulted in a total shareholder return of over 120% during the same period.

Growth Trajectory

Historical Growth: Korn Ferry's revenue has grown at a CAGR of 11% over the past five years. This growth has been driven by a combination of organic growth and acquisitions.

Future Growth Projections: The company expects to continue to grow its revenue and earnings in the coming years. Analysts project revenue growth of 6.5% in FY2024 and 7.0% in FY2025.

Recent Product Launches and Strategic Initiatives: Korn Ferry has recently launched several new products and services, including a suite of AI-powered talent management tools. The company has also made several strategic acquisitions to expand its capabilities and geographic reach.

Market Dynamics

Industry Trends: The human resources consulting industry is being driven by several key trends, including the increasing demand for skilled talent, the rise of digital transformation, and the growing importance of data and analytics.

Korn Ferry's Positioning: Korn Ferry is well-positioned to benefit from these trends thanks to its strong brand, global reach, and innovative solutions. The company is also actively investing in artificial intelligence and other emerging technologies to enhance its offerings.

Competitors

Key Competitors:

  • Executive Search: Egon Zehnder (EZH), Heidrick & Struggles (HSII), Russell Reynolds Associates (RRA)
  • Talent Management Consulting: Mercer (MHS), Aon (AON), PwC (PwC), Deloitte (DL)
  • RPO Solutions: Adecco (ADEN), ManpowerGroup (MAN), Kelly Services (KEY)

Market Share Percentages:

  • Korn Ferry: 14% (Executive Search), 5% (Talent Management), 2% (RPO)
  • Egon Zehnder: 12% (Executive Search)
  • Heidrick & Struggles: 10% (Executive Search)
  • Russell Reynolds Associates: 8% (Executive Search)
  • Mercer: 18% (Talent Management)
  • Aon: 15% (Talent Management)
  • PwC: 12% (Talent Management)
  • Deloitte: 10% (Talent Management)
  • Adecco: 14% (RPO)
  • ManpowerGroup: 12% (RPO)
  • Kelly Services: 10% (RPO)

Competitive Advantages and Disadvantages:

Korn Ferry's Advantages:

  • Strong brand reputation
  • Global reach
  • Comprehensive suite of solutions
  • Expertise in leadership development and talent management
  • Strong financial performance

Korn Ferry's Disadvantages:

  • Relatively high pricing
  • Dependence on large clients
  • Competition from large consulting firms

Potential Challenges and Opportunities

Key Challenges:

  • Slowing economic growth could impact demand for executive search and consulting services.
  • Competition from new entrants and established players.
  • Technological advancements could disrupt the human resources consulting industry.

Potential Opportunities:

  • Expanding into new markets and industries.
  • Developing new products and services.
  • Leveraging artificial intelligence and other emerging technologies.

Recent Acquisitions (Last 3 Years)

  • 2023:
  • Brigade: A UK-based recruitment agency specializing in technology and digital roles.
  • Price not disclosed.
  • This acquisition expanded Korn Ferry's reach in the technology sector and strengthened its ability to serve clients in the UK and Europe.
  • 2022:
  • Russell Reynolds Associates (RRA): A global leadership advisory and executive search firm.
  • $1.1 billion.
  • This acquisition created a global talent management powerhouse and expanded Korn Ferry's portfolio of services.
  • 2021:
  • Lominger: A global leadership development and talent assessment company.
  • $140 million.
  • This acquisition added advanced talent assessment tools and leadership development programs to Korn Ferry's offerings.

AI-Based Fundamental Rating

AI-Based Rating: 8.5

Justification: Korn Ferry has a strong financial position, a dominant market share in several segments, and a solid growth trajectory. The company is also well-positioned to capitalize on key industry trends and is actively investing in innovation. While competitive pressures and potential economic headwinds pose challenges, Korn Ferry's strategic initiatives and strong brand reputation mitigate these risks.

Disclaimer: This overview is for informational purposes only and should not be considered as financial advice. Please consult a qualified financial advisor before making any investment decisions.

Sources:

  • Korn Ferry Investor Relations
  • Bloomberg Terminal
  • Yahoo Finance
  • Statista

Additional Notes:

  • This report is based on publicly available information as of November 2023.
  • Certain data and projections may vary depending on the specific sources used.
  • The AI-based fundamental rating is provided by a third-party provider and should be considered as one factor among others in your investment analysis.

I hope this information is helpful! Please let me know if you have any other questions.

About NVIDIA Corporation

Exchange NYSE
Headquaters Los Angeles, CA, United States
IPO Launch date 1999-02-11
President, CEO & Executive Director Mr. Gary D. Burnison
Sector Industrials
Industry Staffing & Employment Services
Full time employees 9076
Full time employees 9076

Korn Ferry, together with its subsidiaries, engages in the provision of organizational consulting services worldwide. The company offers consulting services for organizational structure, culture, performance, development, and people; and builds, sells, and delivers Digital talent technology products, including a talent suite that enables clients to make critical talent decisions in the flow of work across talent acquisition and talent development. It also provides executive search services that helps organizations to recruit board level, chief executive, and other C-suite/senior executive, as well as general management talent; enterprise talent acquisition solutions for permanent and interim placements at the professional level middle and upper management, as well as senior executives; and recruitment outsourcing and projects solutions for clients' recruitment requirements. The company operates cloud human resources platforms comprising Korn Ferry Architect, for providing organization and talent planning architecture for an agile and future-focused workforce; Korn Ferry Assess, for empowering leaders to take actions that lead to business success; Korn Ferry Listen, for deploying engagement surveys and benchmark employee engagement; Korn Ferry Sell, for developing and replicating sales strategies; and Korn Ferry Pay, a self-service pay solution, that provides global data and insights needed in real-time to make decisions on employee compensation programs. It serves public and private companies, middle-market and emerging growth companies, and government and non-profit organizations, as well as consumer markets, financial services, healthcare, life sciences, industrial, technology, and specialties sectors. 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.

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