KFY down over 20% this year despite high growth for the business
Korn Ferry (NYSE:KFY) is a global organizational consulting firm. KFY works with clients to design organization structures, roles, and responsibilities. The firm also helps clients with the hiring process and advise them on how to reward and motivate their workforce. On May 11, Korn Ferry was named as a Leader in Recruitment Process Outsourcing (RPO) in Everest Group’s PEAK Matrix for the fifth consecutive year.
Korn Ferry stock price has decreased about 8% year-over-year and KFY is currently trading down 29% since reaching an all-time high of $84.68 in November. Additionally, shares of KFY have dropped in price 22% year-to-date and are down 2% over the past month. Nonetheless, Korn Ferry stock has recovered about 7% since bottoming at a 52-week low of $55.88 near the end of last week.
KFY offers a dividend yield of 0.81% with a forward dividend of $0.48. Korn Ferry stock also provides a fair valuation at a price-earnings ratio of 10.92 and a price-sales ratio of 1.24. In addition, the consulting firm holds a solid balance sheet with $907.71 million in cash and $586.56 million in total debt, adding a layer of security for the business’ somewhat inconsistent growth rate. For fiscal 2021, Korn Ferry reported an 8% decrease in revenues and an 8% increase in net income.
Korn Ferry has already increased their trailing 12-month revenues and net income 36% and 163%, respectively, since fiscal 2021. The consulting firm is also estimated to finish fiscal 2022 with 43% revenue growth and 143% earnings growth. Nonetheless, this high paced growth is expected to come to a halt by fiscal 2023, with estimates suggesting just 4% revenue growth and a 4.8% decline in earnings, ultimately making Korn Ferry stock a little too inconsistent for long-term and growth investors.