KornFerry Stock Story

KFY
 Stock
  

USD 66.31  0.34  0.52%   

KornFerry International is scheduled to announce its earnings tomorrow. The next financial report is expected on the 28th of June 2022. KornFerry International Accrued Expenses Turnover is fairly stable at the moment as compared to the past year. KornFerry International reported Accrued Expenses Turnover of 3.68 in 2021. Cash and Equivalents Turnover is likely to rise to 2.54 in 2022, whereas Average Assets are likely to drop slightly above 2.7 B in 2022. As many of us are excited about industrials space, it is fair to break down KornFerry International as a unique alternative.
Published over a month ago
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Chances of KornFerry (NYSE:KFY) to slide in July

This firm has 586.56 M in debt with debt to equity (D/E) ratio of 0.38, which is OK given its current industry classification. The company has a current ratio of 1.92, which is typical for the industry and considered as normal. Debt can assist KornFerry International until it has trouble settling it off, either with new capital or with free cash flow. So, KornFerry International's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like KornFerry International sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for KornFerry to invest in growth at high rates of return. When we think about KornFerry International's use of debt, we should always consider it together with cash and equity.
KornFerry International financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of KornFerry International, including all of KornFerry International's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of KornFerry International assets, the company is considered highly leveraged. Understanding the composition and structure of overall KornFerry International debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding KornFerry Total Debt

KornFerry International liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. KornFerry International has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on KornFerry International balance sheet include debt obligations and money owed to different KornFerry International vendors, workers, and loan providers. Below is the chart of KornFerry main long-term debt accounts currently reported on its balance sheet.
You can use KornFerry International financial leverage analysis tool to get a better grip on understanding its financial position

How important is KornFerry International's Liquidity

KornFerry International financial leverage refers to using borrowed capital as a funding source to finance KornFerry International ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. KornFerry International financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between KornFerry International's total debt and its cash.

Acquisition by Distefano Michael of 5070 shares of KornFerry International subject to Rule 16b-3

Legal trades by KornFerry International insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
KornFerry insider trading alert for grant of common stock par value $0.01 per share by Distefano Michael, Chief Executive Officer of Professional Search, on 12th of July 2022. This event was filed by Korn Ferry with SEC on 2022-07-12. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving KornFerry International Investor Appetite?

KornFerry International reported the last year's revenue of 2.46 B. Total Income to common stockholders was 293.91 M with profit before taxes, overhead, and interest of 433.65 M.

Liabilities Breakdown

714.6 M
Current Liabilities
1.2 B
Long-Term Liabilities
Total Liabilities1.54 Billion
Current Liabilities714.62 Million
Long-Term Liabilities1.16 Billion
Tax Liabilities25.5 Million

KornFerry International has 99 percent likelihood to hit $53 in July

Current Information Ratio is up to -0.06. Price may slide again. KornFerry International exhibits very low volatility with skewness of -0.47 and kurtosis of 0.39. However, we advise investors to further study KornFerry International technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure KornFerry International's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact KornFerry International's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

KornFerry International Implied Volatility

KornFerry International's implied volatility exposes the market's sentiment of KornFerry International stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if KornFerry International's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that KornFerry International stock will not fluctuate a lot when KornFerry International's options are near their expiration.

Our Conclusion on KornFerry International

While many of the other players in the staffing & employment services industry are either recovering or due for a correction, KornFerry International may not be performing as strong as the other in terms of long-term growth potentials. Taking everything into account, as of the 21st of June 2022, our analysis shows that KornFerry International responds to the market. The company is undervalued and projects low odds of financial turmoil for the next 2 years. Our overall 90 days buy vs. sell advice on the company is Strong Hold.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of KornFerry International. Please refer to our Terms of Use for any information regarding our disclosure principles.

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