$Korn Ferry (KFY.US)$It is an American company listed in 199...

The gross margin has basically been around 94% over the past 5 years, focusing on cost changes. The return on net assets fell from 11.5% to around 8.5% until it surged to 22% in 2022.

Revenue changed little in the first four years of the past five years. It soared 45.3% in 2022, operating profit soared 152% in 2022, and net profit soared 186%. 2023Q1 revenue, operating profit, and net profit increased 19.6%, 10.2%, and 2.8%, respectively. The profit growth rate slowed markedly, which is also to be expected.

The income statement shows the overall growth trend of interest expenses in recent years. Interest expenses in 2021 accounted for 5.4% of operating profit, which is not a heavy burden. Other expenses include restructuring and mergers and acquisitions within a few years, which have a huge impact on net profit.

The balance ratio has risen from 47% to 55.3% in the past 5 years, then declined to 51% in 2023Q1.

The balance sheet shows that accounts receivable have increased rapidly recently, but the ratio is quite reasonable.

Goodwill reached $724 million, accounting for 46% of net assets of $1,571 million. Long-term loans of 400 million yuan are not too burdensome, but there is only 700 million in cash. It seems that it is not very reasonable to maintain such a large number of long-term loans.

Net cash flow has continued to be significantly higher than net investment over the past 5 years, and shareholders' surpluses are high. Judging from the financing cash flow statement, the net outflow of financing is mainly due to payment of dividends and stock repurchases, and the repurchased shares have all been cancelled. This should have a great positive effect on the net profit per share.

Currently, the price-earnings ratio is 7.85, and the price-earnings ratio is TTM 7.75. If we calculate the 5-year average net profit of 160 million yuan, the price-earnings ratio is 15.7. The current price discount is not enough, so we can continue to observe.