Korn Ferry (KFY) AI Stock Analysis

• Market Cap: $3.22B
• Dividend Yield: 2.55%
• Average Volume (3M): 559.52K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 1.09
• Revenue Growth: -3.27%
• EPS Growth: 62.57%
• Country: US
• Employees: 9,076
• Sector: Industrials
• Sector Strength: 63
• Industry: Staffing & Employment Services
• EPS (TTM): 4.65
• Shares Outstanding: 51,645,878
• 10 Day Avg. Volume: 461,575
• 30 Day Avg. Volume: 559,518
• PEG Ratio: 0.21
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.25
• Price to Cash Flow (P/CF): 4.00
• P/FCF Ratio: 4.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $75.00
• Price Target Upside: 20.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Korn Ferry's overall stock score reflects a strong financial standing, strategic growth indicated in the earnings call, and a fair valuation. Key strengths include robust cash flow and increased profitability. Challenges include declining revenue growth and digital segment weakness. The neutral technical indicators suggest a stable but cautious outlook.

Positive Factors

Business Strategy

Korn Ferry's unique and synergistic mix of businesses continues to drive resilient performance with improving operating productivity.

Financial Performance

Korn Ferry's third-quarter results beat consensus, and fourth-quarter guidance was slightly better than expected.

Negative Factors

Consulting Segment

Softness in the consulting segment is likely to persist for at least another few quarters.

Market Challenges

Risks include competition and cyclicality.

Korn Ferry Business Overview & Revenue Model

Company Description

Korn Ferry, together with its subsidiaries, provides organizational consulting services worldwide. It operates through four segments: Consulting, Digital, Executive Search, and Recruitment Process Outsourcing (RPO) & Professional Search. The company provides executive search services to recruit board level, chief executive, other senior executive, and general management talent of organizations. It also offers organizational strategy, assessment and succession, leadership and professional development, and total reward services. In addition, the company provides RPO, business project, professional search, and outsource recruiting solutions. Further, the company offers tech-enabled solutions that identify structures, roles, capabilities, and behaviors to drive businesses. It serves public and private companies, and middle market and emerging growth companies, as well as government and non-profit organizations. 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.

How the Company Makes Money

Korn Ferry generates revenue through a diversified business model comprised of several key revenue streams. The company earns money primarily through its talent acquisition services, which include executive search, professional recruitment, and recruitment process outsourcing. Additionally, Korn Ferry provides consulting services aimed at leadership and talent development, organizational strategy, and rewards and benefits solutions. These consulting services often involve long-term engagements with clients to enhance organizational effectiveness and performance. Furthermore, the company has developed proprietary tools and platforms, such as its assessment and development offerings, which contribute to its revenue. Korn Ferry's partnerships with various industry-leading organizations and its global reach also play a crucial role in expanding its client base and driving revenue growth.

Korn Ferry Financial Statement Overview

Summary

Korn Ferry demonstrates a solid financial position with strong cash flow management and profitability. Concerns include declining revenue growth and a need for improved net profit margins, but a stable balance sheet and efficient cash generation offer a positive outlook.

Income Statement

Korn Ferry's TTM (Trailing-Twelve-Months) gross profit margin stands at 24.25%, indicating healthy profitability. The net profit margin is 9.01%, which is stable but shows room for improvement. EBIT and EBITDA margins are 12.03% and 15.66%, respectively, demonstrating efficient operational control. However, the revenue growth rate from the previous period is negative, indicating a decline in sales, which could be a concern.

Balance Sheet

The company has a strong equity ratio of 49.12%, reflecting a solid equity base relative to its assets. The debt-to-equity ratio is reasonable at 0.29, suggesting moderate leverage. Return on equity (ROE) is 13.78%, which is decent but not outstanding. The balance sheet shows stability, but there is a need for higher returns.

Cash Flow

Korn Ferry's cash flow is strong with a healthy operating cash flow to net income ratio of 1.50, indicating efficient cash generation relative to net income. The free cash flow to net income ratio is 1.28, which is robust. The free cash flow growth rate is positive, highlighting improved cash flow management.

Breakdown
TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
2.74B	2.80B	2.86B	2.64B	1.82B	1.98B
	Gross Profit
664.69M	618.49M	2.60B	2.51B	1.74B	1.85B
	EBIT
329.64M	212.93M	316.34M	470.07M	223.71M	176.03M
	EBITDA
441.26M	321.58M	389.94M	521.72M	254.82M	228.16M
	Net Income Common Stockholders
247.01M	169.15M	209.53M	326.36M	114.45M	104.95M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
167.31M	983.75M	888.86M	1.04B	914.45M	731.20M
	Total Assets
864.28M	3.68B	3.57B	3.46B	3.06B	2.74B
	Total Debt
0.00	580.27M	561.24M	595.30M	598.78M	629.76M
	Net Debt
-151.12M	-360.74M	-282.79M	-382.77M	-252.00M	-59.48M
	Total Liabilities
345.17M	1.94B	1.92B	1.91B	1.69B	1.52B
	Stockholders Equity
519.64M	1.73B	1.65B	1.54B	1.37B	1.22B
Cash Flow		Free Cash Flow
316.35M	228.81M	273.51M	452.25M	220.31M	194.89M
	Operating Cash Flow
370.40M	283.96M	343.89M	501.66M	251.43M	236.35M
	Investing Cash Flow
-121.97M	-53.83M	-323.48M	-184.33M	-61.38M	-198.76M
	Financing Cash Flow
-187.51M	-116.33M	-152.18M	-137.44M	-66.89M	43.68M

Korn Ferry Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 62.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KFY, the sentiment is Negative. The current price of 62.3 is below the 20-day moving average (MA) of 66.67, below the 50-day MA of 66.76, and below the 200-day MA of 69.14, indicating a bearish trend. The MACD of 0.57 indicates Negative momentum. The RSI at 57.84 is Neutral, neither overbought nor oversold. The STOCH value of 77.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KFY.

Korn Ferry Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KFY	74 Outperform	$3.22B	13.39	13.92%	2.55%	-3.27%	62.57%
HSII	68 Neutral	$834.15M	99.22	1.91%	1.47%	7.15%	-83.77%
MAN	68 Neutral	$2.44B	17.37	6.67%	5.90%	-5.61%	77.92%
Sector *	62 Neutral	$7.25B	12.39	3.08%	3.39%	3.63%	-14.32%
ASGN	61 Neutral	$2.67B	15.93	9.55%	―	-7.88%	-14.39%
RHI	60 Neutral	$4.95B	19.82	16.96%	4.50%	-9.33%	-37.06%
TBI	44 Neutral	$149.13M	―	-32.53%	―	-17.78%	-820.48%

Korn Ferry Corporate Events

Korn Ferry Appoints New Consulting CEO Lesley Uren

On February 6, 2025, Korn Ferry announced the passing of Mark Arian, the Chief Executive Officer of Consulting, whose leadership and contributions were highly valued by the company. Lesley Uren, previously President of Consulting in EMEA, has been appointed as the new CEO of Consulting, with expectations that her experience will ensure a smooth transition and maintain the company’s leadership standards.