Korn Ferry (KFY) AI Stock Analysis

• Market Cap: $3.84B
• Dividend Yield: 2.57%
• Average Volume (3M): 553.34K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 1.01
• Revenue Growth: -1.23%
• EPS Growth: 44.06%
• Country: US
• Employees: 9,076
• Sector: Industrials
• Sector Strength: 86
• Industry: Staffing & Employment Services
• EPS (TTM): 1.32
• Shares Outstanding: 51,921,000
• 10 Day Avg. Volume: 1,031,859
• 30 Day Avg. Volume: 553,340
• PEG Ratio: -12.15
• Price to Book (P/B): 2.02
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.92
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 4.95
• Enterprise Value/Ebitda: 2.06
• 1Y Price Target: $82.33
• Price Target Upside: 11.29% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 78 Outperform
• Price Target: $84.00 ▲(13.54%Upside)

Korn Ferry's stock is bolstered by strong financial performance, particularly in profitability and cash flow generation. Technical indicators show bullish momentum, supporting a positive near-term outlook. The company's strategic initiatives in digital and executive search are driving growth, despite economic challenges. Reasonable valuation and supportive corporate actions like dividend declarations enhance the stock's attractiveness.

Positive Factors

Financial Performance

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

Strategic Investments

Management has made investments in talent, product enhancements, and internal productivity tools that should pay dividends in the coming years.

Negative Factors

Consulting Segment Challenges

Headwinds in the consulting and digital segments could persist due to lengthening sales cycles.

Revenue Decline

First-quarter guidance reflects a 4% sequential revenue decline, worse than the 10-year average sequential drop of 2%.

Korn Ferry Business Overview & Revenue Model

Company Description

Korn Ferry (KFY) is a global organizational consulting firm that assists clients in aligning their organizational structures, roles, and responsibilities to their business strategies and operations. The company operates across various sectors, providing a comprehensive range of services, including executive search, leadership development, compensation advisory, and talent management solutions. Korn Ferry's core products and services are designed to enhance the effectiveness of its clients' workforce and leadership teams, enabling them to achieve their strategic objectives.

How the Company Makes Money

Korn Ferry generates revenue primarily through its consulting services, which are categorized into several key areas: executive search, recruitment process outsourcing (RPO), and professional search, where they help organizations find and place top-tier leadership and specialized talent; leadership and talent consulting, which includes providing strategic advice and solutions in leadership development, succession planning, and talent strategy; and rewards and benefits advisory, offering insights and guidance on compensation, benefits, and rewards programs. The company also earns income from its digital platform, Korn Ferry Advance, which offers career development tools and resources. Korn Ferry's partnerships with enterprises across various industries contribute significantly to its earnings, as do its investments in digital and data-driven solutions that enhance its consulting offerings.

Korn Ferry Financial Statement Overview

Summary

Korn Ferry demonstrates a solid financial position with strong cash flow management and profitability. Despite declining revenue growth, the company's stable balance sheet and efficient cash generation provide a positive outlook. The focus should be on boosting revenue growth and improving net profit margins.

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
EBITDA	441.26M	321.58M	389.94M	521.72M	254.82M	228.16M
Net Income	247.01M	169.15M	209.53M	326.36M	114.45M	104.95M
Balance Sheet
Total Assets	3.65B	3.68B	3.57B	3.46B	3.06B	2.74B
Cash, Cash Equivalents and Short-Term Investments	819.96M	983.75M	888.86M	1.04B	914.45M	731.20M
Total Debt	565.19M	580.27M	561.24M	595.30M	598.78M	629.76M
Total Liabilities	1.85B	1.94B	1.92B	1.91B	1.69B	1.52B
Stockholders Equity	1.79B	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: Positive
• Last Price: 73.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 73.98 is above the 20-day moving average (MA) of 70.66, above the 50-day MA of 67.69, and above the 200-day MA of 68.43, indicating a bullish trend. The MACD of 1.75 indicates Negative momentum. The RSI at 65.54 is Neutral, neither overbought nor oversold. The STOCH value of 66.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KFY.

Korn Ferry Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KFY	78 Outperform	$3.84B	16.08	13.49%	2.57%	-1.23%	44.06%
Sector *	71 Outperform	¥254.55B	13.00	8.49%	3.09%	6.31%	12.77%
HSII	70 Neutral	$977.84M	138.98	1.71%	1.26%	6.17%	-85.16%
TNET	63 Neutral	$3.60B	22.19	162.14%	1.49%	1.50%	-44.95%
RHI	61 Neutral	$4.38B	21.40	14.49%	5.48%	-7.81%	-40.22%
NSP	57 Neutral	$2.31B	37.12	48.65%	3.89%	1.90%	-60.33%
MAN	57 Neutral	$2.05B	19.20	5.19%	3.27%	-5.52%	133.51%

Korn Ferry Corporate Events

Korn Ferry Enters New Credit Agreement with Wells Fargo

On July 1, 2025, Korn Ferry entered into a new credit agreement with Wells Fargo Bank, National Association, and other lenders, with Wells Fargo serving as the administrative agent. This agreement marks the termination of a prior credit agreement, indicating a strategic financial restructuring for Korn Ferry.

The most recent analyst rating on (KFY) stock is a Buy with a $79.00 price target. To see the full list of analyst forecasts on Korn Ferry stock, see the KFY Stock Forecast page.

Korn Ferry Declares Cash Dividend for Shareholders

On June 17, 2025, Korn Ferry‘s Board of Directors declared a cash dividend of $0.48 per share, payable on July 31, 2025, to shareholders of record as of July 3, 2025. This decision reflects the company’s confidence in its business strength and strategic execution, as part of its capital allocation strategy.

The most recent analyst rating on (KFY) stock is a Buy with a $79.00 price target. To see the full list of analyst forecasts on Korn Ferry stock, see the KFY Stock Forecast page.