Korn Ferry (KFY) AI Stock Analysis

• Market Cap: $3.56B
• Dividend Yield: 2.79%
• Average Volume (3M): 425.69K
• Price to Earnings (P/E): 13.8
• Beta (1Y): 0.96
• Revenue Growth: 3.65%
• EPS Growth: 5.71%
• Country: US
• Employees: 9,076
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 1.33
• Shares Outstanding: 52,194,942
• 10 Day Avg. Volume: 607,601
• 30 Day Avg. Volume: 425,688
• PEG Ratio: 0.29
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 1.16
• P/FCF Ratio: 10.58
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 1.11
• Enterprise Value/Gross Profit: 4.26
• Enterprise Value/Ebitda: 6.86
• 1Y Price Target: $73.00
• Price Target Upside: 6.94% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): 5.24
• Revenue Forecast (FY): $2.85B

• Rating: 73 Outperform
• Price Target: $75.00 ▲(9.87% Upside)

Korn Ferry's overall stock score of 73 reflects a stable financial performance with strong profitability and effective equity utilization. The positive sentiment from the recent earnings call and reasonable valuation metrics further support the stock's potential. However, mixed technical indicators and challenges in cash flow management and certain business segments highlight areas for improvement.

Positive Factors

Revenue Growth

Consistent growth in Executive Search revenue indicates strong demand for Korn Ferry's services, supporting long-term business expansion.

Digital Transformation

The Talent Suite platform enhances Korn Ferry's digital capabilities, positioning it well for future growth in a tech-driven market.

Regional Growth

Strong regional growth in EMEA and APAC diversifies revenue streams and reduces reliance on any single market, enhancing stability.

Negative Factors

Cash Flow Management

Declining free cash flow growth could limit Korn Ferry's ability to invest in new opportunities and manage financial obligations effectively.

Americas Revenue Decline

Decreased revenue in the Americas highlights potential challenges in maintaining growth in a key market, impacting overall performance.

Economic Uncertainty

Economic uncertainties may hinder client spending on consulting services, affecting Korn Ferry's revenue growth and strategic initiatives.

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 several key streams. The primary source is its executive search services, where the company charges fees for identifying and placing senior-level executives within client organizations. Additionally, Korn Ferry earns income from consulting services related to talent management and development, which include assessments, coaching, and organizational design. The company also provides leadership development programs and training, contributing to its revenue. Significant partnerships with various corporations and institutions enhance its market reach and impact. Furthermore, Korn Ferry has developed proprietary tools and methodologies that allow it to deliver customized solutions, increasing client retention and generating recurring revenue.

Korn Ferry Financial Statement Overview

Summary

Korn Ferry demonstrates solid financial performance with stable revenue growth and profitability. The company maintains a strong balance sheet with low leverage, but cash flow management could be improved to support future growth. Attention to operational efficiency and cash flow generation will be crucial for sustained success.

Income Statement

Korn Ferry's income statement shows a stable performance with a slight revenue growth of 1.19% in the TTM period. The gross profit margin stands at 26.18%, indicating effective cost management. The net profit margin is 8.95%, reflecting solid profitability. However, the EBIT margin has decreased compared to previous years, suggesting potential challenges in operational efficiency.

Balance Sheet

The balance sheet reflects a healthy financial position with a debt-to-equity ratio of 0.28, indicating low leverage. The return on equity is 13.65%, showcasing effective use of equity to generate profits. The equity ratio is strong, suggesting a stable capital structure. However, the slight increase in debt over the years could be a concern if not managed properly.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 7.38% in the TTM period, which could impact future investments. The operating cash flow to net income ratio is 0.53, indicating moderate cash generation from operations. The free cash flow to net income ratio is 0.79, showing decent cash conversion but with room for improvement.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.76B	2.80B	2.86B	2.64B	1.82B
Gross Profit	717.99M	618.49M	2.60B	2.51B	1.74B
EBITDA	445.56M	321.58M	389.94M	521.72M	254.82M
Net Income	246.06M	169.15M	209.53M	326.36M	114.45M
Balance Sheet
Total Assets	3.86B	3.68B	3.57B	3.46B	3.06B
Cash, Cash Equivalents and Short-Term Investments	1.04B	983.75M	888.86M	1.04B	914.45M
Total Debt	571.21M	580.27M	561.24M	595.30M	598.78M
Total Liabilities	1.99B	1.94B	1.92B	1.91B	1.69B
Stockholders Equity	1.87B	1.73B	1.65B	1.54B	1.37B
Cash Flow
Free Cash Flow	301.88M	228.81M	273.51M	452.25M	220.31M
Operating Cash Flow	364.36M	283.96M	343.89M	501.66M	251.43M
Investing Cash Flow	-125.50M	-53.83M	-323.48M	-184.33M	-61.38M
Financing Cash Flow	-190.73M	-116.33M	-152.18M	-137.44M	-66.89M

Korn Ferry Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 68.26
• 50DMA: Positive
• 100DMA: Negative
• 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 68.26 is above the 20-day moving average (MA) of 66.56, above the 50-day MA of 66.48, and above the 200-day MA of 67.88, indicating a bullish trend. The MACD of 0.77 indicates Negative momentum. The RSI at 57.46 is Neutral, neither overbought nor oversold. The STOCH value of 62.64 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	73 Outperform	$3.56B	13.85	13.89%	2.79%	3.65%	5.71%
HSII	67 Neutral	―	―	7.47%	1.02%	11.53%	-6.32%
KFRC	66 Neutral	$556.20M	13.70	27.19%	5.09%	-5.91%	-23.01%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
RHI	60 Neutral	$2.83B	18.13	11.27%	8.45%	-7.27%	-43.88%
NSP	54 Neutral	$1.46B	87.29	16.04%	6.22%	3.19%	-86.21%
MAN	54 Neutral	$1.38B	-63.65	-1.00%	4.82%	-2.44%	-156.01%

Korn Ferry Corporate Events

Korn Ferry Declares Quarterly Cash Dividend

On December 8, 2025, Korn Ferry‘s Board of Directors declared a quarterly cash dividend of $0.48 per share, payable on January 15, 2026, to shareholders of record as of December 19, 2025. This decision reflects the company’s confidence in its business stability and operational discipline, continuing its commitment to balanced capital allocation.

Korn Ferry Stockholders Approve Key Governance Changes

At the 2025 Annual Meeting, Korn Ferry stockholders elected eight directors to serve until the 2026 Annual Meeting, approved executive compensation, endorsed Certificate Amendments, and ratified Ernst & Young LLP as the independent auditor for the 2026 fiscal year. These decisions reflect Korn Ferry’s continued focus on governance and financial oversight, potentially impacting its strategic direction and stakeholder confidence.