Korn Ferry (KFY) AI Stock Analysis

• Market Cap: $3.84B
• Dividend Yield: 2.8%
• Average Volume (3M): 606.33K
• Price to Earnings (P/E): 16.1
• Beta (1Y): 1.00
• Revenue Growth: -1.23%
• EPS Growth: 44.06%
• Country: US
• Employees: 9,076
• Sector: Industrials
• Sector Strength: 94
• Industry: Staffing & Employment Services
• EPS (TTM): 1.32
• Shares Outstanding: 51,921,000
• 10 Day Avg. Volume: 415,965
• 30 Day Avg. Volume: 606,328
• PEG Ratio: -24.46
• Price to Book (P/B): 2.04
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.14
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 0.31
• Enterprise Value/Gross Profit: 4.68
• Enterprise Value/Ebitda: 2.01
• 1Y Price Target: $82.33
• Price Target Upside: 11.95% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 78 Outperform
• Price Target: $84.00 ▲(14.22%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

Business Strategy

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

Financial Performance

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

Growth Potential

There is potential for earnings and valuation upside in an eventual early-cycle growth environment, where P/E multiples typically trend higher.

Negative Factors

Consulting Segment

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

Revenue Guidance

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

Sales Cycle Challenges

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

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 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 strong profitability with solid margins and effective cost management. A low debt-to-equity ratio and impressive return on equity highlight financial stability. Robust cash flow generation supports operational sustainability, despite a slight decline in revenue.

Income Statement

Korn Ferry demonstrates strong profitability with a healthy net profit margin of 8.9% and a robust EBIT margin of 12.5% for the latest year. Although the revenue has slightly declined by 1.2% from the previous year, the company shows effective cost management, as indicated by a gross profit margin of 26%. The EBITDA margin of 14.5% further highlights operational efficiency. Overall, Korn Ferry maintains solid profitability despite minor revenue contraction.

Balance Sheet

Korn Ferry maintains a strong balance sheet with a low debt-to-equity ratio of 0.30, indicating prudent leverage management. The equity ratio stands at 48.3%, reflecting a strong equity base relative to total assets. Return on equity is impressive at 13.2%, showcasing effective use of shareholder funds. The company's financial stability is further reinforced by substantial cash reserves, contributing to a favorable liquidity position.

Cash Flow

The company exhibits strong cash flow metrics, with a free cash flow growth rate of 31.9% year-over-year, indicating robust cash generation capabilities. The operating cash flow to net income ratio is 1.48, illustrating efficient cash conversion. Additionally, the free cash flow to net income ratio is 1.23, highlighting a healthy cash flow relative to earnings. Korn Ferry's cash flow performance supports its operational sustainability.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 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	399.82M	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	568.07M	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: 73.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 73.54 is below the 20-day moving average (MA) of 73.63, above the 50-day MA of 70.67, and above the 200-day MA of 68.55, indicating a neutral trend. The MACD of 0.93 indicates Positive momentum. The RSI at 54.60 is Neutral, neither overbought nor oversold. The STOCH value of 49.40 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	16.10	13.49%	2.80%	-1.23%	44.06%
HSII	70 Neutral	$966.50M	137.37	1.71%	1.28%	6.17%	-85.16%
Sector *	67 Neutral	£2.85B	10.42	4.69%	215.06%	2.73%	-20.56%
TNET	66 Neutral	$3.19B	19.69	162.14%	1.60%	1.50%	-44.95%
RHI	61 Neutral	$4.33B	24.22	12.75%	5.62%	-6.95%	-41.84%
MAN	59 Neutral	$2.09B	18.36	-0.78%	8.43%	-3.79%	-138.56%
NSP	57 Neutral	$2.25B	36.11	48.65%	4.02%	1.90%	-60.33%

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.