Korn Ferry (KFY) AI Stock Analysis

• Market Cap: $3.86B
• Dividend Yield: 2.32%
• Average Volume (3M): 283.55K
• Price to Earnings (P/E): 16.0
• Beta (1Y): 1.06
• Revenue Growth: -1.23%
• EPS Growth: 44.06%
• Country: US
• Employees: 9,076
• Sector: Industrials
• Sector Strength: 74
• Industry: Staffing & Employment Services
• EPS (TTM): 1.32
• Shares Outstanding: 52,327,614
• 10 Day Avg. Volume: 327,135
• 30 Day Avg. Volume: 283,553
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: 3.86
• Enterprise Value/Ebitda: 6.39
• 1Y Price Target: $86.50
• Price Target Upside: 18.12% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 75 Outperform
• Price Target: $82.00 ▲(11.98% Upside)

Korn Ferry's overall stock score is driven by its strong financial performance and positive earnings call outlook. Technical analysis and valuation provide additional support, indicating a well-rounded investment opportunity despite economic challenges.

Positive Factors

Earnings

Korn Ferry’s fiscal fourth-quarter results again outperformed consensus on the top and bottom lines.

Market Position

Korn Ferry has been outperforming peers in RPO and professional search for the last 5-6 quarters.

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 and Digital Segments

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

Macroeconomic Environment

Business confidence remains muted and macro uncertainty could dampen near-term upside.

Revenue Guidance

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, 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 and talent acquisition services. The main revenue streams include fees from executive search engagements, which involve recruiting executives for client organizations, and consulting services that focus on leadership development, organizational design, and employee engagement strategies. Additionally, the company earns revenue from assessments and surveys, helping organizations evaluate their talent and leadership potential. Strategic partnerships with technology providers and other consulting firms also contribute to its business model, allowing Korn Ferry to broaden its service offerings and enhance its market reach.

Korn Ferry Financial Statement Overview

Summary

Korn Ferry demonstrates strong profitability with a healthy net profit margin and effective cost management. The balance sheet is robust with low leverage and substantial equity, while cash flow generation is strong, indicating operational sustainability. Despite a slight revenue decline, overall financial stability is commendable.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.76B	2.76B	2.80B	2.86B	2.64B	1.82B
Gross Profit	717.99M	717.99M	618.49M	2.60B	2.51B	1.74B
EBITDA	434.01M	399.82M	321.58M	389.94M	521.72M	254.82M
Net Income	246.06M	246.06M	169.15M	209.53M	326.36M	114.45M
Balance Sheet
Total Assets	3.86B	3.86B	3.68B	3.57B	3.46B	3.06B
Cash, Cash Equivalents and Short-Term Investments	1.04B	1.04B	983.75M	888.86M	1.04B	914.45M
Total Debt	529.50M	568.07M	580.27M	561.24M	595.30M	598.78M
Total Liabilities	1.99B	1.99B	1.94B	1.92B	1.91B	1.69B
Stockholders Equity	1.87B	1.87B	1.73B	1.65B	1.54B	1.37B
Cash Flow
Free Cash Flow	301.88M	301.88M	228.81M	273.51M	452.25M	220.31M
Operating Cash Flow	364.36M	364.36M	283.96M	343.89M	501.66M	251.43M
Investing Cash Flow	-125.50M	-125.50M	-53.83M	-323.48M	-184.33M	-61.38M
Financing Cash Flow	-190.73M	-190.73M	-116.33M	-152.18M	-137.44M	-66.89M

Korn Ferry Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 73.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 73.23 is below the 20-day moving average (MA) of 73.62, above the 50-day MA of 73.15, and above the 200-day MA of 68.76, indicating a neutral trend. The MACD of 0.44 indicates Positive momentum. The RSI at 49.14 is Neutral, neither overbought nor oversold. The STOCH value of 16.07 is Positive, 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	75 Outperform	$3.86B	16.00	13.49%	2.32%	-1.23%	44.06%
HSII	74 Outperform	$1.05B	31.77	7.18%	1.19%	8.89%	-13.57%
TNET	67 Neutral	$3.48B	24.44	139.13%	1.49%	1.39%	-50.47%
RHI	64 Neutral	$3.80B	21.22	12.75%	6.21%	-6.95%	-41.84%
Sector *	64 Neutral	$10.73B	15.74	7.56%	2.01%	2.76%	-15.10%
MAN	54 Neutral	$1.91B	18.36	-0.78%	5.48%	-3.79%	-138.56%
NSP	49 Neutral	$2.10B	52.76	31.50%	4.44%	2.40%	-75.66%

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.

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.