Korn Ferry (KFY) AI Stock Analysis

• Market Cap: $3.43B
• Dividend Yield: 2.77%
• Average Volume (3M): 429.92K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 1.04
• Revenue Growth: 0.79%
• EPS Growth: 34.85%
• Country: US
• Employees: 9,076
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 1.31
• Shares Outstanding: 52,390,987
• 10 Day Avg. Volume: 372,501
• 30 Day Avg. Volume: 429,917
• 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: 1.04
• Enterprise Value/Revenue: 1.27
• Enterprise Value/Gross Profit: 4.86
• Enterprise Value/Ebitda: 7.83
• 1Y Price Target: $81.50
• Price Target Upside: 24.64% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: $73.00 ▲(11.64% Upside)

Korn Ferry's overall stock score reflects solid financial performance and a positive strategic direction highlighted in the earnings call. The reasonable valuation and attractive dividend yield add to its appeal. However, bearish technical indicators and economic uncertainties present challenges.

Positive Factors

Revenue Growth

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

Digital Transformation

The Talent Suite platform launch signifies a strategic shift towards digital solutions, enhancing service offerings and competitive positioning.

Regional Growth

Strong regional growth in EMEA and APAC demonstrates effective market penetration and diversification, reducing reliance on any single market.

Negative Factors

Cash Flow Management

Decreasing free cash flow growth may hinder future investments and expansion, affecting long-term operational flexibility and growth potential.

Americas Revenue Decline

Declining revenue in the Americas could signal challenges in maintaining market share and demand, impacting overall revenue stability.

Economic Uncertainty

Economic uncertainties, including inflation and tariff issues, may dampen client spending and hinder growth, affecting Korn Ferry's financial performance.

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 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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.79B	2.76B	2.80B	2.86B	2.64B	1.82B
Gross Profit	731.48M	717.99M	618.49M	2.60B	2.51B	1.74B
EBITDA	454.31M	445.56M	321.58M	389.94M	521.72M	254.82M
Net Income	250.09M	246.06M	169.15M	209.53M	326.36M	114.45M
Balance Sheet
Total Assets	3.63B	3.86B	3.68B	3.57B	3.46B	3.06B
Cash, Cash Equivalents and Short-Term Investments	721.13M	1.04B	983.75M	888.86M	1.04B	914.45M
Total Debt	524.37M	571.21M	580.27M	561.24M	595.30M	598.78M
Total Liabilities	1.73B	1.99B	1.94B	1.92B	1.91B	1.69B
Stockholders Equity	1.89B	1.87B	1.73B	1.65B	1.54B	1.37B
Cash Flow
Free Cash Flow	279.59M	301.88M	228.81M	273.51M	452.25M	220.31M
Operating Cash Flow	354.18M	364.36M	283.96M	343.89M	501.66M	251.43M
Investing Cash Flow	-130.94M	-125.50M	-53.83M	-323.48M	-184.33M	-61.38M
Financing Cash Flow	-186.21M	-190.73M	-116.33M	-152.18M	-137.44M	-66.89M

Korn Ferry Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 65.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 65.39 is below the 20-day moving average (MA) of 69.52, below the 50-day MA of 71.27, and below the 200-day MA of 68.44, indicating a bearish trend. The MACD of -0.79 indicates Positive momentum. The RSI at 30.35 is Neutral, neither overbought nor oversold. The STOCH value of 23.63 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	―	$3.43B	14.13	13.55%	2.77%	0.79%	34.85%
HSII	―	$1.21B	36.70	7.18%	1.03%	8.89%	-13.57%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TNET	―	$2.85B	21.42	111.30%	1.76%	0.99%	-47.02%
RHI	―	$2.79B	18.85	11.27%	8.66%	-7.27%	-43.88%
NSP	―	$1.62B	40.57	31.50%	5.65%	2.40%	-75.66%
MAN	―	$1.40B	-63.73	-1.00%	7.50%	-2.44%	-156.01%

Korn Ferry Corporate Events

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.

The most recent analyst rating on (KFY) stock is a Buy with a $81.00 price target. To see the full list of analyst forecasts on Korn Ferry stock, see the KFY Stock Forecast page.

Korn Ferry Reports Strong Q1 FY’26 Results

Korn Ferry is a global consulting firm specializing in talent management and organizational strategy, known for its comprehensive approach to solving business challenges across various industries. In its latest earnings report, Korn Ferry announced a 5% year-over-year increase in fee revenue for the first quarter of fiscal 2026, totaling $708.6 million. The company also reported a net income of $66.6 million, reflecting a 6% increase from the previous year.

Korn Ferry’s Earnings Call: Strategic Growth Amid Challenges

Korn Ferry’s recent earnings call painted a picture of strategic resilience and growth, despite facing challenges in certain regions. The sentiment was largely positive, with the company showcasing strong performance in Executive Search and regional growth in EMEA and APAC. However, a decline in the Americas region’s revenue and broader economic uncertainties were noted as potential hurdles. Overall, Korn Ferry appears to be effectively navigating the current economic landscape, leveraging growth in strategic areas to balance out existing challenges.

Korn Ferry Declares Quarterly Cash Dividend

On September 8, 2025, Korn Ferry‘s Board of Directors declared a quarterly cash dividend of $0.48 per share, payable on October 15, 2025, to shareholders of record as of September 26, 2025. This decision is part of Korn Ferry’s balanced capital allocation strategy, reflecting confidence in the company’s business strength and operational discipline.

The most recent analyst rating on (KFY) stock is a Buy with a $88.00 price target. To see the full list of analyst forecasts on Korn Ferry stock, see the KFY Stock Forecast page.