Korn Ferry

Korn Ferry

KFYยทNYSE

$69.46

-0.14%
IndustrialsStaffing & Employment Services

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.

At a Glance

Live Snapshot
Market Cap$3.60B
EPS4.6900
P/E Ratio14.81
Earnings Date06/17/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is mid-range (P/E 14.8).

Valuation inputs: P/E 14.8, earnings yield +6.8%, momentum -0.1%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is acceptable (ROE +13.2%, ROIC +8.6%).

Profitability stack: net margin +8.9%, ROE +13.2%, ROIC +8.6%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +51.5%, momentum -0.1%, net margin +8.9%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Korn Ferry Market vs Earnings Trajectory

KFY ยท NYSE

Loading price and EPS data...

Korn Ferry

Korn Ferry Fair Value Envelope

KFY ยท NYSE

Our analysis suggests that KFY has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $69.46, this represents a potential HIDDEN relative to our calculated worth for Korn Ferry.

Intrinsic Value
Current Price: $69.46
3Y-22.0%
5Y+146.0%
10Y+709.0%
3Y+4.0%
5Y+40.0%
10Y+105.0%
3Y-25.0%
5Y+134.0%
10Y+696.0%
3Y-27.0%
5Y+54.0%
10Y+469.0%
3Y-33.0%
5Y+55.0%
10Y+696.0%
3Y+11.0%
5Y+41.0%
10Y+97.0%
Korn Ferry

Korn Ferry Profit Bridge

KFY ยท NYSE
Revenue2.76B
Cost of Goods Sold (316.07M)
Gross Profit2.45B
Operating Expenses (2.10B)
Operating Income348.21M
Interest Expense (20.36M)
Other Income/Expense-3.30M
Pretax Income344.91M
Income Tax (93.84M)
Net Income246.06M
Net Income
246.06M

Profitability Analysis

Gross Margin

88.6%

Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.

Operating Margin

12.6%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

8.9%

Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.

Effective Tax Rate

27.2%

Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.

Profitability Insight

High margin compression: Large gap between gross and net margins suggests operational inefficiencies or heavy debt burden. Focus on expense management and deleveraging.

88.55%
Gross Profit Margin
1%
3Y-7.0%
5Y-5.0%
10Y-3.0%
12.61%
Operating Profit Margin
25%
3Y-29.0%
5Y+42.0%
10Y+222.0%
8.91%
Net Profit Margin
47%
3Y-28.0%
5Y+68.0%
10Y+288.0%
13.18%
Return on Equity
35%
3Y-38.0%
5Y+53.0%
10Y+346.0%
6.37%
Return on Assets
39%
3Y-32.0%
5Y+67.0%
10Y+303.0%
8.61%
Return on Invested Capital
10%
3Y-39.0%
5Y+50.0%
10Y+303.0%
KFY

Korn Ferry Cash Conversion Engine

KFY ยท NYSE
Net Income251.08M
Depreciation & Amortization80.29M
Stock-Based Compensation47.96M
Change in Working Capital-3.49M
Others-5.07M
Capital Expenditures-62.48M
Free Cash Flow301.88M

Cash Flow Quality Analysis

FCF Conversion Rate

120.2%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

17.1%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

+31.9%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

-$3.49M

Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.

Cash Flow Quality Insight

Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.

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Korn Ferry Funding & Solvency Profile

KFY ยท NYSE
Cash & Cash Equivalents938.37M
Net Receivables692.64M
Inventory0.00
Other Current Assets119.11M
Total Current Assets2 B
Property, Plant & Equipment323.66M
Goodwill & Intangible Assets1.00B
Long-Term Investments285.44M
Other Non-Current Assets413.83M
Total Non-Current Assets1 B
Total Assets
3.95B

Financial Health Analysis

Current Ratio

2.01x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

0.97x

Balanced capital structure with moderate leverage. Equity exceeds debt, suggesting healthy financial stability.

Working Capital

899 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

45% Current

Balanced asset mix between current and non-current assets, typical of many stable businesses.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

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Korn Ferry Street Expectations Map

KFY ยท NYSE

Wall Street analysts project that KFY stock may experience modest gains over the coming 12 months. The consensus 1-year price target stands at 70.00, with estimates ranging from a low of 70.00 to a high of 70.00.

Lowest Target
70.00
0.78%
Consensus Target
70.00
0.78%
Highest Target
70.00
0.78%

The consensus 1-year price target stands at 70.00, with estimates ranging from a low of 70.00 to a high of 70.00.

Analyst Consensus Analysis

Upside Potential

+0.8%

Fair value territory. Stock trading near consensus target suggests limited near-term catalysts. Focus on fundamental developments.

Analyst Agreement

0.0% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

Moderate

Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.

Market Sentiment Insight

Efficient pricing: Stock trading at fair value with strong consensus suggests market has priced in expectations. Look for fundamental inflection points or new catalysts to drive meaningful moves.

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Korn Ferry Insider Positioning

KFY ยท NYSE

During the last 12 months, insiders have sold $10.48M worth of KFY shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

0

0.00

Sold

79.0K

5.57M

Net Activity

-5.6M

-$5.57M

9-12 Months

Bought

0

0.00

Sold

66.8K

4.92M

Net Activity

-4.9M

-$4.92M

Top Buyers

No buying activity

Top Sellers

1
BGD

Burnison Gary D

Director, Officer: Ceo

114.2K sharesโ€ข5 transactions

$8.19M

2
RRP

Rozek Robert P

Officer: Evp, Cfo & Cco

20.0K sharesโ€ข1 transactions

$1.46M

3
DM

Distefano Michael

Officer: See Remarks

9.6K sharesโ€ข1 transactions

$694K

4
RLJ

Robinson Lori Jean

Director

2.0K sharesโ€ข1 transactions

$139K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $10.48M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Insider Participation

High Selling

4 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

0.70%
Dividend Yield
-7%
3Y+140.0%
5Y+220.0%
10Y+87.0%
ย 

kfy Dividend History

KFY
10Y CAGR +19%
Latest $0.55
Annual $2.47
5 year growth trend
Last Period: +15%