(KFY) Korn Ferry - Overview
Sector: Industrials | Industry: Staffing & Employment Services | Exchange: NYSE (USA) | Market Cap: 3.558m USD | Total Return: 5.5% in 12m
Avg Turnover: 24.8M
EPS Trend: 68.4%
Qual. Beats: 1
Rev. Trend: -20.9%
Qual. Beats: 5
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Korn Ferry (KFY) is a global organizational consulting firm that provides talent strategy, organizational structure, and workforce capability services. The company has transitioned from a traditional executive search firm into a diversified human capital consultancy, integrating proprietary technology through its cloud-based Korn Ferry Talent suite. This platform includes tools for talent assessment, employee engagement, sales strategy development, and real-time compensation benchmarking.
The company operates within the Human Resource & Employment Services sub-industry, a sector characterized by high cyclicality linked to global employment trends and corporate capital expenditure. Korn Ferry’s business model relies on a mix of project-based consulting fees and recurring revenue from its digital software-as-a-service (SaaS) platforms, serving diverse sectors including healthcare, financial services, and technology.
Analyzing the long-term valuation trends on ValueRay can help clarify how these digital service shifts impact the stocks intrinsic value.
Founded in 1969 and headquartered in Los Angeles, the firm rebranded from Korn/Ferry International in 2019 to reflect its broader focus on integrated organizational consulting. It maintains a global footprint, supporting both private and public entities in optimizing human capital to meet shifting market demands.
- Global corporate hiring volume and executive search demand drive core recruitment revenue
- Expansion of digital consulting and subscription software improves recurring revenue margins
- Macroeconomic cycles and white-collar employment levels dictate short-term consulting engagement volume
- Talent acquisition technology integration enhances scalability across professional search and outsourcing segments
| Net Income: 268.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.07 > 0.02 and ΔFCF/TA -1.38 > 1.0 |
| NWC/Revenue: 31.10% < 20% (prev 26.98%; Δ 4.12% < -1%) |
| CFO/TA 0.09 > 3% & CFO 373.3m > Net Income 268.5m |
| Net Debt (-215.9m) to EBITDA (492.6m): -0.44 < 3 |
| Current Ratio: 2.01 > 1.5 & < 3 |
| Outstanding Shares: last quarter (52.6m) vs 12m ago 0.47% < -2% |
| Gross Margin: 88.16% > 18% (prev 0.89%; Δ 8.73k% > 0.5%) |
| Asset Turnover: 76.07% > 50% (prev 75.11%; Δ 0.96% > 0%) |
| Interest Coverage Ratio: 19.47 > 6 (EBITDA TTM 492.6m / Interest Expense TTM 20.3m) |
| A: 0.23 (Total Current Assets 1.79b - Total Current Liabilities 889.6m) / Total Assets 3.95b |
| B: 0.43 (Retained Earnings 1.72b / Total Assets 3.95b) |
| C: 0.10 (EBIT TTM 394.8m / Avg Total Assets 3.80b) |
| D: 1.03 (Book Value of Equity 2.00b / Total Liabilities 1.94b) |
| Altman-Z'' = 4.69 = AA |
| DSRI: 1.04 (Receivables 692.6m/630.2m, Revenue 2.89b/2.74b) |
| GMI: 1.01 (GM 88.16% / 88.65%) |
| AQI: 0.95 (AQ_t 0.47 / AQ_t-1 0.49) |
| SGI: 1.05 (Revenue 2.89b / 2.74b) |
| TATA: -0.03 (NI 268.5m - CFO 373.3m) / TA 3.95b) |
| Beneish M = -3.00 (Cap -4..+1) = AA |
As of May 30, 2026, the stock is trading at USD 69.98 with a total of 259,194 shares traded.
Over the past week, the price has changed by +5.01%,
over one month by +5.50%,
over three months by +12.63% and
over the past year by +5.46%.
Korn Ferry has received a consensus analysts rating of 4.40. Therefore, it is recommended to buy KFY.
- StrongBuy: 3
- Buy: 1
- Hold: 1
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 75.5 | 7.9% |
P/E Trailing = 13.6052
P/E Forward = 10.7875
P/S = 1.2441
P/B = 1.7768
P/EG = 1.203
Revenue TTM = 2.89b USD
EBIT TTM = 394.8m USD
EBITDA TTM = 492.6m USD
Long Term Debt = 398.4m USD (from longTermDebt, last quarter)
Short Term Debt = 29.4m USD (from shortTermDebt, last quarter)
Debt = 722.5m USD (from shortLongTermDebtTotal, last quarter) + Leases 162.1m
Net Debt = -215.9m USD (calculated: Debt 722.5m - CCE 938.4m)
Enterprise Value = 3.34b USD (3.56b + Debt 722.5m - CCE 938.4m)
Interest Coverage Ratio = 19.47 (Ebit TTM 394.8m / Interest Expense TTM 20.3m)
EV/FCF = 11.61x (Enterprise Value 3.34b / FCF TTM 287.9m)
FCF Yield = 8.62% (FCF TTM 287.9m / Enterprise Value 3.34b)
FCF Margin = 9.96% (FCF TTM 287.9m / Revenue TTM 2.89b)
Net Margin = 9.29% (Net Income TTM 268.5m / Revenue TTM 2.89b)
Gross Margin = 88.16% ((Revenue TTM 2.89b - Cost of Revenue TTM 342.2m) / Revenue TTM)
Gross Margin QoQ = 87.83% (prev 88.05%)
Tobins Q-Ratio = 0.85 (Enterprise Value 3.34b / Total Assets 3.95b)
Interest Expense / Debt = 2.81% (Interest Expense 20.3m / Debt 722.5m)
Taxrate = 28.75% (26.7m / 92.8m)
NOPAT = 281.3m (EBIT 394.8m * (1 - 28.75%))
Current Ratio = 2.01 (Total Current Assets 1.79b / Total Current Liabilities 889.6m)
Debt / Equity = 0.36 (Debt 722.5m / totalStockholderEquity, last quarter 2.00b)
Debt / EBITDA = -0.44 (Net Debt -215.9m / EBITDA 492.6m)
Debt / FCF = -0.75 (Net Debt -215.9m / FCF TTM 287.9m)
Total Stockholder Equity = 1.93b (last 4 quarters mean from totalStockholderEquity)
RoA = 7.07% (Net Income 268.5m / Total Assets 3.95b)
RoE = 13.94% (Net Income TTM 268.5m / Total Stockholder Equity 1.93b)
RoCE = 16.98% (EBIT 394.8m / Capital Employed (Equity 1.93b + L.T.Debt 398.4m))
RoIC = 9.30% (NOPAT 281.3m / Invested Capital 3.02b)
WACC = 7.22% (E(3.56b)/V(4.28b) * Re(8.28%) + D(722.5m)/V(4.28b) * Rd(2.81%) * (1-Tc(0.29)))
Discount Rate = 8.28% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: 51.11 | Cagr: 1.10%
[DCF] Terminal Value 74.13% ; FCFF base≈299.3m ; Y1≈277.9m ; Y5≈251.6m
[DCF] Fair Price = 80.93 (EV 3.98b - Net Debt -215.9m = Equity 4.20b / Shares 51.9m; r=8.35% [WACC [floored]]; 5y FCF grow -8.98% → 2.50% )
EPS Correlation: 68.38 | EPS CAGR: 7.26% | SUE: 0.95 | # QB: 1
Revenue Correlation: -20.87 | Revenue CAGR: -0.42% | SUE: 2.24 | # QB: 5
EPS current Quarter (2026-07-31): EPS=1.33 | Chg30d=+0.00% | Revisions=-33% | Analysts=5
[Analyst] Revisions Ratio: -33%