📊 KFY Key Takeaways
Is Korn Ferry (KFY) a Good Investment?
Korn Ferry maintains exceptional financial fortress with fortress-grade balance sheet (0.20x D/E, 2.01x current ratio, $938.4M cash) and strong profitability (12.6% operating margin), but faces concerning revenue contraction (-1.2% YoY) in its cyclical labor markets business. EPS growth of 42.4% appears driven by financial engineering rather than operational momentum, evidenced by weak free cash flow ($52.4M) relative to net income ($204.3M).
Korn Ferry shows resilient profitability with double‑digit operating margins and a very strong, low‑leverage balance sheet, despite a small revenue decline. However, weak cash conversion and a large EPS increase that outpaces net income growth raise quality-of-earnings questions in a cyclical industry. Maintain a neutral stance until organic growth and free cash flow improve.
Why Buy Korn Ferry Stock? KFY Key Strengths
- Fortress balance sheet with minimal leverage (0.20x debt-to-equity) and $938.4M cash position providing substantial financial flexibility
- Exceptional liquidity and interest coverage (2.01x current ratio, 159.4x interest coverage) eliminating financial distress risk
- Solid profitability with 12.6% operating margin and 9.4% net margin demonstrating operational efficiency
- Strong net income growth (+1.3% YoY) offsetting revenue decline, indicating cost discipline
- Healthy operating and net margins despite slight revenue decline
- Robust liquidity and net cash position with low leverage
- Exceptional interest coverage indicating minimal financing risk
KFY Stock Risks: Korn Ferry Investment Risks
- Revenue declining 1.2% YoY signals weakness in labor staffing markets and potential market share loss or cyclical headwinds
- Free cash flow of only $52.4M significantly lags net income of $204.3M (76% gap), suggesting cash conversion issues or working capital pressures
- Employment services sector is inherently cyclical and economically sensitive, vulnerable to labor market contractions
- Modest ROE of 10.2% provides limited return on equity capital despite strong balance sheet
- Revenue contraction and macro/cycle sensitivity in employment services
- Weak free cash flow margin and poor earnings-to-cash conversion
- EPS growth likely influenced by buybacks or nonrecurring items
Key Metrics to Watch
- Revenue growth trajectory and stabilization in subsequent quarters
- Free cash flow to net income conversion ratio to assess earnings quality
- Operating margin maintenance amid potential cost pressures and revenue volatility
- Organic revenue growth (YoY)
- Free cash flow margin and OCF/Net income conversion
Korn Ferry (KFY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.4% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.01x current ratio provides a solid financial cushion.
KFY Profit Margin, ROE & Profitability Analysis
KFY vs Services Sector: How Korn Ferry Compares
How Korn Ferry compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Korn Ferry Stock Overvalued? KFY Valuation Analysis 2026
Based on fundamental analysis, Korn Ferry has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Korn Ferry Balance Sheet: KFY Debt, Cash & Liquidity
KFY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Korn Ferry's revenue has grown significantly by 45% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.95 reflects profitable operations.
KFY Revenue Growth, EPS Growth & YoY Performance
KFY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $676.5M | $58.4M | $1.10 |
| Q2 2026 | $682.0M | $60.8M | $1.14 |
| Q1 2026 | $682.8M | $62.6M | $1.17 |
| Q3 2025 | $676.5M | $58.4M | $1.10 |
| Q2 2025 | $682.0M | -$1.7M | $-0.04 |
| Q1 2025 | $682.8M | $46.6M | $0.89 |
| Q3 2024 | $676.9M | $11.2M | $0.21 |
| Q2 2024 | $712.4M | -$1.7M | $-0.04 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Korn Ferry Dividends, Buybacks & Capital Allocation
KFY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Korn Ferry (CIK: 0000056679)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KFY
What is the AI rating for KFY?
Korn Ferry (KFY) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 71% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KFY's key strengths?
Claude: Fortress balance sheet with minimal leverage (0.20x debt-to-equity) and $938.4M cash position providing substantial financial flexibility. Exceptional liquidity and interest coverage (2.01x current ratio, 159.4x interest coverage) eliminating financial distress risk. ChatGPT: Healthy operating and net margins despite slight revenue decline. Robust liquidity and net cash position with low leverage.
What are the risks of investing in KFY?
Claude: Revenue declining 1.2% YoY signals weakness in labor staffing markets and potential market share loss or cyclical headwinds. Free cash flow of only $52.4M significantly lags net income of $204.3M (76% gap), suggesting cash conversion issues or working capital pressures. ChatGPT: Revenue contraction and macro/cycle sensitivity in employment services. Weak free cash flow margin and poor earnings-to-cash conversion.
What is KFY's revenue and growth?
Korn Ferry reported revenue of $2.2B.
Does KFY pay dividends?
Korn Ferry pays dividends, with $76.4M distributed to shareholders in the trailing twelve months.
Where can I find KFY SEC filings?
Official SEC filings for Korn Ferry (CIK: 0000056679) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KFY's EPS?
Korn Ferry has a diluted EPS of $3.84.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is KFY a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Korn Ferry has a HOLD rating with 71% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is KFY stock overvalued or undervalued?
Valuation metrics for KFY: ROE of 10.2% (sector avg: 16%), net margin of 9.4% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy KFY stock in 2026?
Our dual AI analysis gives Korn Ferry a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KFY's free cash flow?
Korn Ferry's operating cash flow is $117.5M, with capital expenditures of $65.1M. FCF margin is 2.4%.
How does KFY compare to other Services stocks?
Vs Services sector averages: Net margin 9.4% (avg: 10%), ROE 10.2% (avg: 16%), current ratio 2.01 (avg: 1.5).