📊 KFY Key Takeaways
Is Korn Ferry (KFY) a Good Investment?
Korn Ferry demonstrates strong fundamental financial health with excellent balance sheet strength (0.20x debt/equity), robust free cash flow generation ($324.3M), and solid interest coverage. However, earnings growth (+1.2% YoY) significantly lags revenue growth (+6.4% YoY), indicating margin compression that warrants caution in this cyclical employment services sector.
Korn Ferry combines moderate revenue growth with solid operating profitability, strong free-cash-flow generation, and a highly liquid balance sheet. Fundamentals support a positive assessment, although modest net-income growth relative to revenue and the cyclical nature of employment services temper conviction.
Korn Ferry Key Strengths (KFY)
- Fortress balance sheet with minimal leverage and $1.1B cash position
- Strong free cash flow generation ($324.3M) with 11% FCF margin
- Exceptional interest coverage ratio of 218.6x provides significant financial flexibility
- Healthy liquidity metrics (1.94x current ratio) and operational efficiency
- Revenue grew 6.4% while diluted EPS increased 13.5%
- Free cash flow reached $324.29M with an 11.0% margin
- Cash substantially exceeds long-term debt, with low 0.20x debt-to-equity and exceptional interest coverage
KFY Stock Risks: Korn Ferry Investment Risks
- Operating margin compression despite revenue growth signals deteriorating pricing power or rising costs
- Earnings growth significantly underperforming revenue growth suggests operational challenges
- Cyclical exposure in employment services sector creates vulnerability in economic downturns
- Disconnect between 6.4% revenue growth and 1.2% net income growth requires investigation
- Net income grew only 1.2%, trailing revenue growth and indicating pressure below the operating line
- Demand for recruitment and consulting services is sensitive to hiring cycles and economic conditions
- Gross-profit and gross-margin data are unavailable, limiting visibility into underlying service-delivery economics
Key Metrics to Watch
- Gross margin trends and operating expense ratios to diagnose margin compression cause
- Segment-level profitability and revenue mix shifts
- Free cash flow conversion and capital allocation efficiency
- Operating margin and net-income growth
- Operating cash flow and free-cash-flow margin
Korn Ferry (KFY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Korn Ferry presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
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 11% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.23 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 Grade of A from Claude (A) and ChatGPT (A) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KFY's key strengths?
Claude: Fortress balance sheet with minimal leverage and $1.1B cash position. Strong free cash flow generation ($324.3M) with 11% FCF margin. ChatGPT: Revenue grew 6.4% while diluted EPS increased 13.5%. Free cash flow reached $324.29M with an 11.0% margin.
What are the risks of investing in KFY?
Claude: Operating margin compression despite revenue growth signals deteriorating pricing power or rising costs. Earnings growth significantly underperforming revenue growth suggests operational challenges. ChatGPT: Net income grew only 1.2%, trailing revenue growth and indicating pressure below the operating line. Demand for recruitment and consulting services is sensitive to hiring cycles and economic conditions.
What is KFY's revenue and growth?
Korn Ferry reported revenue of $2.9B.
Does KFY pay dividends?
Korn Ferry pays dividends, with $104.6M 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 $5.22.
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 grade reflects both perspectives for balanced insights.
What is KFY's fundamental grade?
Based on our AI fundamental analysis in August 2026, Korn Ferry has a A grade with 77% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is KFY stock overvalued or undervalued?
Valuation metrics for KFY: ROE of 14.1% (sector avg: 16%), net margin of 9.4% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is KFY's AI grade for 2026?
Our dual AI analysis gives Korn Ferry a combined A grade 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 $414.2M, with capital expenditures of $89.9M. FCF margin is 11.0%.
How does KFY compare to other Services stocks?
Vs Services sector averages: Net margin 9.4% (avg: 10%), ROE 14.1% (avg: 16%), current ratio 1.94 (avg: 1.5).