KORN FERRY (KFY) Fundamental Analysis & Valuation
NYSE:KFY • US5006432000
63.15 USD
+0.68 (+1.09%)
Last: Mar 4, 2026, 03:32 PM
This KFY fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Taking everything into account, KFY scores 7 out of 10 in our fundamental rating. KFY was compared to 88 industry peers in the Professional Services industry. KFY scores excellent points on both the profitability and health parts. This is a solid base for a good stock. KFY has a correct valuation and a medium growth rate. Finally KFY also has an excellent dividend rating. With these ratings, KFY could be worth investigating further for dividend investing!.
1. KFY Profitability Analysis
1.1 Basic Checks
- In the past year KFY was profitable.
- In the past year KFY had a positive cash flow from operations.
- In the past 5 years KFY has always been profitable.
- Each year in the past 5 years KFY had a positive operating cash flow.
1.2 Ratios
- KFY has a Return On Assets of 6.94%. This is in the better half of the industry: KFY outperforms 70.45% of its industry peers.
- KFY's Return On Equity of 13.30% is fine compared to the rest of the industry. KFY outperforms 63.64% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 9.51%, KFY is in the better half of the industry, outperforming 65.91% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for KFY is below the industry average of 12.78%.
- The 3 year average ROIC (9.27%) for KFY is below the current ROIC(9.51%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.94% | ||
| ROE | 13.3% | ||
| ROIC | 9.51% |
ROA(3y)5.51%
ROA(5y)5.88%
ROE(3y)11.68%
ROE(5y)12.77%
ROIC(3y)9.27%
ROIC(5y)9.69%
1.3 Margins
- KFY has a better Profit Margin (9.10%) than 73.86% of its industry peers.
- In the last couple of years the Profit Margin of KFY has grown nicely.
- With a decent Operating Margin value of 13.24%, KFY is doing good in the industry, outperforming 75.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of KFY has grown nicely.
- KFY's Gross Margin of 88.04% is amongst the best of the industry. KFY outperforms 97.73% of its industry peers.
- KFY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.24% | ||
| PM (TTM) | 9.1% | ||
| GM | 88.04% |
OM growth 3Y-10.91%
OM growth 5Y1.62%
PM growth 3Y-10.01%
PM growth 5Y10.87%
GM growth 3Y-2.33%
GM growth 5Y-1.06%
2. KFY Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so KFY is still creating some value.
- Compared to 1 year ago, KFY has less shares outstanding
- Compared to 5 years ago, KFY has less shares outstanding
- KFY has a better debt/assets ratio than last year.
2.2 Solvency
- KFY has an Altman-Z score of 3.10. This indicates that KFY is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of KFY (3.10) is better than 61.36% of its industry peers.
- KFY has a debt to FCF ratio of 1.46. This is a very positive value and a sign of high solvency as it would only need 1.46 years to pay back of all of its debts.
- KFY has a better Debt to FCF ratio (1.46) than 71.59% of its industry peers.
- A Debt/Equity ratio of 0.20 indicates that KFY is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.20, KFY perfoms like the industry average, outperforming 57.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.46 | ||
| Altman-Z | 3.1 |
ROIC/WACC1.15
WACC8.26%
2.3 Liquidity
- KFY has a Current Ratio of 2.14. This indicates that KFY is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Current ratio, with a value of 2.14, KFY is in the better half of the industry, outperforming 76.14% of the companies in the same industry.
- A Quick Ratio of 2.14 indicates that KFY has no problem at all paying its short term obligations.
- KFY has a better Quick ratio (2.14) than 76.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.14 | ||
| Quick Ratio | 2.14 |
3. KFY Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 9.11% over the past year.
- KFY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.91% yearly.
- The Revenue has been growing slightly by 3.65% in the past year.
- The Revenue has been growing slightly by 6.91% on average over the past years.
EPS 1Y (TTM)9.11%
EPS 3Y-7.74%
EPS 5Y10.91%
EPS Q2Q%9.92%
Revenue 1Y (TTM)3.65%
Revenue growth 3Y1.46%
Revenue growth 5Y6.91%
Sales Q2Q%7.02%
3.2 Future
- The Earnings Per Share is expected to grow by 9.62% on average over the next years. This is quite good.
- KFY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.87% yearly.
EPS Next Y8.01%
EPS Next 2Y8.7%
EPS Next 3Y9.62%
EPS Next 5YN/A
Revenue Next Year5.41%
Revenue Next 2Y4.78%
Revenue Next 3Y4.87%
Revenue Next 5YN/A
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. KFY Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 12.26, the valuation of KFY can be described as correct.
- 76.14% of the companies in the same industry are more expensive than KFY, based on the Price/Earnings ratio.
- Compared to an average S&P500 Price/Earnings ratio of 26.83, KFY is valued rather cheaply.
- A Price/Forward Earnings ratio of 10.91 indicates a reasonable valuation of KFY.
- Based on the Price/Forward Earnings ratio, KFY is valued a bit cheaper than the industry average as 76.14% of the companies are valued more expensively.
- KFY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.26 | ||
| Fwd PE | 10.91 |
4.2 Price Multiples
- KFY's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KFY is cheaper than 89.77% of the companies in the same industry.
- 76.14% of the companies in the same industry are more expensive than KFY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.09 | ||
| EV/EBITDA | 5.98 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of KFY may justify a higher PE ratio.
PEG (NY)1.53
PEG (5Y)1.12
EPS Next 2Y8.7%
EPS Next 3Y9.62%
5. KFY Dividend Analysis
5.1 Amount
- KFY has a Yearly Dividend Yield of 3.05%.
- Compared to an average industry Dividend Yield of 1.64, KFY pays a better dividend. On top of this KFY pays more dividend than 86.36% of the companies listed in the same industry.
- KFY's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
5.2 History
- On average, the dividend of KFY grows each year by 31.50%, which is quite nice.
- KFY has been paying a dividend for at least 10 years, so it has a reliable track record.
- As KFY did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)31.5%
Div Incr Years4
Div Non Decr Years9
5.3 Sustainability
- 37.03% of the earnings are spent on dividend by KFY. This is a low number and sustainable payout ratio.
- The dividend of KFY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP37.03%
EPS Next 2Y8.7%
EPS Next 3Y9.62%
KFY Fundamentals: All Metrics, Ratios and Statistics
NYSE:KFY (3/4/2026, 3:32:50 PM)
63.15
+0.68 (+1.09%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)12-09 2025-12-09/bmo
Earnings (Next)03-11 2026-03-11/bmo
Inst Owners100.21%
Inst Owner Change-0.6%
Ins Owners0.7%
Ins Owner Change-1.6%
Market Cap3.30B
Revenue(TTM)2.84B
Net Income(TTM)258.50M
Analysts82.22
Price Target81.86 (29.63%)
Short Float %2.82%
Short Ratio3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.05% |
Yearly Dividend1.62
Dividend Growth(5Y)31.5%
DP37.03%
Div Incr Years4
Div Non Decr Years9
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.65%
Min EPS beat(2)0.37%
Max EPS beat(2)4.94%
EPS beat(4)4
Avg EPS beat(4)3.37%
Min EPS beat(4)0.37%
Max EPS beat(4)4.94%
EPS beat(8)7
Avg EPS beat(8)4.3%
EPS beat(12)10
Avg EPS beat(12)4.27%
EPS beat(16)13
Avg EPS beat(16)4.21%
Revenue beat(2)2
Avg Revenue beat(2)1.51%
Min Revenue beat(2)1.22%
Max Revenue beat(2)1.79%
Revenue beat(4)4
Avg Revenue beat(4)1.75%
Min Revenue beat(4)1.22%
Max Revenue beat(4)2.19%
Revenue beat(8)6
Avg Revenue beat(8)0.74%
Revenue beat(12)10
Avg Revenue beat(12)1.07%
Revenue beat(16)13
Avg Revenue beat(16)1.68%
PT rev (1m)0%
PT rev (3m)-4.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.15%
EPS NY rev (1m)0%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.26 | ||
| Fwd PE | 10.91 | ||
| P/S | 1.16 | ||
| P/FCF | 12.09 | ||
| P/OCF | 9.32 | ||
| P/B | 1.7 | ||
| P/tB | 3.51 | ||
| EV/EBITDA | 5.98 |
EPS(TTM)5.15
EY8.16%
EPS(NY)5.79
Fwd EY9.17%
FCF(TTM)5.22
FCFY8.27%
OCF(TTM)6.78
OCFY10.73%
SpS54.45
BVpS37.25
TBVpS17.97
PEG (NY)1.53
PEG (5Y)1.12
Graham Number65.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.94% | ||
| ROE | 13.3% | ||
| ROCE | 12.65% | ||
| ROIC | 9.51% | ||
| ROICexc | 13.01% | ||
| ROICexgc | 24.24% | ||
| OM | 13.24% | ||
| PM (TTM) | 9.1% | ||
| GM | 88.04% | ||
| FCFM | 9.59% |
ROA(3y)5.51%
ROA(5y)5.88%
ROE(3y)11.68%
ROE(5y)12.77%
ROIC(3y)9.27%
ROIC(5y)9.69%
ROICexc(3y)14.32%
ROICexc(5y)15.61%
ROICexgc(3y)33.58%
ROICexgc(5y)35.79%
ROCE(3y)12.34%
ROCE(5y)12.9%
ROICexgc growth 3Y-17.99%
ROICexgc growth 5Y3.52%
ROICexc growth 3Y-16.94%
ROICexc growth 5Y2.44%
OM growth 3Y-10.91%
OM growth 5Y1.62%
PM growth 3Y-10.01%
PM growth 5Y10.87%
GM growth 3Y-2.33%
GM growth 5Y-1.06%
F-Score7
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.46 | ||
| Debt/EBITDA | 0.84 | ||
| Cap/Depr | 85.04% | ||
| Cap/Sales | 2.85% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 75% | ||
| Profit Quality | 105.44% | ||
| Current Ratio | 2.14 | ||
| Quick Ratio | 2.14 | ||
| Altman-Z | 3.1 |
F-Score7
WACC8.26%
ROIC/WACC1.15
Cap/Depr(3y)83.88%
Cap/Depr(5y)75.95%
Cap/Sales(3y)2.23%
Cap/Sales(5y)2.05%
Profit Quality(3y)131.86%
Profit Quality(5y)146.92%
High Growth Momentum
Growth
EPS 1Y (TTM)9.11%
EPS 3Y-7.74%
EPS 5Y10.91%
EPS Q2Q%9.92%
EPS Next Y8.01%
EPS Next 2Y8.7%
EPS Next 3Y9.62%
EPS Next 5YN/A
Revenue 1Y (TTM)3.65%
Revenue growth 3Y1.46%
Revenue growth 5Y6.91%
Sales Q2Q%7.02%
Revenue Next Year5.41%
Revenue Next 2Y4.78%
Revenue Next 3Y4.87%
Revenue Next 5YN/A
EBIT growth 1Y22.79%
EBIT growth 3Y-9.61%
EBIT growth 5Y8.64%
EBIT Next Year43.39%
EBIT Next 3Y17.35%
EBIT Next 5YN/A
FCF growth 1Y15.66%
FCF growth 3Y-12.61%
FCF growth 5Y9.16%
OCF growth 1Y17.59%
OCF growth 3Y-10.11%
OCF growth 5Y9.05%
KORN FERRY / KFY FAQ
Can you provide the ChartMill fundamental rating for KORN FERRY?
ChartMill assigns a fundamental rating of 7 / 10 to KFY.
What is the valuation status for KFY stock?
ChartMill assigns a valuation rating of 6 / 10 to KORN FERRY (KFY). This can be considered as Fairly Valued.
Can you provide the profitability details for KORN FERRY?
KORN FERRY (KFY) has a profitability rating of 7 / 10.
What is the financial health of KORN FERRY (KFY) stock?
The financial health rating of KORN FERRY (KFY) is 8 / 10.
Can you provide the expected EPS growth for KFY stock?
The Earnings per Share (EPS) of KORN FERRY (KFY) is expected to grow by 8.01% in the next year.