KORN FERRY (KFY) Stock Fundamental Analysis
NYSE:KFY • US5006432000
61.23 USD
+1.06 (+1.76%)
At close: Feb 13, 2026
61.23 USD
0 (0%)
After Hours: 2/13/2026, 8:20:52 PM
We assign a fundamental rating of 7 out of 10 to KFY. KFY was compared to 88 industry peers in the Professional Services industry. Both the health and profitability get an excellent rating, making KFY a very profitable company, without any liquidiy or solvency issues. KFY has a correct valuation and a medium growth rate. KFY also has an excellent dividend rating. These ratings would make KFY suitable for dividend investing!
1. Profitability
1.1 Basic Checks
- KFY had positive earnings in the past year.
- KFY had a positive operating cash flow in the past year.
- Each year in the past 5 years KFY has been profitable.
- Each year in the past 5 years KFY had a positive operating cash flow.
1.2 Ratios
- KFY has a better Return On Assets (6.94%) than 69.32% of its industry peers.
- The Return On Equity of KFY (13.30%) is better than 62.50% of its industry peers.
- The Return On Invested Capital of KFY (9.51%) is better than 65.91% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for KFY is below the industry average of 12.59%.
- 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.
- KFY's Operating Margin of 13.24% is fine compared to the rest of the industry. KFY outperforms 73.86% of its industry peers.
- In the last couple of years the Operating Margin of KFY has grown nicely.
- Looking at the Gross Margin, with a value of 88.04%, KFY belongs to the top of the industry, outperforming 97.73% of the companies in the same industry.
- In the last couple of years the Gross Margin of KFY has remained more or less at the same level.
| 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. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), KFY is creating some value.
- Compared to 1 year ago, KFY has less shares outstanding
- The number of shares outstanding for KFY has been reduced compared to 5 years ago.
- Compared to 1 year ago, KFY has an improved debt to assets ratio.
2.2 Solvency
- KFY has an Altman-Z score of 3.08. This indicates that KFY is financially healthy and has little risk of bankruptcy at the moment.
- KFY has a Altman-Z score of 3.08. This is in the better half of the industry: KFY outperforms 61.36% of its industry peers.
- The Debt to FCF ratio of KFY is 1.46, which is an excellent value as it means it would take KFY, only 1.46 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 1.46, KFY is doing good in the industry, outperforming 72.73% of the companies in the same industry.
- KFY has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
- KFY has a Debt to Equity ratio (0.20) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.46 | ||
| Altman-Z | 3.08 |
ROIC/WACC1.15
WACC8.24%
2.3 Liquidity
- A Current Ratio of 2.14 indicates that KFY has no problem at all paying its short term obligations.
- KFY's Current ratio of 2.14 is fine compared to the rest of the industry. KFY outperforms 77.27% of its industry peers.
- KFY has a Quick Ratio of 2.14. This indicates that KFY is financially healthy and has no problem in meeting its short term obligations.
- KFY's Quick ratio of 2.14 is fine compared to the rest of the industry. KFY outperforms 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.14 | ||
| Quick Ratio | 2.14 |
3. Growth
3.1 Past
- KFY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.11%, which is quite good.
- The Earnings Per Share has been growing by 10.91% on average over the past years. This is quite good.
- KFY shows a small growth in Revenue. In the last year, the Revenue has grown by 3.65%.
- 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
- KFY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.62% yearly.
- Based on estimates for the next years, KFY will show a small growth in Revenue. The Revenue will grow by 4.87% on average per year.
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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 11.89, the valuation of KFY can be described as very reasonable.
- Based on the Price/Earnings ratio, KFY is valued a bit cheaper than the industry average as 77.27% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of KFY to the average of the S&P500 Index (27.19), we can say KFY is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 10.58, the valuation of KFY can be described as reasonable.
- 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.
- When comparing the Price/Forward Earnings ratio of KFY to the average of the S&P500 Index (28.06), we can say KFY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.89 | ||
| Fwd PE | 10.58 |
4.2 Price Multiples
- 87.50% of the companies in the same industry are more expensive than KFY, based on the Enterprise Value to EBITDA ratio.
- 79.55% 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 | 11.72 | ||
| EV/EBITDA | 5.84 |
4.3 Compensation for Growth
- KFY's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- KFY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.48
PEG (5Y)1.09
EPS Next 2Y8.7%
EPS Next 3Y9.62%
5. Dividend
5.1 Amount
- KFY has a Yearly Dividend Yield of 3.19%.
- Compared to an average industry Dividend Yield of 1.59, KFY pays a better dividend. On top of this KFY pays more dividend than 88.64% 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 | 3.19% |
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
- KFY pays out 37.03% of its income as dividend. This is a 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%
61.23
+1.06 (+1.76%)
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 Change0.29%
Ins Owners0.7%
Ins Owner Change-1.6%
Market Cap3.20B
Revenue(TTM)2.84B
Net Income(TTM)258.50M
Analysts82.22
Price Target81.86 (33.69%)
Short Float %2.07%
Short Ratio2.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.19% |
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 | 11.89 | ||
| Fwd PE | 10.58 | ||
| P/S | 1.12 | ||
| P/FCF | 11.72 | ||
| P/OCF | 9.04 | ||
| P/B | 1.64 | ||
| P/tB | 3.41 | ||
| EV/EBITDA | 5.84 |
EPS(TTM)5.15
EY8.41%
EPS(NY)5.79
Fwd EY9.46%
FCF(TTM)5.22
FCFY8.53%
OCF(TTM)6.78
OCFY11.07%
SpS54.45
BVpS37.25
TBVpS17.97
PEG (NY)1.48
PEG (5Y)1.09
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 | 3.08 |
F-Score7
WACC8.24%
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.