Stock analysis · Bull Rankings model

KFY analysis

Korn FerryStaffing & Employment Services. Scored on the same transparent model behind the daily rankings.

KFY
Korn Ferry · Staffing & Employment Services
FCF$324mC
Rev+6.4%C+
D/E0.30A-
P/E16.3xA-
PEG1.20B+
71.7Score
$85.06$4.4B
1Y Target$81.00Analyst consensus · 4 analysts
5Y Target$118.59Compound horizon
10Y Target$175.92Long-dated conviction
FCF$324mTTM
C
FCF $324m — modest; watch for margin expansion
Rev+6.4%TTM YoY
C+
Revenue +6.4% — steady but below market-beating range
D/E0.30
A-
D/E 0.30 — less debt than most Industrials peers (≈25th pctile)
P/E16.3x
A-
P/E 16.3 — cheaper than most Industrials peers (≈25th pctile)
PEG1.20
B+
PEG 1.20 — near fair value, classic Lynch benchmark (1.0)

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 71.7
Quality76.6
Growth68.2
Value70.6
Why this score
  • Buying back stock
  • Raising its dividend
Entry · Margin of safety
52-week rangeNear 52-week high
1% off the 12-month high
vs DCF fair value8% belowest. fair value ~$92
What the price assumes: free cash flow compounding at ~4% a year for the next decade — vs the ~9% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability70% · Agross profit ÷ total assets (Novy-Marx)
ROIC12.3% · B+return on invested capital — not score-weighted

Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.

Why now
Korn Ferry’s Korn Ferry Architect platform is locking in multi‑year talent‑planning contracts that drive recurring revenue, and the business is delivering 6.4% revenue growth alongside a healthy 9.6% profit margin and $324 m free cash flow. With a modest PE of 16 and a market cap of $4.3 bn, the stock is priced for a 4% annual FCF expansion that the company’s growth engine can comfortably exceed, making the compounding of cash flow the core catalyst for upside.
Moat
The Architect and Assess suites embed deep analytics into client HR workflows, creating high switching costs because organizations must re‑engineer talent architecture to move providers. Korn Ferry’s integrated consulting model leverages these platforms to upsell across its talent‑strategy services, turning each client into a multi‑segment revenue source that competitors can’t replicate quickly.
Risk
The growth story hinges on sustaining >6% top‑line expansion; a slowdown to the 4% FCF growth baked into the reverse‑DCF would crush the valuation, especially as the stock trades at a PE of 16 despite a modest beta of 1.2. A miss on revenue growth or margin pressure would trigger a sell‑off, confirming the bear case if the 52‑week low of $58.95 is revisited.
Horizon
1-3 yr $81.00 (4-analyst consensus) — fundamentals + valuation re-rating. 5 yr $118.59 at ~7% CAGR — compounding case rests on the competitive position widening. 10 yr $175.92 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.

KFY vs the Top Picks average

PillarKFYBook avgDiff
Quality0.770.84-0.07
Growth0.680.84-0.16
Value0.710.78-0.08

Averaged across the 30 names in today's Top Picks (mean score 81.5). A name can beat these averages and still be absent from the book — it also applies concentration limits.

Trend
+8.5 over 45 daily scores
From 63.2 (Jun 22) → 71.7 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Analyst estimate revisions

30-day change+0.0%
90-day change+9.7%
Forward EPS estimate$6.32

Over the last 90 days, what analysts expect KFY to earn is materially higher (+9.7%). The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.

A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →

Shares to buy
23
Position size
$1,956
3.9% of portfolio
Stop price
$63.80
25% below $85.06
$ at risk if stopped
$489.10
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Korn Ferry (KFY): score, valuation & FAQ

Korn Ferry (KFY) is a Staffing & Employment Services company that scores 71.7 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are D/E (A-), P/E (A-) and PEG (B+). On valuation, KFY sits about 8% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 4% annual free-cash-flow growth over the next decade.

Is KFY a good stock to buy?

Bull Rankings scores KFY 71.7 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by D/E (A-), P/E (A-) and PEG (B+). A score is a quantitative screen of Korn Ferry's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does KFY score 71.7 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). KFY earns its highest marks on D/E (A-), P/E (A-) and PEG (B+). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is KFY overvalued or undervalued?

Based on $85.06, KFY sits about 8% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 4% annual free-cash-flow growth over the next decade. It trades at a 16.3x P/E (graded A-). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in KFY?

The growth story hinges on sustaining >6% top‑line expansion; a slowdown to the 4% FCF growth baked into the reverse‑DCF would crush the valuation, especially as the stock trades at a PE of 16 despite a modest beta of 1.2. A miss on revenue growth or margin pressure would trigger a sell‑off, confirming the bear case if the 52‑week low of $58.95 is revisited.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial advisor.

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