Korn FerryKFY · NYSE

Why the market may be pricing it low

• The company itself says there are no extensive barriers to entry and new recruiting firms keep entering the market.

  There are no extensive barriers to entry into the executive search industry and new recruiting firms continue to enter the market.Risk factors

• It warns that freelancing platform sites could let clients handle hiring themselves, hurting demand for its services.

  companies may turn to such sites for their talent needs, which could negatively impact demand for the services we offerRisk factors

What could close the gap

• An August 19, 2026 8-K disclosed a material definitive agreement and a new direct financial obligation.

  2026-08-19 Item 1.01,2.03,8.01,9.018-K filings

• A September 1, 2026 8-K disclosed completion of an asset acquisition or disposition along with an unregistered securities sale.

  2026-09-01 Item 2.01,3.02,7.01,9.018-K filings

• A March 6, 2026 8-K disclosed an officer or director departure or appointment.

  2026-03-06 Item 5.02,9.018-K filings

How a buyer could still lose (value trap)

• The $384.7 million operating profit rests on cyclical hiring-driven executive search revenue, which could shrink quickly if hiring cools.

  Based on the figures below

• Even its Digital segment faces competition from independent HR software vendors and large enterprise platforms, which could erode revenue stickiness.

  A broad range of HR technology companies compete in this space, including independent software vendors and enterprise HR platform providers.MD&A

Financial quality (Piotroski F-score)

• ✓Profitable (ROA > 0)
• ✓Positive operating cash flow
• ✓ROA up on last year
• ✓Cash flow exceeds net profit
• ✓Leverage down on last year
• ✓Current ratio up on last year
• ✓No new shares issued
• –Gross margin up on last yearno data
• –Asset turnover up on last yearno data

Scored out of the checks with data, scaled to 9. Compares the latest year with the year before.

Figures

Sales

$1.8bn

Operating profit

$385m

Net profit

$280m

Operating cash flow

$404m

Cash

$816m

Debt

$425m

Equity

$2.0bn

Latest twelve months to 2026-07-31; F-score for the fiscal year to 2026-04-30