KFORCE INC (KFRC) Stock Fundamental Analysis
NYSE:KFRC - New York Stock Exchange, Inc. - US4937321010 - Common Stock - Currency: USD
Taking everything into account, KFRC scores 6 out of 10 in our fundamental rating. KFRC was compared to 82 industry peers in the Professional Services industry. While KFRC has a great health rating, its profitability is only average at the moment. KFRC has a valuation in line with the averages, but it does not seem to be growing. Finally KFRC also has an excellent dividend rating. These ratings would make KFRC suitable for dividend investing!
1. Profitability
1.1 Basic Checks
KFRC had positive earnings in the past year.
In the past year KFRC had a positive cash flow from operations.
KFRC had positive earnings in 4 of the past 5 years.
Of the past 5 years KFRC 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.89%, KFRC belongs to the top of the industry, outperforming 91.14% of the companies in the same industry.
KFRC has a Return On Equity of 32.90%. This is amongst the best in the industry. KFRC outperforms 83.54% of its industry peers.
KFRC has a Return On Invested Capital of 21.76%. This is amongst the best in the industry. KFRC outperforms 86.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KFRC is significantly above the industry average of 13.77%.
The 3 year average ROIC (26.66%) for KFRC is well above the current ROIC(21.76%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.89% | ||
| ROE | 32.9% | ||
| ROIC | 21.76% |
ROA(3y)17.08%
ROA(5y)19.45%
ROE(3y)39.9%
ROE(5y)45.81%
ROIC(3y)26.66%
ROIC(5y)22.81%
1.3 Margins
KFRC has a Profit Margin (3.86%) which is comparable to the rest of the industry.
KFRC's Profit Margin has declined in the last couple of years.
KFRC's Operating Margin of 5.33% is in line compared to the rest of the industry. KFRC outperforms 44.30% of its industry peers.
In the last couple of years the Operating Margin of KFRC has remained more or less at the same level.
Looking at the Gross Margin, with a value of 27.52%, KFRC is doing worse than 69.62% of the companies in the same industry.
In the last couple of years the Gross Margin of KFRC has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.33% | ||
| PM (TTM) | 3.86% | ||
| GM | 27.52% |
OM growth 3Y-0.33%
OM growth 5Y0.48%
PM growth 3Y-0.16%
PM growth 5Y-2.16%
GM growth 3Y-0.55%
GM growth 5Y-1.22%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so KFRC is creating value.
KFRC has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
KFRC has an Altman-Z score of 10.05. This indicates that KFRC is financially healthy and has little risk of bankruptcy at the moment.
KFRC has a Altman-Z score of 10.05. This is amongst the best in the industry. KFRC outperforms 98.73% of its industry peers.
KFRC has a debt to FCF ratio of 0.35. This is a very positive value and a sign of high solvency as it would only need 0.35 years to pay back of all of its debts.
KFRC has a Debt to FCF ratio of 0.35. This is amongst the best in the industry. KFRC outperforms 84.81% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that KFRC is not too dependend on debt financing.
KFRC has a Debt to Equity ratio of 0.16. This is in the better half of the industry: KFRC outperforms 64.56% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.35 | ||
| Altman-Z | 10.05 |
ROIC/WACC2.38
WACC9.15%
2.3 Liquidity
A Current Ratio of 2.06 indicates that KFRC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.06, KFRC is in the better half of the industry, outperforming 75.95% of the companies in the same industry.
A Quick Ratio of 2.06 indicates that KFRC has no problem at all paying its short term obligations.
KFRC has a better Quick ratio (2.06) than 75.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 2.06 |
3. Growth
3.1 Past
The earnings per share for KFRC have decreased strongly by -23.21% in the last year.
Measured over the past 5 years, KFRC shows a small growth in Earnings Per Share. The EPS has been growing by 2.40% on average per year.
EPS 1Y (TTM)-23.21%
EPS 3Y-9.03%
EPS 5Y2.4%
EPS Q2Q%-26.83%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-5.41%
3.2 Future
KFRC is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.87% yearly.
KFRC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.06% yearly.
EPS Next Y8.09%
EPS Next 2Y15.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-0.91%
Revenue Next 2Y3.06%
Revenue Next 3YN/A
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
KFRC is valuated rather expensively with a Price/Earnings ratio of 20.26.
KFRC's Price/Earnings ratio is a bit cheaper when compared to the industry. KFRC is cheaper than 60.76% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.47, KFRC is valued a bit cheaper.
A Price/Forward Earnings ratio of 18.74 indicates a rather expensive valuation of KFRC.
The rest of the industry has a similar Price/Forward Earnings ratio as KFRC.
KFRC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.26 | ||
| Fwd PE | 18.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KFRC is valued a bit cheaper than 62.03% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KFRC is valued cheaper than 84.81% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.41 | ||
| EV/EBITDA | 13.03 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
KFRC has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as KFRC's earnings are expected to grow with 15.87% in the coming years.
PEG (NY)2.5
PEG (5Y)8.43
EPS Next 2Y15.87%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.90%, KFRC has a reasonable but not impressive dividend return.
KFRC's Dividend Yield is rather good when compared to the industry average which is at 1.82. KFRC pays more dividend than 94.94% of the companies in the same industry.
KFRC's Dividend Yield is a higher than the S&P500 average which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
5.2 History
The dividend of KFRC is nicely growing with an annual growth rate of 19.62%!
KFRC has paid a dividend for at least 10 years, which is a reliable track record.
KFRC has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)19.62%
Div Incr Years7
Div Non Decr Years11
5.3 Sustainability
KFRC pays out 50.93% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of KFRC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP50.93%
EPS Next 2Y15.87%
EPS Next 3YN/A
KFORCE INC
NYSE:KFRC (2/4/2025, 8:04:00 PM)
After market: 54.3 0 (0%)54.3
+0.55 (+1.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners91.63%
Inst Owner Change-2.76%
Ins Owners4.37%
Ins Owner Change4.47%
Market Cap1.04B
Analysts78.33
Price Target66.05 (21.64%)
Short Float %4.48%
Short Ratio8.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
Yearly Dividend1.38
Dividend Growth(5Y)19.62%
DP50.93%
Div Incr Years7
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.75%
Min EPS beat(2)1.19%
Max EPS beat(2)6.31%
EPS beat(4)3
Avg EPS beat(4)1.88%
Min EPS beat(4)-2.24%
Max EPS beat(4)6.31%
EPS beat(8)4
Avg EPS beat(8)1.88%
EPS beat(12)7
Avg EPS beat(12)3.47%
EPS beat(16)10
Avg EPS beat(16)4.12%
Revenue beat(2)0
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-1.9%
Max Revenue beat(2)-1.65%
Revenue beat(4)0
Avg Revenue beat(4)-2.07%
Min Revenue beat(4)-2.8%
Max Revenue beat(4)-1.65%
Revenue beat(8)1
Avg Revenue beat(8)-2.01%
Revenue beat(12)3
Avg Revenue beat(12)-1.55%
Revenue beat(16)6
Avg Revenue beat(16)-1.01%
PT rev (1m)0%
PT rev (3m)-5.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-28.77%
EPS NY rev (1m)0%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.26 | ||
| Fwd PE | 18.74 | ||
| P/S | 0.73 | ||
| P/FCF | 13.41 | ||
| P/OCF | 11.85 | ||
| P/B | 6.19 | ||
| P/tB | 8.8 | ||
| EV/EBITDA | 13.03 |
EPS(TTM)2.68
EY4.94%
EPS(NY)2.9
Fwd EY5.33%
FCF(TTM)4.05
FCFY7.46%
OCF(TTM)4.58
OCFY8.44%
SpS74.68
BVpS8.77
TBVpS6.17
PEG (NY)2.5
PEG (5Y)8.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.89% | ||
| ROE | 32.9% | ||
| ROCE | 29.96% | ||
| ROIC | 21.76% | ||
| ROICexc | 21.77% | ||
| ROICexgc | 27.09% | ||
| OM | 5.33% | ||
| PM (TTM) | 3.86% | ||
| GM | 27.52% | ||
| FCFM | 5.42% |
ROA(3y)17.08%
ROA(5y)19.45%
ROE(3y)39.9%
ROE(5y)45.81%
ROIC(3y)26.66%
ROIC(5y)22.81%
ROICexc(3y)29.63%
ROICexc(5y)26.08%
ROICexgc(3y)35.3%
ROICexgc(5y)30.74%
ROCE(3y)36.7%
ROCE(5y)31.4%
ROICexcg growth 3Y5.27%
ROICexcg growth 5Y7.92%
ROICexc growth 3Y4.4%
ROICexc growth 5Y6.44%
OM growth 3Y-0.33%
OM growth 5Y0.48%
PM growth 3Y-0.16%
PM growth 5Y-2.16%
GM growth 3Y-0.55%
GM growth 5Y-1.22%
F-Score5
Asset Turnover3.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.35 | ||
| Debt/EBITDA | 0.33 | ||
| Cap/Depr | 180.12% | ||
| Cap/Sales | 0.71% | ||
| Interest Coverage | 40.96 | ||
| Cash Conversion | 107.25% | ||
| Profit Quality | 140.34% | ||
| Current Ratio | 2.06 | ||
| Quick Ratio | 2.06 | ||
| Altman-Z | 10.05 |
F-Score5
WACC9.15%
ROIC/WACC2.38
Cap/Depr(3y)160.4%
Cap/Depr(5y)152.77%
Cap/Sales(3y)0.46%
Cap/Sales(5y)0.52%
Profit Quality(3y)111.72%
Profit Quality(5y)112.3%
High Growth Momentum
Growth
EPS 1Y (TTM)-23.21%
EPS 3Y-9.03%
EPS 5Y2.4%
EPS Q2Q%-26.83%
EPS Next Y8.09%
EPS Next 2Y15.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%-5.41%
Revenue Next Year-0.91%
Revenue Next 2Y3.06%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-15.01%
EBIT growth 3Y2.75%
EBIT growth 5Y3.77%
EBIT Next Year-3.54%
EBIT Next 3Y4.34%
EBIT Next 5YN/A
FCF growth 1Y-9.08%
FCF growth 3Y-6.59%
FCF growth 5Y0.29%
OCF growth 1Y-4.01%
OCF growth 3Y-5.74%
OCF growth 5Y0.84%