KFORCE INC (KFRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KFRC - US4937321010 - Common Stock
30.66 USD
-0.86 (-2.73%)
30.66 USD
0 (0%)
KFRC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 86 industry peers in the Professional Services industry. KFRC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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 could make KFRC a good candidate for dividend investing.
1. Profitability
1.1 Basic Checks
In the past year KFRC was profitable.
In the past year KFRC had a positive cash flow from operations.
In the past 5 years KFRC has always been profitable.
KFRC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 10.88%, KFRC belongs to the best of the industry, outperforming 85.06% of the companies in the same industry.
With an excellent Return On Equity value of 30.82%, KFRC belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 16.17%, KFRC belongs to the top of the industry, outperforming 83.91% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KFRC is significantly above the industry average of 12.03%.
The 3 year average ROIC (26.18%) for KFRC is well above the current ROIC(16.17%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.88% | ||
| ROE | 30.82% | ||
| ROIC | 16.17% |
ROA(3y)16.79%
ROA(5y)15.4%
ROE(3y)37.46%
ROE(5y)36.68%
ROIC(3y)26.18%
ROIC(5y)23.42%
1.3 Margins
KFRC has a Profit Margin of 3.04%. This is comparable to the rest of the industry: KFRC outperforms 52.87% of its industry peers.
In the last couple of years the Profit Margin of KFRC has declined.
KFRC has a Operating Margin (4.26%) which is in line with its industry peers.
In the last couple of years the Operating Margin of KFRC has declined.
KFRC's Gross Margin of 27.14% is on the low side compared to the rest of the industry. KFRC is outperformed by 64.37% of its industry peers.
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 | 4.26% | ||
| PM (TTM) | 3.04% | ||
| GM | 27.14% |
OM growth 3Y-9.74%
OM growth 5Y-2.22%
PM growth 3Y-9%
PM growth 5Y-18.07%
GM growth 3Y-1.75%
GM growth 5Y-1.32%
2. Health
2.1 Basic Checks
KFRC has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for KFRC has been reduced compared to 1 year ago.
KFRC has less shares outstanding than it did 5 years ago.
The debt/assets ratio for KFRC has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.87 indicates that KFRC is not in any danger for bankruptcy at the moment.
KFRC has a better Altman-Z score (7.87) than 93.10% of its industry peers.
The Debt to FCF ratio of KFRC is 1.23, which is an excellent value as it means it would take KFRC, only 1.23 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.23, KFRC is in the better half of the industry, outperforming 77.01% of the companies in the same industry.
KFRC has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
KFRC has a Debt to Equity ratio (0.49) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 1.23 | ||
| Altman-Z | 7.87 |
ROIC/WACC1.91
WACC8.49%
2.3 Liquidity
KFRC has a Current Ratio of 1.88. This is a normal value and indicates that KFRC is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.88, KFRC is doing good in the industry, outperforming 65.52% of the companies in the same industry.
KFRC has a Quick Ratio of 1.88. This is a normal value and indicates that KFRC is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.88, KFRC is doing good in the industry, outperforming 70.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
KFRC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.72%.
KFRC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.40% yearly.
The Revenue has decreased by -5.91% in the past year.
The Revenue has been growing slightly by 0.85% on average over the past years.
EPS 1Y (TTM)-21.72%
EPS 3Y-9.03%
EPS 5Y2.4%
EPS Q2Q%-16%
Revenue 1Y (TTM)-5.91%
Revenue growth 3Y-3.83%
Revenue growth 5Y0.85%
Sales Q2Q%-5.85%
3.2 Future
Based on estimates for the next years, KFRC will show a small growth in Earnings Per Share. The EPS will grow by 2.32% on average per year.
The Revenue is expected to decrease by -0.47% on average over the next years.
EPS Next Y-19%
EPS Next 2Y-6.4%
EPS Next 3Y2.32%
EPS Next 5YN/A
Revenue Next Year-5.59%
Revenue Next 2Y-3.09%
Revenue Next 3Y-0.47%
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. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.51, which indicates a correct valuation of KFRC.
KFRC's Price/Earnings ratio is a bit cheaper when compared to the industry. KFRC is cheaper than 77.01% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.39, KFRC is valued a bit cheaper.
KFRC is valuated correctly with a Price/Forward Earnings ratio of 13.06.
Based on the Price/Forward Earnings ratio, KFRC is valued a bit cheaper than the industry average as 75.86% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.84, KFRC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.51 | ||
| Fwd PE | 13.06 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KFRC indicates a somewhat cheap valuation: KFRC is cheaper than 78.16% of the companies listed in the same industry.
88.51% of the companies in the same industry are more expensive than KFRC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.52 | ||
| EV/EBITDA | 9.87 |
4.3 Compensation for Growth
KFRC has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.62
EPS Next 2Y-6.4%
EPS Next 3Y2.32%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.95%, KFRC is a good candidate for dividend investing.
KFRC's Dividend Yield is rather good when compared to the industry average which is at 1.52. KFRC pays more dividend than 93.10% of the companies in the same industry.
KFRC's Dividend Yield is rather good when compared to the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.95% |
5.2 History
The dividend of KFRC is nicely growing with an annual growth rate of 16.51%!
KFRC has been paying a dividend for at least 10 years, so it has a reliable track record.
KFRC has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)16.51%
Div Incr Years7
Div Non Decr Years11
5.3 Sustainability
KFRC pays out 68.10% of its income as dividend. This is not a sustainable payout ratio.
The dividend of KFRC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP68.1%
EPS Next 2Y-6.4%
EPS Next 3Y2.32%
30.66
-0.86 (-2.73%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners94.83%
Inst Owner Change-0.95%
Ins Owners4.14%
Ins Owner Change0.37%
Market Cap556.17M
Revenue(TTM)1.34B
Net Income(TTM)40.72M
Analysts78.33
Price Target37.61 (22.67%)
Short Float %5.95%
Short Ratio3.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.95% |
Yearly Dividend1.46
Dividend Growth(5Y)16.51%
DP68.1%
Div Incr Years7
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.27%
Min EPS beat(2)-2.78%
Max EPS beat(2)9.32%
EPS beat(4)1
Avg EPS beat(4)-0.03%
Min EPS beat(4)-5.8%
Max EPS beat(4)9.32%
EPS beat(8)4
Avg EPS beat(8)0.93%
EPS beat(12)5
Avg EPS beat(12)1.24%
EPS beat(16)8
Avg EPS beat(16)2.59%
Revenue beat(2)0
Avg Revenue beat(2)-1.3%
Min Revenue beat(2)-1.93%
Max Revenue beat(2)-0.67%
Revenue beat(4)0
Avg Revenue beat(4)-1.79%
Min Revenue beat(4)-3.08%
Max Revenue beat(4)-0.67%
Revenue beat(8)0
Avg Revenue beat(8)-1.93%
Revenue beat(12)1
Avg Revenue beat(12)-1.93%
Revenue beat(16)3
Avg Revenue beat(16)-1.61%
PT rev (1m)-12.2%
PT rev (3m)-17.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.75%
EPS NY rev (1m)3.07%
EPS NY rev (3m)1.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.69%
Revenue NY rev (1m)0.82%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.51 | ||
| Fwd PE | 13.06 | ||
| P/S | 0.41 | ||
| P/FCF | 10.52 | ||
| P/OCF | 8.73 | ||
| P/B | 4.21 | ||
| P/tB | 9.05 | ||
| EV/EBITDA | 9.87 |
EPS(TTM)2.27
EY7.4%
EPS(NY)2.35
Fwd EY7.66%
FCF(TTM)2.91
FCFY9.5%
OCF(TTM)3.51
OCFY11.46%
SpS73.91
BVpS7.28
TBVpS3.39
PEG (NY)N/A
PEG (5Y)5.62
Graham Number19.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.88% | ||
| ROE | 30.82% | ||
| ROCE | 22.13% | ||
| ROIC | 16.17% | ||
| ROICexc | 16.25% | ||
| ROICexgc | 22.42% | ||
| OM | 4.26% | ||
| PM (TTM) | 3.04% | ||
| GM | 27.14% | ||
| FCFM | 3.94% |
ROA(3y)16.79%
ROA(5y)15.4%
ROE(3y)37.46%
ROE(5y)36.68%
ROIC(3y)26.18%
ROIC(5y)23.42%
ROICexc(3y)26.2%
ROICexc(5y)26.44%
ROICexgc(3y)31.83%
ROICexgc(5y)31.77%
ROCE(3y)35.81%
ROCE(5y)32.03%
ROICexgc growth 3Y-10.92%
ROICexgc growth 5Y3.44%
ROICexc growth 3Y-13.08%
ROICexc growth 5Y1%
OM growth 3Y-9.74%
OM growth 5Y-2.22%
PM growth 3Y-9%
PM growth 5Y-18.07%
GM growth 3Y-1.75%
GM growth 5Y-1.32%
F-Score4
Asset Turnover3.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 1.23 | ||
| Debt/EBITDA | 1.03 | ||
| Cap/Depr | 190.17% | ||
| Cap/Sales | 0.81% | ||
| Interest Coverage | 17.48 | ||
| Cash Conversion | 101.45% | ||
| Profit Quality | 129.8% | ||
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.88 | ||
| Altman-Z | 7.87 |
F-Score4
WACC8.49%
ROIC/WACC1.91
Cap/Depr(3y)155.62%
Cap/Depr(5y)146.34%
Cap/Sales(3y)0.51%
Cap/Sales(5y)0.48%
Profit Quality(3y)134.68%
Profit Quality(5y)135.17%
High Growth Momentum
Growth
EPS 1Y (TTM)-21.72%
EPS 3Y-9.03%
EPS 5Y2.4%
EPS Q2Q%-16%
EPS Next Y-19%
EPS Next 2Y-6.4%
EPS Next 3Y2.32%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.91%
Revenue growth 3Y-3.83%
Revenue growth 5Y0.85%
Sales Q2Q%-5.85%
Revenue Next Year-5.59%
Revenue Next 2Y-3.09%
Revenue Next 3Y-0.47%
Revenue Next 5YN/A
EBIT growth 1Y-25.33%
EBIT growth 3Y-13.2%
EBIT growth 5Y-1.4%
EBIT Next Year5.15%
EBIT Next 3Y8.89%
EBIT Next 5YN/A
FCF growth 1Y-26.89%
FCF growth 3Y6.04%
FCF growth 5Y7.13%
OCF growth 1Y-22.09%
OCF growth 3Y6.02%
OCF growth 5Y5.46%
KFORCE INC / KFRC FAQ
Can you provide the ChartMill fundamental rating for KFORCE INC?
ChartMill assigns a fundamental rating of 6 / 10 to KFRC.
What is the valuation status of KFORCE INC (KFRC) stock?
ChartMill assigns a valuation rating of 5 / 10 to KFORCE INC (KFRC). This can be considered as Fairly Valued.
Can you provide the profitability details for KFORCE INC?
KFORCE INC (KFRC) has a profitability rating of 7 / 10.
What is the financial health of KFORCE INC (KFRC) stock?
The financial health rating of KFORCE INC (KFRC) is 8 / 10.
Can you provide the dividend sustainability for KFRC stock?
The dividend rating of KFORCE INC (KFRC) is 8 / 10 and the dividend payout ratio is 68.1%.