KFORCE INC (KFRC) Stock Fundamental Analysis
NYSE:KFRC - New York Stock Exchange, Inc. - US4937321010 - Common Stock - Currency: USD
KFRC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. Both the health and profitability get an excellent rating, making KFRC a very profitable company, without any liquidiy or solvency issues. KFRC is not valued too expensively and it also shows a decent growth rate. 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
KFRC had positive earnings in the past year.
KFRC had a positive operating cash flow in the past year.
Each year in the past 5 years KFRC has been profitable.
Each year in the past 5 years KFRC had a positive operating cash flow.
1.2 Ratios
KFRC's Return On Assets of 14.09% is amongst the best of the industry. KFRC outperforms 89.02% of its industry peers.
KFRC's Return On Equity of 32.61% is amongst the best of the industry. KFRC outperforms 82.93% of its industry peers.
The Return On Invested Capital of KFRC (20.77%) is better than 87.80% 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 13.58%.
The 3 year average ROIC (26.18%) for KFRC is well above the current ROIC(20.77%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.09% | ||
| ROE | 32.61% | ||
| ROIC | 20.77% |
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
The Profit Margin of KFRC (3.59%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of KFRC has declined.
Looking at the Operating Margin, with a value of 4.96%, KFRC is in line with its industry, outperforming 48.78% of the companies in the same industry.
KFRC's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 27.43%, KFRC is doing worse than 65.85% of the companies in the same industry.
KFRC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.96% | ||
| PM (TTM) | 3.59% | ||
| GM | 27.43% |
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.
KFRC has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, KFRC has less shares outstanding
The debt/assets ratio for KFRC has been reduced compared to a year ago.
2.2 Solvency
KFRC has an Altman-Z score of 9.60. This indicates that KFRC is financially healthy and has little risk of bankruptcy at the moment.
KFRC has a Altman-Z score of 9.60. This is amongst the best in the industry. KFRC outperforms 97.56% of its industry peers.
The Debt to FCF ratio of KFRC is 0.41, which is an excellent value as it means it would take KFRC, only 0.41 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.41, KFRC belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
A Debt/Equity ratio of 0.21 indicates that KFRC is not too dependend on debt financing.
KFRC's Debt to Equity ratio of 0.21 is in line compared to the rest of the industry. KFRC outperforms 57.32% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.41 | ||
| Altman-Z | 9.6 |
ROIC/WACC2.35
WACC8.84%
2.3 Liquidity
A Current Ratio of 2.00 indicates that KFRC has no problem at all paying its short term obligations.
KFRC has a better Current ratio (2.00) than 79.27% of its industry peers.
A Quick Ratio of 2.00 indicates that KFRC has no problem at all paying its short term obligations.
KFRC has a better Quick ratio (2.00) than 79.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
KFRC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -23.21%.
KFRC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.40% yearly.
Looking at the last year, KFRC shows a decrease in Revenue. The Revenue has decreased by -8.25% in the last year.
Measured over the past years, KFRC shows a small growth in Revenue. The Revenue has been growing by 0.85% on average per year.
EPS 1Y (TTM)-23.21%
EPS 3Y-9.03%
EPS 5Y2.4%
EPS Q2Q%-26.83%
Revenue 1Y (TTM)-8.25%
Revenue growth 3Y-3.83%
Revenue growth 5Y0.85%
Sales Q2Q%-5.41%
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 6.23% on average per year.
Based on estimates for the next years, KFRC will show a small growth in Revenue. The Revenue will grow by 2.65% on average per year.
EPS Next Y-1.17%
EPS Next 2Y11.13%
EPS Next 3Y6.23%
EPS Next 5YN/A
Revenue Next Year-1.4%
Revenue Next 2Y2.82%
Revenue Next 3Y2.65%
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.
When comparing the Revenue 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
The Price/Earnings ratio is 16.63, which indicates a correct valuation of KFRC.
Compared to the rest of the industry, the Price/Earnings ratio of KFRC is on the same level as its industry peers.
KFRC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.33.
The Price/Forward Earnings ratio is 16.82, which indicates a correct valuation of KFRC.
Based on the Price/Forward Earnings ratio, KFRC is valued a bit cheaper than 64.63% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of KFRC to the average of the S&P500 Index (21.37), we can say KFRC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.63 | ||
| Fwd PE | 16.82 |
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 65.85% of the companies listed in the same industry.
KFRC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KFRC is cheaper than 86.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.74 | ||
| EV/EBITDA | 11.69 |
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)6.92
EPS Next 2Y11.13%
EPS Next 3Y6.23%
5. Dividend
5.1 Amount
KFRC has a Yearly Dividend Yield of 3.52%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.42, KFRC pays a better dividend. On top of this KFRC pays more dividend than 95.12% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.51, KFRC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
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 56.01% of its income as dividend. This is a bit on the high side, but may be sustainable.
KFRC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP56.01%
EPS Next 2Y11.13%
EPS Next 3Y6.23%
44.56
+1.11 (+2.55%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners90.55%
Inst Owner Change0.25%
Ins Owners4.57%
Ins Owner Change4.49%
Market Cap851.54M
Analysts78.33
Price Target64.01 (43.65%)
Short Float %5.56%
Short Ratio8.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.52% |
Yearly Dividend1.46
Dividend Growth(5Y)16.51%
DP56.01%
Div Incr Years7
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.72%
Min EPS beat(2)-0.86%
Max EPS beat(2)6.31%
EPS beat(4)2
Avg EPS beat(4)1.1%
Min EPS beat(4)-2.24%
Max EPS beat(4)6.31%
EPS beat(8)4
Avg EPS beat(8)1.85%
EPS beat(12)7
Avg EPS beat(12)3.54%
EPS beat(16)9
Avg EPS beat(16)3.44%
Revenue beat(2)0
Avg Revenue beat(2)-1.56%
Min Revenue beat(2)-1.65%
Max Revenue beat(2)-1.47%
Revenue beat(4)0
Avg Revenue beat(4)-1.95%
Min Revenue beat(4)-2.8%
Max Revenue beat(4)-1.47%
Revenue beat(8)1
Avg Revenue beat(8)-1.98%
Revenue beat(12)2
Avg Revenue beat(12)-1.74%
Revenue beat(16)5
Avg Revenue beat(16)-1.14%
PT rev (1m)0%
PT rev (3m)-3.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.27%
EPS NY rev (1m)-3.83%
EPS NY rev (3m)-8.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.44%
Revenue NY rev (1m)-0.49%
Revenue NY rev (3m)-2.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.63 | ||
| Fwd PE | 16.82 | ||
| P/S | 0.61 | ||
| P/FCF | 10.74 | ||
| P/OCF | 9.8 | ||
| P/B | 5.51 | ||
| P/tB | 8.47 | ||
| EV/EBITDA | 11.69 |
EPS(TTM)2.68
EY6.01%
EPS(NY)2.65
Fwd EY5.94%
FCF(TTM)4.15
FCFY9.31%
OCF(TTM)4.55
OCFY10.2%
SpS73.54
BVpS8.09
TBVpS5.26
PEG (NY)N/A
PEG (5Y)6.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.09% | ||
| ROE | 32.61% | ||
| ROCE | 28.41% | ||
| ROIC | 20.77% | ||
| ROICexc | 20.8% | ||
| ROICexgc | 26.7% | ||
| OM | 4.96% | ||
| PM (TTM) | 3.59% | ||
| GM | 27.43% | ||
| FCFM | 5.64% |
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%
ROICexcg growth 3Y-10.92%
ROICexcg 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-Score5
Asset Turnover3.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.41 | ||
| Debt/EBITDA | 0.43 | ||
| Cap/Depr | 127.88% | ||
| Cap/Sales | 0.54% | ||
| Interest Coverage | 35.05 | ||
| Cash Conversion | 114.85% | ||
| Profit Quality | 157.3% | ||
| Current Ratio | 2 | ||
| Quick Ratio | 2 | ||
| Altman-Z | 9.6 |
F-Score5
WACC8.84%
ROIC/WACC2.35
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)-23.21%
EPS 3Y-9.03%
EPS 5Y2.4%
EPS Q2Q%-26.83%
EPS Next Y-1.17%
EPS Next 2Y11.13%
EPS Next 3Y6.23%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.25%
Revenue growth 3Y-3.83%
Revenue growth 5Y0.85%
Sales Q2Q%-5.41%
Revenue Next Year-1.4%
Revenue Next 2Y2.82%
Revenue Next 3Y2.65%
Revenue Next 5YN/A
EBIT growth 1Y-19.91%
EBIT growth 3Y-13.2%
EBIT growth 5Y-1.4%
EBIT Next Year22.46%
EBIT Next 3Y13.98%
EBIT Next 5YN/A
FCF growth 1Y-5.26%
FCF growth 3Y6.04%
FCF growth 5Y7.13%
OCF growth 1Y-5.02%
OCF growth 3Y6.02%
OCF growth 5Y5.46%