KFORCE INC (KFRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KFRC - US4937321010 - Common Stock
29.86 USD
+0.52 (+1.77%)
29.86 USD
0 (0%)
Overall KFRC gets a fundamental rating of 6 out of 10. We evaluated KFRC against 87 industry peers in the Professional Services industry. KFRC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. KFRC has a valuation in line with the averages, but it does not seem to be growing. 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
KFRC's Return On Assets of 10.88% is amongst the best of the industry. KFRC outperforms 85.06% of its industry peers.
KFRC has a better Return On Equity (30.82%) than 86.21% of its industry peers.
KFRC has a better Return On Invested Capital (16.17%) than 83.91% 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 12.17%.
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
The Profit Margin of KFRC (3.04%) is comparable to the rest of the industry.
KFRC's Profit Margin has declined in the last couple of years.
KFRC has a Operating Margin (4.26%) which is comparable to the rest of the industry.
KFRC's Operating Margin has declined in the last couple of years.
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.
KFRC's Gross Margin has been stable in the last couple of years.
| 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.
The number of shares outstanding for KFRC has been reduced compared to 5 years ago.
The debt/assets ratio for KFRC has been reduced compared to a year ago.
2.2 Solvency
KFRC has an Altman-Z score of 7.82. This indicates that KFRC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of KFRC (7.82) is better 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.
KFRC's Debt to FCF ratio of 1.23 is fine compared to the rest of the industry. KFRC outperforms 74.71% of its industry peers.
A Debt/Equity ratio of 0.49 indicates that KFRC is not too dependend on debt financing.
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 | 7.82 |
ROIC/WACC1.93
WACC8.39%
2.3 Liquidity
A Current Ratio of 1.88 indicates that KFRC should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.88, KFRC is in the better half of the industry, outperforming 68.97% 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.
Looking at the Quick ratio, with a value of 1.88, KFRC is in the better half of 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.
Looking at the last year, KFRC shows a decrease in Revenue. The Revenue has decreased by -5.91% in the last 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
The Earnings Per Share is expected to grow by 2.54% on average over the next years.
The Revenue is expected to decrease by -0.61% on average over the next years.
EPS Next Y-21.41%
EPS Next 2Y-7.09%
EPS Next 3Y2.54%
EPS Next 5YN/A
Revenue Next Year-6.35%
Revenue Next 2Y-2.98%
Revenue Next 3Y-0.61%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
KFRC is valuated correctly with a Price/Earnings ratio of 13.15.
Based on the Price/Earnings ratio, KFRC is valued cheaply inside the industry as 80.46% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of KFRC to the average of the S&P500 Index (26.41), we can say KFRC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.91, the valuation of KFRC can be described as correct.
73.56% of the companies in the same industry are more expensive than KFRC, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of KFRC to the average of the S&P500 Index (35.40), we can say KFRC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 12.91 |
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 79.31% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, KFRC is valued cheaply inside the industry as 86.21% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.25 | ||
| EV/EBITDA | 9.6 |
4.3 Compensation for Growth
The decent profitability rating of KFRC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.47
EPS Next 2Y-7.09%
EPS Next 3Y2.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.25%, KFRC is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.07, KFRC pays a better dividend. On top of this KFRC pays more dividend than 93.10% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, KFRC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.25% |
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 their dividend for at least 10 years, which is a reliable track record.
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.
KFRC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP68.1%
EPS Next 2Y-7.09%
EPS Next 3Y2.54%
29.86
+0.52 (+1.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners94.66%
Inst Owner Change-0.95%
Ins Owners4.04%
Ins Owner Change0.25%
Market Cap541.66M
Revenue(TTM)1.34B
Net Income(TTM)40.72M
Analysts78.33
Price Target37.61 (25.95%)
Short Float %5.79%
Short Ratio3.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.25% |
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)-17.6%
PT rev (3m)-19.84%
EPS NQ rev (1m)0.72%
EPS NQ rev (3m)-4.75%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.28%
Revenue NQ rev (1m)2.12%
Revenue NQ rev (3m)1.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 12.91 | ||
| P/S | 0.4 | ||
| P/FCF | 10.25 | ||
| P/OCF | 8.5 | ||
| P/B | 4.1 | ||
| P/tB | 8.82 | ||
| EV/EBITDA | 9.6 |
EPS(TTM)2.27
EY7.6%
EPS(NY)2.31
Fwd EY7.75%
FCF(TTM)2.91
FCFY9.76%
OCF(TTM)3.51
OCFY11.77%
SpS73.91
BVpS7.28
TBVpS3.39
PEG (NY)N/A
PEG (5Y)5.47
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 | 7.82 |
F-Score4
WACC8.39%
ROIC/WACC1.93
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-21.41%
EPS Next 2Y-7.09%
EPS Next 3Y2.54%
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-6.35%
Revenue Next 2Y-2.98%
Revenue Next 3Y-0.61%
Revenue Next 5YN/A
EBIT growth 1Y-25.33%
EBIT growth 3Y-13.2%
EBIT growth 5Y-1.4%
EBIT Next Year4.62%
EBIT Next 3Y9.62%
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 6 / 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%.