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 81 industry peers in the Professional Services industry. KFRC gets an excellent profitability rating and is at the same time showing great financial health properties. KFRC is not valued too expensively and it also shows a decent growth rate. KFRC also has an excellent dividend rating. These ratings would make KFRC suitable 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.
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 12.81% is amongst the best of the industry. KFRC outperforms 87.65% of its industry peers.
The Return On Equity of KFRC (34.17%) is better than 82.72% of its industry peers.
KFRC has a better Return On Invested Capital (19.13%) than 90.12% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KFRC is significantly above the industry average of 12.53%.
The last Return On Invested Capital (19.13%) for KFRC is well below the 3 year average (26.28%), which needs to be investigated, but indicates that KFRC had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.81% | ||
| ROE | 34.17% | ||
| ROIC | 19.13% |
ROA(3y)16.75%
ROA(5y)15.37%
ROE(3y)37.34%
ROE(5y)36.61%
ROIC(3y)26.28%
ROIC(5y)23.51%
1.3 Margins
KFRC has a Profit Margin of 3.41%. This is comparable to the rest of the industry: KFRC outperforms 51.85% of its industry peers.
In the last couple of years the Profit Margin of KFRC has declined.
KFRC has a Operating Margin (4.84%) which is comparable to the rest of the industry.
KFRC's Operating Margin has declined in the last couple of years.
KFRC has a Gross Margin of 27.34%. This is in the lower half of the industry: KFRC underperforms 65.43% 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 | 4.84% | ||
| PM (TTM) | 3.41% | ||
| GM | 27.34% |
OM growth 3Y-9.62%
OM growth 5Y-2.14%
PM growth 3Y-9.25%
PM growth 5Y-18.2%
GM growth 3Y-1.75%
GM growth 5Y-1.32%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), KFRC 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
KFRC has an Altman-Z score of 8.96. This indicates that KFRC is financially healthy and has little risk of bankruptcy at the moment.
KFRC has a Altman-Z score of 8.96. This is amongst the best in the industry. KFRC outperforms 93.83% of its industry peers.
The Debt to FCF ratio of KFRC is 1.02, which is an excellent value as it means it would take KFRC, only 1.02 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.02, KFRC is doing good in the industry, outperforming 79.01% of the companies in the same industry.
KFRC has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
KFRC has a Debt to Equity ratio (0.48) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.02 | ||
| Altman-Z | 8.96 |
ROIC/WACC2.18
WACC8.77%
2.3 Liquidity
KFRC has a Current Ratio of 2.07. This indicates that KFRC is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of KFRC (2.07) is better than 76.54% of its industry peers.
KFRC has a Quick Ratio of 2.07. This indicates that KFRC is financially healthy and has no problem in meeting its short term obligations.
KFRC's Quick ratio of 2.07 is fine compared to the rest of the industry. KFRC outperforms 76.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.07 | ||
| Quick Ratio | 2.07 |
3. Growth
3.1 Past
The earnings per share for KFRC have decreased strongly by -21.54% in the last year.
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 -6.38% in the last year.
KFRC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.85% yearly.
EPS 1Y (TTM)-21.54%
EPS 3Y-9.03%
EPS 5Y2.4%
EPS Q2Q%-22.41%
Revenue 1Y (TTM)-6.38%
Revenue growth 3Y-3.83%
Revenue growth 5Y0.85%
Sales Q2Q%-6.21%
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 4.05% on average per year.
The Revenue is expected to grow by 1.54% on average over the next years.
EPS Next Y-16.33%
EPS Next 2Y3.2%
EPS Next 3Y4.05%
EPS Next 5YN/A
Revenue Next Year-5.45%
Revenue Next 2Y-0.81%
Revenue Next 3Y1.54%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
KFRC is valuated rather expensively with a Price/Earnings ratio of 17.16.
Compared to the rest of the industry, the Price/Earnings ratio of KFRC indicates a somewhat cheap valuation: KFRC is cheaper than 66.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, KFRC is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.33, which indicates a correct valuation of KFRC.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KFRC indicates a somewhat cheap valuation: KFRC is cheaper than 69.14% of the companies listed in the same industry.
KFRC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.16 | ||
| Fwd PE | 15.33 |
4.2 Price Multiples
KFRC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KFRC is cheaper than 67.90% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KFRC is valued a bit cheaper than the industry average as 76.54% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.65 | ||
| EV/EBITDA | 12.06 |
4.3 Compensation for Growth
The decent profitability rating of KFRC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)7.14
EPS Next 2Y3.2%
EPS Next 3Y4.05%
5. Dividend
5.1 Amount
KFRC has a Yearly Dividend Yield of 3.57%.
KFRC's Dividend Yield is rather good when compared to the industry average which is at 2.05. KFRC pays more dividend than 95.06% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, KFRC pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.57% |
5.2 History
On average, the dividend of KFRC grows each year by 16.16%, which is quite nice.
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)16.16%
Div Incr Years7
Div Non Decr Years11
5.3 Sustainability
KFRC pays out 59.22% 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.
DP59.22%
EPS Next 2Y3.2%
EPS Next 3Y4.05%
43.75
+0.2 (+0.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners94.39%
Inst Owner Change8.14%
Ins Owners4.01%
Ins Owner Change7.99%
Market Cap815.06M
Analysts78.33
Price Target51.26 (17.17%)
Short Float %7.06%
Short Ratio7.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.57% |
Yearly Dividend1.44
Dividend Growth(5Y)16.16%
DP59.22%
Div Incr Years7
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.33%
Min EPS beat(2)-5.8%
Max EPS beat(2)-0.86%
EPS beat(4)2
Avg EPS beat(4)0.21%
Min EPS beat(4)-5.8%
Max EPS beat(4)6.31%
EPS beat(8)4
Avg EPS beat(8)1.37%
EPS beat(12)6
Avg EPS beat(12)1.45%
EPS beat(16)9
Avg EPS beat(16)3.24%
Revenue beat(2)0
Avg Revenue beat(2)-2.27%
Min Revenue beat(2)-3.08%
Max Revenue beat(2)-1.47%
Revenue beat(4)0
Avg Revenue beat(4)-2.02%
Min Revenue beat(4)-3.08%
Max Revenue beat(4)-1.47%
Revenue beat(8)1
Avg Revenue beat(8)-1.95%
Revenue beat(12)1
Avg Revenue beat(12)-2.02%
Revenue beat(16)5
Avg Revenue beat(16)-1.27%
PT rev (1m)0%
PT rev (3m)-19.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.22%
EPS NY rev (1m)0%
EPS NY rev (3m)-18.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.16 | ||
| Fwd PE | 15.33 | ||
| P/S | 0.59 | ||
| P/FCF | 12.65 | ||
| P/OCF | 10.98 | ||
| P/B | 5.91 | ||
| P/tB | 10.32 | ||
| EV/EBITDA | 12.06 |
EPS(TTM)2.55
EY5.83%
EPS(NY)2.85
Fwd EY6.52%
FCF(TTM)3.46
FCFY7.9%
OCF(TTM)3.99
OCFY9.11%
SpS74.26
BVpS7.41
TBVpS4.24
PEG (NY)N/A
PEG (5Y)7.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.81% | ||
| ROE | 34.17% | ||
| ROCE | 26.07% | ||
| ROIC | 19.13% | ||
| ROICexc | 19.13% | ||
| ROICexgc | 24.83% | ||
| OM | 4.84% | ||
| PM (TTM) | 3.41% | ||
| GM | 27.34% | ||
| FCFM | 4.66% |
ROA(3y)16.75%
ROA(5y)15.37%
ROE(3y)37.34%
ROE(5y)36.61%
ROIC(3y)26.28%
ROIC(5y)23.51%
ROICexc(3y)26.3%
ROICexc(5y)26.55%
ROICexgc(3y)31.92%
ROICexgc(5y)31.87%
ROCE(3y)35.81%
ROCE(5y)32.03%
ROICexcg growth 3Y-10.92%
ROICexcg growth 5Y3.44%
ROICexc growth 3Y-13.04%
ROICexc growth 5Y1.03%
OM growth 3Y-9.62%
OM growth 5Y-2.14%
PM growth 3Y-9.25%
PM growth 5Y-18.2%
GM growth 3Y-1.75%
GM growth 5Y-1.32%
F-Score4
Asset Turnover3.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.02 | ||
| Debt/EBITDA | 0.9 | ||
| Cap/Depr | 162.65% | ||
| Cap/Sales | 0.71% | ||
| Interest Coverage | 32.84 | ||
| Cash Conversion | 101.64% | ||
| Profit Quality | 136.61% | ||
| Current Ratio | 2.07 | ||
| Quick Ratio | 2.07 | ||
| Altman-Z | 8.96 |
F-Score4
WACC8.77%
ROIC/WACC2.18
Cap/Depr(3y)155.62%
Cap/Depr(5y)146.34%
Cap/Sales(3y)0.51%
Cap/Sales(5y)0.48%
Profit Quality(3y)135%
Profit Quality(5y)135.37%
High Growth Momentum
Growth
EPS 1Y (TTM)-21.54%
EPS 3Y-9.03%
EPS 5Y2.4%
EPS Q2Q%-22.41%
EPS Next Y-16.33%
EPS Next 2Y3.2%
EPS Next 3Y4.05%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.38%
Revenue growth 3Y-3.83%
Revenue growth 5Y0.85%
Sales Q2Q%-6.21%
Revenue Next Year-5.45%
Revenue Next 2Y-0.81%
Revenue Next 3Y1.54%
Revenue Next 5YN/A
EBIT growth 1Y-15.88%
EBIT growth 3Y-13.08%
EBIT growth 5Y-1.32%
EBIT Next Year10.71%
EBIT Next 3Y12.77%
EBIT Next 5YN/A
FCF growth 1Y1.59%
FCF growth 3Y6.1%
FCF growth 5Y7.16%
OCF growth 1Y4.28%
OCF growth 3Y6.07%
OCF growth 5Y5.49%