KFORCE INC (KFRC)
US4937321010 - Common Stock
Overall KFRC gets a fundamental rating of 6 out of 10. We evaluated KFRC against 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 has a valuation in line with the averages, but it does not seem to be growing.
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.
KFRC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KFRC has a Return On Assets of 14.89%. This is amongst the best in the industry. KFRC outperforms 93.51% of its industry peers.
With an excellent Return On Equity value of 32.90%, KFRC belongs to the best of the industry, outperforming 84.42% of the companies in the same industry.
KFRC has a better Return On Invested Capital (21.76%) than 88.31% of its industry peers.
KFRC had an Average Return On Invested Capital over the past 3 years of 26.66%. This is significantly above the industry average of 12.35%.
The last Return On Invested Capital (21.76%) for KFRC is well below the 3 year average (26.66%), which needs to be investigated, but indicates that KFRC had better years and this may not be a problem.
| 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 in line with its industry peers.
KFRC's Profit Margin has declined in the last couple of years.
The Operating Margin of KFRC (5.33%) is comparable to the rest of the industry.
KFRC's Operating Margin has been stable in the last couple of years.
The Gross Margin of KFRC (27.52%) is worse than 71.43% 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 | 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), KFRC 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 is higher compared to a year ago.
2.2 Solvency
KFRC has an Altman-Z score of 10.29. This indicates that KFRC is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 10.29, KFRC belongs to the best of the industry, outperforming 97.40% of the companies in the same industry.
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.
With an excellent Debt to FCF ratio value of 0.35, KFRC belongs to the best of the industry, outperforming 84.42% of the companies in the same industry.
KFRC has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of KFRC (0.16) is better than 66.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.35 | ||
| Altman-Z | 10.29 |
ROIC/WACC2.46
WACC8.84%
2.3 Liquidity
KFRC has a Current Ratio of 2.06. This indicates that KFRC is financially healthy and has no problem in meeting its short term obligations.
KFRC's Current ratio of 2.06 is fine compared to the rest of the industry. KFRC outperforms 72.73% of its industry peers.
KFRC has a Quick Ratio of 2.06. This indicates that KFRC is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of KFRC (2.06) is better than 72.73% 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 -19.44% in the last year.
The Earnings Per Share has been growing by 8.60% on average over the past years. This is quite good.
The Revenue for KFRC has decreased by -10.27% in the past year. This is quite bad
The Revenue has been growing slightly by 3.27% on average over the past years.
EPS 1Y (TTM)-19.44%
EPS 3Y9.75%
EPS 5Y8.6%
EPS Q2Q%-16.67%
Revenue 1Y (TTM)-10.27%
Revenue growth 3Y3.1%
Revenue growth 5Y3.27%
Sales Q2Q%-5.31%
3.2 Future
The Earnings Per Share is expected to grow by 1.02% on average over the next years.
The Revenue is expected to decrease by -0.24% on average over the next years.
EPS Next Y-21.92%
EPS Next 2Y-8.89%
EPS Next 3Y1.02%
EPS Next 5YN/A
Revenue Next Year-8.39%
Revenue Next 2Y-3.88%
Revenue Next 3Y-0.24%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 20.18, which indicates a rather expensive current valuation of KFRC.
The rest of the industry has a similar Price/Earnings ratio as KFRC.
Compared to an average S&P500 Price/Earnings ratio of 28.96, KFRC is valued a bit cheaper.
With a Price/Forward Earnings ratio of 20.20, KFRC is valued on the expensive side.
KFRC's Price/Forward Earnings ratio is in line with the industry average.
KFRC is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.18 | ||
| Fwd PE | 20.2 |
4.2 Price Multiples
64.94% of the companies in the same industry are more expensive than KFRC, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, KFRC is valued cheaply inside the industry as 84.42% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.45 | ||
| EV/EBITDA | 14.02 |
4.3 Compensation for Growth
The decent profitability rating of KFRC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.35
EPS Next 2Y-8.89%
EPS Next 3Y1.02%
5. Dividend
5.1 Amount
KFRC has a Yearly Dividend Yield of 2.56%.
Compared to an average industry Dividend Yield of 1.81, KFRC pays a better dividend. On top of this KFRC pays more dividend than 92.21% of the companies listed in the same industry.
KFRC's Dividend Yield is comparable with the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
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 Years6
Div Non Decr Years10
5.3 Sustainability
50.93% of the earnings are spent on dividend by KFRC. 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.
DP50.93%
EPS Next 2Y-8.89%
EPS Next 3Y1.02%
KFORCE INC
NYSE:KFRC (11/21/2024, 8:04:00 PM)
After market: 58.52 0 (0%)58.52
+0.54 (+0.93%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.12B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.18 | ||
| Fwd PE | 20.2 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.89% | ||
| ROE | 32.9% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.33% | ||
| PM (TTM) | 3.86% | ||
| GM | 27.52% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover3.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.06 | ||
| Quick Ratio | 2.06 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-19.44%
EPS 3Y9.75%
EPS 5Y
EPS Q2Q%
EPS Next Y-21.92%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.27%
Revenue growth 3Y3.1%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y