KFORCE INC (KFRC)
US4937321010 - Common Stock
KFRC gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 81 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year KFRC was profitable.
KFRC had a positive operating cash flow in the past year.
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 14.89% is amongst the best of the industry. KFRC outperforms 92.31% of its industry peers.
KFRC has a better Return On Equity (32.90%) than 83.33% of its industry peers.
KFRC has a Return On Invested Capital of 21.76%. This is amongst the best in the industry. KFRC outperforms 87.18% 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 17.86%.
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 comparable to the rest of the industry.
KFRC's Profit Margin has declined in the last couple of years.
KFRC has a Operating Margin of 5.33%. This is comparable to the rest of the industry: KFRC outperforms 44.87% of its industry peers.
In the last couple of years the Operating Margin of KFRC has remained more or less at the same level.
With a Gross Margin value of 27.52%, KFRC is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
KFRC's Gross Margin has been stable in the last couple of years.
| 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
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 is higher compared to a year ago.
2.2 Solvency
KFRC has an Altman-Z score of 10.16. This indicates that KFRC is financially healthy and has little risk of bankruptcy at the moment.
KFRC's Altman-Z score of 10.16 is amongst the best of the industry. KFRC outperforms 98.72% of its industry peers.
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.
KFRC's Debt to FCF ratio of 0.35 is amongst the best of the industry. KFRC outperforms 83.33% of its industry peers.
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 65.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.35 | ||
| Altman-Z | 10.16 |
ROIC/WACC2.35
WACC9.28%
2.3 Liquidity
A Current Ratio of 2.06 indicates that KFRC has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.06, KFRC is doing good in the industry, outperforming 75.64% of the companies in the same industry.
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.
KFRC's Quick ratio of 2.06 is fine compared to the rest of the industry. KFRC outperforms 75.64% 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.
KFRC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.60% yearly.
KFRC shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.27%.
Measured over the past years, KFRC shows a small growth in Revenue. The Revenue has been growing by 3.27% on average per year.
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.
Based on estimates for the next years, KFRC will show a decrease in Revenue. The Revenue will decrease by -0.24% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
A Price/Earnings ratio of 19.28 indicates a rather expensive valuation of KFRC.
KFRC's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.17, KFRC is valued a bit cheaper.
With a Price/Forward Earnings ratio of 19.30, KFRC is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as KFRC.
KFRC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.28 | ||
| Fwd PE | 19.3 |
4.2 Price Multiples
KFRC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KFRC is cheaper than 62.82% of the companies in the same industry.
KFRC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KFRC is cheaper than 82.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.81 | ||
| EV/EBITDA | 13.48 |
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)2.24
EPS Next 2Y-8.89%
EPS Next 3Y1.02%
5. Dividend
5.1 Amount
KFRC has a Yearly Dividend Yield of 2.70%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.85, KFRC pays a better dividend. On top of this KFRC pays more dividend than 93.59% of the companies listed in the same industry.
KFRC's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
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 Years7
Div Non Decr Years11
5.3 Sustainability
KFRC pays out 50.93% 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.
DP50.93%
EPS Next 2Y-8.89%
EPS Next 3Y1.02%
KFORCE INC
NYSE:KFRC (12/23/2024, 2:10:04 PM)
55.92
-0.29 (-0.52%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners91.63%
Inst Owner Change-0.31%
Ins Owners4.37%
Ins Owner Change-0.2%
Market Cap1.07B
Analysts78.33
Price Target66.05 (18.12%)
Short Float %4.1%
Short Ratio4.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.7% |
Dividend Growth(5Y)19.62%
DP50.93%
Div Incr Years7
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)3.75%
Min EPS beat(2)1.19%
Max EPS beat(2)6.31%
EPS beat(4)3
Avg EPS beat(4)1.88%
Min EPS beat(4)-2.24%
Max EPS beat(4)6.31%
EPS beat(8)4
Avg EPS beat(8)1.88%
EPS beat(12)7
Avg EPS beat(12)3.47%
EPS beat(16)10
Avg EPS beat(16)4.12%
Revenue beat(2)0
Avg Revenue beat(2)-1.77%
Min Revenue beat(2)-1.9%
Max Revenue beat(2)-1.65%
Revenue beat(4)0
Avg Revenue beat(4)-2.07%
Min Revenue beat(4)-2.8%
Max Revenue beat(4)-1.65%
Revenue beat(8)1
Avg Revenue beat(8)-2.01%
Revenue beat(12)3
Avg Revenue beat(12)-1.55%
Revenue beat(16)6
Avg Revenue beat(16)-1.01%
PT rev (1m)-5.82%
PT rev (3m)-5.82%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-28.77%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.62%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.65%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.28 | ||
| Fwd PE | 19.3 | ||
| P/S | 0.75 | ||
| P/FCF | 13.81 | ||
| P/OCF | 12.2 | ||
| P/B | 6.37 | ||
| P/tB | 9.07 | ||
| EV/EBITDA | 13.48 |
EPS(TTM)2.9
EY5.19%
EPS(NY)2.9
Fwd EY5.18%
FCF(TTM)4.05
FCFY7.24%
OCF(TTM)4.58
OCFY8.2%
SpS74.68
BVpS8.77
TBVpS6.17
PEG (NY)N/A
PEG (5Y)2.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.89% | ||
| ROE | 32.9% | ||
| ROCE | 29.96% | ||
| ROIC | 21.76% | ||
| ROICexc | 21.77% | ||
| ROICexgc | 27.09% | ||
| OM | 5.33% | ||
| PM (TTM) | 3.86% | ||
| GM | 27.52% | ||
| FCFM | 5.42% |
ROA(3y)17.08%
ROA(5y)19.45%
ROE(3y)39.9%
ROE(5y)45.81%
ROIC(3y)26.66%
ROIC(5y)22.81%
ROICexc(3y)29.63%
ROICexc(5y)26.08%
ROICexgc(3y)35.3%
ROICexgc(5y)30.74%
ROCE(3y)36.7%
ROCE(5y)31.4%
ROICexcg growth 3Y5.27%
ROICexcg growth 5Y7.92%
ROICexc growth 3Y4.4%
ROICexc growth 5Y6.44%
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%
F-Score5
Asset Turnover3.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.35 | ||
| Debt/EBITDA | 0.33 | ||
| Cap/Depr | 180.12% | ||
| Cap/Sales | 0.71% | ||
| Interest Coverage | 40.96 | ||
| Cash Conversion | 107.25% | ||
| Profit Quality | 140.34% | ||
| Current Ratio | 2.06 | ||
| Quick Ratio | 2.06 | ||
| Altman-Z | 10.16 |
F-Score5
WACC9.28%
ROIC/WACC2.35
Cap/Depr(3y)160.4%
Cap/Depr(5y)152.77%
Cap/Sales(3y)0.46%
Cap/Sales(5y)0.52%
Profit Quality(3y)111.72%
Profit Quality(5y)112.3%
High Growth Momentum
Growth
EPS 1Y (TTM)-19.44%
EPS 3Y9.75%
EPS 5Y8.6%
EPS Q2Q%-16.67%
EPS Next Y-21.92%
EPS Next 2Y-8.89%
EPS Next 3Y1.02%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.27%
Revenue growth 3Y3.1%
Revenue growth 5Y3.27%
Sales Q2Q%-5.31%
Revenue Next Year-8.39%
Revenue Next 2Y-3.88%
Revenue Next 3Y-0.24%
Revenue Next 5YN/A
EBIT growth 1Y-15.01%
EBIT growth 3Y2.75%
EBIT growth 5Y3.77%
EBIT Next Year-3.63%
EBIT Next 3Y6.31%
EBIT Next 5YN/A
FCF growth 1Y-9.08%
FCF growth 3Y-6.59%
FCF growth 5Y0.29%
OCF growth 1Y-4.01%
OCF growth 3Y-5.74%
OCF growth 5Y0.84%