KFORCE INC (KFRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KFRC - US4937321010 - Common Stock
31.88 USD
+0.47 (+1.5%)
31.88 USD
0 (0%)
Taking everything into account, KFRC scores 6 out of 10 in our fundamental rating. KFRC was compared to 86 industry peers in the Professional Services industry. KFRC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. KFRC has a valuation in line with the averages, but it does not seem to be growing. Finally KFRC also has an excellent dividend rating. This makes KFRC very considerable for dividend investing!
1. Profitability
1.1 Basic Checks
In the past year KFRC was profitable.
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 has a better Return On Assets (10.88%) than 84.88% of its industry peers.
Looking at the Return On Equity, with a value of 30.82%, KFRC belongs to the top of the industry, outperforming 86.05% of the companies in the same industry.
KFRC has a Return On Invested Capital of 16.17%. This is amongst the best in the industry. KFRC outperforms 83.72% of its industry peers.
KFRC had an Average Return On Invested Capital over the past 3 years of 26.18%. This is significantly above the industry average of 12.04%.
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
KFRC has a Profit Margin (3.04%) which is in line with its industry peers.
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.
In the last couple of years the Operating Margin of KFRC has declined.
KFRC has a worse Gross Margin (27.14%) than 63.95% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so KFRC is creating value.
Compared to 1 year ago, KFRC has less shares outstanding
KFRC has less shares outstanding than it did 5 years ago.
KFRC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.90 indicates that KFRC is not in any danger for bankruptcy at the moment.
KFRC has a Altman-Z score of 7.90. This is amongst the best in the industry. KFRC outperforms 94.19% of its industry peers.
KFRC has a debt to FCF ratio of 1.23. This is a very positive value and a sign of high solvency as it would only need 1.23 years to pay back of all of its debts.
KFRC has a better Debt to FCF ratio (1.23) than 77.91% of its industry peers.
KFRC has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
KFRC has a Debt to Equity ratio of 0.49. This is comparable to the rest of the industry: KFRC outperforms 45.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 1.23 | ||
| Altman-Z | 7.9 |
ROIC/WACC1.91
WACC8.49%
2.3 Liquidity
A Current Ratio of 1.88 indicates that KFRC should not have too much problems paying its short term obligations.
KFRC has a Current ratio of 1.88. This is in the better half of the industry: KFRC outperforms 65.12% of its industry peers.
A Quick Ratio of 1.88 indicates that KFRC should not have too much problems paying its short term obligations.
KFRC has a Quick ratio of 1.88. This is in the better half of the industry: KFRC outperforms 69.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
The earnings per share for KFRC have decreased strongly by -21.72% 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.
KFRC shows a decrease in Revenue. In the last year, the revenue decreased by -5.91%.
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)-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
KFRC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.32% yearly.
KFRC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.47% yearly.
EPS Next Y-19%
EPS Next 2Y-6.4%
EPS Next 3Y2.32%
EPS Next 5YN/A
Revenue Next Year-5.59%
Revenue Next 2Y-3.09%
Revenue Next 3Y-0.47%
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.
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
A Price/Earnings ratio of 14.04 indicates a correct valuation of KFRC.
Based on the Price/Earnings ratio, KFRC is valued a bit cheaper than the industry average as 76.74% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of KFRC to the average of the S&P500 Index (26.84), we can say KFRC is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 13.58, the valuation of KFRC can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KFRC indicates a somewhat cheap valuation: KFRC is cheaper than 75.58% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of KFRC to the average of the S&P500 Index (23.40), we can say KFRC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.04 | ||
| Fwd PE | 13.58 |
4.2 Price Multiples
77.91% 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 cheaper than 89.53% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.94 | ||
| EV/EBITDA | 10.09 |
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)5.85
EPS Next 2Y-6.4%
EPS Next 3Y2.32%
5. Dividend
5.1 Amount
KFRC has a Yearly Dividend Yield of 5.03%, which is a nice return.
KFRC's Dividend Yield is rather good when compared to the industry average which is at 1.58. KFRC pays more dividend than 91.86% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.00, KFRC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
5.2 History
On average, the dividend of KFRC grows each year by 16.51%, 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)16.51%
Div Incr Years7
Div Non Decr Years11
5.3 Sustainability
68.10% of the earnings are spent on dividend by KFRC. This is not a sustainable payout ratio.
The dividend of KFRC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP68.1%
EPS Next 2Y-6.4%
EPS Next 3Y2.32%
31.88
+0.47 (+1.5%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners94.83%
Inst Owner Change-0.95%
Ins Owners4.14%
Ins Owner Change0.37%
Market Cap578.30M
Revenue(TTM)1.34B
Net Income(TTM)40.72M
Analysts78.33
Price Target37.61 (17.97%)
Short Float %5.95%
Short Ratio3.8
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.03% |
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)0%
PT rev (3m)-17.6%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.75%
EPS NY rev (1m)3.07%
EPS NY rev (3m)1.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.69%
Revenue NY rev (1m)0.82%
Revenue NY rev (3m)0.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.04 | ||
| Fwd PE | 13.58 | ||
| P/S | 0.43 | ||
| P/FCF | 10.94 | ||
| P/OCF | 9.07 | ||
| P/B | 4.38 | ||
| P/tB | 9.41 | ||
| EV/EBITDA | 10.09 |
EPS(TTM)2.27
EY7.12%
EPS(NY)2.35
Fwd EY7.36%
FCF(TTM)2.91
FCFY9.14%
OCF(TTM)3.51
OCFY11.02%
SpS73.91
BVpS7.28
TBVpS3.39
PEG (NY)N/A
PEG (5Y)5.85
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 | 7.9 |
F-Score4
WACC8.49%
ROIC/WACC1.91
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-19%
EPS Next 2Y-6.4%
EPS Next 3Y2.32%
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-5.59%
Revenue Next 2Y-3.09%
Revenue Next 3Y-0.47%
Revenue Next 5YN/A
EBIT growth 1Y-25.33%
EBIT growth 3Y-13.2%
EBIT growth 5Y-1.4%
EBIT Next Year5.15%
EBIT Next 3Y8.89%
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 5 / 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%.