KFORCE INC (KFRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KFRC - US4937321010 - Common Stock
34.79 USD
-0.32 (-0.91%)
34.79 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to KFRC. KFRC was compared to 88 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 is valued correctly, but it does not seem to be growing. KFRC also has an excellent dividend rating. With these ratings, KFRC could be worth investigating further 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.
- In the past 5 years KFRC has always 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 85.23% of its industry peers.
- With an excellent Return On Equity value of 30.82%, KFRC belongs to the best of the industry, outperforming 87.50% 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 85.23% 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 11.85%.
- 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 of 3.04%. This is comparable to the rest of the industry: KFRC outperforms 54.55% of its industry peers.
- KFRC's Profit Margin has declined in the last couple of years.
- KFRC has a Operating Margin of 4.26%. This is comparable to the rest of the industry: KFRC outperforms 51.14% of its industry peers.
- KFRC's Operating Margin has declined in the last couple of years.
- KFRC has a worse Gross Margin (27.14%) than 61.36% 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 | 4.26% | ||
| 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.
- 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 has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 8.07 indicates that KFRC is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 8.07, KFRC belongs to the top of the industry, outperforming 94.32% of the companies in the same industry.
- 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 has a better Debt to FCF ratio (1.23) than 78.41% 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.
- The Debt to Equity ratio of KFRC (0.49) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 1.23 | ||
| Altman-Z | 8.07 |
ROIC/WACC1.88
WACC8.6%
2.3 Liquidity
- KFRC has a Current 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 Current ratio, with a value of 1.88, KFRC is in the better half of the industry, outperforming 65.91% of the companies in the same industry.
- 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 70.45% 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.
- The Earnings Per Share has been growing slightly by 2.40% on average over the past years.
- KFRC shows a decrease in Revenue. In the last year, the revenue decreased by -5.91%.
- 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
- Based on estimates for the next years, KFRC will show a small growth in Earnings Per Share. The EPS will grow by 2.32% on average per year.
- 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
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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 15.33.
- Compared to the rest of the industry, the Price/Earnings ratio of KFRC indicates a somewhat cheap valuation: KFRC is cheaper than 77.27% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, KFRC is valued a bit cheaper.
- The Price/Forward Earnings ratio is 14.82, which indicates a correct valuation of KFRC.
- KFRC's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. KFRC is cheaper than 70.45% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of KFRC to the average of the S&P500 Index (24.26), we can say KFRC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.33 | ||
| Fwd PE | 14.82 |
4.2 Price Multiples
- 72.73% of the companies in the same industry are more expensive than KFRC, based on the Enterprise Value to EBITDA ratio.
- KFRC's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KFRC is cheaper than 85.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.94 | ||
| EV/EBITDA | 11.15 |
4.3 Compensation for Growth
- The decent profitability rating of KFRC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)6.38
EPS Next 2Y-6.4%
EPS Next 3Y2.32%
5. Dividend
5.1 Amount
- KFRC has a Yearly Dividend Yield of 4.51%, which is a nice return.
- Compared to an average industry Dividend Yield of 1.41, KFRC pays a better dividend. On top of this KFRC pays more dividend than 92.05% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, KFRC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.51% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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-6.4%
EPS Next 3Y2.32%
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 for 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.
Can you provide the PE and PB ratios for KFRC stock?
The Price/Earnings (PE) ratio for KFORCE INC (KFRC) is 15.33 and the Price/Book (PB) ratio is 4.78.
What is the financial health of KFORCE INC (KFRC) stock?
The financial health rating of KFORCE INC (KFRC) is 8 / 10.