KFORCE INC (KFRC) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:KFRC - US4937321010 - Common Stock
29.4 USD
-0.3 (-1.01%)
29.4 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to KFRC. KFRC was compared to 87 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. Finally KFRC also has an excellent dividend rating. These ratings could make KFRC a good candidate 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.
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
Looking at the Return On Assets, with a value of 10.88%, KFRC belongs to the top of the industry, outperforming 85.06% of the companies in the same industry.
With an excellent Return On Equity value of 30.82%, KFRC belongs to the best of the industry, outperforming 86.21% of the companies in the same industry.
With an excellent Return On Invested Capital value of 16.17%, KFRC belongs to the best of the industry, outperforming 83.91% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KFRC is significantly above the industry average of 12.15%.
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
The Profit Margin of KFRC (3.04%) 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 (4.26%) which is in line with its industry peers.
In the last couple of years the Operating Margin of KFRC has declined.
KFRC has a Gross Margin of 27.14%. This is in the lower half of the industry: KFRC underperforms 64.37% 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
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.
Compared to 5 years ago, KFRC has less shares outstanding
KFRC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.86 indicates that KFRC is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 7.86, KFRC belongs to the best of the industry, outperforming 93.10% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 1.23, KFRC is doing good in the industry, outperforming 74.71% of the companies in the same industry.
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 44.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 1.23 | ||
| Altman-Z | 7.86 |
ROIC/WACC1.94
WACC8.34%
2.3 Liquidity
A Current Ratio of 1.88 indicates that KFRC should not have too much problems paying its short term obligations.
The Current ratio of KFRC (1.88) is better than 68.97% 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 better Quick ratio (1.88) than 70.11% 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.
Measured over the past 5 years, KFRC shows a small growth in Earnings Per Share. The EPS has been growing by 2.40% on average per year.
KFRC shows a decrease in Revenue. In the last year, the revenue decreased by -5.91%.
KFRC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.85% yearly.
EPS 1Y (TTM)-21.72%
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
The Earnings Per Share is expected to grow by 2.54% on average over the next years.
KFRC is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.61% yearly.
EPS Next Y-21.41%
EPS Next 2Y-7.09%
EPS Next 3Y2.54%
EPS Next 5YN/A
Revenue Next Year-6.35%
Revenue Next 2Y-2.98%
Revenue Next 3Y-0.61%
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.
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
KFRC is valuated correctly with a Price/Earnings ratio of 12.95.
Compared to the rest of the industry, the Price/Earnings ratio of KFRC indicates a somewhat cheap valuation: KFRC is cheaper than 78.16% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, KFRC is valued rather cheaply.
KFRC is valuated correctly with a Price/Forward Earnings ratio of 12.71.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KFRC indicates a somewhat cheap valuation: KFRC is cheaper than 72.41% of the companies listed in the same industry.
KFRC's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.95 | ||
| Fwd PE | 12.71 |
4.2 Price Multiples
77.01% 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 83.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.35 | ||
| EV/EBITDA | 9.81 |
4.3 Compensation for Growth
The decent profitability rating of KFRC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.39
EPS Next 2Y-7.09%
EPS Next 3Y2.54%
5. Dividend
5.1 Amount
KFRC has a Yearly Dividend Yield of 5.54%, which is a nice return.
Compared to an average industry Dividend Yield of 4.43, KFRC pays a better dividend. On top of this KFRC pays more dividend than 93.10% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, KFRC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
5.2 History
On average, the dividend of KFRC grows each year by 16.51%, which is quite nice.
KFRC has paid a dividend for at least 10 years, which is 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.
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-7.09%
EPS Next 3Y2.54%
29.4
-0.3 (-1.01%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners94.66%
Inst Owner Change-0.95%
Ins Owners4.04%
Ins Owner Change0.25%
Market Cap546.84M
Revenue(TTM)1.34B
Net Income(TTM)40.72M
Analysts78.33
Price Target37.61 (27.93%)
Short Float %5.02%
Short Ratio3.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.54% |
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)-17.6%
PT rev (3m)-19.84%
EPS NQ rev (1m)0.72%
EPS NQ rev (3m)-4.75%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.28%
Revenue NQ rev (1m)2.12%
Revenue NQ rev (3m)1.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.95 | ||
| Fwd PE | 12.71 | ||
| P/S | 0.41 | ||
| P/FCF | 10.35 | ||
| P/OCF | 8.58 | ||
| P/B | 4.14 | ||
| P/tB | 8.9 | ||
| EV/EBITDA | 9.81 |
EPS(TTM)2.27
EY7.72%
EPS(NY)2.31
Fwd EY7.87%
FCF(TTM)2.84
FCFY9.67%
OCF(TTM)3.43
OCFY11.65%
SpS72.08
BVpS7.1
TBVpS3.3
PEG (NY)N/A
PEG (5Y)5.39
Graham Number19.05
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 | 7.86 |
F-Score4
WACC8.34%
ROIC/WACC1.94
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-21.41%
EPS Next 2Y-7.09%
EPS Next 3Y2.54%
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-6.35%
Revenue Next 2Y-2.98%
Revenue Next 3Y-0.61%
Revenue Next 5YN/A
EBIT growth 1Y-25.33%
EBIT growth 3Y-13.2%
EBIT growth 5Y-1.4%
EBIT Next Year4.62%
EBIT Next 3Y9.62%
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 6 / 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%.