KFORCE INC (KFRC) Stock Fundamental Analysis
NYSE:KFRC - New York Stock Exchange, Inc. - US4937321010 - Common Stock - Currency: USD
Taking everything into account, KFRC scores 6 out of 10 in our fundamental rating. KFRC was compared to 82 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 decent growth rate and is not valued too expensively. 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.
In the past 5 years KFRC has always been profitable.
In the past 5 years KFRC always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of KFRC (12.81%) is better than 87.80% of its industry peers.
KFRC's Return On Equity of 34.17% is amongst the best of the industry. KFRC outperforms 82.93% of its industry peers.
KFRC has a Return On Invested Capital of 19.13%. This is amongst the best in the industry. KFRC outperforms 91.46% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KFRC is significantly above the industry average of 12.28%.
The 3 year average ROIC (26.28%) for KFRC is well above the current ROIC(19.13%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.81% | ||
| ROE | 34.17% | ||
| ROIC | 19.13% |
ROA(3y)16.75%
ROA(5y)15.37%
ROE(3y)37.34%
ROE(5y)36.61%
ROIC(3y)26.28%
ROIC(5y)23.51%
1.3 Margins
Looking at the Profit Margin, with a value of 3.41%, KFRC is in line with its industry, outperforming 52.44% of the companies in the same industry.
KFRC's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 4.84%, KFRC perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Operating Margin of KFRC has declined.
KFRC has a worse Gross Margin (27.34%) than 65.85% of its industry peers.
KFRC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.84% | ||
| PM (TTM) | 3.41% | ||
| GM | 27.34% |
OM growth 3Y-9.62%
OM growth 5Y-2.14%
PM growth 3Y-9.25%
PM growth 5Y-18.2%
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.
KFRC has less shares outstanding than it did 1 year ago.
The number of shares outstanding for KFRC has been reduced compared to 5 years ago.
The debt/assets ratio for KFRC has been reduced compared to a year ago.
2.2 Solvency
KFRC has an Altman-Z score of 8.92. This indicates that KFRC is financially healthy and has little risk of bankruptcy at the moment.
KFRC has a Altman-Z score of 8.92. This is amongst the best in the industry. KFRC outperforms 91.46% of its industry peers.
KFRC has a debt to FCF ratio of 1.02. This is a very positive value and a sign of high solvency as it would only need 1.02 years to pay back of all of its debts.
The Debt to FCF ratio of KFRC (1.02) is better than 79.27% of its industry peers.
KFRC has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of KFRC (0.48) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.02 | ||
| Altman-Z | 8.92 |
ROIC/WACC2.14
WACC8.94%
2.3 Liquidity
A Current Ratio of 2.07 indicates that KFRC has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.07, KFRC is in the better half of the industry, outperforming 76.83% of the companies in the same industry.
KFRC has a Quick Ratio of 2.07. This indicates that KFRC is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.07, KFRC is in the better half of the industry, outperforming 76.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.07 | ||
| Quick Ratio | 2.07 |
3. Growth
3.1 Past
The earnings per share for KFRC have decreased strongly by -21.54% 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 -6.38%.
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)-21.54%
EPS 3Y-9.03%
EPS 5Y2.4%
EPS Q2Q%-22.41%
Revenue 1Y (TTM)-6.38%
Revenue growth 3Y-3.83%
Revenue growth 5Y0.85%
Sales Q2Q%-6.21%
3.2 Future
The Earnings Per Share is expected to grow by 4.05% on average over the next years.
Based on estimates for the next years, KFRC will show a small growth in Revenue. The Revenue will grow by 1.54% on average per year.
EPS Next Y-16.33%
EPS Next 2Y3.2%
EPS Next 3Y4.05%
EPS Next 5YN/A
Revenue Next Year-5.45%
Revenue Next 2Y-0.81%
Revenue Next 3Y1.54%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 16.85, which indicates a correct valuation of KFRC.
KFRC's Price/Earnings ratio is a bit cheaper when compared to the industry. KFRC is cheaper than 67.07% of the companies in the same industry.
When comparing the Price/Earnings ratio of KFRC to the average of the S&P500 Index (27.50), we can say KFRC is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.05, KFRC is valued correctly.
Based on the Price/Forward Earnings ratio, KFRC is valued a bit cheaper than 68.29% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.44. KFRC is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.85 | ||
| Fwd PE | 15.05 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KFRC indicates a somewhat cheap valuation: KFRC is cheaper than 67.07% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, KFRC is valued a bit cheaper than 76.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.43 | ||
| EV/EBITDA | 11.86 |
4.3 Compensation for Growth
The decent profitability rating of KFRC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)7.01
EPS Next 2Y3.2%
EPS Next 3Y4.05%
5. Dividend
5.1 Amount
KFRC has a Yearly Dividend Yield of 3.63%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.10, KFRC pays a better dividend. On top of this KFRC pays more dividend than 95.12% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, KFRC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
5.2 History
On average, the dividend of KFRC grows each year by 16.16%, which is quite nice.
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)16.16%
Div Incr Years7
Div Non Decr Years11
5.3 Sustainability
59.22% 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.
DP59.22%
EPS Next 2Y3.2%
EPS Next 3Y4.05%
42.96
-0.01 (-0.02%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners94.39%
Inst Owner Change0%
Ins Owners4.01%
Ins Owner Change0.81%
Market Cap800.34M
Analysts78.33
Price Target51.26 (19.32%)
Short Float %6.95%
Short Ratio8.77
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.63% |
Yearly Dividend1.44
Dividend Growth(5Y)16.16%
DP59.22%
Div Incr Years7
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-3.33%
Min EPS beat(2)-5.8%
Max EPS beat(2)-0.86%
EPS beat(4)2
Avg EPS beat(4)0.21%
Min EPS beat(4)-5.8%
Max EPS beat(4)6.31%
EPS beat(8)4
Avg EPS beat(8)1.37%
EPS beat(12)6
Avg EPS beat(12)1.45%
EPS beat(16)9
Avg EPS beat(16)3.24%
Revenue beat(2)0
Avg Revenue beat(2)-2.27%
Min Revenue beat(2)-3.08%
Max Revenue beat(2)-1.47%
Revenue beat(4)0
Avg Revenue beat(4)-2.02%
Min Revenue beat(4)-3.08%
Max Revenue beat(4)-1.47%
Revenue beat(8)1
Avg Revenue beat(8)-1.95%
Revenue beat(12)1
Avg Revenue beat(12)-2.02%
Revenue beat(16)5
Avg Revenue beat(16)-1.27%
PT rev (1m)0%
PT rev (3m)-19.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.88%
EPS NY rev (1m)0%
EPS NY rev (3m)-18.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.85 | ||
| Fwd PE | 15.05 | ||
| P/S | 0.58 | ||
| P/FCF | 12.43 | ||
| P/OCF | 10.78 | ||
| P/B | 5.8 | ||
| P/tB | 10.13 | ||
| EV/EBITDA | 11.86 |
EPS(TTM)2.55
EY5.94%
EPS(NY)2.85
Fwd EY6.64%
FCF(TTM)3.46
FCFY8.05%
OCF(TTM)3.99
OCFY9.28%
SpS74.26
BVpS7.41
TBVpS4.24
PEG (NY)N/A
PEG (5Y)7.01
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.81% | ||
| ROE | 34.17% | ||
| ROCE | 26.07% | ||
| ROIC | 19.13% | ||
| ROICexc | 19.13% | ||
| ROICexgc | 24.83% | ||
| OM | 4.84% | ||
| PM (TTM) | 3.41% | ||
| GM | 27.34% | ||
| FCFM | 4.66% |
ROA(3y)16.75%
ROA(5y)15.37%
ROE(3y)37.34%
ROE(5y)36.61%
ROIC(3y)26.28%
ROIC(5y)23.51%
ROICexc(3y)26.3%
ROICexc(5y)26.55%
ROICexgc(3y)31.92%
ROICexgc(5y)31.87%
ROCE(3y)35.81%
ROCE(5y)32.03%
ROICexcg growth 3Y-10.92%
ROICexcg growth 5Y3.44%
ROICexc growth 3Y-13.04%
ROICexc growth 5Y1.03%
OM growth 3Y-9.62%
OM growth 5Y-2.14%
PM growth 3Y-9.25%
PM growth 5Y-18.2%
GM growth 3Y-1.75%
GM growth 5Y-1.32%
F-Score4
Asset Turnover3.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.02 | ||
| Debt/EBITDA | 0.9 | ||
| Cap/Depr | 162.65% | ||
| Cap/Sales | 0.71% | ||
| Interest Coverage | 32.84 | ||
| Cash Conversion | 101.64% | ||
| Profit Quality | 136.61% | ||
| Current Ratio | 2.07 | ||
| Quick Ratio | 2.07 | ||
| Altman-Z | 8.92 |
F-Score4
WACC8.94%
ROIC/WACC2.14
Cap/Depr(3y)155.62%
Cap/Depr(5y)146.34%
Cap/Sales(3y)0.51%
Cap/Sales(5y)0.48%
Profit Quality(3y)135%
Profit Quality(5y)135.37%
High Growth Momentum
Growth
EPS 1Y (TTM)-21.54%
EPS 3Y-9.03%
EPS 5Y2.4%
EPS Q2Q%-22.41%
EPS Next Y-16.33%
EPS Next 2Y3.2%
EPS Next 3Y4.05%
EPS Next 5YN/A
Revenue 1Y (TTM)-6.38%
Revenue growth 3Y-3.83%
Revenue growth 5Y0.85%
Sales Q2Q%-6.21%
Revenue Next Year-5.45%
Revenue Next 2Y-0.81%
Revenue Next 3Y1.54%
Revenue Next 5YN/A
EBIT growth 1Y-15.88%
EBIT growth 3Y-13.08%
EBIT growth 5Y-1.32%
EBIT Next Year10.71%
EBIT Next 3Y12.77%
EBIT Next 5YN/A
FCF growth 1Y1.59%
FCF growth 3Y6.1%
FCF growth 5Y7.16%
OCF growth 1Y4.28%
OCF growth 3Y6.07%
OCF growth 5Y5.49%