KFORCE INC (KFRC) Stock Fundamental Analysis
NYSE:KFRC - New York Stock Exchange, Inc. - US4937321010 - Common Stock - Currency: USD
KFRC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. KFRC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. KFRC has a decent growth rate and is not valued too expensively. 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
KFRC had positive earnings in the past year.
In the past year KFRC had a positive cash flow from operations.
Each year in the past 5 years KFRC has been profitable.
KFRC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KFRC has a Return On Assets of 11.74%. This is amongst the best in the industry. KFRC outperforms 87.80% of its industry peers.
KFRC's Return On Equity of 32.63% is amongst the best of the industry. KFRC outperforms 84.15% of its industry peers.
KFRC's Return On Invested Capital of 16.82% is amongst the best of the industry. KFRC outperforms 85.37% of its industry peers.
The Average Return On Invested Capital over the past 3 years for KFRC is significantly above the industry average of 12.49%.
The 3 year average ROIC (26.18%) for KFRC is well above the current ROIC(16.82%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.74% | ||
| ROE | 32.63% | ||
| ROIC | 16.82% |
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
With a Profit Margin value of 3.22%, KFRC perfoms like the industry average, outperforming 53.66% of the companies in the same industry.
In the last couple of years the Profit Margin of KFRC has declined.
Looking at the Operating Margin, with a value of 4.47%, KFRC is in line with its industry, outperforming 46.34% of the companies in the same industry.
KFRC's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 27.19%, KFRC is not doing good in the industry: 67.07% 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 | 4.47% | ||
| PM (TTM) | 3.22% | ||
| GM | 27.19% |
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.
The number of shares outstanding for KFRC has been reduced compared to 5 years ago.
KFRC has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.10 indicates that KFRC is not in any danger for bankruptcy at the moment.
KFRC has a Altman-Z score of 8.10. This is amongst the best in the industry. KFRC outperforms 91.46% of its industry peers.
KFRC has a debt to FCF ratio of 1.16. This is a very positive value and a sign of high solvency as it would only need 1.16 years to pay back of all of its debts.
KFRC has a better Debt to FCF ratio (1.16) than 80.49% of its industry peers.
KFRC has a Debt/Equity ratio of 0.52. This is a neutral value indicating KFRC is somewhat dependend on debt financing.
KFRC has a Debt to Equity ratio (0.52) which is comparable to the rest of the industry.
Although KFRC does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 8.1 |
ROIC/WACC1.95
WACC8.62%
2.3 Liquidity
A Current Ratio of 2.04 indicates that KFRC has no problem at all paying its short term obligations.
KFRC has a Current ratio of 2.04. This is in the better half of the industry: KFRC outperforms 78.05% of its industry peers.
A Quick Ratio of 2.04 indicates that KFRC has no problem at all paying its short term obligations.
The Quick ratio of KFRC (2.04) is better than 78.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 2.04 |
3. Growth
3.1 Past
The earnings per share for KFRC have decreased strongly by -21.64% in the last year.
The Earnings Per Share has been growing slightly by 2.40% on average over the past years.
Looking at the last year, KFRC shows a decrease in Revenue. The Revenue has decreased by -5.77% in the last year.
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)-21.64%
EPS 3Y-9.03%
EPS 5Y2.4%
EPS Q2Q%-21.33%
Revenue 1Y (TTM)-5.77%
Revenue growth 3Y-3.83%
Revenue growth 5Y0.85%
Sales Q2Q%-6.17%
3.2 Future
The Earnings Per Share is expected to grow by 4.05% on average over the next years.
KFRC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.65% yearly.
EPS Next Y-16.33%
EPS Next 2Y3.2%
EPS Next 3Y4.05%
EPS Next 5YN/A
Revenue Next Year-5.38%
Revenue Next 2Y-0.77%
Revenue Next 3Y1.65%
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
KFRC is valuated correctly with a Price/Earnings ratio of 13.37.
78.05% of the companies in the same industry are more expensive than KFRC, based on the Price/Earnings ratio.
KFRC is valuated rather cheaply when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
KFRC is valuated reasonably with a Price/Forward Earnings ratio of 11.20.
Based on the Price/Forward Earnings ratio, KFRC is valued a bit cheaper than 78.05% of the companies in the same industry.
KFRC is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.37 | ||
| Fwd PE | 11.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KFRC is valued a bit cheaper than 75.61% of the companies in the same industry.
81.71% of the companies in the same industry are more expensive than KFRC, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.82 | ||
| EV/EBITDA | 9.94 |
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)5.57
EPS Next 2Y3.2%
EPS Next 3Y4.05%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.92%, KFRC is a good candidate for dividend investing.
KFRC's Dividend Yield is rather good when compared to the industry average which is at 2.29. KFRC pays more dividend than 96.34% of the companies in the same industry.
KFRC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.92% |
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 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
64.26% of the earnings are spent on dividend by KFRC. This is not a sustainable payout ratio.
KFRC's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP64.26%
EPS Next 2Y3.2%
EPS Next 3Y4.05%
31.96
+0.26 (+0.82%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners94.39%
Inst Owner Change0.33%
Ins Owners4.02%
Ins Owner Change1.5%
Market Cap595.41M
Analysts78.33
Price Target49.98 (56.38%)
Short Float %6.93%
Short Ratio8.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.92% |
Yearly Dividend1.46
Dividend Growth(5Y)16.51%
DP64.26%
Div Incr Years7
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.29%
Min EPS beat(2)-5.8%
Max EPS beat(2)-2.78%
EPS beat(4)1
Avg EPS beat(4)-0.78%
Min EPS beat(4)-5.8%
Max EPS beat(4)6.31%
EPS beat(8)4
Avg EPS beat(8)1.46%
EPS beat(12)5
Avg EPS beat(12)0.53%
EPS beat(16)8
Avg EPS beat(16)2.48%
Revenue beat(2)0
Avg Revenue beat(2)-2.5%
Min Revenue beat(2)-3.08%
Max Revenue beat(2)-1.93%
Revenue beat(4)0
Avg Revenue beat(4)-2.03%
Min Revenue beat(4)-3.08%
Max Revenue beat(4)-1.47%
Revenue beat(8)1
Avg Revenue beat(8)-1.74%
Revenue beat(12)1
Avg Revenue beat(12)-1.94%
Revenue beat(16)4
Avg Revenue beat(16)-1.45%
PT rev (1m)-2.49%
PT rev (3m)-2.49%
EPS NQ rev (1m)-7.38%
EPS NQ rev (3m)-25.66%
EPS NY rev (1m)0%
EPS NY rev (3m)-15.34%
Revenue NQ rev (1m)-1.96%
Revenue NQ rev (3m)-7.85%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.37 | ||
| Fwd PE | 11.2 | ||
| P/S | 0.44 | ||
| P/FCF | 9.82 | ||
| P/OCF | 8.33 | ||
| P/B | 4.43 | ||
| P/tB | 8.6 | ||
| EV/EBITDA | 9.94 |
EPS(TTM)2.39
EY7.48%
EPS(NY)2.85
Fwd EY8.93%
FCF(TTM)3.25
FCFY10.18%
OCF(TTM)3.84
OCFY12.01%
SpS73.08
BVpS7.22
TBVpS3.72
PEG (NY)N/A
PEG (5Y)5.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.74% | ||
| ROE | 32.63% | ||
| ROCE | 23.01% | ||
| ROIC | 16.82% | ||
| ROICexc | 16.98% | ||
| ROICexgc | 22.6% | ||
| OM | 4.47% | ||
| PM (TTM) | 3.22% | ||
| GM | 27.19% | ||
| FCFM | 4.45% |
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%
ROICexcg growth 3Y-10.92%
ROICexcg 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 Turnover3.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.16 | ||
| Debt/EBITDA | 1.05 | ||
| Cap/Depr | 184.9% | ||
| Cap/Sales | 0.8% | ||
| Interest Coverage | 21.98 | ||
| Cash Conversion | 107.18% | ||
| Profit Quality | 138.17% | ||
| Current Ratio | 2.04 | ||
| Quick Ratio | 2.04 | ||
| Altman-Z | 8.1 |
F-Score4
WACC8.62%
ROIC/WACC1.95
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)-21.64%
EPS 3Y-9.03%
EPS 5Y2.4%
EPS Q2Q%-21.33%
EPS Next Y-16.33%
EPS Next 2Y3.2%
EPS Next 3Y4.05%
EPS Next 5YN/A
Revenue 1Y (TTM)-5.77%
Revenue growth 3Y-3.83%
Revenue growth 5Y0.85%
Sales Q2Q%-6.17%
Revenue Next Year-5.38%
Revenue Next 2Y-0.77%
Revenue Next 3Y1.65%
Revenue Next 5YN/A
EBIT growth 1Y-17.54%
EBIT growth 3Y-13.2%
EBIT growth 5Y-1.4%
EBIT Next Year5.48%
EBIT Next 3Y9.55%
EBIT Next 5YN/A
FCF growth 1Y19.3%
FCF growth 3Y6.04%
FCF growth 5Y7.13%
OCF growth 1Y18.36%
OCF growth 3Y6.02%
OCF growth 5Y5.46%