KFORCE INC (KFRC) Stock Fundamental Analysis
NYSE:KFRC - New York Stock Exchange, Inc. - US4937321010 - Common Stock - Currency: USD
Taking everything into account, KFRC scores 7 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 is not valued too expensively and it also shows a decent growth rate. 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.
KFRC had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
KFRC has a better Return On Assets (14.09%) than 89.02% of its industry peers.
With an excellent Return On Equity value of 32.61%, KFRC belongs to the best of the industry, outperforming 82.93% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 20.77%, KFRC belongs to the top of the industry, outperforming 89.02% 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 13.48%.
The 3 year average ROIC (26.18%) for KFRC is well above the current ROIC(20.77%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.09% | ||
| ROE | 32.61% | ||
| ROIC | 20.77% |
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 3.59%, KFRC perfoms like the industry average, outperforming 52.44% of the companies in the same industry.
KFRC's Profit Margin has declined in the last couple of years.
KFRC's Operating Margin of 4.96% is in line compared to the rest of the industry. KFRC outperforms 48.78% of its industry peers.
In the last couple of years the Operating Margin of KFRC has declined.
KFRC has a worse Gross Margin (27.43%) 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 | 4.96% | ||
| PM (TTM) | 3.59% | ||
| GM | 27.43% |
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.
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
KFRC has an Altman-Z score of 9.24. This indicates that KFRC is financially healthy and has little risk of bankruptcy at the moment.
KFRC has a Altman-Z score of 9.24. This is amongst the best in the industry. KFRC outperforms 95.12% of its industry peers.
KFRC has a debt to FCF ratio of 0.41. This is a very positive value and a sign of high solvency as it would only need 0.41 years to pay back of all of its debts.
KFRC's Debt to FCF ratio of 0.41 is amongst the best of the industry. KFRC outperforms 84.15% of its industry peers.
KFRC has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.21, KFRC is in line with its industry, outperforming 57.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.41 | ||
| Altman-Z | 9.24 |
ROIC/WACC2.42
WACC8.59%
2.3 Liquidity
KFRC has a Current Ratio of 2.00. This indicates that KFRC is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.00, KFRC is in the better half of the industry, outperforming 78.05% of the companies in the same industry.
A Quick Ratio of 2.00 indicates that KFRC has no problem at all paying its short term obligations.
The Quick ratio of KFRC (2.00) is better than 78.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2 | ||
| Quick Ratio | 2 |
3. Growth
3.1 Past
KFRC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.54%.
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 -8.26% 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)-21.54%
EPS 3Y-9.03%
EPS 5Y2.4%
EPS Q2Q%-22.41%
Revenue 1Y (TTM)-8.26%
Revenue growth 3Y-3.83%
Revenue growth 5Y0.85%
Sales Q2Q%-6.21%
3.2 Future
KFRC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.23% yearly.
The Revenue is expected to grow by 2.65% on average over the next years.
EPS Next Y-1.17%
EPS Next 2Y11.13%
EPS Next 3Y6.23%
EPS Next 5YN/A
Revenue Next Year-2.03%
Revenue Next 2Y2.07%
Revenue Next 3Y2.65%
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.02, the valuation of KFRC can be described as correct.
Based on the Price/Earnings ratio, KFRC is valued a bit cheaper than the industry average as 67.07% of the companies are valued more expensively.
KFRC's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.85.
With a Price/Forward Earnings ratio of 11.57, the valuation of KFRC can be described as very reasonable.
Based on the Price/Forward Earnings ratio, KFRC is valued cheaply inside the industry as 80.49% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.77, KFRC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.02 | ||
| Fwd PE | 11.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KFRC is valued a bit cheaper than the industry average as 71.95% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KFRC indicates a rather cheap valuation: KFRC is cheaper than 90.24% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.23 | ||
| EV/EBITDA | 10.08 |
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)6.25
EPS Next 2Y11.13%
EPS Next 3Y6.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.26%, KFRC is a good candidate for dividend investing.
The stock price of KFRC dropped by -31.28% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 2.41, 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 2.45, KFRC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
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
56.01% of the earnings are spent on dividend by KFRC. This is a bit on the high side, but may be sustainable.
The dividend of KFRC is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP56.01%
EPS Next 2Y11.13%
EPS Next 3Y6.23%
38.3
+0.1 (+0.26%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners90.55%
Inst Owner Change0.22%
Ins Owners4.57%
Ins Owner Change4.49%
Market Cap731.91M
Analysts78.33
Price TargetN/A
Short Float %6.26%
Short Ratio7.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.26% |
Yearly Dividend1.46
Dividend Growth(5Y)16.51%
DP56.01%
Div Incr Years7
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)2.72%
Min EPS beat(2)-0.86%
Max EPS beat(2)6.31%
EPS beat(4)2
Avg EPS beat(4)1.1%
Min EPS beat(4)-2.24%
Max EPS beat(4)6.31%
EPS beat(8)4
Avg EPS beat(8)1.85%
EPS beat(12)7
Avg EPS beat(12)3.54%
EPS beat(16)9
Avg EPS beat(16)3.44%
Revenue beat(2)0
Avg Revenue beat(2)-1.56%
Min Revenue beat(2)-1.65%
Max Revenue beat(2)-1.47%
Revenue beat(4)0
Avg Revenue beat(4)-1.95%
Min Revenue beat(4)-2.8%
Max Revenue beat(4)-1.47%
Revenue beat(8)1
Avg Revenue beat(8)-1.98%
Revenue beat(12)2
Avg Revenue beat(12)-1.74%
Revenue beat(16)5
Avg Revenue beat(16)-1.14%
PT rev (1m)-3.19%
PT rev (3m)-6.18%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.27%
EPS NY rev (1m)-3.83%
EPS NY rev (3m)-8.57%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.44%
Revenue NY rev (1m)-1.13%
Revenue NY rev (3m)-2.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.02 | ||
| Fwd PE | 11.57 | ||
| P/S | 0.52 | ||
| P/FCF | 9.23 | ||
| P/OCF | 8.42 | ||
| P/B | 4.73 | ||
| P/tB | 7.28 | ||
| EV/EBITDA | 10.08 |
EPS(TTM)2.55
EY6.66%
EPS(NY)3.31
Fwd EY8.64%
FCF(TTM)4.15
FCFY10.83%
OCF(TTM)4.55
OCFY11.87%
SpS73.54
BVpS8.09
TBVpS5.26
PEG (NY)N/A
PEG (5Y)6.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.09% | ||
| ROE | 32.61% | ||
| ROCE | 28.41% | ||
| ROIC | 20.77% | ||
| ROICexc | 20.8% | ||
| ROICexgc | 26.7% | ||
| OM | 4.96% | ||
| PM (TTM) | 3.59% | ||
| GM | 27.43% | ||
| FCFM | 5.64% |
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-Score5
Asset Turnover3.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.41 | ||
| Debt/EBITDA | 0.43 | ||
| Cap/Depr | 127.88% | ||
| Cap/Sales | 0.54% | ||
| Interest Coverage | 35.05 | ||
| Cash Conversion | 114.85% | ||
| Profit Quality | 157.3% | ||
| Current Ratio | 2 | ||
| Quick Ratio | 2 | ||
| Altman-Z | 9.24 |
F-Score5
WACC8.59%
ROIC/WACC2.42
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)-21.54%
EPS 3Y-9.03%
EPS 5Y2.4%
EPS Q2Q%-22.41%
EPS Next Y-1.17%
EPS Next 2Y11.13%
EPS Next 3Y6.23%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.26%
Revenue growth 3Y-3.83%
Revenue growth 5Y0.85%
Sales Q2Q%-6.21%
Revenue Next Year-2.03%
Revenue Next 2Y2.07%
Revenue Next 3Y2.65%
Revenue Next 5YN/A
EBIT growth 1Y-19.91%
EBIT growth 3Y-13.2%
EBIT growth 5Y-1.4%
EBIT Next Year22.46%
EBIT Next 3Y13.98%
EBIT Next 5YN/A
FCF growth 1Y-5.26%
FCF growth 3Y6.04%
FCF growth 5Y7.13%
OCF growth 1Y-5.02%
OCF growth 3Y6.02%
OCF growth 5Y5.46%