KFORCE INC (KFRC) Stock Fundamental Analysis
NYSE:KFRC - US4937321010 - Common Stock
32.355 USD
-0.25 (-0.75%)
Overall KFRC gets a fundamental rating of 6 out of 10. We evaluated KFRC against 83 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 it does not seem to be growing. 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.
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 (11.74%) than 87.95% of its industry peers.
The Return On Equity of KFRC (32.63%) is better than 85.54% of its industry peers.
With an excellent Return On Invested Capital value of 16.82%, KFRC belongs to the best of the industry, outperforming 85.54% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KFRC is significantly above the industry average of 12.57%.
The last Return On Invested Capital (16.82%) for KFRC is well below the 3 year average (26.18%), which needs to be investigated, but indicates that KFRC had better years and this may not be a problem.
| 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
KFRC has a Profit Margin (3.22%) which is in line with its industry peers.
In the last couple of years the Profit Margin of KFRC has declined.
KFRC has a Operating Margin (4.47%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of KFRC has declined.
KFRC has a Gross Margin of 27.19%. This is in the lower half of the industry: KFRC underperforms 65.06% 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 | 4.47% | ||
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), KFRC is creating value.
Compared to 1 year ago, KFRC has less shares outstanding
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 8.13. This indicates that KFRC is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of KFRC (8.13) is better than 93.98% 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 73.49% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that KFRC is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.52, KFRC is in line with its industry, outperforming 48.19% of the companies in the same 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 | 8.13 |
ROIC/WACC1.96
WACC8.58%
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 better Current ratio (2.04) than 77.11% of its industry peers.
A Quick Ratio of 2.04 indicates that KFRC has no problem at all paying its short term obligations.
KFRC has a better Quick ratio (2.04) than 77.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.04 | ||
| Quick Ratio | 2.04 |
3. Growth
3.1 Past
KFRC shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -21.64%.
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.
Looking at the last year, KFRC shows a decrease in Revenue. The Revenue has decreased by -5.77% in the last year.
KFRC shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.85% yearly.
EPS 1Y (TTM)-21.64%
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
Based on estimates for the next years, KFRC will show a small growth in Earnings Per Share. The EPS will grow by 2.66% on average per year.
The Revenue is expected to decrease by -0.49% on average over the next years.
EPS Next Y-20.39%
EPS Next 2Y-2.65%
EPS Next 3Y2.66%
EPS Next 5YN/A
Revenue Next Year-6.28%
Revenue Next 2Y-2.83%
Revenue Next 3Y-0.49%
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 13.54.
79.52% of the companies in the same industry are more expensive than KFRC, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of KFRC to the average of the S&P500 Index (27.13), we can say KFRC is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.74, the valuation of KFRC can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KFRC indicates a somewhat cheap valuation: KFRC is cheaper than 77.11% of the companies listed in the same industry.
KFRC's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.54 | ||
| Fwd PE | 12.74 |
4.2 Price Multiples
KFRC's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. KFRC is cheaper than 75.90% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KFRC is valued cheaper than 83.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.93 | ||
| EV/EBITDA | 10.1 |
4.3 Compensation for Growth
The decent profitability rating of KFRC may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)5.63
EPS Next 2Y-2.65%
EPS Next 3Y2.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.80%, KFRC is a good candidate for dividend investing.
The stock price of KFRC dropped by -20.10% 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.
KFRC's Dividend Yield is rather good when compared to the industry average which is at 2.17. KFRC pays more dividend than 96.39% of the companies in the same industry.
KFRC's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
5.2 History
The dividend of KFRC is nicely growing with an annual growth rate of 16.51%!
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 2Y-2.65%
EPS Next 3Y2.66%
NYSE:KFRC (9/2/2025, 10:03:23 AM)
32.355
-0.25 (-0.75%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners94.39%
Inst Owner Change-5.42%
Ins Owners4.02%
Ins Owner Change1.5%
Market Cap601.80M
Analysts78.33
Price Target46.92 (45.02%)
Short Float %5.59%
Short Ratio3.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.8% |
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)-8.46%
PT rev (3m)-8.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-25.66%
EPS NY rev (1m)-4.85%
EPS NY rev (3m)-4.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-7.85%
Revenue NY rev (1m)-0.96%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.54 | ||
| Fwd PE | 12.74 | ||
| P/S | 0.44 | ||
| P/FCF | 9.93 | ||
| P/OCF | 8.42 | ||
| P/B | 4.48 | ||
| P/tB | 8.69 | ||
| EV/EBITDA | 10.1 |
EPS(TTM)2.39
EY7.39%
EPS(NY)2.54
Fwd EY7.85%
FCF(TTM)3.26
FCFY10.07%
OCF(TTM)3.84
OCFY11.88%
SpS73.2
BVpS7.23
TBVpS3.72
PEG (NY)N/A
PEG (5Y)5.63
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 | 8.13 |
F-Score4
WACC8.58%
ROIC/WACC1.96
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-20.39%
EPS Next 2Y-2.65%
EPS Next 3Y2.66%
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-6.28%
Revenue Next 2Y-2.83%
Revenue Next 3Y-0.49%
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%