KFORCE INC (KFRC) Stock Fundamental Analysis
USA - NYSE:KFRC - US4937321010 - Common Stock
30.13 USD
-0.16 (-0.53%)
30.13 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. KFRC scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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 would make KFRC suitable 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.
Each year in the past 5 years KFRC has been profitable.
Each year in the past 5 years KFRC had a positive operating cash flow.
1.2 Ratios
KFRC has a Return On Assets of 11.74%. This is amongst the best in the industry. KFRC outperforms 89.66% of its industry peers.
The Return On Equity of KFRC (32.63%) is better than 85.06% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.82%, KFRC belongs to the top of the industry, outperforming 85.06% 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 13.25%.
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 in line with its industry peers.
KFRC's Operating Margin has declined in the last couple of years.
KFRC has a worse Gross Margin (27.19%) than 60.92% of its industry peers.
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
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.
KFRC has less shares outstanding than it did 5 years ago.
KFRC has a better debt/assets ratio than last year.
2.2 Solvency
KFRC has an Altman-Z score of 8.02. This indicates that KFRC is financially healthy and has little risk of bankruptcy at the moment.
KFRC has a Altman-Z score of 8.02. This is amongst the best in the industry. KFRC outperforms 93.10% of its industry peers.
The Debt to FCF ratio of KFRC is 1.16, which is an excellent value as it means it would take KFRC, only 1.16 years of fcf income to pay off all of its debts.
KFRC has a Debt to FCF ratio of 1.16. This is in the better half of the industry: KFRC outperforms 74.71% 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 of 0.52. This is comparable to the rest of the industry: KFRC outperforms 49.43% of its industry peers.
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 | 8.02 |
ROIC/WACC1.99
WACC8.45%
2.3 Liquidity
A Current Ratio of 2.04 indicates that KFRC has no problem at all paying its short term obligations.
The Current ratio of KFRC (2.04) is better than 78.16% of its industry peers.
A Quick Ratio of 2.04 indicates that KFRC has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.04, KFRC is doing good in the industry, outperforming 78.16% of the companies in the same industry.
| 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 -21.72% in the last year.
KFRC shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.40% yearly.
Looking at the last year, KFRC shows a decrease in Revenue. The Revenue has decreased by -8.26% in the last year.
The Revenue has been growing slightly by 0.85% on average over the past years.
EPS 1Y (TTM)-21.72%
EPS 3Y-9.03%
EPS 5Y2.4%
EPS Q2Q%-16%
Revenue 1Y (TTM)-8.26%
Revenue growth 3Y-3.83%
Revenue growth 5Y0.85%
Sales Q2Q%-5.85%
3.2 Future
KFRC is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.54% yearly.
The Revenue is expected to decrease by -0.61% on average over the next years.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
With a Price/Earnings ratio of 13.27, KFRC is valued correctly.
KFRC's Price/Earnings ratio is a bit cheaper when compared to the industry. KFRC is cheaper than 77.01% of the companies in the same industry.
KFRC is valuated rather cheaply when we compare the Price/Earnings ratio to 25.83, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 13.02, KFRC is valued correctly.
Based on the Price/Forward Earnings ratio, KFRC is valued a bit cheaper than the industry average as 68.97% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of KFRC to the average of the S&P500 Index (32.68), we can say KFRC is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.27 | ||
| Fwd PE | 13.02 |
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 78.16% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KFRC indicates a rather cheap valuation: KFRC is cheaper than 83.91% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.25 | ||
| EV/EBITDA | 9.46 |
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)5.52
EPS Next 2Y-7.09%
EPS Next 3Y2.54%
5. Dividend
5.1 Amount
KFRC has a Yearly Dividend Yield of 5.15%, which is a nice return.
Compared to an average industry Dividend Yield of 4.58, 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 2.39, KFRC pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.15% |
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
KFRC pays out 64.26% 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.
DP64.26%
EPS Next 2Y-7.09%
EPS Next 3Y2.54%
30.13
-0.16 (-0.53%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners94.66%
Inst Owner Change2.32%
Ins Owners4.04%
Ins Owner Change0.21%
Market Cap560.42M
Revenue(TTM)1.41B
Net Income(TTM)43.86M
Analysts78.33
Price Target42.84 (42.18%)
Short Float %4.52%
Short Ratio3.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.15% |
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)-6.15%
PT rev (3m)-16.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)-1.28%
EPS NY rev (3m)-6.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)-1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.27 | ||
| Fwd PE | 13.02 | ||
| P/S | 0.41 | ||
| P/FCF | 9.25 | ||
| P/OCF | 7.84 | ||
| P/B | 4.17 | ||
| P/tB | 8.09 | ||
| EV/EBITDA | 9.46 |
EPS(TTM)2.27
EY7.53%
EPS(NY)2.31
Fwd EY7.68%
FCF(TTM)3.26
FCFY10.81%
OCF(TTM)3.84
OCFY12.76%
SpS73.2
BVpS7.23
TBVpS3.72
PEG (NY)N/A
PEG (5Y)5.52
Graham Number19.21
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%
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 Turnover3.64
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 | 8.02 |
F-Score4
WACC8.45%
ROIC/WACC1.99
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)-8.26%
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-17.54%
EBIT growth 3Y-13.2%
EBIT growth 5Y-1.4%
EBIT Next Year4.62%
EBIT Next 3Y9.62%
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%
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 9 / 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 64.26%.