KFORCE INC (KFRC)
US4937321010 - Common Stock
Overall KFRC gets a fundamental rating of 6 out of 10. We evaluated KFRC against 82 industry peers in the Professional Services industry. While KFRC has a great health rating, its profitability is only average at the moment. KFRC is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
KFRC had positive earnings in the past year.
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
KFRC has a Return On Assets of 17.07%. This is amongst the best in the industry. KFRC outperforms 96.30% of its industry peers.
With an excellent Return On Equity value of 38.42%, KFRC belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
KFRC has a better Return On Invested Capital (24.80%) than 92.59% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KFRC is significantly above the industry average of 11.78%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.07% | ||
| ROE | 38.42% | ||
| ROIC | 24.8% |
ROA(3y)17.08%
ROA(5y)19.45%
ROE(3y)39.9%
ROE(5y)45.81%
ROIC(3y)26.66%
ROIC(5y)22.81%
1.3 Margins
With a Profit Margin value of 3.99%, KFRC perfoms like the industry average, outperforming 58.02% 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 5.68%, KFRC perfoms like the industry average, outperforming 49.38% of the companies in the same industry.
In the last couple of years the Operating Margin of KFRC has remained more or less at the same level.
KFRC has a Gross Margin of 27.89%. This is in the lower half of the industry: KFRC underperforms 69.14% of its industry peers.
KFRC's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.68% | ||
| PM (TTM) | 3.99% | ||
| GM | 27.89% |
OM growth 3Y-0.33%
OM growth 5Y0.48%
PM growth 3Y-0.16%
PM growth 5Y-2.16%
GM growth 3Y-0.55%
GM growth 5Y-1.22%
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.
Compared to 5 years ago, KFRC has less shares outstanding
The debt/assets ratio for KFRC is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 11.38 indicates that KFRC is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 11.38, KFRC belongs to the best of the industry, outperforming 96.30% of the companies in the same industry.
KFRC has a debt to FCF ratio of 0.50. This is a very positive value and a sign of high solvency as it would only need 0.50 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.50, KFRC is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
KFRC has a Debt/Equity ratio of 0.26. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.26, KFRC is in line with its industry, outperforming 56.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | 0.5 | ||
| Altman-Z | 11.38 |
ROIC/WACC2.77
WACC8.95%
2.3 Liquidity
A Current Ratio of 2.37 indicates that KFRC has no problem at all paying its short term obligations.
KFRC's Current ratio of 2.37 is amongst the best of the industry. KFRC outperforms 82.72% of its industry peers.
KFRC has a Quick Ratio of 2.37. This indicates that KFRC is financially healthy and has no problem in meeting its short term obligations.
KFRC's Quick ratio of 2.37 is amongst the best of the industry. KFRC outperforms 82.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.37 | ||
| Quick Ratio | 2.37 |
3. Growth
3.1 Past
The earnings per share for KFRC have decreased strongly by -17.88% in the last year.
The Earnings Per Share has been growing by 8.60% on average over the past years. This is quite good.
The Revenue for KFRC has decreased by -10.47% in the past year. This is quite bad
The Revenue has been growing slightly by 3.27% on average over the past years.
EPS 1Y (TTM)-17.88%
EPS 3Y9.75%
EPS 5Y8.6%
EPS growth Q2Q-11.83%
Revenue 1Y (TTM)-10.47%
Revenue growth 3Y3.1%
Revenue growth 5Y3.27%
Revenue growth Q2Q-13.4%
3.2 Future
The Earnings Per Share is expected to grow by 6.56% on average over the next years.
The Revenue is expected to grow by 3.20% on average over the next years.
EPS Next Y-10.66%
EPS Next 2Y4.18%
EPS Next 3Y6.56%
EPS Next 5YN/A
Revenue Next Year-4.42%
Revenue Next 2Y0.67%
Revenue Next 3Y3.2%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 18.27, KFRC is valued on the expensive side.
65.43% 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 28.02, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 20.45, which indicates a rather expensive current valuation of KFRC.
KFRC's Price/Forward Earnings ratio is in line with the industry average.
KFRC's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.58.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.27 | ||
| Fwd PE | 20.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KFRC is valued a bit cheaper than the industry average as 62.96% of the companies are valued more expensively.
KFRC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. KFRC is cheaper than 76.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.87 | ||
| EV/EBITDA | 14.02 |
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)2.12
EPS Next 2Y4.18%
EPS Next 3Y6.56%
5. Dividend
5.1 Amount
KFRC has a Yearly Dividend Yield of 2.38%.
Compared to an average industry Dividend Yield of 2.04, KFRC pays a better dividend. On top of this KFRC pays more dividend than 92.59% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, KFRC has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
5.2 History
The dividend of KFRC is nicely growing with an annual growth rate of 19.62%!
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)19.62%
Div Incr Years6
Div Non Decr Years10
5.3 Sustainability
45.10% 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.
DP45.1%
EPS Next 2Y4.18%
EPS Next 3Y6.56%
KFORCE INC
NASDAQ:KFRC (5/6/2024, 7:10:43 PM)
After market: 63.75 0 (0%)63.75
-0.25 (-0.39%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.24B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.38% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.27 | ||
| Fwd PE | 20.45 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.07% | ||
| ROE | 38.42% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 5.68% | ||
| PM (TTM) | 3.99% | ||
| GM | 27.89% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover4.28
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.26 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.37 | ||
| Quick Ratio | 2.37 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-17.88%
EPS 3Y9.75%
EPS 5Y
EPS growth Q2Q
EPS Next Y-10.66%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-10.47%
Revenue growth 3Y3.1%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y