NasdaqGS:KFRC

Stock Analysis Report

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Executive Summary

Kforce Inc. provides professional staffing services and solutions in the United States and internationally. More Details


Snowflake Analysis

Good value with adequate balance sheet.


Similar Companies

Share Price & News

How has Kforce's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: KFRC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.7%

KFRC

-1.5%

US Professional Services

-1.4%

US Market


1 Year Return

-4.0%

KFRC

16.0%

US Professional Services

17.8%

US Market

Return vs Industry: KFRC underperformed the US Professional Services industry which returned 16.2% over the past year.

Return vs Market: KFRC underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

KFRCIndustryMarket
7 Day0.7%-1.5%-1.4%
30 Day16.3%4.0%4.7%
90 Day31.3%5.7%8.2%
1 Year-1.7%-4.0%16.8%16.0%20.5%17.8%
3 Year93.8%82.3%53.7%49.1%42.2%32.7%
5 Year48.2%33.0%91.6%81.3%83.4%62.7%

Price Volatility Vs. Market

How volatile is Kforce's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Kforce undervalued compared to its fair value and its price relative to the market?

24.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KFRC ($37.65) is trading below our estimate of fair value ($50.14)

Significantly Below Fair Value: KFRC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KFRC is good value based on its PE Ratio (16.5x) compared to the US Professional Services industry average (24.7x).

PE vs Market: KFRC is good value based on its PE Ratio (16.5x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: KFRC is poor value based on its PEG Ratio (12.5x)


Price to Book Ratio

PB vs Industry: KFRC is overvalued based on its PB Ratio (5.1x) compared to the US Professional Services industry average (2.6x).


Next Steps

Future Growth

How is Kforce forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

1.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KFRC's forecast earnings growth (1.3% per year) is below the savings rate (2.2%).

Earnings vs Market: KFRC's earnings (1.3% per year) are forecast to grow slower than the US market (22.2% per year).

High Growth Earnings: KFRC's earnings are forecast to grow, but not significantly.

Revenue vs Market: KFRC's revenue (1% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: KFRC's revenue (1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if KFRC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Kforce performed over the past 5 years?

9.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KFRC has high quality earnings.

Growing Profit Margin: KFRC's current net profit margins (3.6%) are lower than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: KFRC's earnings have grown by 9% per year over the past 5 years.

Accelerating Growth: KFRC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KFRC had negative earnings growth (-4.5%) over the past year, making it difficult to compare to the Professional Services industry average (-1.7%).


Return on Equity

High ROE: KFRC's Return on Equity (32.5%) is considered high.


Next Steps

Financial Health

How is Kforce's financial position?


Financial Position Analysis

Short Term Liabilities: KFRC's short term assets ($302.3M) exceed its short term liabilities ($109.7M).

Long Term Liabilities: KFRC's short term assets ($302.3M) exceed its long term liabilities ($176.6M).


Debt to Equity History and Analysis

Debt Level: KFRC's debt to equity ratio (67.6%) is considered high.

Reducing Debt: KFRC's debt to equity ratio has increased from 67.5% to 67.6% over the past 5 years.

Debt Coverage: KFRC's debt is well covered by operating cash flow (80.8%).

Interest Coverage: KFRC's interest payments on its debt are well covered by EBIT (21.8x coverage).


Balance Sheet


Next Steps

Dividend

What is Kforce current dividend yield, its reliability and sustainability?

2.12%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: KFRC's dividend (2.12%) is higher than the bottom 25% of dividend payers in the US market (1.64%).

High Dividend: KFRC's dividend (2.12%) is low compared to the top 25% of dividend payers in the US market (4.68%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, KFRC has been paying a dividend for less than 10 years.

Growing Dividend: KFRC's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (33.3%), KFRC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure


CEO

David Dunkel (66 yo)

26.75yrs

Tenure

US$7,060,801

Compensation

Mr. David L. Dunkel has been the Chief Executive Officer and Chairman of Kforce Inc. since 1994. Mr. Dunkel served as the President of Kforce since 1999 until October 26, 2004. Prior to August 1994, he se ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD7.06M) is above average for companies of similar size in the US market ($USD2.85M).

Compensation vs Earnings: David's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Dunkel
Chairman & CEO26.75yrsUS$7.06m4.92%
$ 38.5m
Joseph Liberatore
President7.75yrsUS$5.67m0.75%
$ 5.9m
David Kelly
Chief Financial & Administrative Officer and Secretary7.75yrsUS$2.40m0.56%
$ 4.3m
Kye Mitchell
Executive VP & COO4.58yrsUS$2.36m0.47%
$ 3.7m
Andrew Thomas
Chief Marketing Officer2.25yrsUS$1.41m0.45%
$ 3.5m
Jeffrey Hackman
Senior Vice President of Finance & Accounting3.42yrsno data0.31%
$ 2.4m
Denis Edwards
Chief Information Officerno datano datano data
Jennifer Smayda
General Counsel0.75yrno datano data
Michael Blackman
Chief Corporate Development Officer10.83yrsno data0.17%
$ 1.4m
Douglas Rich
Chief of Staff2.75yrsno datano data
David Bair
Region President of West3yrsno datano data
John Megally
Region President of East3yrsno datano data

3.4yrs

Average Tenure

54yo

Average Age

Experienced Management: KFRC's management team is considered experienced (3.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Dunkel
Chairman & CEO26.75yrsUS$7.06m4.92%
$ 38.5m
Elaine Rosen
Independent Director17.33yrsUS$218.52k0.091%
$ 711.1k
Mark Furlong
Independent Director19.25yrsUS$209.13k0.24%
$ 1.9m
Ralph Struzziero
Lead Independent Directorno dataUS$203.52k0.14%
$ 1.1m
N. Simmons
Independent Director6.25yrsUS$179.13k0.076%
$ 596.4k
Randall Mehl
Independent Director3.75yrsUS$181.18k0.022%
$ 169.6k
Ann Dunwoody
Independent Director4.5yrsUS$181.99k0.060%
$ 469.8k

11.8yrs

Average Tenure

66yo

Average Age

Experienced Board: KFRC's board of directors are seasoned and experienced ( 11.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: KFRC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Kforce Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Kforce Inc.
  • Ticker: KFRC
  • Exchange: NasdaqGS
  • Founded: 1962
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Market Cap: US$782.422m
  • Shares outstanding: 20.78m
  • Website: https://www.kforce.com

Number of Employees


Location

  • Kforce Inc.
  • 1001 East Palm Avenue
  • Tampa
  • Florida
  • 33605
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
KFRCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 1995
ROFDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1995

Biography

Kforce Inc. provides professional staffing services and solutions in the United States and internationally. It operates through Technology (Tech) and Finance and Accounting (FA) segments. The Tech segment ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 23:48
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.