Kforce (NasdaqGS:KFRC) - Share price, News & Analysis

KFRC fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	1/6
Past Performance	6/6
Financial Health	6/6
Dividends	3/6

KFRC Stock Overview

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

Rewards

Trading at 50.8% below our estimate of its fair value

Earnings are forecast to grow 10.27% per year

Earnings grew by 34.7% over the past year

Risk Analysis

Unstable dividend track record

Significant insider selling over the past 3 months

Kforce Competitors

ManpowerGroup

NYSE:MAN

US$4.7b

Korn Ferry

NYSE:KFY

US$3.1b

Heidrick & Struggles International

NasdaqGS:HSII

US$632.7m

Mastech Digital

NYSEAM:MHH

US$205.5m

Price History & Performance

Summary of all time highs, changes and price drops for Kforce
Historical stock prices
Current Share Price	US$65.70
52 Week High	US$81.47
52 Week Low	US$55.94
Beta	1.07
1 Month Change	-10.32%
3 Month Change	-9.07%
1 Year Change	8.42%
3 Year Change	79.31%
5 Year Change	260.00%
Change since IPO	1,652.00%

Recent News & Updates

May 08

Kforce (NASDAQ:KFRC) Is Increasing Its Dividend To US$0.30

Kforce Inc. ( NASDAQ:KFRC ) has announced that it will be increasing its dividend on the 24th of June to US$0.30. This...

Apr 22

Is Kforce (NASDAQ:KFRC) A Risky Investment?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Mar 21

Is It Time To Consider Buying Kforce Inc. (NASDAQ:KFRC)?

While Kforce Inc. ( NASDAQ:KFRC ) might not be the most widely known stock at the moment, it saw a decent share price...

Shareholder Returns

	KFRC	US Professional Services	US Market
7D	-6.9%	0.1%	-0.5%
1Y	8.4%	-17.3%	-12.3%

Return vs Industry: KFRC exceeded the US Professional Services industry which returned -16.4% over the past year.

Return vs Market: KFRC exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is KFRC's price volatile compared to industry and market?
KFRC volatility
KFRC Average Weekly Movement	5.1%
Professional Services Industry Average Movement	6.8%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	2.9%

Stable Share Price: KFRC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: KFRC's weekly volatility (5%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1962	2,000	Joe Liberatore	https://www.kforce.com

Kforce Inc. provides professional staffing services and solutions in the United States. It operates through two segments, Technology, and Finance and Accounting (FA). The Technology segment provides talent solutions to its clients primarily in the areas of information technology, such as systems/applications architecture and development, data management and analytics, business and artificial intelligence, machine learning, project and program management, and network architecture and security.

Kforce Fundamentals Summary

How do Kforce's earnings and revenue compare to its market cap?
KFRC fundamental statistics
Market Cap	US$1.33b
Earnings (TTM)	US$81.10m
Revenue (TTM)	US$1.63b

16.5x

P/E Ratio

0.8x

P/S Ratio

Is KFRC overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
KFRC income statement (TTM)
Revenue	US$1.63b
Cost of Revenue	US$1.15b
Gross Profit	US$482.07m
Other Expenses	US$400.97m
Earnings	US$81.10m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.99
Gross Margin	29.51%
Net Profit Margin	4.96%
Debt/Equity Ratio	50.5%

How did KFRC perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

26%

Payout Ratio

Does KFRC pay a reliable dividends?

See KFRC dividend history and benchmarks

When do you need to buy KFRC by to receive an upcoming dividend?
Kforce dividend dates
Ex Dividend Date	Jun 09 2022
Dividend Pay Date	Jun 24 2022
Days until Ex dividend	15 days
Days until Dividend pay date	30 days

Does KFRC pay a reliable dividends?

See KFRC dividend history and benchmarks

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: KFRC ($65.7) is trading below our estimate of fair value ($133.43)

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

Price To Earnings Ratio

PE vs Industry: KFRC's PE Ratio (16.5x) is in line with the US Professional Services industry average.

PE vs Market: KFRC is poor value based on its PE Ratio (16.5x) compared to the US market (15.1x).

Price to Earnings Growth Ratio

PEG Ratio: KFRC is poor value based on its PEG Ratio (1.6x)

Price to Book Ratio

PB vs Industry: KFRC is overvalued based on its PB Ratio (6.7x) compared to the US Professional Services industry average (2.5x).

Future Growth

How is Kforce forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

10.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: KFRC's forecast earnings growth (10.3% per year) is above the savings rate (1.9%).

Earnings vs Market: KFRC's earnings (10.3% per year) are forecast to grow slower than the US market (12.5% per year).

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

Revenue vs Market: KFRC's revenue (5.9% per year) is forecast to grow slower than the US market (7.8% per year).

High Growth Revenue: KFRC's revenue (5.9% 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

Past Performance

How has Kforce performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

16.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KFRC has high quality earnings.

Growing Profit Margin: KFRC's current net profit margins (5%) are higher than last year (4.2%).

Past Earnings Growth Analysis

Earnings Trend: KFRC's earnings have grown by 16.8% per year over the past 5 years.

Accelerating Growth: KFRC's earnings growth over the past year (34.7%) exceeds its 5-year average (16.8% per year).

Earnings vs Industry: KFRC earnings growth over the past year (34.7%) exceeded the Professional Services industry 32.6%.

Return on Equity

High ROE: KFRC's Return on Equity (40.9%) is considered outstanding.

Financial Health

How is Kforce's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: KFRC's short term assets ($405.5M) exceed its short term liabilities ($183.2M).

Long Term Liabilities: KFRC's short term assets ($405.5M) exceed its long term liabilities ($148.1M).

Debt to Equity History and Analysis

Debt Level: KFRC has more cash than its total debt.

Reducing Debt: KFRC's debt to equity ratio has reduced from 103.3% to 50.5% over the past 5 years.

Debt Coverage: KFRC's debt is well covered by operating cash flow (89.2%).

Interest Coverage: KFRC's interest payments on its debt are well covered by EBIT (39.8x coverage).

Balance Sheet

Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.83%

Current Dividend Yield

Upcoming Dividend Payment

Dividend Yield vs Market

Notable Dividend: KFRC's dividend (1.83%) is higher than the bottom 25% of dividend payers in the US market (1.58%).

High Dividend: KFRC's dividend (1.83%) is low compared to the top 25% of dividend payers in the US market (4.11%).

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 8 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (26.4%), KFRC's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (29.8%), KFRC's dividend payments are well covered by cash flows.

Discover strong dividend paying companies

Management

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

4.6yrs

Average management tenure

CEO

Joe Liberatore (58 yo)

9.33yrs

Tenure

US$6,772,469

Compensation

Mr. Joseph J. Liberatore, also known as Joe, has been the President of Kforce Inc. since January 01, 2013 and serves as its Chief Executive Officer since January 01, 2022. He serves as Director at of Kforc...

CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD6.77M) is about average for companies of similar size in the US market ($USD5.44M).

Compensation vs Earnings: Joe's compensation has increased by more than 20% in the past year.

Leadership Team

Experienced Management: KFRC's management team is considered experienced (4.6 years average tenure).

Board Members

Experienced Board: KFRC's board of directors are considered experienced (6.1 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/23 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31