NasdaqGS:KFRC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with solid track record.


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


Market Performance


7 Day Return

3.4%

KFRC

-1.3%

US Professional Services

0.07%

US Market


1 Year Return

11.6%

KFRC

20.2%

US Professional Services

8.9%

US Market

Return vs Industry: KFRC underperformed the US Professional Services industry which returned 20.2% over the past year.

Return vs Market: KFRC exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

KFRCIndustryMarket
7 Day3.4%-1.3%0.07%
30 Day13.4%-1.4%-0.3%
90 Day2.9%-3.5%-1.6%
1 Year14.1%11.6%21.4%20.2%11.3%8.9%
3 Year114.5%101.6%53.7%48.6%46.3%36.8%
5 Year99.9%80.2%83.0%73.0%62.1%44.3%

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?

15.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: KFRC ($38.5) is trading above our estimate of fair value ($27.26)

Significantly Below Fair Value: KFRC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: KFRC is good value based on its PE Ratio (16x) compared to the Professional Services industry average (20.2x).

PE vs Market: KFRC is good value based on its PE Ratio (16x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: KFRC is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: KFRC is overvalued based on its PB Ratio (4.2x) compared to the US Professional Services industry average (2.4x).


Next Steps

Future Growth

How is Kforce forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KFRC's forecast earnings growth (8.5% per year) is above the savings rate (2.7%).

Earnings vs Market: KFRC's earnings (8.5% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: KFRC's revenue (3.3% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: KFRC's revenue (3.3% 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?

16.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: KFRC's earnings have grown by 16.6% per year over the past 5 years.

Accelerating Growth: KFRC's earnings growth over the past year (49.6%) exceeds its 5-year average (16.6% per year).

Earnings vs Industry: KFRC earnings growth over the past year (49.6%) exceeded the Professional Services industry 36.8%.


Return on Equity

High ROE: KFRC's Return on Equity (27.4%) is considered high.


Return on Assets

ROA vs Industry: KFRC has a higher Return on Assets than the Professional Services industry average last year.


Return on Capital Employed

ROCE Improving: KFRC's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Kforce's financial position?


Financial Position Analysis

Short Term Liabilities: KFRC's short term assets ($299.8M) exceeds its short term liabilities ($89.8M)

Long Term Liabilities: KFRC's short term assets (299.8M) exceeds its long term liabilities (121.5M)


Debt to Equity History and Analysis

Debt Level: KFRC's debt to equity ratio (30.7%) is considered satisfactory

Reducing Debt: KFRC's debt to equity ratio has reduced from 54.5% to 30.7% over the past 5 years.

Debt Coverage: KFRC's debt is well covered by operating cash flow (108.7%).

Interest Coverage: KFRC's interest payments on its debt are well covered by EBIT (26.6x coverage).


Balance Sheet

Inventory Level: KFRC has a low level of unsold assets or inventory.

Debt Coverage by Assets: KFRC's debt is covered by short term assets (assets are 4.540270x debt).


Next Steps

Dividend

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

1.87%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years1.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: KFRC's dividend (1.87%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: KFRC's dividend (1.87%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.9%), 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

What is the CEO of Kforce's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average management tenure


CEO

David Dunkel (65yo)

25.8yrs

Tenure

US$4,289,262

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 ($USD4.29M) is about average for companies of similar size in the US market ($USD2.67M).

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


Management Age and Tenure

3.6yrs

Average Tenure

53yo

Average Age

Experienced Management: KFRC's management team is considered experienced (3.6 years average tenure).


Board Age and Tenure

16.3yrs

Average Tenure

65.5yo

Average Age

Experienced Board: KFRC's board of directors are seasoned and experienced ( 16.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$164,05005 Sep 19
David Kelly
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares5,000
Max PriceUS$32.81
SellUS$130,96030 Aug 19
Kye Mitchell
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares4,000
Max PriceUS$32.74
SellUS$14,57305 Aug 19
Michael Blackman
EntityIndividual
Role
Head of Corporate Development
Chief Corporate Development Officer
Shares428
Max PriceUS$34.05
SellUS$52,50011 Jun 19
N. Simmons
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,500
Max PriceUS$35.00
SellUS$104,94021 May 19
A. Tunstall
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,000
Max PriceUS$34.98
SellUS$536,50007 May 19
David Kelly
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares15,000
Max PriceUS$35.80
SellUS$89,92506 Mar 19
N. Simmons
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,500
Max PriceUS$35.97
SellUS$635,72206 Mar 19
Kye Mitchell
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares17,513
Max PriceUS$36.30
SellUS$46,08014 Dec 18
John Allred
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,500
Max PriceUS$30.72
SellUS$30,15012 Dec 18
John Allred
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,000
Max PriceUS$30.15
SellUS$134,89011 Dec 18
John Allred
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,500
Max PriceUS$29.98
SellUS$182,40020 Nov 18
A. Tunstall
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,000
Max PriceUS$30.40
SellUS$65,32008 Nov 18
David Kelly
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares2,000
Max PriceUS$32.66
SellUS$186,60205 Nov 18
Kye Mitchell
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares5,770
Max PriceUS$32.34

Ownership Breakdown


Management Team

  • David Dunkel (65yo)

    Chairman & CEO

    • Tenure: 25.8yrs
    • Compensation: US$4.29m
  • Joe Liberatore (56yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$2.78m
  • David Kelly (53yo)

    Executive VP

    • Tenure: 6.8yrs
    • Compensation: US$2.07m
  • Michael Blackman (64yo)

    Chief Corporate Development Officer

    • Tenure: 9.8yrs
  • Kye Mitchell (49yo)

    Executive VP & COO

    • Tenure: 3.6yrs
    • Compensation: US$2.03m
  • Denis Edwards

    Chief Information Officer

    • Tenure: 0yrs
  • Jeffrey Hackman (40yo)

    Senior Vice President of Finance & Accounting

    • Tenure: 2.4yrs
  • David Bair

    Region President of West

    • Tenure: 2yrs
  • Andrew Thomas (52yo)

    Chief Marketing Officer

    • Tenure: 1.3yrs
    • Compensation: US$1.16m
  • Douglas Rich

    Chief of Staff

    • Tenure: 1.8yrs

Board Members

  • Elaine Rosen (66yo)

    Independent Director

    • Tenure: 16.3yrs
    • Compensation: US$214.81k
  • Mike Furlong (62yo)

    Independent Director

    • Tenure: 18.3yrs
    • Compensation: US$209.34k
  • David Dunkel (65yo)

    Chairman & CEO

    • Tenure: 25.8yrs
    • Compensation: US$4.29m
  • John Allred (72yo)

    Independent Director

    • Tenure: 21.5yrs
    • Compensation: US$209.34k
  • Richard Cocchiaro (64yo)

    Vice Chairman

    • Tenure: 15.8yrs
    • Compensation: US$154.48k
  • Ralph Struzziero (74yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$199.81k
  • N. Simmons (63yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$179.34k
  • A. Tunstall (75yo)

    Independent Director

    • Tenure: 24yrs
    • Compensation: US$179.34k
  • Randy Mehl (51yo)

    Independent Director

    • Tenure: 2.8yrs
    • Compensation: US$179.34k
  • Ann Dunwoody (66yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$181.48k

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$886.697m
  • Shares outstanding: 23.03m
  • 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), Finance and Accounting (FA), and Government Solutions (GS) ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 23:36
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.