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

-0.4%

KFRC

0.2%

US Professional Services

-0.6%

US Market


1 Year Return

-11.4%

KFRC

10.9%

US Professional Services

0.7%

US Market

KFRC underperformed the Professional Services industry which returned 10.5% over the past year.

KFRC underperformed the Market in United States of America which returned 0.7% over the past year.


Share holder returns

KFRCIndustryMarket
7 Day-0.4%0.2%-0.6%
30 Day5.2%2.7%4.9%
90 Day-3.1%6.9%1.7%
1 Year-9.4%-11.4%11.9%10.9%3.0%0.7%
3 Year80.7%69.8%50.4%45.2%44.8%35.4%
5 Year91.2%72.3%84.5%74.4%62.0%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

2 weeks ago | Simply Wall St

Don't Ignore The Fact That This Insider Just Sold Some Shares In Kforce Inc. (NASDAQ:KFRC)

Valuation

Is Kforce undervalued based on future cash flows and its price relative to the stock market?

14.1x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Kforce's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Kforce's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Kforce is good value based on earnings compared to the US Professional Services industry average.

Kforce is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Kforce is poor value based on expected growth next year.


Price Based on Value of Assets

Kforce is overvalued based on assets compared to the US Professional Services industry average.


Next Steps

Future Growth

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

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Kforce's revenue is expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).

Kforce's earnings are expected to grow by 8.2% yearly, however this is not considered high growth (20% yearly).

Kforce's revenue growth is positive but not above the United States of America market average.

Kforce's earnings growth is positive but not above the United States of America market average.

Kforce's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Kforce will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Kforce's year on year earnings growth rate has been positive over the past 5 years.

Kforce's 1-year earnings growth exceeds its 5-year average (49.6% vs 16.6%)

Kforce's earnings growth has exceeded the US Professional Services industry average in the past year (49.6% vs 37.9%).


Return on Equity

Kforce has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Kforce used its assets more efficiently than the US Professional Services industry average last year based on Return on Assets.


Return on Capital Employed

Kforce's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Kforce's financial position?


Financial Position Analysis

Kforce is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Kforce's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Kforce's level of debt (30.7%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (54.5% vs 30.7% today).

Debt is well covered by operating cash flow (108.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 26.6x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 4.5x debt.


Next Steps

Dividend

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

2.12%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Kforce's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).

Kforce's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).

Whilst dividend payments have been stable, Kforce has been paying a dividend for less than 10 years.

Dividend payments have increased, but Kforce only paid a dividend in the past 6 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (3.3x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

David Dunkel (65yo)

25.7yrs

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

David's remuneration is higher than average for companies of similar size in United States of America.

David's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.5yrs

Average Tenure

53yo

Average Age

The tenure for the Kforce management team is about average.


Board Age and Tenure

16.3yrs

Average Tenure

65.5yo

Average Age

The average tenure for the Kforce board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Kforce individual 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: 25.7yrs
    • Compensation: US$4.29m
  • Joe Liberatore (56yo)

    President

    • Tenure: 6.7yrs
    • Compensation: US$2.78m
  • David Kelly (53yo)

    Executive VP

    • Tenure: 6.7yrs
    • Compensation: US$2.07m
  • Michael Blackman (64yo)

    Chief Corporate Development Officer

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

    Executive VP & COO

    • Tenure: 3.5yrs
    • Compensation: US$2.03m
  • Denis Edwards

    Chief Information Officer

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

    Senior Vice President of Finance & Accounting

    • Tenure: 2.3yrs
  • David Bair

    Region President of West

    • Tenure: 1.9yrs
  • Andrew Thomas (52yo)

    Chief Marketing Officer

    • Tenure: 1.2yrs
    • Compensation: US$1.16m
  • Douglas Rich

    Chief of Staff

    • Tenure: 1.7yrs

Board Members

  • Elaine Rosen (66yo)

    Independent Director

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

    Independent Director

    • Tenure: 18.2yrs
    • Compensation: US$209.34k
  • David Dunkel (65yo)

    Chairman & CEO

    • Tenure: 25.7yrs
    • Compensation: US$4.29m
  • John Allred (72yo)

    Independent Director

    • Tenure: 21.4yrs
    • Compensation: US$209.34k
  • Richard Cocchiaro (64yo)

    Vice Chairman

    • Tenure: 15.7yrs
    • Compensation: US$154.48k
  • Ralph Struzziero (74yo)

    Lead Independent Director

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

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$179.34k
  • A. Tunstall (75yo)

    Independent Director

    • Tenure: 23.9yrs
    • Compensation: US$179.34k
  • Randy Mehl (51yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$179.34k
  • Ann Dunwoody (66yo)

    Independent Director

    • Tenure: 3.4yrs
    • 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$781.905m
  • 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 Analysis2019/09/22 23:40
End of Day Share Price2019/09/20 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.