Kforce Inc

Consumer Discretionary
Professional Services
www.kforce.com

Earnings Score
Moat Score

Market Cap $1.03B
PE 19
Debt -
Cash $127.00K
EV -
FCF $77.31M

Earnings

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Sales & Net Margins

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Earnings	$55.07M
EBIT	$75.90M
ROE	33%
ROA	21%
FCF	$77.31M
Equity	$167.37M
Growth Stability	76%
PE	18.79
PEG	-2.61
PB	6.18
P/FCF	13.39
P/S	0.73
Price/Cash	0
Net Margins	4%
Gross Margins	28%
Op. Margins	5%
Earnings CAGR	7%
Sales Growth YoY	-5%
Sales Growth QoQ	-1%
Sales CAGR	3%
FCF CAGR	15%
Equity CAGR	4%
Earnings Stability	0.21
Earnings Growth YoY	34%
Earnings Growth QoQ	0%

Earnings CAGR 5Y	-7%
Sales CAGR 5Y	3%
FCF CAGR 5Y	-0%
Equity CAGR 5Y	1%
Earnings CAGR 3Y	-5%
Sales CAGR 3Y	-5%
FCF CAGR 3Y	-2%
Equity CAGR 3Y	-8%
Market Cap	$1.03B
Revenue	$1.42B
Dividend Yield	3%
Payout Ratio	51%
Assets	$369.85M
Cash	$127.00K
Shares Outstanding	18.58M
Earnings Score	10%
Moat Score	89%
Working Capital	123.42M
Current Ratio	2.06
Gross Profit	$392.15M
Shares Growth 3y	-4%
Equity Growth QoQ	0%
Equity Growth YoY	-6%

Assets & ROA

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Stockholders Equity & ROE

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Kforce Inc provides professional and technical specialty staffing services and solutions. The company operates three business segments: technology, finance and accounting, and government solutions. Its largest segment by revenue, technology, offers temporary staffing and permanent placement services focusing on system architecture and development, project management, enterprise data management, e-commerce, and security. The remaining operating units provide staffing for general accounting, financial analysis, and technology. Its primary revenue driver for the company is temporary placements. The largest end market is the United States.

SEC Filings

Direct access to Kforce Inc (KFRC) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Kforce Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Kforce Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 7%

Stability 21%

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Kforce Inc Discounted Cash Flow

Fully customizable DCF calculator online for Kforce Inc.

Years

Calculation mode

= $2.3B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$77M	$89M	$103M	$119M	$137M	$158M	$182M	$210M	$242M	$279M	$322M	$3.2B
DCF		$81M	$85M	$89M	$93M	$98M	$103M	$108M	$113M	$118M	$124M	$1.2B
Value	$2.3B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	3%	2%	2%	4%	10%	4%	5%	4%	4%	4%
ROA	-	16%	18%	21%	20%	17%	21%	30%	24%	21%
ROE	-	27%	25%	34%	78%	31%	40%	41%	38%	33%

Bad Net Margins (3.71%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	0.15	0.11	0.02	-	0	-	-	-	-
Debt over Equity	0.02	0.03	0.02	0.01	-	0	-	-	-	-
Growth Stability	-	-	-	100%	100%	76%	92%	86%	89%	76%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (76%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	0%	3%	4%	-5%	4%	13%	8%	-10%	3%
Earnings YoY growth	-	-23%	2%	74%	126%	-57%	34%	0%	-19%	-7%
Equity YoY growth	-	-13%	10%	25%	-1%	8%	5%	-3%	-13%	1%
FCF YoY growth	-	-56%	-13%	251%	-32%	83%	-35%	24%	1%	-0%