Kforce Inc (KFRC) stock analysis

P/E above its 5-year median

Kforce's P/E of 23.1 is above its own 5-year median of 18.5.

P/E above the industry

Kforce's P/E of 23.1 is above the Personnel Supply Services median of 22.6.

EV/EBITDA above its 5-year median

Kforce's EV/EBITDA of 14.7 is above its 5-year median of 12.5.

P/B above the industry

Kforce's price-to-book of 7.25 is above the Personnel Supply Services median of 1.99.

Trading above fair value

The share price of $55.09 is above our fair value estimate of $45.92.

Margin of safety under 20%

The price is 20.0% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew -8.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -18.9% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 0.3% over the last twelve months, against a 5-year average of -9.1% a year.

Growing faster than the industry

Revenue grew 2.1% over the last twelve months; the Personnel Supply Services median is 2.1%.

Guidance raised

Kforce raised its fourth quarter of 2026 Effective tax rate outlook on Oct 26, 2026.

Gross margin improving

Gross margin was 27.8% over the last twelve months, against 27.1% a year earlier.

Return on equity over 15%

Return on equity was 30.5% over the last twelve months and averaged 34.9% over five years.

Return on capital over 10%

Return on invested capital was 32.4%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

Kforce's return on equity of 30.5% is above the Personnel Supply Services median of 4.6%.

Earnings shrank over 5 years

Net income shrank 9.1% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 3.0% over the last twelve months, against a 5-year average of 3.9%.

Net margin above the industry

Kforce's net margin of 3.0% is above the Personnel Supply Services median of -0.0%.

No debt

Kforce has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 1.95 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 7.85; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Kforce paid dividends worth 2.9% of the share price over the last twelve months.

Yield below Treasuries

The 2.9% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Kforce yields 2.9%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 65.9% of net income.

Not covered by free cash flow

Dividends take 312% of free cash flow.