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Kforce Inc (KFRC)
NYSE:KFRC
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Kforce
(NYSE:KFRC)
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Rating:66Neutral
Price Target:
$33.00
▲(34.47% Upside)
Kforce's overall stock score reflects a stable financial foundation with strong balance sheet management and reasonable valuation. The company's ability to exceed earnings expectations is a positive, but challenges in revenue growth, cash flow, and the Technology segment weigh on the score. Technical analysis suggests caution, with the stock trading below key moving averages.
Kforce (KFRC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$571.62M
Dividend Yield4.95%
Average Volume (3M)236.35K
Price to Earnings (P/E)14.1
Beta (1Y)0.60
Revenue Growth-5.91%
EPS Growth-23.01%
CountryUS
Employees1,700
SectorN/A
Sector StrengthN/A
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.63
Shares Outstanding18,141,000
10 Day Avg. Volume245,536
30 Day Avg. Volume236,349
Financial Highlights & Ratios
PEG Ratio-1.23
Price to Book (P/B)7.05
Price to Sales (P/S)0.78
P/FCF Ratio13.74
Enterprise Value/Market Cap0.00
Enterprise Value/Revenue0.00
Enterprise Value/Gross Profit0.00
Enterprise Value/Ebitda0.00
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Kforce Business Overview & Revenue Model
Company DescriptionKforce Inc. (KFRC) is a professional staffing services firm that specializes in providing technology and finance/accounting staffing solutions. The company operates through two primary segments: Technology and Finance & Accounting. Kforce connects businesses with skilled professionals, offering services such as temporary staffing, direct-hire placements, and project-based services. With a focus on meeting the evolving needs of clients across various industries, Kforce leverages its extensive network and expertise to deliver tailored staffing solutions.
How the Company Makes MoneyKforce generates revenue primarily through its staffing services, which include temporary staffing, direct-hire placements, and contract services. The company earns money by charging clients a fee based on the hourly rates or salaries of the professionals it places. The Technology segment, which focuses on IT staffing, typically has higher margins than the Finance & Accounting segment. Additionally, Kforce benefits from long-term relationships with clients, which can lead to repeat business and contracted projects. Significant partnerships and collaborations with various firms enhance their ability to source talent and meet client demands effectively, contributing to consistent revenue generation.
Kforce Earnings Call Summary
Earnings Call Date:Nov 03, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 09, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted Kforce's ability to exceed expectations in revenue and earnings, driven by growth in consulting-led engagements and Finance and Accounting business. However, declines in the Technology segment, macroeconomic challenges, and increased SG&A expenses present notable challenges. The overall sentiment is cautiously optimistic, with a focus on strategic growth and adapting to current market demands.Q3-2025 Updates
Positive Updates
Exceeding Revenue and Earnings Expectations
Q3 2025 results surpassed expectations with overall revenues of $332.6 million and earnings per share of $0.63, both exceeding the high end of guidance.
Growth in Finance and Accounting Business
The Finance and Accounting business grew approximately 7% sequentially in Q3 2025 and showed consecutive quarters of sequential growth for the first time in several years.
Increase in Consultants on Assignment
Consultants on assignment grew roughly 4% from early Q3 lows and continued this trend into early Q4.
Expansion of Consulting-Led Engagements
Consulting-led offerings contributed positively to overall results with consulting-oriented engagements commanding higher bill rates and delivering stronger margin profiles.
Stable Average Bill Rate and Margin Profiles
The average bill rate in the Technology segment remained steady at approximately $90 per hour over the last 3 years, driven by a mix of consulting-oriented engagements.
Strong Balance Sheet and Shareholder Returns
$16.2 million returned to shareholders through dividends and share repurchases, with continued strong balance sheet management.
Negative Updates
Decline in Technology Business Revenue
Revenues in the Technology business declined 1.1% sequentially and 5.6% year-over-year.
Challenges in Macroeconomic Environment
Ongoing federal government shutdown and global trade negotiations created uncertainties, with mixed economic data and a weak labor market.
Higher SG&A Expenses
SG&A expenses as a percentage of revenue increased 60 basis points year-over-year due to deleverage from lower revenue and gross profit levels.
Anticipated Seasonal Gross Margin Impact
Flex margins expected to remain stable outside of typical seasonal impacts due to higher consultant utilization of PTO around the holidays.
Company Guidance
In the Kforce Q3 2025 Earnings Call, the company reported revenues of $332.6 million and earnings per share of $0.63, both exceeding the high end of their guidance. The Technology business saw a sequential revenue decline of 1.1% and a year-over-year decline of 5.6%, while the Finance and Accounting (FA) business grew approximately 7% sequentially but declined slightly over 8% year-over-year. Despite macroeconomic uncertainties, the company experienced a 4% increase in consultants on assignment from early Q3 lows, and this trend continued into early Q4. The average bill rate in the Technology segment held steady at $90 per hour, while the FA segment's average bill rate improved to $53 per hour. Kforce anticipates Q4 revenues between $326 million and $334 million, with earnings per share between $0.43 and $0.51. The company's strategic investments in consulting solutions have been a key driver in maintaining stability and are expected to enhance profitability. Additionally, Kforce returned $16.2 million to shareholders during the quarter through dividends and share repurchases, maintaining a strong balance sheet and a return on equity exceeding 30%.Kforce Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
75
Positive
Cash Flow
60
Neutral
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Kforce Technical Analysis
Positive
24.54
Price Trends
28.78
Positive
29.83
Positive
36.06
Negative
Market Momentum
0.67
Negative
63.84
Neutral
85.73
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KFRC, the sentiment is Positive. The current price of 24.54 is below the 20-day moving average (MA) of 29.92, below the 50-day MA of 28.78, and below the 200-day MA of 36.06, indicating a neutral trend. The MACD of 0.67 indicates Negative momentum. The RSI at 63.84 is Neutral, neither overbought nor oversold. The STOCH value of 85.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KFRC.
Kforce Peers Comparison
UnderperformOutperform
Sector (―)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | ― | ― | ― | ― | ― | ― | |
67 Neutral | ― | ― | 7.47% | 1.02% | 11.53% | -6.32% | |
66 Neutral | $571.62M | 14.08 | 27.19% | 4.95% | -5.91% | -23.01% | |
55 Neutral | $410.69M | -10.17 | ― | ― | -10.14% | -1381.34% | |
54 Neutral | $1.37B | -64.98 | -1.00% | 4.88% | -2.44% | -156.01% | |
46 Neutral | $320.48M | -2.04 | -13.11% | 3.37% | 0.46% | -477.90% | |
46 Neutral | $144.61M | -5.10 | -8.91% | ― | -5.37% | 75.32% |
* Sector Average
KFRC
Kforce
31.52
-22.32
-41.46%
HSII
Heidrick & Struggles
59.01
15.85
36.72%
KELYA
Kelly Services
9.07
-3.62
-28.53%
MAN
ManpowerGroup
30.48
-24.08
-44.13%
TBI
Trueblue
4.84
-3.50
-41.97%
ZIP
ZipRecruiter
4.68
-2.45
-34.36%
Kforce Corporate Events
Stock Buyback
Kforce Initiates Stock Repurchase Plan
Neutral
Sep 15, 2025
On September 12, 2025, Kforce Inc. initiated a corporate stock trading plan to repurchase its outstanding common stock, following the authorization of its Board of Directors. This plan, compliant with Rule 10b5-1 of the Securities Exchange Act of 1934, allows the firm to conduct share repurchases through an independent broker between September 16, 2025, and November 5, 2025, under specific constraints related to price, market, volume, and timing.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.