Kforce (KFRC) AI Stock Analysis

• Market Cap: $595.17M
• Dividend Yield: 4.78%
• Average Volume (3M): 246.56K
• Price to Earnings (P/E): 13.5
• Beta (1Y): 0.78
• Revenue Growth: -5.77%
• EPS Growth: -11.93%
• Country: US
• Employees: 1,700
• Sector: Industrials
• Sector Strength: 83
• Industry: Staffing & Employment Services
• EPS (TTM): 0.59
• Shares Outstanding: 18,599,000
• 10 Day Avg. Volume: 285,957
• 30 Day Avg. Volume: 246,556
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 2.15
• Enterprise Value/Ebitda: 11.36
• 1Y Price Target: $46.25
• Price Target Upside: 43.41% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 69 Neutral
• Price Target: $42.00 ▲(30.23% Upside)

Kforce's overall stock score reflects a cautious outlook. The most significant factor is the stable financial performance, despite declining revenues. Technical analysis indicates bearish momentum, while valuation and earnings call sentiment are mixed, balancing positive consulting growth with challenges in revenue and costs.

Positive Factors

Business Strategy

Kforce has a straightforward, organic growth model and commitment to returning capital to shareholders.

Earnings Growth

Consulting solutions continue to outperform, growing sequentially and year-over-year.

Market Position

Kforce benefits from structural long-term tailwinds supporting its tech flex business and an increasing mix of higher-value consulting solutions.

Negative Factors

Gross Margins

Gross margins came in 30 basis points below the guidance range, as employee healthcare costs remained a headwind.

Macroeconomic Uncertainty

There is elevated macro uncertainty and limited visibility into sustainably improving trends for Kforce.

Tech Flex Trends

Tech flex trends were a bit weaker due to unanticipated project-ends at the end of the quarter.

Kforce Business Overview & Revenue Model

Company Description

Kforce Inc. provides professional staffing services and solutions in the United States. It operates through two segments, Technology, and Finance and Accounting (FA). The Technology segment provides talent solutions to its clients primarily in the areas of information technology, such as systems/applications architecture and development, data management and analytics, business and artificial intelligence, machine learning, project and program management, and network architecture and security. This segment serves clients in various industries comprising financial and business services, communications, insurance, retail, and technology industries. The FA businesses segment offers talent solutions to its clients in areas, including financial planning and analysis, business intelligence analysis, accounting, transactional accounting, business and cost analysis, and taxation and treasury. It also provides consultants in lower skilled areas comprising loan servicing and support, customer and call center support, data entry, and other administrative roles. This segment serves clients in various industries, including financial and business services, healthcare, and manufacturing sectors. Kforce Inc. was founded in 1962 and is headquartered in Tampa, Florida.

How the Company Makes Money

Kforce generates revenue primarily through its staffing services, which include contract staffing and direct hire placements. The company earns fees from clients for placing temporary and permanent employees in various roles, charging a markup on the hourly rate paid to contract employees and a one-time fee for direct hire placements. Additionally, Kforce benefits from long-term partnerships with clients across multiple sectors, which provides a steady stream of repeat business. The company also focuses on high-demand areas such as digital transformation and compliance, enhancing its revenue potential. Seasonal fluctuations and economic conditions can impact Kforce's earnings, but its diversified client base and range of staffing solutions help mitigate risks.

Kforce Financial Statement Overview

Summary

Kforce's financial performance is stable but with caution. The company shows moderate profitability with a net profit margin of 3.44% and strong cash generation. However, declining revenues and moderate equity levels pose risks.

Income Statement

Kforce shows a mixed income statement performance. The TTM (Trailing-Twelve-Months) gross profit margin stands at 27.35%, with a net profit margin of 3.44%, indicating moderate profitability. EBIT margin is 4.74%, while EBITDA margin is 5.18%, suggesting moderate operating efficiency. Revenue has declined over the past few years, with a negative growth rate in recent periods, highlighting a potential risk.

Balance Sheet

Kforce's balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.59, indicating manageable debt levels. Return on equity is 34.45%, which suggests strong profitability relative to shareholder equity. However, the equity ratio of 37.49% indicates a moderate level of equity financing, which may pose a risk if liabilities increase.

Cash Flow

Kforce's cash flow statement shows a healthy free cash flow to net income ratio of 1.35 and an operating cash flow to net income ratio of 1.55, indicating strong cash generation relative to earnings. However, free cash flow growth has been inconsistent, reflecting potential volatility in cash management.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.41B	1.53B	1.71B	1.58B	1.40B
Gross Profit	385.44M	427.07M	501.11M	456.86M	396.22M
EBITDA	75.64M	92.13M	119.52M	109.47M	91.01M
Net Income	50.41M	61.08M	75.43M	75.18M	56.04M
Balance Sheet
Total Assets	357.83M	357.98M	392.00M	503.40M	479.05M
Cash, Cash Equivalents and Short-Term Investments	349.00K	119.00K	121.00K	96.99M	103.49M
Total Debt	47.60M	57.46M	46.56M	106.34M	105.52M
Total Liabilities	203.22M	198.90M	209.81M	315.00M	299.11M
Stockholders Equity	154.62M	159.08M	182.20M	188.41M	179.94M
Cash Flow
Free Cash Flow	79.30M	83.70M	82.70M	66.46M	102.68M
Operating Cash Flow	86.87M	91.47M	90.81M	72.90M	109.16M
Investing Cash Flow	-7.56M	-4.86M	-14.28M	8.30M	-6.93M
Financing Cash Flow	-79.08M	-86.61M	-173.39M	-87.70M	-18.58M

Kforce Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 32.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KFRC, the sentiment is Negative. The current price of 32.25 is below the 20-day moving average (MA) of 37.61, below the 50-day MA of 40.04, and below the 200-day MA of 47.88, indicating a bearish trend. The MACD of -2.79 indicates Positive momentum. The RSI at 32.92 is Neutral, neither overbought nor oversold. The STOCH value of 45.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for KFRC.

Kforce Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BBSI	73 Outperform	$1.20B	22.97	25.36%	0.67%	9.48%	11.62%
KFRC	69 Neutral	$595.17M	13.53	29.14%	4.78%	-5.77%	-11.93%
HSII	69 Neutral	$993.89M	30.16	7.18%	1.21%	8.89%	-13.57%
Sector *	63 Neutral	$10.80B	16.55	6.58%	2.06%	2.37%	-15.86%
MAN	58 Neutral	$1.84B	18.36	-0.78%	5.41%	-3.79%	-138.56%
MHH	56 Neutral	$85.76M	111.03	1.01%	―	5.16%	―
KELYA	51 Neutral	$499.13M	11.43	-0.49%	2.06%	0.97%	-112.75%

Kforce Corporate Events

Kforce Announces Stock Repurchase Plan Starting July 2025

On June 13, 2025, Kforce Inc. announced its entry into a corporate stock trading plan to repurchase its outstanding common stock, as authorized by its Board of Directors. The plan, compliant with Rule 10b5-1 of the Securities Exchange Act of 1934, allows for stock repurchases between July 1, 2025, and July 30, 2025, through an independent broker, subject to specific constraints.

The most recent analyst rating on (KFRC) stock is a Buy with a $71.00 price target. To see the full list of analyst forecasts on Kforce stock, see the KFRC Stock Forecast page.