Kforce (KFRC) AI Stock Analysis

• Market Cap: $569.87M
• Dividend Yield: 5.22%
• Average Volume (3M): 279.28K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.79
• Revenue Growth: -5.77%
• EPS Growth: -11.93%
• Country: US
• Employees: 1,700
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 0.59
• Shares Outstanding: 18,599,000
• 10 Day Avg. Volume: 305,023
• 30 Day Avg. Volume: 279,277
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.43
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 2.20
• Enterprise Value/Ebitda: 12.21
• 1Y Price Target: $47.67
• Price Target Upside: 59.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 62 Neutral
• Price Target: $33.00 ▲(10.63% Upside)

Kforce's overall stock score is driven by its stable financial position and attractive valuation, offset by bearish technical indicators and mixed earnings call sentiment. The company faces challenges in revenue growth and cash flow, but opportunities in AI and consulting provide potential for future growth.

Positive Factors

Consulting-Led Solutions

The growth in consulting-led solutions indicates a strategic shift towards higher-margin services, enhancing long-term profitability and market positioning.

AI Opportunities

Engagement in AI projects positions Kforce to capitalize on technological advancements, potentially driving future revenue growth and competitive advantage.

Financial Stability

A strong financial position with low leverage and shareholder returns indicates robust financial health, supporting sustainable growth and resilience.

Negative Factors

Revenue Decline

The decline in revenue reflects challenges in maintaining sales momentum, which could impact long-term growth if not addressed effectively.

Direct Hire Challenges

Struggles in the Direct Hire segment highlight vulnerability to economic shifts, potentially affecting revenue diversification and stability.

Higher Healthcare Costs

Rising healthcare costs pressure margins, potentially reducing profitability and requiring strategic cost management to maintain financial performance.

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 demonstrates a stable financial position with strong operational efficiency and a solid balance sheet. However, declining revenue growth and free cash flow trends pose challenges that need to be addressed to sustain long-term growth and profitability.

Income Statement

Kforce's income statement shows a decline in revenue growth with a negative trend in recent periods, indicating potential challenges in maintaining sales momentum. Gross profit margin has slightly decreased over time, but remains relatively stable. The net profit margin has also seen a slight decline, reflecting pressure on profitability. Despite these challenges, the company maintains positive EBIT and EBITDA margins, showcasing operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio, indicating financial stability and low leverage risk. Return on equity remains robust, although it has slightly decreased, suggesting effective use of shareholder funds. The equity ratio is healthy, highlighting a solid capital structure.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, which could impact future investments and financial flexibility. The operating cash flow to net income ratio is moderate, indicating reasonable cash generation relative to net income. The free cash flow to net income ratio remains strong, suggesting efficient cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.36B	1.41B	1.53B	1.71B	1.58B	1.40B
Gross Profit	370.13M	385.44M	427.07M	501.11M	456.86M	396.22M
EBITDA	66.70M	75.64M	92.13M	126.97M	109.47M	91.01M
Net Income	43.86M	50.41M	61.08M	75.43M	75.18M	56.04M
Balance Sheet
Total Assets	373.64M	357.83M	357.98M	392.00M	503.40M	479.05M
Cash, Cash Equivalents and Short-Term Investments	2.47M	349.00K	119.00K	121.00K	96.99M	103.49M
Total Debt	3.01M	47.60M	57.46M	46.56M	118.26M	105.52M
Total Liabilities	239.22M	203.22M	198.90M	209.81M	315.00M	299.11M
Stockholders Equity	134.42M	154.62M	159.08M	182.20M	188.41M	179.94M
Cash Flow
Free Cash Flow	60.50M	79.30M	83.70M	82.70M	66.46M	102.68M
Operating Cash Flow	71.38M	86.87M	91.47M	90.81M	72.90M	109.16M
Investing Cash Flow	-11.40M	-7.56M	-4.86M	-14.28M	8.30M	-6.93M
Financing Cash Flow	-57.62M	-79.08M	-86.61M	-173.39M	-87.70M	-18.58M

Kforce Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 29.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 29.83 is below the 20-day moving average (MA) of 30.70, below the 50-day MA of 33.72, and below the 200-day MA of 43.51, indicating a bearish trend. The MACD of -0.88 indicates Negative momentum. The RSI at 40.80 is Neutral, neither overbought nor oversold. The STOCH value of 27.34 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
HSII	74 Outperform	1.03B	31.20	6.95%	1.22%	8.89%	-13.57%
BBSI	66 Neutral	1.16B	22.14	23.85%	0.73%	9.48%	11.62%
KFRC	62 Neutral	$569.87M	12.95	29.14%	5.22%	-5.77%	-11.93%
MAN	54 Neutral	1.81B	-99.71	-0.81%	5.98%	-3.79%	-138.56%
MHH	53 Neutral	90.97M	109.67	3.89%	―	5.16%	―
KELYA	51 Neutral	460.82M	-71.26	-0.49%	2.33%	0.97%	-112.75%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.