Kforce (KFRC) AI Stock Analysis

• Market Cap: $640.92M
• Dividend Yield: 5.12%
• Average Volume (3M): 236.35K
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.58
• Revenue Growth: -5.91%
• EPS Growth: -23.01%
• Country: US
• Employees: 1,700
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 0.63
• Shares Outstanding: 18,141,000
• 10 Day Avg. Volume: 245,536
• 30 Day Avg. Volume: 236,349
• PEG Ratio: -1.33
• Price to Book (P/B): 7.05
• Price to Sales (P/S): 0.78
• P/FCF Ratio: 13.74
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 1.98
• Enterprise Value/Ebitda: 11.61
• 1Y Price Target: $36.25
• Price Target Upside: 2.60% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $38.00 ▲(7.56% 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.

Positive Factors

Low leverage and strong ROE

Kforce's minimal leverage and high ROE provide durable financial flexibility to fund operations, invest in growth, and return capital through buybacks/dividends without stressing the balance sheet. This conservatism enhances resilience through business cycles and hiring volatility.

Shift to consulting-led, higher-margin mix

A structural shift toward consulting-led engagements increases revenue mix toward higher bill rates and better margins. Over months, this elevates average contract value and reduces reliance on commoditized staffing, supporting margin sustainability and less cyclical revenue streams.

Consistent shareholder returns and capital discipline

Regular dividends and buybacks alongside high ROE indicate disciplined capital allocation and an ability to translate earnings into investor returns. This persistence signals management confidence and provides a structural support for shareholder value over multiple quarters.

Negative Factors

Revenue decline trend

Sequential and trailing revenue contraction erodes scale economics and creates deleveraging pressure on SG&A. Persistent top-line slippage can compress operating margins, limit reinvestment capacity, and hinder sustainable earnings growth absent a clear recovery in demand.

Technology segment weakness

Technology is a higher-margin segment; prolonged revenue deterioration reduces overall profitability and weakens the firm's exposure to in-demand IT staffing. Structural softness in tech demand risks lower utilization, bill-rate pressure, and slower margin recovery.

Cash flow and margin pressure

Negative FCF growth and subpar cash conversion reduce internal funding for growth and returns. Coupled with declining gross and net margins and SG&A deleverage, weaker cash generation raises sustainability risk for investments, dividends, and buybacks over coming quarters.

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 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 Financial Statement Overview

Summary

Kforce's financial performance is stable with a strong balance sheet and moderate profitability. The low debt-to-equity ratio indicates minimal financial risk, and return on equity is robust. However, challenges in revenue growth and negative cash flow growth are areas of concern.

Income Statement

Kforce's income statement shows a mixed performance. The TTM data indicates a slight decline in revenue growth at -1.52%, reflecting a challenging market environment. Gross profit margin stands at 27.14%, which is reasonable but has decreased from previous years. Net profit margin is at 3.04%, indicating moderate profitability. EBIT and EBITDA margins have also declined, suggesting pressure on operational efficiency.

Balance Sheet

The balance sheet is relatively strong with a low debt-to-equity ratio of 0.024, indicating minimal leverage and financial risk. Return on equity is robust at 29.13%, showcasing effective use of shareholder funds. The equity ratio is healthy, reflecting a solid capital structure. Overall, the balance sheet suggests financial stability and prudent management.

Cash Flow

Cash flow analysis reveals some concerns. Free cash flow growth is negative at -12.63%, indicating potential cash generation issues. The operating cash flow to net income ratio is 0.61, suggesting moderate cash conversion efficiency. However, the free cash flow to net income ratio is relatively strong at 0.85, indicating good cash flow relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.34B	1.41B	1.53B	1.71B	1.58B	1.40B
Gross Profit	363.82M	385.44M	427.07M	501.11M	456.86M	396.22M
EBITDA	62.06M	75.64M	92.13M	126.97M	109.47M	91.01M
Net Income	40.72M	50.41M	61.08M	75.43M	75.18M	56.04M
Balance Sheet
Total Assets	374.15M	357.83M	357.98M	392.00M	503.40M	479.05M
Cash, Cash Equivalents and Short-Term Investments	1.25M	349.00K	119.00K	121.00K	96.99M	103.49M
Total Debt	81.08M	47.60M	57.46M	46.56M	118.26M	120.21M
Total Liabilities	242.03M	203.22M	198.90M	209.81M	315.00M	299.11M
Stockholders Equity	132.12M	154.62M	159.08M	182.20M	188.41M	179.94M
Cash Flow
Free Cash Flow	52.86M	79.30M	83.70M	82.70M	66.46M	102.68M
Operating Cash Flow	63.73M	86.87M	91.47M	90.81M	72.90M	109.16M
Investing Cash Flow	-10.76M	-7.56M	-4.86M	-14.28M	8.30M	-6.93M
Financing Cash Flow	-51.84M	-79.08M	-86.61M	-173.39M	-87.70M	-18.58M

Kforce Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 35.33 is above the 20-day moving average (MA) of 33.67, above the 50-day MA of 31.54, and above the 200-day MA of 34.09, indicating a bullish trend. The MACD of 0.75 indicates Positive momentum. The RSI at 61.74 is Neutral, neither overbought nor oversold. The STOCH value of 34.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KFRC.

Kforce Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KFRC	66 Neutral	$640.92M	15.79	27.19%	5.12%	-5.91%	-23.01%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MAN	51 Neutral	$1.68B	-124.04	-0.64%	4.96%	-2.44%	-156.01%
TBI	48 Neutral	$160.48M	-5.65	-8.91%	―	-5.37%	75.32%
KELYA	46 Neutral	$391.00M	-2.42	-13.11%	3.53%	0.46%	-477.90%
ZIP	43 Neutral	$210.48M	-5.35	―	―	-10.14%	-1381.34%

Kforce Corporate Events

Kforce Initiates Stock Repurchase Plan in December 2025

On December 12, 2025, Kforce Inc. initiated a corporate stock trading plan to repurchase its outstanding common stock, in line with a program authorized by its Board of Directors. This plan, compliant with Rule 10b5-1 of the Securities Exchange Act of 1934, will allow the company to buy back shares between December 16, 2025, and February 4, 2026, through an independent broker, adhering to specific price, market, volume, and timing constraints.

The most recent analyst rating on (KFRC) stock is a Hold with a $33.00 price target. To see the full list of analyst forecasts on Kforce stock, see the KFRC Stock Forecast page.