Kforce (KFRC) AI Stock Analysis

• Market Cap: $587.36M
• Dividend Yield: 6.13%
• Average Volume (3M): 236.35K
• Price to Earnings (P/E): 14.1
• Beta (1Y): 0.83
• 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: 18,599,000
• 10 Day Avg. Volume: 245,536
• 30 Day Avg. Volume: 236,349
• PEG Ratio: -1.23
• Price to Book (P/B): 7.05
• Price to Sales (P/S): 0.78
• P/FCF Ratio: 13.74
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• 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.

Positive Factors

Strong Balance Sheet

A low debt-to-equity ratio indicates minimal leverage and financial risk, supporting long-term financial stability and operational flexibility.

Growth in Consulting-Led Engagements

Consulting-led engagements enhance profitability through higher bill rates and stronger margins, supporting sustainable revenue growth.

Finance and Accounting Business Growth

Sequential growth in the Finance and Accounting segment indicates strong demand and effective service delivery, bolstering revenue stability.

Negative Factors

Decline in Technology Business Revenue

Revenue decline in the Technology segment suggests competitive pressures or market saturation, potentially impacting future growth prospects.

Negative Cash Flow Growth

Negative cash flow growth indicates potential cash generation issues, which could constrain investment capacity and operational flexibility.

Higher SG&A Expenses

Increased SG&A expenses can erode profit margins and indicate inefficiencies, potentially affecting long-term profitability.

Kforce Business Overview & Revenue Model

Company Description

Kforce Inc. (KFRC) is a professional staffing services firm specializing in technology and finance. Founded in 1962 and headquartered in Tampa, Florida, Kforce operates primarily in two segments: Technology and Finance & Accounting. The company provides staffing solutions, including contract staffing, direct hire, and project-based services, connecting skilled professionals with businesses in need of expertise in areas such as IT, accounting, and finance.

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 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	3.23M	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: 24.54
• 50DMA: Positive
• 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 Positive. The current price of 24.54 is below the 20-day moving average (MA) of 27.80, below the 50-day MA of 29.28, and below the 200-day MA of 39.34, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 56.75 is Neutral, neither overbought nor oversold. The STOCH value of 57.02 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
HSII	75 Outperform	$1.22B	34.32	7.47%	1.02%	11.53%	-6.32%
KFRC	66 Neutral	$587.36M	14.11	27.19%	6.13%	-5.91%	-23.01%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
TBI	49 Neutral	$164.37M	-5.79	-8.91%	―	-5.37%	75.32%
KELYA	47 Neutral	$402.45M	―	-13.11%	3.12%	0.46%	-477.90%
MAN	46 Neutral	$1.38B	―	-1.00%	7.87%	-2.44%	-156.01%
ZIP	45 Neutral	$354.57M	―	―	―	-10.14%	-1381.34%

Kforce Corporate Events

Kforce Exceeds Expectations Amidst Challenges in Q3 2025

Kforce’s recent earnings call conveyed a cautiously optimistic sentiment as the company managed to exceed expectations in revenue and earnings, despite facing challenges in its Technology segment and macroeconomic pressures. The call emphasized strategic growth and adaptability to current market demands, highlighting the company’s focus on consulting-led engagements and the Finance and Accounting business as key drivers of success.

Kforce Reports Strong Q3 2025 Earnings Performance

Kforce Inc. is a solutions firm specializing in technology, finance and accounting, and other professional staffing services, known for empowering companies to achieve digital transformation through tailored solutions and expert teams. In the third quarter of 2025, Kforce reported revenue of $332.6 million and an earnings per share (EPS) of $0.63, surpassing expectations in both its Technology and Finance and Accounting (FA) segments. Despite a slight sequential revenue decline of 0.5%, the company showed resilience with a 6.8% increase in EPS from the previous quarter. Key financial highlights include a gross profit margin of 27.7% and an operating margin of 4.5%, with the company returning $16.2 million to shareholders through share repurchases and dividends. The board’s decision to increase the share buyback authorization to $100 million underscores confidence in the firm’s financial health. Looking ahead, Kforce anticipates sequential billing day growth in its Technology and FA businesses in the fourth quarter, with projected revenue between $326 million and $334 million and EPS ranging from $0.43 to $0.51.

Kforce Initiates Stock Repurchase Plan

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.

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.