Kforce (KFRC) AI Stock Analysis

• Market Cap: $838.72M
• Dividend Yield: 3.42%
• Average Volume (3M): 140.09K
• Price to Earnings (P/E): 17.8
• Beta (1Y): 0.69
• Revenue Growth: -6.38%
• EPS Growth: -12.32%
• Country: US
• Employees: 1,700
• Sector: Industrials
• Sector Strength: 94
• Industry: Staffing & Employment Services
• EPS (TTM): 0.45
• Shares Outstanding: 18,630,000
• 10 Day Avg. Volume: 151,139
• 30 Day Avg. Volume: 140,092
• PEG Ratio: 4.84
• Price to Book (P/B): 6.03
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.30
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 3.03
• Enterprise Value/Ebitda: 3.73
• 1Y Price Target: $51.00
• Price Target Upside: 10.01% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 71 Outperform
• Price Target: $46.00 ▼(-0.78%Downside)

Kforce's overall stock score is driven by stable financial performance and strategic initiatives in high-demand areas such as AI and data. While the valuation is attractive due to a solid dividend yield and reasonable P/E ratio, technical analysis shows moderate momentum. The earnings call reflects a cautious yet optimistic outlook, emphasizing shareholder value and strategic growth initiatives.

Positive Factors

Consulting Solutions

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

Growth Opportunities

There is confidence in medium- to long-term earnings growth opportunities for Kforce.

Offshore Development

The company’s offshore development center in India also appears to be progressing well, with 'a couple of projects' won there already and capacity to scale to meet new demand.

Negative Factors

Client Investment Propensity

Economic uncertainty has reduced clients’ propensity to accelerate IT staffing and solutions investments in the near term.

Financial Performance

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.

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 makes money primarily through its staffing services, which include providing temporary professionals and direct hire placements to businesses. The company earns revenue by charging clients for the services of their temporary employees, typically on an hourly basis, with a markup over the salary paid to the professionals. In the case of direct hire placements, Kforce receives a one-time fee, which is often a percentage of the hired employee's first-year salary. Key revenue streams for Kforce include its Technology segment, which focuses on IT staffing, and its Finance & Accounting segment. Significant partnerships with large corporations and government agencies contribute to its earnings by providing stable demand for its workforce solutions.

Kforce Financial Statement Overview

Summary

Kforce presents a stable financial outlook with moderate profitability, strong cash generation, and manageable debt levels. However, declining revenues and moderate equity levels may 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.38B	1.41B	1.53B	1.71B	1.58B	1.40B
Gross Profit	378.45M	385.44M	427.07M	501.11M	456.86M	396.22M
EBITDA	71.68M	75.64M	92.13M	119.52M	109.47M	91.01M
Net Income	47.57M	50.41M	61.08M	75.43M	75.18M	56.04M
Balance Sheet
Total Assets	368.19M	357.83M	357.98M	392.00M	503.40M	479.05M
Cash, Cash Equivalents and Short-Term Investments	444.00K	349.00K	119.00K	121.00K	96.99M	103.49M
Total Debt	80.92M	47.60M	57.46M	46.56M	106.34M	105.52M
Total Liabilities	230.17M	203.22M	198.90M	209.81M	315.00M	299.11M
Stockholders Equity	138.03M	154.62M	159.08M	182.20M	188.41M	179.94M
Cash Flow
Free Cash Flow	64.11M	79.30M	83.70M	82.70M	66.46M	102.68M
Operating Cash Flow	73.95M	86.87M	91.47M	90.81M	72.90M	109.16M
Investing Cash Flow	-9.99M	-7.56M	-4.86M	-14.28M	8.30M	-6.93M
Financing Cash Flow	-63.62M	-79.08M	-86.61M	-173.39M	-87.70M	-18.58M

Kforce Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 46.36
• 50DMA: Positive
• 100DMA: Positive
• 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 46.36 is above the 20-day moving average (MA) of 42.80, above the 50-day MA of 41.57, and below the 200-day MA of 49.37, indicating a neutral trend. The MACD of 0.67 indicates Negative momentum. The RSI at 63.30 is Neutral, neither overbought nor oversold. The STOCH value of 71.48 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
BBSI	77 Outperform	$1.18B	23.32	25.86%	0.70%	8.41%	7.93%
KFRC	71 Outperform	$838.72M	17.82	31.45%	3.42%	-6.38%	-12.32%
HSII	70 Neutral	$953.30M	137.37	1.71%	1.30%	6.17%	-85.16%
MHH	68 Neutral	$95.18M	46.31	2.52%	―	3.93%	―
Sector *	65 Neutral	$11.06B	15.73	5.16%	1.93%	3.12%	-25.59%
MAN	59 Neutral	$2.07B	18.36	-0.78%	4.95%	-3.79%	-138.56%
KELYA	57 Neutral	$467.82M	11.43	-1.60%	2.26%	-3.49%	-140.04%

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.