Kforce Inc.

Kforce Inc.

KFRCยทNASDAQ

$42.11

-3.1%
IndustrialsStaffing & Employment Services

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.

At a Glance

Live Snapshot
Market Cap$750.91M
EPS1.9600
P/E Ratio21.48
Earnings Date07/27/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is mid-range (P/E 21.5).

Valuation inputs: P/E 21.5, earnings yield +4.7%, momentum -3.1%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is strong (ROE +28.0%, ROIC +14.5%).

Profitability stack: net margin +2.6%, ROE +28.0%, ROIC +14.5%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile is elevated and scenario stress-testing is essential.

Risk factors: liabilities/assets +65.9%, momentum -3.1%, net margin +2.6%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Kforce Inc. Market vs Earnings Trajectory

KFRC ยท NASDAQ

Loading price and EPS data...

Kforce Inc.

Kforce Inc. Fair Value Envelope

KFRC ยท NASDAQ

Our analysis suggests that KFRC has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $42.11, this represents a potential HIDDEN relative to our calculated worth for Kforce Inc..

Intrinsic Value
Current Price: $42.11
3Y-48.0%
5Y-27.0%
10Y+61.0%
3Y-22.0%
5Y-5.0%
10Y+1.0%
3Y-54.0%
5Y-38.0%
10Y+6.0%
3Y-32.0%
5Y-44.0%
10Y+56.0%
3Y-43.0%
5Y-54.0%
10Y+73.0%
3Y-7.0%
5Y-24.0%
10Y-
Kforce Inc.

Kforce Inc. Profit Bridge

KFRC ยท NASDAQ
Revenue1.33B
Cost of Goods Sold (973.18M)
Gross Profit355.82M
Operating Expenses (305.75M)
Operating Income50.08M
Interest Expense (0.00)
Other Income/Expense-3.13M
Pretax Income46.95M
Income Tax (12.12M)
Net Income34.83M
Net Income
34.83M

Profitability Analysis

Gross Margin

26.8%

Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.

Operating Margin

3.8%

Minimal operating profit suggests high operating costs or pricing challenges. Scalability is concerning.

Net Profit Margin

2.6%

Minimal profitability after all expenses. Limited financial flexibility for reinvestment or shareholder returns.

Effective Tax Rate

25.8%

Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.

Profitability Insight

Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.

26.77%
Gross Profit Margin
-2%
3Y-9.0%
5Y-6.0%
10Y-14.0%
3.77%
Operating Profit Margin
-24%
3Y-45.0%
5Y-34.0%
10Y-15.0%
2.62%
Net Profit Margin
-27%
3Y-41.0%
5Y-35.0%
10Y+6.0%
27.95%
Return on Equity
-14%
3Y-32.0%
5Y-10.0%
10Y+4.0%
9.52%
Return on Assets
-32%
3Y-51.0%
5Y-19.0%
10Y+6.0%
14.55%
Return on Invested Capital
-30%
3Y-55.0%
5Y-8.0%
10Y+20.0%
KFRC

Kforce Inc. Cash Conversion Engine

KFRC ยท NASDAQ
Net Income34.83M
Depreciation & Amortization5.55M
Stock-Based Compensation13.74M
Change in Working Capital669.00K
Others6.86M
Capital Expenditures-14.84M
Free Cash Flow46.80M

Cash Flow Quality Analysis

FCF Conversion Rate

134.4%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

24.1%

Moderate capital requirements typical of many stable businesses. Healthy balance between reinvestment and cash generation.

FCF Growth Trend

-41.0%

Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.

Working Capital Impact

+$669.00K

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

Cash Flow Quality Insight

Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.

kfrc

Kforce Inc. Funding & Solvency Profile

KFRC ยท NASDAQ
Cash & Cash Equivalents1.34M
Net Receivables207.28M
Inventory0.00
Other Current Assets8.79M
Total Current Assets217 M
Property, Plant & Equipment5.53M
Goodwill & Intangible Assets25.04M
Long-Term Investments0.00
Other Non-Current Assets134.17M
Total Non-Current Assets140 M
Total Assets
384.77M

Financial Health Analysis

Current Ratio

1.79x

Strong liquidity. The company has adequate resources to meet short-term liabilities.

Debt-to-Equity Ratio

2.28x

High financial leverage. Heavy reliance on debt may indicate increased financial risk and potential solvency concerns.

Working Capital

96 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

57% Current

Balanced asset mix between current and non-current assets, typical of many stable businesses.

kfrc

Kforce Inc. Street Expectations Map

KFRC ยท NASDAQ

Wall Street analysts project that KFRC stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 71.00, with estimates ranging from a low of 71.00 to a high of 71.00.

Lowest Target
71.00
68.61%
Consensus Target
71.00
68.61%
Highest Target
71.00
68.61%

The consensus 1-year price target stands at 71.00, with estimates ranging from a low of 71.00 to a high of 71.00.

Analyst Consensus Analysis

Upside Potential

+68.6%

Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.

Analyst Agreement

0.0% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

Very High

Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.

Market Sentiment Insight

Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.

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Kforce Inc. Insider Positioning

KFRC ยท NASDAQ

During the last 12 months, insiders have purchased $25K and sold $20K worth of KFRC shares, resulting in $5K of net buying activity.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

236

7.07K

Sold

0

0.00

Net Activity

+7K

+$7K

9-12 Months

Bought

507

17.95K

Sold

490

20.01K

Net Activity

-2K

-$2K

Top Buyers

1
DAE

Dunwoody Ann E.

Director

407 sharesโ€ข2 transactions

$14K

2
BDD

Brooks Derrick Dewan

Director

336 sharesโ€ข1 transactions

$11K

Top Sellers

1
BDD

Brooks Derrick Dewan

Director

490 sharesโ€ข1 transactions

$20K

Insider Activity Analysis

Net Insider Sentiment

Bullish

Moderately bullish with $5K net buying. Insiders show cautious optimism through measured share purchases.

Buy/Sell Ratio

1.25:1

Positive buy/sell ratio. Buying exceeds or matches selling, indicating net positive insider sentiment.

Insider Participation

Moderate Buying

2 insider buyers vs. 1 sellers. More insiders buying than selling indicates positive sentiment.

1.35%
Dividend Yield
9%
3Y+138.0%
5Y+217.0%
10Y+90.0%
ย 

kfrc Dividend History

KFRC
10Y CAGR +13%
Latest $0.4
Annual $1.97
5 year growth trend
Last Period: +0%