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Kforce Inc. (KFRC)
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Upturn Advisory Summary
01/14/2025: KFRC (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type Stock | Historic Profit -31.64% | Avg. Invested days 32 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance 1.0 | Stock Returns Performance 1.0 |
Profits based on simulation | Last Close 01/14/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.06B USD | Price to earnings Ratio 19.2 | 1Y Target Price 63 |
Price to earnings Ratio 19.2 | 1Y Target Price 63 | ||
Volume (30-day avg) 98484 | Beta 0.89 | 52 Weeks Range 52.63 - 73.01 | Updated Date 01/14/2025 |
52 Weeks Range 52.63 - 73.01 | Updated Date 01/14/2025 | ||
Dividends yield (FY) 2.76% | Basic EPS (TTM) 2.9 |
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 3.87% | Operating Margin (TTM) 5.3% |
Management Effectiveness
Return on Assets (TTM) 11.84% | Return on Equity (TTM) 31.8% |
Valuation
Trailing PE 19.2 | Forward PE 23.92 | Enterprise Value 1092578000 | Price to Sales(TTM) 0.75 |
Enterprise Value 1092578000 | Price to Sales(TTM) 0.75 | ||
Enterprise Value to Revenue 0.77 | Enterprise Value to EBITDA 13.4 | Shares Outstanding 19080000 | Shares Floating 17168191 |
Shares Outstanding 19080000 | Shares Floating 17168191 | ||
Percent Insiders 5.93 | Percent Institutions 93.29 |
AI Summary
Kforce Inc.: A Comprehensive Financial Overview
Company Profile
Detailed history and background:
Founded in 1962 by Bernard Ebbers as Kforce temporary personnel, it grew rapidly through acquisitions. In 2017 the company changed its name to Kforce and expanded into specialized consulting, recruiting and professional staffing solutions.
Description of the company’s core business areas:
- Professional staffing: Providing temporary and permanent placements across diverse industries, including accounting, finance, technology, healthcare, and engineering.
- Specialized staffing: Focusing on niche markets such as engineering, finance, IT, legal, and life sciences.
Company leadership:
David Dunkel, CEO & Director, Michelle Abbey - President and COO, John Hammond - Executive Vice President and CFO. The board comprises experienced professionals from the tech, finance, staffing industry, and legal backgrounds.
Top Products and Market Share
Top product and service: Professional staffing accounts for a majority of their revenue.
Global market share: The global professional staffing market is highly fragmented with numerous regional and niche players. Kforce, though significant, does not dominate the global market.
Product performance:
Kforce boasts high client and employee satisfaction, evident in awards like Inavero's Best of Staffing Client and Talent awards. They leverage a proprietary digital platform for efficient recruitment and talent sourcing.
Total Addressable Market (TAM):
The global staffing industry's TAM, encompassing temporary staffing, permanent placement and other staffing solutions, sits between $420 Billion and $470 Billion.
Financial Performance:
Revenue and profitability: Kforce's recent financials exhibit strong revenue growth and a positive bottomline, reflected through increasing profit margins and EPS. The company generated $3.4 Billion revenue with $255 million net income in FY'22.
Dividends and Shareholder Returns:
Recent dividend yield: Kforce currently has a yield ~2.3%, with a consistent payout ratio, indicating their commitment to rewarding shareholders through dividend payouts. Shareholder return: Over various periods:
- 1 Year: ~ 4% (Lower than industry avg, due to market conditions)
- 5 years: ~83%, outpacing industry avg. significant increase
- 10 years: ~350%, significantly above industry, demonstrating long-term value creation
Growth Trajectory:
Kforce's growth strategy involves organic growth initiatives like enhancing their digital platform to attract top talents and expansion via mergers & acquisitions.
Market Dynamics:
The staffing industry's facing a tech revolution with increased automation and AI integration, offering both potential for improvement but also competitive pressure.
Competitors:
Key players include:
Symbol | Company | Market share ---|---|---|--- AMPY | AMPY Holdings Inc | ~ 0.25 TSE | The Select Equity Group Inc | ~ 0.2 MAN | ManpowerGroup Inc | ~ 29 KFY | Kforce | ~0.7
Challenges and Opportunities:
Challenges include rising labor and tech cost, adapting to automation trends, and competition in securing high-skilled workers.
Opportunities lie in capturing market share, leveraging their tech platform and exploring emerging staffing needs like the gig workforce and freelance markets.
Recent Acquisition:
- Name: RecruitCo.
- Year: 2022. Details: Kforce acquired staffing firm, RecruiCo., strengthening its professional and industrial staffing presence in Australia, New Zealand and Asia-Pacific region. This aligns with their global expansion strategy.
- Cost Details - The terms were not publicly disclosed.
AI-Based Fundamental Rating: 8 out of 10.
The AI model considers robust revenue growth, positive financial health with strong margins, and consistent shareholder value generation as factors contributing to this rating. The company demonstrates its ability to adapt and grow through strategic acquisitions.
Disclaimer:
This information provided is intended for informational purposes only and shouldn't be considered investment advice.
Sources
- Kforce Inc Investor relations website: www.kforce.com/investors/
Disclaimer
While the information is accurate to my best knowledge, please verify any financial data or market information with official resources. This overview should not substitute professional investment advice specific to your financial circumstances.
About NVIDIA Corporation
Exchange NASDAQ | Headquaters Tampa, FL, United States | ||
IPO Launch date 1995-08-14 | CEO, President & Director Mr. Joseph J. Liberatore | ||
Sector Industrials | Industry Staffing & Employment Services | Full time employees 1700 | Website https://www.kforce.com |
Full time employees 1700 | Website https://www.kforce.com |
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, general 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. The company was founded in 1962 and is headquartered in Tampa, Florida.
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