Last Updated: 14 Oct 2024
Executive Summary
Kforce Inc. (KFRC) is a leading provider of professional staffing solutions and services in the United States. The company's stock price is currently trading at $56.09, with a market capitalization of $1.09 billion. KFRC has a strong financial track record, with consistent revenue growth and profitability. The company's fundamentals are solid, with a trailing P/E ratio of 20.85, a forward P/E ratio of 19.88, and a dividend yield of 0.0271%. Technically, KFRC is in a bullish trend, with a 50-day moving average of $62.24 and a 200-day moving average of $64.92. The short-term outlook for KFRC is positive, with analysts expecting the company to continue to grow its revenue and earnings. The long-term outlook is also positive, with KFRC well-positioned to benefit from the continued growth of the professional staffing industry.
Company Overview
Kforce Inc. was founded in 1962 and is headquartered in Tampa, Florida. The company provides a range of professional staffing solutions, including temporary staffing, permanent placement, and consulting services. KFRC operates through a network of over 50 offices in the United States. The company's clients include a wide range of businesses, from small businesses to Fortune 500 companies.
Fundamental Analysis
KFRC has a strong financial track record, with consistent revenue growth and profitability. The company's revenue has grown from $1.2 billion in 2019 to $1.44 billion in 2023. KFRC's net income has also grown over the same period, from $60.5 million to $76.5 million. The company's gross profit margin has remained stable at around 35%, and its operating margin has improved from 4.5% in 2019 to 5.5% in 2023.
KFRC's balance sheet is also strong, with the company having $150 million in cash and equivalents and no long-term debt. The company's current ratio is 1.2, which is a comfortable level of liquidity.
Technical Analysis
KFRC is in a bullish trend, with a 50-day moving average of $62.24 and a 200-day moving average of $64.92. The stock price is currently trading above both of these moving averages, which is a positive sign. The relative strength index (RSI) is also in positive territory, at 55. This indicates that the stock is not overbought and that there is still room for further upside.
Short Term Outlook
The short-term outlook for KFRC is positive. The company is expected to continue to grow its revenue and earnings in the coming quarters. The company's strong financial position and positive technical indicators suggest that the stock price is likely to continue to rise in the short term.
Long Term Outlook
The long-term outlook for KFRC is also positive. The professional staffing industry is expected to continue to grow in the coming years, and KFRC is well-positioned to benefit from this growth. The company's strong financial position and experienced management team should allow it to continue to grow its market share and profitability.
Analyst Recommendations
The majority of analysts covering KFRC have a positive outlook on the stock. Of the six analysts covering the stock, one has a strong buy rating, five have a hold rating, and none have a sell rating. The average analyst target price for KFRC is $68.75, which represents a potential upside of 22.6% from the current price.
