Kforce Inc. (KFRC) AI Stock Analysis

Founded in 1962 and based in Tampa, Florida, Kforce Inc. specializes in delivering professional staffing services and solutions across the United States. The company operates through two segments: Technology, and Finance and Accounting (FA). Its Technology division supplies talent in systems architecture, data management, business intelligence, artificial intelligence, machine learning, and network security across industries such as finance, communications, insurance, retail, and tech. The FA segment provides staffing solutions for financial planning and analysis, accounting, taxation, and transactional roles, alongside administrative functions like loan servicing and customer support for healthcare, financial services, and manufacturing clients.

Kforce grew annual revenue from $1.58B in FY2021 to a peak of $1.71B in FY2022 before contracting across three consecutive fiscal years. Sales fell 10.5% in FY2023 to $1.53B, 8.3% in FY2024 to $1.41B, and 5.4% in FY2025 to $1.33B, yielding a 5-year revenue CAGR of -1.0%. Over that span, net margin decreased from 4.8% in FY2021 to 2.6% in FY2025, as annual EPS dropped from $3.56 to $1.97. Performance improved in the trailing twelve months, where revenue reached $1.34B with an operating margin of 5.4% and diluted EPS of $2.12. For the quarter ended June 30, 2026, revenue increased 4.5% year over year, while quarterly earnings grew 23.8%.

As of June 30, 2026, Kforce held $330,000 in cash and short-term investments alongside total debt of $122.1M, resulting in net debt of $121.7M. Shareholders' equity stood at $123.6M, producing a debt-to-equity ratio of 0.99 and a current ratio of 1.93. During FY2025, operating cash flow was $61.6M and free cash flow was $46.8M after capital expenditures of $14.8M. The company directed capital toward shareholder returns in FY2025, allocating $50.9M to share buybacks and $27.5M to dividends, contributing to a 5-year share count reduction of 21.0%.

At a share price of $51.01, Kforce carries a market capitalization of $913.5M and an enterprise value of $1.05B. The stock trades at a trailing P/E of 24.1x, below the 24.8x median of its US-listed Industrials peers, and at a forward P/E of 13.4x versus the peer median of 17.2x. Its price-to-sales ratio of 0.7x is lower than the peer median of 1.5x, while its EV/EBITDA of 17.7x is above the peer median of 13.9x. KFRC gained 92.9% over the past year, outperforming the S&P 500 (SPY) return of 16.8%, but its 5-year return of -8.5% lagged the index's 83.0% gain.

Kforce pays a quarterly dividend with a forward annual rate of $1.59 per share, equating to a dividend yield of 3.12%. Its payout ratio is 75.0%. The company has paid dividends for 15 consecutive years and delivered a 5-year annualized dividend growth rate of 14.3%. The most recent ex-dividend date occurred on September 11, 2026.

Wall Street coverage includes 2 Strong Buy and 3 Hold ratings, with zero Buy, Sell, or Strong Sell recommendations. The mean price target is $60.67, representing an 18.9% upside from the last close of $51.01. For the fiscal year ending December 31, 2026, analysts expect EPS of $2.54, up 29.5%, on revenue of $1.40B. Consensus estimates for the next fiscal year project EPS of $3.09 on revenue of $1.44B. The company beat EPS estimates in 3 of the last 4 quarters, and its next earnings date is October 26, 2026.

This page is an AI-written research summary of Kforce Inc. (KFRC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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