Kforce Inc. Common Stock (KFRC)

FairStock Score: 47/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Kforce as a Graham-style bargain hunter, and what I see is a fair business trading at an optimistic price. The company provides professional staffing in technology and finance/accounting, a people-intensive, competitive field with little pricing power and thin net margins—about 3.53% in fiscal Q2 2026, the quarter ended 2026-06-30, when Kforce reported revenue of $349.3M and net income of $12.3M. The latest quarter did improve versus fiscal Q2 2025, the quarter ended 2025-06-30, when revenue was $334.3M and net income was $10.4M, but the longer filed record is discouraging: FY2025 revenue was $1.3B, net income $34.8M, and diluted EPS $1.96, down from FY2024's $50.4M and $2.68 and FY2023's $61.1M and $3.13. FairStock's computed Lynch category is SLOW GROWER — Shrinking, with profit down 9.1% a year over five years and revenue down 1.0%. Financial health is decent—computed Altman Z-Score 5.16 and Piotroski 5/9—but debt-to-equity of 0.99 and a 2.5% FCF yield are not compelling. At the 2026-10-13 close of $51.37, FairStock calculates a P/E of 24.23, P/B of 6.97, EV/EBITDA of 17.48, and a Graham Number of $18.13, leaving a margin of safety of -183.34%. The 3.06% dividend yield and 28.27% ROE offer some comfort, but ROCE of 8.66% shows the core capital returns are only modest. I would want a much wider discount before calling this a value opportunity.

In plain English: Kforce supplies technology and finance/accounting staffing services to U.S. companies. Its latest quarter showed more sales and profit than a year earlier, but over the longer run revenue and profit have been shrinking, and margins are thin. Based on the numbers given, the stock price looks high compared with what the business earns and owns.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer