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Why I Like Kforce Inc. (NASDAQ:KFRC)

Simply Wall St

Attractive stocks have exceptional fundamentals. In the case of Kforce Inc. (NASDAQ:KFRC), there's is a company with great financial health as well as a a strong history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, read the full report on Kforce here.

Flawless balance sheet with solid track record

KFRC delivered a bottom-line expansion of 50% in the prior year, with its most recent earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 27%, which is an optimistic signal for the future. KFRC's ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. KFRC seems to have put its debt to good use, generating operating cash levels of 1.09x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.

NasdaqGS:KFRC Income Statement, September 16th 2019

Next Steps:

For Kforce, there are three relevant factors you should further research:

  1. Future Outlook: What are well-informed industry analysts predicting for KFRC’s future growth? Take a look at our free research report of analyst consensus for KFRC’s outlook.
  2. Valuation: What is KFRC worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether KFRC is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of KFRC? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.