KFRCKforce Inc.
Is the business good?
The checks split: earnings fully cash-backed (0.9×), but margins compressing.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
Efficiency-driven, thin margins turned over fast (the retail model). ROE 29% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is KFRC?
Kforce Inc. earns 35% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 26 points above what the capital costs: growth creates value
- Operating margin
- 4.0%
Operating margin · Staffing & Employment Services median 0.87% · 12 months to Q2 2026
- Cash conversion
- 0.94×
Cash conversion · 1.56× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −4.4%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 5.7% |
| FY2021 | 6.8% |
| FY2022 | 6.8% |
| FY2023 | 5.7% |
| FY2024 | 5.0% |
| FY2025 | 3.8% |
Details›
- Gross margin12 months to Q2 2026
- 28%
- Operating margin12 months to Q2 2026
- 4.0%
- Net margin12 months to Q2 2026
- 2.7%
- Free cash flow margin
- 1.7%
- Revenue, trailing twelve months
- $1.34B
- Free cash flow, trailing twelve months
- $23M
- Net income, trailing twelve months
- $36M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 35%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Staffing & Employment Services
Ranks #4 of 9 by RyuScore