Latest Ratios: P/E Ratio 27.0x · EV/EBITDA 18.4x · ROE 24.9%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $943M | $550M | $1.1B | $1.3B | $1.1B | $1.6B | $901M | $944M | $805M | $665M | $619M |
| Enterprise Value | $1.0B | $630M | $1.1B | $1.4B | $1.2B | $1.6B | $917M | $1.0B | $878M | $783M | $733M |
| P/E Ratio → | 26.97 | 15.78 | 21.64 | 21.58 | 14.90 | 21.25 | 16.06 | 17.26 | 13.87 | 20.04 | 18.93 |
| P/S Ratio | 0.71 | 0.41 | 0.78 | 0.86 | 0.66 | 1.01 | 0.64 | 0.70 | 0.57 | 0.49 | 0.47 |
| P/B Ratio | 7.54 | 4.41 | 7.05 | 8.29 | 6.17 | 8.47 | 5.00 | 5.64 | 4.78 | 4.95 | 5.09 |
| P/FCF | 20.14 | 11.74 | 13.74 | 15.76 | 13.59 | 24.01 | 8.77 | 16.78 | 9.75 | 28.30 | 22.91 |
| P/OCF | 15.29 | 8.92 | 12.54 | 14.42 | 12.38 | 21.89 | 8.25 | 14.17 | 9.18 | 22.66 | 15.69 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.47 | 0.81 | 0.90 | 0.68 | 1.02 | 0.66 | 0.75 | 0.62 | 0.58 | 0.56 |
| EV / EBITDA | 18.40 | 11.33 | 15.03 | 14.94 | 9.22 | 14.77 | 10.08 | 12.48 | 9.92 | 10.19 | 10.89 |
| EV / EBIT | 20.44 | 13.43 | 16.81 | 16.14 | 10.02 | 16.29 | 11.43 | 13.49 | 12.13 | 13.05 | 12.41 |
| EV / FCF | — | 13.47 | 14.34 | 16.44 | 14.16 | 24.33 | 8.93 | 17.94 | 10.64 | 33.35 | 27.12 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 26.8% | 26.8% | 27.4% | 27.9% | 29.3% | 28.9% | 28.3% | 29.3% | 29.5% | 30.0% | 31.0% |
| Operating Margin | 3.8% | 3.8% | 5.0% | 5.7% | 6.8% | 6.7% | 5.7% | 5.6% | 5.8% | 5.1% | 4.4% |
| Net Profit Margin | 2.6% | 2.6% | 3.6% | 4.0% | 4.4% | 4.8% | 4.0% | 9.7% | 4.1% | 2.5% | 2.5% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 24.9% | 24.9% | 32.1% | 35.8% | 40.7% | 40.8% | 32.3% | 78.0% | 38.3% | 26.0% | 25.1% |
| ROA | 9.6% | 9.6% | 14.1% | 16.3% | 16.8% | 15.3% | 13.0% | 34.4% | 15.2% | 8.9% | 9.1% |
| ROIC | 18.4% | 18.4% | 25.0% | 29.4% | 40.0% | 39.4% | 28.0% | 23.7% | 24.8% | 21.1% | 19.2% |
| ROCE | 20.1% | 20.1% | 27.9% | 33.8% | 38.7% | 29.9% | 24.1% | 25.5% | 27.7% | 23.6% | 21.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.67 | 0.67 | 0.31 | 0.36 | 0.26 | 0.63 | 0.67 | 0.51 | 0.43 | 0.89 | 0.95 |
| Debt / EBITDA | 1.49 | 1.49 | 0.63 | 0.62 | 0.37 | 1.08 | 1.32 | 1.05 | 0.83 | 1.55 | 1.72 |
| Net Debt / Equity | — | 0.65 | 0.31 | 0.36 | 0.25 | 0.11 | 0.09 | 0.39 | 0.43 | 0.88 | 0.94 |
| Net Debt / EBITDA | 1.45 | 1.45 | 0.62 | 0.62 | 0.37 | 0.19 | 0.18 | 0.81 | 0.83 | 1.54 | 1.69 |
| Debt / FCF | — | 1.73 | 0.60 | 0.69 | 0.56 | 0.32 | 0.16 | 1.16 | 0.88 | 5.05 | 4.22 |
| Interest Coverage | — | — | — | — | 8.10 | — | 23.86 | 28.84 | — | — | — |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.78 | 1.78 | 2.00 | 2.37 | 2.11 | 2.32 | 3.13 | 2.89 | 2.75 | 2.93 | 2.68 |
| Quick Ratio | 1.78 | 1.78 | 2.00 | 2.37 | 2.11 | 2.32 | 3.13 | 2.89 | 2.75 | 2.93 | 2.68 |
| Cash Ratio | 0.02 | 0.02 | 0.00 | 0.00 | 0.00 | 0.60 | 0.96 | 0.23 | 0.00 | 0.00 | 0.02 |
| Asset Turnover | — | 3.63 | 3.93 | 4.28 | 4.36 | 3.14 | 2.92 | 3.54 | 3.73 | 3.53 | 3.61 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 52.31 | 56.02 | 55.62 | 57.50 | 61.99 | 59.65 | 59.04 | 54.19 | 62.62 | 57.12 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.9% | 5.0% | 2.6% | 2.1% | 2.1% | 1.3% | 1.9% | 1.8% | 1.8% | 1.8% | 2.0% |
| Payout Ratio | 78.9% | 78.9% | 56.0% | 45.1% | 31.9% | 26.8% | 30.0% | 12.7% | 25.6% | 36.5% | 38.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 3.7% | 6.3% | 4.6% | 4.6% | 6.7% | 4.7% | 6.2% | 5.8% | 7.2% | 5.0% | 5.3% |
| FCF Yield | 5.0% | 8.5% | 7.3% | 6.3% | 7.4% | 4.2% | 11.4% | 6.0% | 10.3% | 3.5% | 4.4% |
| Buyback Yield | 5.4% | 9.3% | 3.8% | 5.7% | 6.7% | 4.1% | 4.0% | 13.2% | 2.8% | 2.2% | 7.4% |
| Total Shareholder Yield | 8.3% | 14.3% | 6.4% | 7.8% | 8.8% | 5.4% | 5.8% | 14.9% | 4.6% | 4.0% | 9.4% |
| Shares Outstanding | — | $18M | $19M | $20M | $21M | $21M | $21M | $24M | $26M | $26M | $27M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying KFRC stock.
Kforce Inc.'s current P/E ratio is 27.0x. The historical average is 26.1x. This places it at the 71th percentile of its historical range.
Kforce Inc.'s current EV/EBITDA is 18.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.6x.
Kforce Inc.'s return on equity (ROE) is 24.9%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 16.5%.
Based on historical data, Kforce Inc. is trading at a P/E of 27.0x. This is at the 71th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Kforce Inc.'s current dividend yield is 2.93% with a payout ratio of 78.9%.
Kforce Inc. has 26.8% gross margin and 3.8% operating margin.
Kforce Inc.'s Debt/EBITDA ratio is 1.5x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Operating margin near historical lows
Metrics are mathematically derived from official filings.
Margin Ceiling Caps Earnings Power
Gross margin improved to 28.1% in 2026Q2, the highest in the series, yet operating margin at 5.4% remains near historical lows, per the latest quarterly report.
The gross margin expansion suggests some pricing power in the bill-pay spread, but the operating margin compression indicates that SG&A costs are absorbing the gains. With COGS consuming over 70% of revenue, the structural ceiling on profitability is evident. The 2024Q4 anomaly, where operating margin spiked to 36.0%, appears to be a one-time event and should be excluded from trend analysis.
Return on Capital Decelerates Sharply
ROIC fell from 6.7% in 2024Q2 to 6.0% in 2026Q2, while ROE dropped from 8.6% to 10.2% over the same period, based on reported figures.
The decline in ROIC, despite a slight uptick in ROE, suggests that the company is generating lower returns on its invested capital, likely due to increased working capital needs and higher debt levels. The 2024Q4 ROIC of 45.2% is an outlier, likely driven by the same anomaly that inflated operating margin. Excluding that quarter, the trend is clearly downward, indicating that the company is not compounding returns as efficiently as before.
Working Capital Efficiency Deteriorates
DSO improved to 56 days in 2026Q2 from 61 days in 2024Q1, but the cash conversion cycle remains negative due to negative DIO, per the latest financial statements.
The improvement in DSO suggests better receivables collection, but the negative DIO and low DPO indicate that the company is not holding inventory and is paying suppliers relatively quickly. The negative cash conversion cycle is typical for staffing firms, but the recent working capital swings, which consumed $33.8M in 2026Q2, suggest that the company is funding growth through debt rather than operational efficiency.
Leverage Creeps Higher as Cash Erodes
Debt-to-equity rose from 0.31 in 2024Q4 to 0.99 in 2026Q2, while cash fell to $330K, according to the latest balance sheet data.
The rapid increase in leverage, with total debt tripling to $122.1M, suggests that the company is increasingly relying on external funding to support its working capital and capital returns. The interest coverage ratio is not reported, but given the low absolute debt levels, it may still be adequate. However, the thin cash position leaves little buffer for operational shocks, and the debt-funded buybacks may be masking underlying strain.
Liquidity Cushion Thins to a Razor's Edge
Current ratio improved to 1.93 in 2026Q2, but cash of $330K is negligible against $122.1M debt, per the latest balance sheet.
The current ratio appears healthy, but the composition is concerning: the company holds minimal cash and relies on receivables and other current assets. In a severe stress scenario, such as a sudden drop in demand, the company may struggle to meet its short-term obligations without drawing on additional debt. The negative operating cash flow in 2026Q2 further underscores the fragility of the liquidity position.
Misapplied Metric: P/E in a Cyclical Downturn
The trailing P/E of 29.79 appears expensive, but it is distorted by depressed earnings; forward P/E of 22.90 better reflects normalized earnings, per current valuation multiples.
Investors often misapply the P/E ratio to staffing firms without adjusting for cyclicality. KFRC's earnings are currently near trough levels, making the trailing P/E misleadingly high. A more appropriate metric is EV/EBITDA, which at 20.17 trailing and 13.94 forward, better captures the company's operating performance. Additionally, the P/FCF of 22.25 may be overstated due to negative FCF in recent quarters, so investors should focus on normalized free cash flow over a full cycle.