Stock fact sheet · data as of
Kforce Inc. (KFRC): fair value, margin of safety and Wheel Score
Industrials · Staffing & Employment Services · United States · Blend
Is KFRC undervalued?
KFRC closed at 51.72 on 16 Oct 2026, more than 30% above the GLS average fair value of 36.93. Only 1 of the 9 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the Sunday Scan drops names like this at the "below fair value" rule.
The 9 models disagree widely: GLS Growth gives 6.29 while Graham Growth gives 106.89. A spread that wide means the average is sensitive to which methods you trust; the model table below shows where each one lands, and the Quote page lets you switch any of them off.
The nightly engine files KFRC under Blend.
Nine valuation models for KFRC
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 33.47 | -35% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 18.76 | -64% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 106.89 | +107% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 45.53 | -12% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 6.29 | -88% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 48.70 | -6% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | 25.47 | -51% | Eight years of compounded free cash flow: the price at which the business pays for itself |
| DDM | 23.40 | -55% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 23.87 | -54% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -2.16 | -104% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 59.00 | +14% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Financial health is average - KFRC passes 5 of the nine Piotroski tests, which falls one point short of the Sunday Scan's "6 or more" rule. The Financials tab on the Quote page shows which tests fail. The GLS Moat score is low at 4.3 out of 10, which says the ten-year record of revenue, earnings, margins and returns on capital has been inconsistent - growth and shocks rather than steady compounding.
Returns on capital are high - ROIC 16.8%, ROE 27.9%, ROA 9.5% - with debt at 0.67 times equity and a free-cash-flow yield of 2.4%.
The dividend yield is 3.07% at a payout ratio of 74%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Technology Segment 93%, Finance And Accounting Segment 7% (quarter Q2 FY2026).
Institutional ownership scores 10/10, insider activity 2/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 16.8% |
|---|---|---|---|
| GLS Moat | 4.3 / 10 | ROE | 27.9% |
| Debt / equity | 0.67 | ROA | 9.5% |
| Free-cash-flow yield | 2.4% | Payout ratio | 74% |
| Institutions | 10 / 10 | Insiders · Congress | 2 · 5 / 10 |
Wheel Score 47: Weak
KFRC scores 47 out of 100 on the Wheel Score, in the Weak band (under 50). Value 0/25, Health 11/20, Moat 6/15, Premium 19/20, Stability 10/20. The score is not a judgement on the company; it says the price, quality and premium do not line up for selling puts on it today.
Implied volatility is 64% on the near-the-money contracts 20-60 days out - above the 60% ceiling of the sweet spot. Premiums are large, but the Wheel Score tapers the Premium points (19 of 20) because volatility this high usually comes with a reason. Chain open interest is thin - 131 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 225k shares a day on a market cap of $926M, with a beta of 0.92; the Stability part of the Wheel Score gives that 10 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -40% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 6 / 15 | moat 4.3/10 | |
| Premium | 19 / 20 | implied volatility 64% | |
| Stability | 10 / 20 | 225k shares/day, $926M cap, beta 0.92 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
Kforce Inc. reports earnings on 26 Oct 2026 (after the close) - inside the 14-day window the Sunday Scan avoids, because a put sold now would carry the report's gap risk.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Staffing & Employment Services
The 12 companies below are the closest to Kforce Inc. by market cap within the Staffing & Employment Services industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| UPWK Upwork Inc. | 8.43 | 30.40 | +72% | 80Prime | $1.1B |
| BBSI Barrett Business Services, Inc. | 32.34 | 36.94 | +12% | 68Good | $784M |
| KELYA Kelly Services, Inc. | 15.57 | 51.42 | +70% | 45Weak | $541M |
| KELYB Kelly Services, Inc. | 22.59 | 68.95 | +67% | 39No options | $516M |
| NSP Insperity, Inc. | 50.80 | 89.37 | +43% | 45Weak | $1.9B |
| MAN ManpowerGroup Inc. | 43.74 | 77.95 | +44% | 79Good | $2.0B |
| ZIP ZipRecruiter, Inc. | 4.42 | 3.45 | -28% | 37Weak | $363M |
| TNET TriNet Group, Inc. | 67.06 | 66.73 | -0% | 70Good | $3.1B |
| TBI TrueBlue, Inc. | 8.87 | 2.45 | -262% | 29Weak | $270M |
| HQI HireQuest, Inc. | 17.50 | 8.28 | -111% | 23No options | $243M |
| RHI Robert Half Inc. | 34.98 | 33.82 | -3% | 66Good | $3.6B |
| DHX DHI Group, Inc. | 4.99 | 2.06 | -142% | 45Weak | $216M |
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Start free See the Sunday ScanQuestions about KFRC
Is KFRC undervalued right now?
No: at 51.72 the stock trades 40% above the GLS average fair value of 36.93 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of KFRC and what does it mean?
KFRC scores 47 out of 100 (Weak). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for KFRC?
36.93 per share as of 16 Oct 2026 - the simple average of the 9 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Kforce Inc. report earnings next?
The next earnings report is due on 26 Oct 2026 (after the close), 10 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does KFRC have listed options, and how liquid are they?
Yes. The nightly snapshot found 124 listed contracts with 131 open interest across all expiries and implied volatility of 64% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.