<div id="readability-page-1"><div><p>Kforce (KFRC) posted a net profit margin of 3%, down from 3.9% a year ago, with earnings sliding by an average of 8% per year over the past five years. Revenue is forecast to grow at just 1.5% annually, behind the broader US market’s 10.5% growth forecast, and earnings are expected to rise 10.9%, also trailing the market’s 16% target. However, the company trades at a price-to-earnings ratio of 13.7x, well below industry averages, and is noted for high quality earnings and an attractive dividend, with rewards highlighted by substantial value and growth potential ahead.</p> <p>See our full analysis for Kforce.</p><p>Up next, we will look at how these headline numbers stack up against current market narratives, where expectations match reality and where they may diverge.</p> <p>See what the community is saying about Kforce</p> <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/8a9dfe89-5cc4-4b93-9bce-cd3344c11bdc/chart/earnings-and-revenue-history?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/8a9dfe89-5cc4-4b93-9bce-cd3344c11bdc/chart/earnings-and-revenue-history"/><figcaption>NYSE:KFRC Earnings &amp; Revenue History as at Nov 2025</figcaption></figure> <h2>Margin Expansion Despite Stalled Growth</h2> <ul> <li>Analysts project that profit margins will inch up from 3.2% today to 3.4% in three years, even as annual revenue is expected to decrease by 0.1% over the same period.</li> <li>Analysts' consensus view highlights:     <ul> <li>Proprietary technology investments and a shift to consulting-based client relationships support margin resilience. This lends credence to the small projected uptick in profit margins, even as top-line growth stagnates.</li> <li>The consensus notes demand for specialized tech roles and solutions-based work as a key cushion for margins. This contrasts with Kforce's lagging revenue growth rate compared to the US market's much hotter 10.5% forecast.</li> </ul> </li> <li>For a deeper look at how these underlying business trends align with the broader consensus on Kforce’s direction, see the full consensus narrative. <strong>📊 Read the full Kforce Consensus Narrative.</strong></li> </ul> <h2>PE Discount Widens Against Peers</h2> <ul> <li>Kforce trades at a price-to-earnings ratio of 13.7x, far below its peer average of 35.1x and the broader industry average of 25x. Shares are priced at $31.58 compared to a DCF fair value of $100.87.</li> <li>Analysts' consensus view draws attention to:     <ul> <li>This wide gap signals substantial perceived undervaluation. The current share price stands more than 60% below DCF fair value, while industry multiples remain elevated.</li> <li>Consensus suggests that attractive dividend yield and strong underlying earnings quality set Kforce apart. However, slower anticipated growth may be what keeps the multiple so compressed.</li> </ul> </li> </ul> <h2>Buybacks Supporting Per-Share Growth</h2> <ul> <li>Analysts expect shares outstanding to decline by 3.43% annually over the next three years, which should provide a direct boost to earnings per share even as overall profit growth remains modest.</li> <li>Analysts' consensus view underscores:     <ul> <li>This steady buyback rate could allow EPS to rise more quickly than total net profit, reinforcing shareholder value in a lower-growth revenue environment.</li> <li>Consensus maintains that operational efficiency efforts, such as technology platform investments, further support per-share value despite muted headline growth trends.</li> </ul> </li> </ul> <h2> Next Steps</h2> <p>To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Kforce on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.</p> <p>Have a fresh take on the numbers? Share your perspective by building a narrative in just a few minutes. Do it your way</p> <p>A great starting point for your Kforce research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.</p> <h2>See What Else Is Out There</h2> <p>Kforce’s slowing revenue growth and modest profit improvement trail its peers and the wider market. This highlights its struggle to deliver consistent expansion.</p> <p>If you want stocks that consistently grow sales and profits regardless of market swings, check out stable growth stocks screener (2079 results) that stand out for their reliable performance.</p> <p><em> This article by Simply Wall St is general in nature. <strong>We provide commentary based on historical data     and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.</strong> It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your     financial situation. We aim to bring you long-term focused analysis driven by fundamental data.     Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.     Simply Wall St has no position in any stocks mentioned.</em></p></div></div>

KFRC

<p>Kforce (KFRC): Net Profit Margin Drops to 3% Reinforcing Market Caution on Growth Prospects</p>