Yahoo Movies Was Kforce Inc.'s (NASDAQ:KFRC) Earnings Growth Better Than The Industry's?
Measuring Kforce Inc.'s (NasdaqGS:KFRC) track record of past performance is an insightful exercise for investors. It enables us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess KFRC's recent performance announced on 31 March 2020 and compare these figures to its historical trend and industry movements.
Check out our latest analysis for Kforce
Commentary On KFRC's Past Performance
KFRC's trailing twelve-month earnings (from 31 March 2020) of US$56m has increased by 9.5% compared to the previous year.
However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 9.6%, indicating the rate at which KFRC is growing has slowed down. Why could this be happening? Well, let's look at what's going on with margins and whether the entire industry is feeling the heat.
In terms of returns from investment, Kforce has invested its equity funds well leading to a 36% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 14% exceeds the US Professional Services industry of 6.1%, indicating Kforce has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Kforce’s debt level, has increased over the past 3 years from 22% to 25%. This correlates with a decrease in debt holding, with debt-to-equity ratio declining from 69% to 66% over the past 5 years.
What does this mean?
Kforce's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that have performed well in the past, such as Kforce gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research Kforce to get a better picture of the stock by looking at:
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.
Financial Health: Are KFRC’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2020. This may not be consistent with full year annual report figures.
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