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KELLY SERVICES INC -A (KELYA) Stock Fundamental Analysis

NASDAQ:KELYA - Nasdaq - US4881522084 - Common Stock - Currency: USD

12.07  -0.18 (-1.47%)

After market: 12.07 0 (0%)

Fundamental Rating

4

Taking everything into account, KELYA scores 4 out of 10 in our fundamental rating. KELYA was compared to 82 industry peers in the Professional Services industry. The financial health of KELYA is average, but there are quite some concerns on its profitability. KELYA is valued quite cheap, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

2

1. Profitability

1.1 Basic Checks

In the past year KELYA was profitable.
In the past year KELYA had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: KELYA reported negative net income in multiple years.
Of the past 5 years KELYA 4 years had a positive operating cash flow.
KELYA Yearly Net Income VS EBIT VS OCF VS FCFKELYA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M 100M 150M

1.2 Ratios

KELYA has a worse Return On Assets (-0.78%) than 63.41% of its industry peers.
The Return On Equity of KELYA (-1.63%) is worse than 64.63% of its industry peers.
KELYA has a Return On Invested Capital (3.31%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for KELYA is significantly below the industry average of 12.36%.
Industry RankSector Rank
ROA -0.78%
ROE -1.63%
ROIC 3.31%
ROA(3y)-0.33%
ROA(5y)0.31%
ROE(3y)-0.73%
ROE(5y)0.68%
ROIC(3y)3.33%
ROIC(5y)2.79%
KELYA Yearly ROA, ROE, ROICKELYA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 -5 10

1.3 Margins

KELYA has a worse Operating Margin (1.67%) than 60.98% of its industry peers.
KELYA's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 20.52%, KELYA is doing worse than 73.17% of the companies in the same industry.
KELYA's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 1.67%
PM (TTM) N/A
GM 20.52%
OM growth 3Y14.85%
OM growth 5Y-0.87%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.86%
GM growth 5Y2.42%
KELYA Yearly Profit, Operating, Gross MarginsKELYA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 5 10 15 20

6

2. Health

2.1 Basic Checks

KELYA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
KELYA has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, KELYA has less shares outstanding
KELYA has a worse debt/assets ratio than last year.
KELYA Yearly Shares OutstandingKELYA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
KELYA Yearly Total Debt VS Total AssetsKELYA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

2.2 Solvency

KELYA has an Altman-Z score of 2.91. This is not the best score and indicates that KELYA is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.91, KELYA is in line with its industry, outperforming 52.44% of the companies in the same industry.
KELYA has a debt to FCF ratio of 3.08. This is a good value and a sign of high solvency as KELYA would need 3.08 years to pay back of all of its debts.
The Debt to FCF ratio of KELYA (3.08) is better than 63.41% of its industry peers.
KELYA has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of KELYA (0.16) is better than 67.07% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF 3.08
Altman-Z 2.91
ROIC/WACC0.4
WACC8.37%
KELYA Yearly LT Debt VS Equity VS FCFKELYA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B

2.3 Liquidity

A Current Ratio of 1.64 indicates that KELYA should not have too much problems paying its short term obligations.
KELYA has a better Current ratio (1.64) than 62.20% of its industry peers.
KELYA has a Quick Ratio of 1.64. This is a normal value and indicates that KELYA is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.64, KELYA is doing good in the industry, outperforming 62.20% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.64
Quick Ratio 1.64
KELYA Yearly Current Assets VS Current LiabilitesKELYA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

3

3. Growth

3.1 Past

The earnings per share for KELYA have decreased by -9.36% in the last year.
Measured over the past 5 years, KELYA shows a small growth in Earnings Per Share. The EPS has been growing by 1.26% on average per year.
The Revenue has decreased by -3.49% in the past year.
Measured over the past years, KELYA shows a decrease in Revenue. The Revenue has been decreasing by -4.15% on average per year.
EPS 1Y (TTM)-9.36%
EPS 3Y15.06%
EPS 5Y1.26%
EPS Q2Q%-30.36%
Revenue 1Y (TTM)-3.49%
Revenue growth 3Y-4.09%
Revenue growth 5Y-4.15%
Sales Q2Q%11.46%

3.2 Future

The Earnings Per Share is expected to grow by 10.92% on average over the next years. This is quite good.
KELYA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.00% yearly.
EPS Next Y-5.51%
EPS Next 2Y10.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.93%
Revenue Next 2Y5%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
KELYA Yearly Revenue VS EstimatesKELYA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B 4B 5B
KELYA Yearly EPS VS EstimatesKELYA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

7

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 5.67, the valuation of KELYA can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of KELYA indicates a rather cheap valuation: KELYA is cheaper than 95.12% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of KELYA to the average of the S&P500 Index (26.82), we can say KELYA is valued rather cheaply.
A Price/Forward Earnings ratio of 4.27 indicates a rather cheap valuation of KELYA.
Based on the Price/Forward Earnings ratio, KELYA is valued cheaper than 98.78% of the companies in the same industry.
KELYA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.21.
Industry RankSector Rank
PE 5.67
Fwd PE 4.27
KELYA Price Earnings VS Forward Price EarningsKELYA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

93.90% of the companies in the same industry are more expensive than KELYA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, KELYA is valued cheaper than 92.68% of the companies in the same industry.
Industry RankSector Rank
P/FCF 6.4
EV/EBITDA 5.12
KELYA Per share dataKELYA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60 80 100

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)4.48
EPS Next 2Y10.92%
EPS Next 3YN/A

5

5. Dividend

5.1 Amount

KELYA has a Yearly Dividend Yield of 2.45%.
Compared to an average industry Dividend Yield of 2.18, KELYA pays a better dividend. On top of this KELYA pays more dividend than 87.80% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, KELYA has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.45%

5.2 History

The dividend of KELYA has a limited annual growth rate of 2.03%.
KELYA has paid a dividend for at least 10 years, which is a reliable track record.
KELYA has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)2.03%
Div Incr Years0
Div Non Decr Years4
KELYA Yearly Dividends per shareKELYA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3

5.3 Sustainability

The earnings of KELYA are negative and hence is the payout ratio. KELYA will probably not be able to sustain this dividend level.
KELYA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-54.46%
EPS Next 2Y10.92%
EPS Next 3YN/A
KELYA Yearly Income VS Free CF VS DividendKELYA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M -50M 100M 150M

KELLY SERVICES INC -A

NASDAQ:KELYA (8/1/2025, 8:00:02 PM)

After market: 12.07 0 (0%)

12.07

-0.18 (-1.47%)

Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)05-08 2025-05-08/bmo
Earnings (Next)08-07 2025-08-07/bmo
Inst Owners91.06%
Inst Owner Change-0.63%
Ins Owners3.71%
Ins Owner Change3.46%
Market Cap424.86M
Analysts83.64
Price Target27.54 (128.17%)
Short Float %1.5%
Short Ratio1.62
Dividend
Industry RankSector Rank
Dividend Yield 2.45%
Yearly Dividend0.31
Dividend Growth(5Y)2.03%
DP-54.46%
Div Incr Years0
Div Non Decr Years4
Ex-Date05-19 2025-05-19 (0.075)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)22.6%
Min EPS beat(2)-27.88%
Max EPS beat(2)73.07%
EPS beat(4)2
Avg EPS beat(4)5.96%
Min EPS beat(4)-43.37%
Max EPS beat(4)73.07%
EPS beat(8)5
Avg EPS beat(8)22.31%
EPS beat(12)6
Avg EPS beat(12)12.15%
EPS beat(16)9
Avg EPS beat(16)23.56%
Revenue beat(2)1
Avg Revenue beat(2)-0.84%
Min Revenue beat(2)-2.27%
Max Revenue beat(2)0.6%
Revenue beat(4)1
Avg Revenue beat(4)-2.45%
Min Revenue beat(4)-6.05%
Max Revenue beat(4)0.6%
Revenue beat(8)1
Avg Revenue beat(8)-3.41%
Revenue beat(12)1
Avg Revenue beat(12)-3.49%
Revenue beat(16)1
Avg Revenue beat(16)-3.75%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.31%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.06%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.35%
Valuation
Industry RankSector Rank
PE 5.67
Fwd PE 4.27
P/S 0.1
P/FCF 6.4
P/OCF 5.57
P/B 0.34
P/tB 0.62
EV/EBITDA 5.12
EPS(TTM)2.13
EY17.65%
EPS(NY)2.83
Fwd EY23.45%
FCF(TTM)1.89
FCFY15.63%
OCF(TTM)2.17
OCFY17.96%
SpS126.47
BVpS35.24
TBVpS19.55
PEG (NY)N/A
PEG (5Y)4.48
Profitability
Industry RankSector Rank
ROA -0.78%
ROE -1.63%
ROCE 4.19%
ROIC 3.31%
ROICexc 3.37%
ROICexgc 4.93%
OM 1.67%
PM (TTM) N/A
GM 20.52%
FCFM 1.49%
ROA(3y)-0.33%
ROA(5y)0.31%
ROE(3y)-0.73%
ROE(5y)0.68%
ROIC(3y)3.33%
ROIC(5y)2.79%
ROICexc(3y)3.58%
ROICexc(5y)3.03%
ROICexgc(3y)4.82%
ROICexgc(5y)3.87%
ROCE(3y)4.21%
ROCE(5y)3.54%
ROICexcg growth 3Y17.31%
ROICexcg growth 5Y-1.9%
ROICexc growth 3Y8.45%
ROICexc growth 5Y-7.18%
OM growth 3Y14.85%
OM growth 5Y-0.87%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.86%
GM growth 5Y2.42%
F-Score3
Asset Turnover1.72
Health
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF 3.08
Debt/EBITDA 1.74
Cap/Depr 22.92%
Cap/Sales 0.22%
Interest Coverage 250
Cash Conversion 64.94%
Profit Quality N/A
Current Ratio 1.64
Quick Ratio 1.64
Altman-Z 2.91
F-Score3
WACC8.37%
ROIC/WACC0.4
Cap/Depr(3y)36.22%
Cap/Depr(5y)42.06%
Cap/Sales(3y)0.27%
Cap/Sales(5y)0.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-9.36%
EPS 3Y15.06%
EPS 5Y1.26%
EPS Q2Q%-30.36%
EPS Next Y-5.51%
EPS Next 2Y10.92%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-3.49%
Revenue growth 3Y-4.09%
Revenue growth 5Y-4.15%
Sales Q2Q%11.46%
Revenue Next Year5.93%
Revenue Next 2Y5%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y11.73%
EBIT growth 3Y10.15%
EBIT growth 5Y-4.99%
EBIT Next Year148.46%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y4050%
FCF growth 3Y-40.18%
FCF growth 5Y-28.1%
OCF growth 1Y368.1%
OCF growth 3Y-31.85%
OCF growth 5Y-23.43%