KELLY SERVICES INC -A (KELYA) Stock Fundamental Analysis
USA - NASDAQ:KELYA - US4881522084 - Common Stock
9.63 USD
+0.27 (+2.83%)
9.63 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to KELYA. KELYA was compared to 86 industry peers in the Professional Services industry. Both the profitability and the financial health of KELYA get a neutral evaluation. Nothing too spectacular is happening here. KELYA has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
KELYA had positive earnings in the past year.
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.
1.2 Ratios
KELYA has a Return On Assets (-0.25%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of -0.50%, KELYA is in line with its industry, outperforming 43.68% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.38%, KELYA is in line with its industry, outperforming 43.68% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KELYA is significantly below the industry average of 13.43%.
The 3 year average ROIC (3.33%) for KELYA is below the current ROIC(3.38%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.25% | ||
| ROE | -0.5% | ||
| ROIC | 3.38% |
ROA(3y)-0.33%
ROA(5y)0.31%
ROE(3y)-0.73%
ROE(5y)0.68%
ROIC(3y)3.33%
ROIC(5y)2.79%
1.3 Margins
KELYA's Operating Margin of 1.60% is in line compared to the rest of the industry. KELYA outperforms 42.53% of its industry peers.
In the last couple of years the Operating Margin of KELYA has remained more or less at the same level.
KELYA has a Gross Margin of 20.58%. This is in the lower half of the industry: KELYA underperforms 71.26% of its industry peers.
KELYA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.6% | ||
| PM (TTM) | N/A | ||
| GM | 20.58% |
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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KELYA is destroying value.
Compared to 1 year ago, KELYA has less shares outstanding
KELYA has less shares outstanding than it did 5 years ago.
The debt/assets ratio for KELYA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.95 indicates that KELYA is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of KELYA (2.95) is comparable to the rest of the industry.
KELYA has a debt to FCF ratio of 0.71. This is a very positive value and a sign of high solvency as it would only need 0.71 years to pay back of all of its debts.
KELYA's Debt to FCF ratio of 0.71 is fine compared to the rest of the industry. KELYA outperforms 79.31% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that KELYA is not too dependend on debt financing.
KELYA has a better Debt to Equity ratio (0.06) than 70.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.71 | ||
| Altman-Z | 2.95 |
ROIC/WACC0.41
WACC8.19%
2.3 Liquidity
KELYA has a Current Ratio of 1.52. This is a normal value and indicates that KELYA is financially healthy and should not expect problems in meeting its short term obligations.
KELYA has a Current ratio (1.52) which is comparable to the rest of the industry.
KELYA has a Quick Ratio of 1.52. This is a normal value and indicates that KELYA is financially healthy and should not expect problems in meeting its short term obligations.
KELYA's Quick ratio of 1.52 is in line compared to the rest of the industry. KELYA outperforms 58.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
The earnings per share for KELYA have decreased strongly by -19.92% in the last year.
KELYA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.26% yearly.
The Revenue for KELYA has decreased by -10.42% in the past year. This is quite bad
KELYA shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.15% yearly.
EPS 1Y (TTM)-19.92%
EPS 3Y15.06%
EPS 5Y1.26%
EPS Q2Q%-14.29%
Revenue 1Y (TTM)-10.42%
Revenue growth 3Y-4.09%
Revenue growth 5Y-4.15%
Sales Q2Q%-9.93%
3.2 Future
KELYA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.38% yearly.
Based on estimates for the next years, KELYA will show a small growth in Revenue. The Revenue will grow by 3.74% on average per year.
EPS Next Y-3.38%
EPS Next 2Y11.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.49%
Revenue Next 2Y3.74%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 4.99, the valuation of KELYA can be described as very cheap.
KELYA's Price/Earnings ratio is rather cheap when compared to the industry. KELYA is cheaper than 95.40% of the companies in the same industry.
KELYA is valuated cheaply when we compare the Price/Earnings ratio to 26.06, which is the current average of the S&P500 Index.
KELYA is valuated cheaply with a Price/Forward Earnings ratio of 3.38.
97.70% of the companies in the same industry are more expensive than KELYA, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 32.73. KELYA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.99 | ||
| Fwd PE | 3.38 |
4.2 Price Multiples
KELYA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KELYA is cheaper than 96.55% of the companies in the same industry.
100.00% of the companies in the same industry are more expensive than KELYA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.23 | ||
| EV/EBITDA | 3.41 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.95
EPS Next 2Y11.38%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KELYA has a Yearly Dividend Yield of 3.20%.
In the last 3 months the price of KELYA has falen by -31.94%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
KELYA's Dividend Yield is rather good when compared to the industry average which is at 4.51. KELYA pays more dividend than 88.51% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, KELYA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
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
5.3 Sustainability
KELYA has negative earnings and hence a negative payout ratio. The dividend may be in danger.
KELYA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-174.6%
EPS Next 2Y11.38%
EPS Next 3YN/A
9.63
+0.27 (+2.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners89.44%
Inst Owner Change1.41%
Ins Owners3.34%
Ins Owner Change4.37%
Market Cap339.46M
Revenue(TTM)4.33B
Net Income(TTM)-6.30M
Analysts83.64
Price Target26.52 (175.39%)
Short Float %1.95%
Short Ratio1.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.2% |
Yearly Dividend0.31
Dividend Growth(5Y)2.03%
DP-174.6%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-15.84%
Min EPS beat(2)-27.88%
Max EPS beat(2)-3.8%
EPS beat(4)1
Avg EPS beat(4)-0.49%
Min EPS beat(4)-43.37%
Max EPS beat(4)73.07%
EPS beat(8)5
Avg EPS beat(8)23.48%
EPS beat(12)6
Avg EPS beat(12)13.09%
EPS beat(16)8
Avg EPS beat(16)20.76%
Revenue beat(2)0
Avg Revenue beat(2)-3.48%
Min Revenue beat(2)-4.69%
Max Revenue beat(2)-2.27%
Revenue beat(4)1
Avg Revenue beat(4)-3.1%
Min Revenue beat(4)-6.05%
Max Revenue beat(4)0.6%
Revenue beat(8)1
Avg Revenue beat(8)-3.39%
Revenue beat(12)1
Avg Revenue beat(12)-3.56%
Revenue beat(16)1
Avg Revenue beat(16)-3.87%
PT rev (1m)0%
PT rev (3m)-3.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.61%
EPS NY rev (1m)0%
EPS NY rev (3m)2.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.99 | ||
| Fwd PE | 3.38 | ||
| P/S | 0.08 | ||
| P/FCF | 3.23 | ||
| P/OCF | 2.98 | ||
| P/B | 0.27 | ||
| P/tB | 0.47 | ||
| EV/EBITDA | 3.41 |
EPS(TTM)1.93
EY20.04%
EPS(NY)2.85
Fwd EY29.63%
FCF(TTM)2.98
FCFY30.96%
OCF(TTM)3.23
OCFY33.58%
SpS127.54
BVpS35.92
TBVpS20.45
PEG (NY)N/A
PEG (5Y)3.95
Graham Number39.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.25% | ||
| ROE | -0.5% | ||
| ROCE | 4.28% | ||
| ROIC | 3.38% | ||
| ROICexc | 3.42% | ||
| ROICexgc | 5.08% | ||
| OM | 1.6% | ||
| PM (TTM) | N/A | ||
| GM | 20.58% | ||
| FCFM | 2.34% |
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%
ROICexgc growth 3Y17.31%
ROICexgc 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-Score5
Asset Turnover1.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.71 | ||
| Debt/EBITDA | 0.64 | ||
| Cap/Depr | 20.18% | ||
| Cap/Sales | 0.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 98.11% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 2.95 |
F-Score5
WACC8.19%
ROIC/WACC0.41
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)-19.92%
EPS 3Y15.06%
EPS 5Y1.26%
EPS Q2Q%-14.29%
EPS Next Y-3.38%
EPS Next 2Y11.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-10.42%
Revenue growth 3Y-4.09%
Revenue growth 5Y-4.15%
Sales Q2Q%-9.93%
Revenue Next Year2.49%
Revenue Next 2Y3.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-7.33%
EBIT growth 3Y10.15%
EBIT growth 5Y-4.99%
EBIT Next Year154%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y187.16%
FCF growth 3Y-40.18%
FCF growth 5Y-28.1%
OCF growth 1Y109.56%
OCF growth 3Y-31.85%
OCF growth 5Y-23.43%
KELLY SERVICES INC -A / KELYA FAQ
What is the ChartMill fundamental rating of KELLY SERVICES INC -A (KELYA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to KELYA.
What is the valuation status of KELLY SERVICES INC -A (KELYA) stock?
ChartMill assigns a valuation rating of 7 / 10 to KELLY SERVICES INC -A (KELYA). This can be considered as Undervalued.
Can you provide the profitability details for KELLY SERVICES INC -A?
KELLY SERVICES INC -A (KELYA) has a profitability rating of 4 / 10.
Can you provide the PE and PB ratios for KELYA stock?
The Price/Earnings (PE) ratio for KELLY SERVICES INC -A (KELYA) is 4.99 and the Price/Book (PB) ratio is 0.27.
Can you provide the financial health for KELYA stock?
The financial health rating of KELLY SERVICES INC -A (KELYA) is 5 / 10.