KELLY SERVICES INC -A (KELYA) Stock Fundamental Analysis
NASDAQ:KELYA - US4881522084 - Common Stock
14.23 USD
+0.13 (+0.92%)
14.23 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to KELYA. KELYA was compared to 83 industry peers in the Professional Services industry. KELYA scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. A decent growth rate in combination with a cheap valuation! Better keep an eye on KELYA.
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.
KELYA had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of KELYA (-0.25%) is worse than 61.45% of its industry peers.
KELYA's Return On Equity of -0.50% is on the low side compared to the rest of the industry. KELYA is outperformed by 60.24% of its industry peers.
KELYA's Return On Invested Capital of 3.38% is in line compared to the rest of the industry. KELYA outperforms 42.17% of its industry peers.
KELYA had an Average Return On Invested Capital over the past 3 years of 3.33%. This is significantly below the industry average of 12.57%.
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 has a worse Operating Margin (1.60%) than 60.24% of its industry peers.
KELYA's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 20.58%, KELYA is not doing good in the industry: 72.29% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of KELYA has grown nicely.
| 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.
The number of shares outstanding for KELYA has been reduced compared to 1 year ago.
Compared to 5 years ago, KELYA has less shares outstanding
KELYA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.03 indicates that KELYA is not in any danger for bankruptcy at the moment.
KELYA has a Altman-Z score (3.03) which is in line with its industry peers.
The Debt to FCF ratio of KELYA is 0.71, which is an excellent value as it means it would take KELYA, only 0.71 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of KELYA (0.71) is better than 78.31% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that KELYA is not too dependend on debt financing.
KELYA's Debt to Equity ratio of 0.06 is fine compared to the rest of the industry. KELYA outperforms 69.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.71 | ||
| Altman-Z | 3.03 |
ROIC/WACC0.4
WACC8.43%
2.3 Liquidity
A Current Ratio of 1.52 indicates that KELYA should not have too much problems paying its short term obligations.
With a Current ratio value of 1.52, KELYA perfoms like the industry average, outperforming 54.22% of the companies in the same industry.
A Quick Ratio of 1.52 indicates that KELYA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.52, KELYA perfoms like the industry average, outperforming 56.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
KELYA shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.41%.
KELYA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.26% yearly.
Looking at the last year, KELYA shows a small growth in Revenue. The Revenue has grown by 0.97% in the last 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)-27.41%
EPS 3Y15.06%
EPS 5Y1.26%
EPS Q2Q%-23.94%
Revenue 1Y (TTM)0.97%
Revenue growth 3Y-4.09%
Revenue growth 5Y-4.15%
Sales Q2Q%4.19%
3.2 Future
Based on estimates for the next years, KELYA will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.82% on average per year.
The Revenue is expected to grow by 4.07% on average over the next years.
EPS Next Y-2.26%
EPS Next 2Y12.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year3.96%
Revenue Next 2Y4.07%
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
The Price/Earnings ratio is 7.26, which indicates a rather cheap valuation of KELYA.
Based on the Price/Earnings ratio, KELYA is valued cheaper than 95.18% of the companies in the same industry.
KELYA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.13.
KELYA is valuated cheaply with a Price/Forward Earnings ratio of 4.86.
98.80% of the companies in the same industry are more expensive than KELYA, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of KELYA to the average of the S&P500 Index (22.76), we can say KELYA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.26 | ||
| Fwd PE | 4.86 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KELYA is valued cheaper than 96.39% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KELYA indicates a rather cheap valuation: KELYA is cheaper than 96.39% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.77 | ||
| EV/EBITDA | 4.59 |
4.3 Compensation for Growth
A more expensive valuation may be justified as KELYA's earnings are expected to grow with 12.82% in the coming years.
PEG (NY)N/A
PEG (5Y)5.74
EPS Next 2Y12.82%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KELYA has a Yearly Dividend Yield of 2.13%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.17, KELYA pays a better dividend. On top of this KELYA pays more dividend than 85.54% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, KELYA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
5.2 History
The dividend of KELYA has a limited annual growth rate of 2.03%.
KELYA has been paying a dividend for at least 10 years, so it has 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.
The dividend of KELYA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-174.6%
EPS Next 2Y12.82%
EPS Next 3YN/A
14.23
+0.13 (+0.92%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners90.82%
Inst Owner Change-2.15%
Ins Owners3.71%
Ins Owner Change0.58%
Market Cap501.61M
Analysts83.64
Price Target26.52 (86.37%)
Short Float %1.4%
Short Ratio1.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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)-3.7%
PT rev (3m)-3.7%
EPS NQ rev (1m)0.61%
EPS NQ rev (3m)8.5%
EPS NY rev (1m)3.44%
EPS NY rev (3m)-1.36%
Revenue NQ rev (1m)-8.74%
Revenue NQ rev (3m)-10.13%
Revenue NY rev (1m)-1.86%
Revenue NY rev (3m)-2.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.26 | ||
| Fwd PE | 4.86 | ||
| P/S | 0.11 | ||
| P/FCF | 4.77 | ||
| P/OCF | 4.4 | ||
| P/B | 0.4 | ||
| P/tB | 0.7 | ||
| EV/EBITDA | 4.59 |
EPS(TTM)1.96
EY13.77%
EPS(NY)2.93
Fwd EY20.57%
FCF(TTM)2.98
FCFY20.95%
OCF(TTM)3.23
OCFY22.73%
SpS127.54
BVpS35.92
TBVpS20.45
PEG (NY)N/A
PEG (5Y)5.74
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%
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-Score5
Asset Turnover1.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.71 | ||
| Debt/EBITDA | 0.61 | ||
| Cap/Depr | 17.98% | ||
| Cap/Sales | 0.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 93.75% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 3.03 |
F-Score5
WACC8.43%
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)-27.41%
EPS 3Y15.06%
EPS 5Y1.26%
EPS Q2Q%-23.94%
EPS Next Y-2.26%
EPS Next 2Y12.82%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.97%
Revenue growth 3Y-4.09%
Revenue growth 5Y-4.15%
Sales Q2Q%4.19%
Revenue Next Year3.96%
Revenue Next 2Y4.07%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-7.33%
EBIT growth 3Y10.15%
EBIT growth 5Y-4.99%
EBIT Next Year148.46%
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%