KELLY SERVICES INC -A (KELYA) Stock Fundamental Analysis
USA - NASDAQ:KELYA - US4881522084 - Common Stock
12.28 USD
+0.02 (+0.16%)
12.28 USD
0 (0%)
Overall KELYA gets a fundamental rating of 5 out of 10. We evaluated KELYA against 83 industry peers in the Professional Services industry. KELYA has only an average score on both its financial health and profitability. A decent growth rate in combination with a cheap valuation! Better keep an eye on KELYA.
1. Profitability
1.1 Basic Checks
In the past year KELYA was profitable.
KELYA had a positive operating cash flow in the past year.
In multiple years KELYA reported negative net income over the last 5 years.
KELYA had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
KELYA has a Return On Assets (-0.25%) which is comparable to the rest of the industry.
The Return On Equity of KELYA (-0.50%) is comparable to the rest of the industry.
KELYA has a Return On Invested Capital of 3.38%. This is comparable to the rest of the industry: KELYA outperforms 43.02% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KELYA is significantly below the industry average of 13.40%.
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 Operating Margin (1.60%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of KELYA has remained more or less at the same level.
With a Gross Margin value of 20.58%, KELYA is not doing good in the industry: 72.09% of the companies in the same industry are doing better.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KELYA is destroying value.
KELYA has less shares outstanding than it did 1 year ago.
KELYA has less shares outstanding than it did 5 years ago.
KELYA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.99 indicates that KELYA is not in any danger for bankruptcy at the moment.
The Altman-Z score of KELYA (2.99) 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.
With a decent Debt to FCF ratio value of 0.71, KELYA is doing good in the industry, outperforming 79.07% of the companies in the same industry.
KELYA has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of KELYA (0.06) is better than 69.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.71 | ||
| Altman-Z | 2.99 |
ROIC/WACC0.41
WACC8.21%
2.3 Liquidity
A Current Ratio of 1.52 indicates that KELYA should not have too much problems paying its short term obligations.
The Current ratio of KELYA (1.52) is comparable to the rest of the industry.
A Quick Ratio of 1.52 indicates that KELYA should not have too much problems paying its short term obligations.
KELYA has a Quick ratio (1.52) which is comparable to the rest of the 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%.
The Earnings Per Share has been growing slightly by 1.26% on average over the past years.
KELYA shows a small growth in Revenue. In the last year, the Revenue has grown by 0.97%.
KELYA shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.15% yearly.
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 11.38% on average per year.
The Revenue is expected to grow by 3.74% on average over the next years.
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
KELYA is valuated cheaply with a Price/Earnings ratio of 6.27.
Based on the Price/Earnings ratio, KELYA is valued cheaply inside the industry as 95.35% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.40. KELYA is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 4.30, the valuation of KELYA can be described as very cheap.
Based on the Price/Forward Earnings ratio, KELYA is valued cheaply inside the industry as 98.84% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of KELYA to the average of the S&P500 Index (22.94), we can say KELYA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.27 | ||
| Fwd PE | 4.3 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KELYA is valued cheaper than 97.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KELYA is valued cheaply inside the industry as 96.51% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.12 | ||
| EV/EBITDA | 4.21 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.96
EPS Next 2Y11.38%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KELYA has a Yearly Dividend Yield of 2.45%.
KELYA's Dividend Yield is rather good when compared to the industry average which is at 3.95. KELYA pays more dividend than 87.21% of the companies in the same industry.
KELYA's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
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.
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
12.28
+0.02 (+0.16%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners89.44%
Inst Owner Change0.27%
Ins Owners3.34%
Ins Owner Change5.19%
Market Cap432.87M
Analysts83.64
Price Target26.52 (115.96%)
Short Float %1.9%
Short Ratio1.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.45% |
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)-1.15%
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 | 6.27 | ||
| Fwd PE | 4.3 | ||
| P/S | 0.1 | ||
| P/FCF | 4.12 | ||
| P/OCF | 3.8 | ||
| P/B | 0.34 | ||
| P/tB | 0.6 | ||
| EV/EBITDA | 4.21 |
EPS(TTM)1.96
EY15.96%
EPS(NY)2.85
Fwd EY23.23%
FCF(TTM)2.98
FCFY24.28%
OCF(TTM)3.23
OCFY26.34%
SpS127.54
BVpS35.92
TBVpS20.45
PEG (NY)N/A
PEG (5Y)4.96
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 | 0.64 | ||
| 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 | 2.99 |
F-Score5
WACC8.21%
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)-27.41%
EPS 3Y15.06%
EPS 5Y1.26%
EPS Q2Q%-23.94%
EPS Next Y-3.38%
EPS Next 2Y11.38%
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 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%