KELLY SERVICES INC -A (KELYA) Stock Fundamental Analysis
NASDAQ:KELYA - Nasdaq - US4881522084 - Common Stock - Currency: USD
Taking everything into account, KELYA scores 4 out of 10 in our fundamental rating. KELYA was compared to 81 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.
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.
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 worse Return On Assets (-0.78%) than 64.20% of its industry peers.
Looking at the Return On Equity, with a value of -1.63%, KELYA is doing worse than 65.43% of the companies in the same industry.
KELYA has a Return On Invested Capital (3.31%) which is in line with 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 12.53%.
| Industry Rank | Sector 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%
1.3 Margins
KELYA's Operating Margin of 1.67% is on the low side compared to the rest of the industry. KELYA is outperformed by 60.49% 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's Gross Margin of 20.52% is on the low side compared to the rest of the industry. KELYA is outperformed by 72.84% of its industry peers.
KELYA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector 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%
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
Compared to 1 year ago, KELYA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.91 indicates that KELYA is not a great score, but indicates only limited risk for bankruptcy at the moment.
KELYA has a Altman-Z score (2.91) which is in line with its industry peers.
The Debt to FCF ratio of KELYA is 3.08, which is a good value as it means it would take KELYA, 3.08 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.08, KELYA is doing good in the industry, outperforming 60.49% of the companies in the same industry.
A Debt/Equity ratio of 0.16 indicates that KELYA is not too dependend on debt financing.
KELYA has a better Debt to Equity ratio (0.16) than 65.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 2.91 |
ROIC/WACC0.38
WACC8.81%
2.3 Liquidity
A Current Ratio of 1.64 indicates that KELYA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.64, KELYA is in the better half of the industry, outperforming 61.73% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.64, KELYA is in the better half of the industry, outperforming 61.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The earnings per share for KELYA have decreased by -9.36% in the last year.
The Earnings Per Share has been growing slightly by 1.26% on average over the past years.
Looking at the last year, KELYA shows a decrease in Revenue. The Revenue has decreased by -3.49% 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)-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.
Based on estimates for the next years, KELYA will show a small growth in Revenue. The Revenue will grow by 5.00% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 5.82, the valuation of KELYA can be described as very cheap.
Based on the Price/Earnings ratio, KELYA is valued cheaper than 97.53% of the companies in the same industry.
When comparing the Price/Earnings ratio of KELYA to the average of the S&P500 Index (27.45), we can say KELYA is valued rather cheaply.
KELYA is valuated cheaply with a Price/Forward Earnings ratio of 4.38.
KELYA's Price/Forward Earnings ratio is rather cheap when compared to the industry. KELYA is cheaper than 98.77% of the companies in the same industry.
KELYA is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.82 | ||
| Fwd PE | 4.38 |
4.2 Price Multiples
97.53% 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 93.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.57 | ||
| EV/EBITDA | 5.21 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.6
EPS Next 2Y10.92%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KELYA has a Yearly Dividend Yield of 2.62%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.12, KELYA pays a better dividend. On top of this KELYA pays more dividend than 88.89% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, KELYA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
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
The earnings of KELYA are negative and hence is the payout ratio. KELYA will probably not be able to sustain this dividend level.
The dividend of KELYA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-54.46%
EPS Next 2Y10.92%
EPS Next 3YN/A
12.39
+0.08 (+0.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners91.06%
Inst Owner Change2.4%
Ins Owners3.71%
Ins Owner Change3.46%
Market Cap436.13M
Analysts83.64
Price Target27.54 (122.28%)
Short Float %1.06%
Short Ratio1.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
Yearly Dividend0.31
Dividend Growth(5Y)2.03%
DP-54.46%
Div Incr Years0
Div Non Decr Years4
Ex-Date
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)-4.63%
EPS NY rev (3m)-8.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.45%
Revenue NY rev (1m)-1.14%
Revenue NY rev (3m)-1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.82 | ||
| Fwd PE | 4.38 | ||
| P/S | 0.1 | ||
| P/FCF | 6.57 | ||
| P/OCF | 5.72 | ||
| P/B | 0.35 | ||
| P/tB | 0.63 | ||
| EV/EBITDA | 5.21 |
EPS(TTM)2.13
EY17.19%
EPS(NY)2.83
Fwd EY22.84%
FCF(TTM)1.89
FCFY15.22%
OCF(TTM)2.17
OCFY17.49%
SpS126.47
BVpS35.24
TBVpS19.55
PEG (NY)N/A
PEG (5Y)4.6
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC8.81%
ROIC/WACC0.38
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%