KELLY SERVICES INC -A (KELYA) Stock Fundamental Analysis
NASDAQ:KELYA - Nasdaq - US4881522084 - Common Stock - Currency: USD
KELYA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 82 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. KELYA is not valued too expensively and it also shows a decent growth rate.
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's Return On Assets of -0.02% is on the low side compared to the rest of the industry. KELYA is outperformed by 64.63% of its industry peers.
KELYA has a Return On Equity of -0.05%. This is in the lower half of the industry: KELYA underperforms 64.63% of its industry peers.
With a Return On Invested Capital value of 3.08%, KELYA perfoms like the industry average, outperforming 42.68% of the companies in the same industry.
KELYA had an Average Return On Invested Capital over the past 3 years of 3.33%. This is significantly below the industry average of 13.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.02% | ||
| ROE | -0.05% | ||
| ROIC | 3.08% |
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 of 1.62%. This is in the lower half of the industry: KELYA underperforms 63.41% of its industry peers.
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 20.37%, KELYA is not doing good in the industry: 74.39% 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 | 1.62% | ||
| PM (TTM) | N/A | ||
| GM | 20.37% |
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.
KELYA has less shares outstanding than it did 1 year ago.
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
KELYA has an Altman-Z score of 2.81. 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.
KELYA has a Altman-Z score of 2.81. This is comparable to the rest of the industry: KELYA outperforms 51.22% of its industry peers.
The Debt to FCF ratio of KELYA is 15.15, which is on the high side as it means it would take KELYA, 15.15 years of fcf income to pay off all of its debts.
KELYA has a Debt to FCF ratio (15.15) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.19 indicates that KELYA is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.19, KELYA is in line with its industry, outperforming 59.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 15.15 | ||
| Altman-Z | 2.81 |
ROIC/WACC0.35
WACC8.72%
2.3 Liquidity
A Current Ratio of 1.65 indicates that KELYA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.65, KELYA is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
A Quick Ratio of 1.65 indicates that KELYA should not have too much problems paying its short term obligations.
KELYA has a better Quick ratio (1.65) than 64.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
KELYA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.02%.
The Earnings Per Share has been growing slightly by 1.26% on average over the past years.
KELYA shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.42%.
KELYA shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.15% yearly.
EPS 1Y (TTM)5.02%
EPS 3Y15.06%
EPS 5Y1.26%
EPS Q2Q%-11.83%
Revenue 1Y (TTM)-10.42%
Revenue growth 3Y-4.09%
Revenue growth 5Y-4.15%
Sales Q2Q%-3.34%
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 11.73% yearly.
KELYA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.63% yearly.
EPS Next Y2.78%
EPS Next 2Y11.73%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.38%
Revenue Next 2Y5.63%
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 5.13, which indicates a rather cheap valuation of KELYA.
Based on the Price/Earnings ratio, KELYA is valued cheaper than 92.68% of the companies in the same industry.
KELYA is valuated cheaply when we compare the Price/Earnings ratio to 27.75, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 4.99, 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 97.56% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.49, KELYA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.13 | ||
| Fwd PE | 4.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KELYA is valued cheaply inside the industry as 90.24% of the companies are valued more expensively.
KELYA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.04 | ||
| EV/EBITDA | 5.44 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)1.85
PEG (5Y)4.06
EPS Next 2Y11.73%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KELYA has a Yearly Dividend Yield of 2.63%.
Compared to an average industry Dividend Yield of 2.40, KELYA pays a better dividend. On top of this KELYA pays more dividend than 89.02% of the companies listed in the same industry.
KELYA's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
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 Years3
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.
KELYA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-1816.67%
EPS Next 2Y11.73%
EPS Next 3YN/A
NASDAQ:KELYA (5/2/2025, 12:54:42 PM)
11.792
+0.29 (+2.54%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners92.99%
Inst Owner Change-0.11%
Ins Owners4.29%
Ins Owner Change3.06%
Market Cap411.42M
Analysts83.64
Price Target27.54 (133.55%)
Short Float %2.49%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
Yearly Dividend0.31
Dividend Growth(5Y)2.03%
DP-1816.67%
Div Incr Years3
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)14.85%
Min EPS beat(2)-43.37%
Max EPS beat(2)73.07%
EPS beat(4)3
Avg EPS beat(4)17.16%
Min EPS beat(4)-43.37%
Max EPS beat(4)73.07%
EPS beat(8)6
Avg EPS beat(8)29.48%
EPS beat(12)7
Avg EPS beat(12)20.83%
EPS beat(16)9
Avg EPS beat(16)24.34%
Revenue beat(2)1
Avg Revenue beat(2)-2.73%
Min Revenue beat(2)-6.05%
Max Revenue beat(2)0.6%
Revenue beat(4)1
Avg Revenue beat(4)-2.6%
Min Revenue beat(4)-6.05%
Max Revenue beat(4)0.6%
Revenue beat(8)1
Avg Revenue beat(8)-3.14%
Revenue beat(12)1
Avg Revenue beat(12)-3.32%
Revenue beat(16)1
Avg Revenue beat(16)-3.67%
PT rev (1m)0%
PT rev (3m)2.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-21.05%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)-6.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.13 | ||
| Fwd PE | 4.99 | ||
| P/S | 0.09 | ||
| P/FCF | 26.04 | ||
| P/OCF | 15.29 | ||
| P/B | 0.33 | ||
| P/tB | 0.61 | ||
| EV/EBITDA | 5.44 |
EPS(TTM)2.3
EY19.5%
EPS(NY)2.36
Fwd EY20.05%
FCF(TTM)0.45
FCFY3.84%
OCF(TTM)0.77
OCFY6.54%
SpS124.16
BVpS35.39
TBVpS19.32
PEG (NY)1.85
PEG (5Y)4.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.02% | ||
| ROE | -0.05% | ||
| ROCE | 3.89% | ||
| ROIC | 3.08% | ||
| ROICexc | 3.14% | ||
| ROICexgc | 4.6% | ||
| OM | 1.62% | ||
| PM (TTM) | N/A | ||
| GM | 20.37% | ||
| FCFM | 0.36% |
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 Turnover1.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 15.15 | ||
| Debt/EBITDA | 2.17 | ||
| Cap/Depr | 27.61% | ||
| Cap/Sales | 0.26% | ||
| Interest Coverage | 7.03 | ||
| Cash Conversion | 24.34% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 2.81 |
F-Score5
WACC8.72%
ROIC/WACC0.35
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)5.02%
EPS 3Y15.06%
EPS 5Y1.26%
EPS Q2Q%-11.83%
EPS Next Y2.78%
EPS Next 2Y11.73%
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%-3.34%
Revenue Next Year7.38%
Revenue Next 2Y5.63%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y7.49%
EBIT growth 3Y10.15%
EBIT growth 5Y-4.99%
EBIT Next Year156.57%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-74.27%
FCF growth 3Y-40.18%
FCF growth 5Y-28.1%
OCF growth 1Y-64.93%
OCF growth 3Y-31.85%
OCF growth 5Y-23.43%