KELLY SERVICES INC -A (KELYA)
US4881522084 - Common Stock
KELYA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 81 industry peers in the Professional Services industry. While KELYA has a great health rating, its profitability is only average at the moment. KELYA has a valuation in line with the averages, 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 Return On Assets of 1.38%. This is comparable to the rest of the industry: KELYA outperforms 45.00% of its industry peers.
KELYA has a Return On Equity (2.85%) which is in line with its industry peers.
The Return On Invested Capital of KELYA (3.31%) is worse than 61.25% 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 12.24%.
The last Return On Invested Capital (3.31%) for KELYA is above the 3 year average (3.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.38% | ||
| ROE | 2.85% | ||
| ROIC | 3.31% |
ROA(3y)1.46%
ROA(5y)1.21%
ROE(3y)3.15%
ROE(5y)2.45%
ROIC(3y)3.07%
ROIC(5y)3.08%
1.3 Margins
Looking at the Profit Margin, with a value of 0.74%, KELYA is in line with its industry, outperforming 42.50% of the companies in the same industry.
KELYA's Profit Margin has improved in the last couple of years.
KELYA's Operating Margin of 1.35% is on the low side compared to the rest of the industry. KELYA is outperformed by 66.25% of its industry peers.
In the last couple of years the Operating Margin of KELYA has declined.
KELYA has a worse Gross Margin (19.88%) than 81.25% of its industry peers.
KELYA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.35% | ||
| PM (TTM) | 0.74% | ||
| GM | 19.88% |
OM growth 3Y20.56%
OM growth 5Y-3.15%
PM growth 3YN/A
PM growth 5Y12.39%
GM growth 3Y2.75%
GM growth 5Y2.43%
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.
The number of shares outstanding for KELYA has been reduced compared to 5 years ago.
KELYA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
KELYA has an Altman-Z score of 3.28. This indicates that KELYA is financially healthy and has little risk of bankruptcy at the moment.
KELYA has a Altman-Z score (3.28) which is in line with its industry peers.
KELYA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.28 |
ROIC/WACC0.35
WACC9.53%
2.3 Liquidity
KELYA has a Current Ratio of 1.59. 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 better Current ratio (1.59) than 65.00% of its industry peers.
A Quick Ratio of 1.59 indicates that KELYA should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.59, KELYA is doing good in the industry, outperforming 65.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 63.43% over the past year.
KELYA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.89% yearly.
Looking at the last year, KELYA shows a decrease in Revenue. The Revenue has decreased by -2.61% in the last year.
Measured over the past years, KELYA shows a decrease in Revenue. The Revenue has been decreasing by -2.59% on average per year.
EPS 1Y (TTM)63.43%
EPS 3Y15.81%
EPS 5Y-0.89%
EPS growth Q2Q416.67%
Revenue 1Y (TTM)-2.61%
Revenue growth 3Y2.31%
Revenue growth 5Y-2.59%
Revenue growth Q2Q-0.13%
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 8.54% yearly.
KELYA is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -6.71% yearly.
EPS Next Y-13.93%
EPS Next 2Y8.54%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-16.15%
Revenue Next 2Y-6.71%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.67, the valuation of KELYA can be described as very reasonable.
KELYA's Price/Earnings ratio is rather cheap when compared to the industry. KELYA is cheaper than 87.50% 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 24.55.
KELYA is valuated correctly with a Price/Forward Earnings ratio of 12.39.
82.50% of the companies in the same industry are more expensive than KELYA, based on the Price/Forward Earnings ratio.
KELYA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.67 | ||
| Fwd PE | 12.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KELYA indicates a rather cheap valuation: KELYA is cheaper than 90.00% of the companies listed 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 82.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.43 | ||
| EV/EBITDA | 6.89 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.54%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.27%, KELYA has a reasonable but not impressive dividend return.
KELYA's Dividend Yield is a higher than the industry average which is at 2.06.
With a Dividend Yield of 1.27, KELYA pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
5.2 History
The dividend of KELYA is nicely growing with an annual growth rate of 6.38%!
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)6.38%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
30.81% of the earnings are spent on dividend by KELYA. This is a low number and sustainable payout ratio.
KELYA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP30.81%
EPS Next 2Y8.54%
EPS Next 3YN/A
KELLY SERVICES INC -A
NASDAQ:KELYA (5/1/2024, 7:06:11 PM)
After market: 23.36 0 (0%)23.36
+0.42 (+1.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap824.37M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.67 | ||
| Fwd PE | 12.39 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.38% | ||
| ROE | 2.85% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1.35% | ||
| PM (TTM) | 0.74% | ||
| GM | 19.88% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)63.43%
EPS 3Y15.81%
EPS 5Y
EPS growth Q2Q
EPS Next Y-13.93%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.61%
Revenue growth 3Y2.31%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y