KELLY SERVICES INC -CL B (KELYB) Stock Fundamental Analysis
NASDAQ:KELYB - US4881523074 - Common Stock
13.7138 USD
-0.89 (-6.07%)
Taking everything into account, KELYB scores 5 out of 10 in our fundamental rating. KELYB was compared to 82 industry peers in the Professional Services industry. While KELYB seems to be doing ok healthwise, there are quite some concerns on its profitability. KELYB may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
KELYB had positive earnings in the past year.
KELYB had a positive operating cash flow in the past year.
In multiple years KELYB reported negative net income over the last 5 years.
Of the past 5 years KELYB 4 years had a positive operating cash flow.
1.2 Ratios
KELYB has a Return On Assets of -0.25%. This is in the lower half of the industry: KELYB underperforms 63.41% of its industry peers.
The Return On Equity of KELYB (-0.50%) is worse than 62.20% of its industry peers.
KELYB has a Return On Invested Capital (3.38%) which is in line with its industry peers.
KELYB had an Average Return On Invested Capital over the past 3 years of 3.33%. This is significantly below the industry average of 12.76%.
The last Return On Invested Capital (3.38%) for KELYB is above the 3 year average (3.33%), which is a sign of increasing profitability.
| 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
KELYB has a worse Operating Margin (1.60%) than 60.98% of its industry peers.
KELYB's Operating Margin has been stable in the last couple of years.
KELYB has a worse Gross Margin (20.58%) than 73.17% of its industry peers.
KELYB'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
KELYB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
KELYB has less shares outstanding than it did 1 year ago.
KELYB has less shares outstanding than it did 5 years ago.
The debt/assets ratio for KELYB is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.02 indicates that KELYB is not in any danger for bankruptcy at the moment.
KELYB's Altman-Z score of 3.02 is in line compared to the rest of the industry. KELYB outperforms 57.32% of its industry peers.
The Debt to FCF ratio of KELYB is 0.71, which is an excellent value as it means it would take KELYB, only 0.71 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.71, KELYB is in the better half of the industry, outperforming 76.83% of the companies in the same industry.
A Debt/Equity ratio of 0.06 indicates that KELYB is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.06, KELYB is doing good in the industry, outperforming 68.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.71 | ||
| Altman-Z | 3.02 |
ROIC/WACC0.4
WACC8.35%
2.3 Liquidity
KELYB has a Current Ratio of 1.52. This is a normal value and indicates that KELYB is financially healthy and should not expect problems in meeting its short term obligations.
KELYB has a Current ratio (1.52) which is comparable to the rest of the industry.
KELYB has a Quick Ratio of 1.52. This is a normal value and indicates that KELYB is financially healthy and should not expect problems in meeting its short term obligations.
KELYB has a Quick ratio of 1.52. This is comparable to the rest of the industry: KELYB outperforms 54.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
KELYB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.41%.
KELYB shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.26% yearly.
KELYB shows a small growth in Revenue. In the last year, the Revenue has grown by 0.97%.
The Revenue has been decreasing by -4.15% on average over the past years.
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
KELYB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.82% yearly.
Based on estimates for the next years, KELYB will show a small growth in Revenue. The Revenue will grow by 4.07% on average per year.
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.
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
The Price/Earnings ratio is 7.00, which indicates a rather cheap valuation of KELYB.
Based on the Price/Earnings ratio, KELYB is valued cheaper than 92.68% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.02, KELYB is valued rather cheaply.
KELYB is valuated cheaply with a Price/Forward Earnings ratio of 4.68.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KELYB indicates a rather cheap valuation: KELYB is cheaper than 97.56% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.66, KELYB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7 | ||
| Fwd PE | 4.68 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KELYB indicates a rather cheap valuation: KELYB is cheaper than 95.12% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of KELYB indicates a rather cheap valuation: KELYB is cheaper than 95.12% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.6 | ||
| EV/EBITDA | 4.44 |
4.3 Compensation for Growth
KELYB's earnings are expected to grow with 12.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)5.54
EPS Next 2Y12.82%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.15%, KELYB has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.18, KELYB pays a better dividend. On top of this KELYB pays more dividend than 87.80% of the companies listed in the same industry.
KELYB's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
5.2 History
The dividend of KELYB has a limited annual growth rate of 2.03%.
KELYB has been paying a dividend for at least 10 years, so it has a reliable track record.
KELYB 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
KELYB has negative earnings and hence a negative payout ratio. The dividend may be in danger.
KELYB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-174.6%
EPS Next 2Y12.82%
EPS Next 3YN/A
NASDAQ:KELYB (9/3/2025, 8:27:49 PM)
13.7138
-0.89 (-6.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners90.82%
Inst Owner Change1.44%
Ins Owners3.71%
Ins Owner Change-3.29%
Market Cap483.41M
Analysts83.64
Price Target27.78 (102.57%)
Short Float %0%
Short Ratio0.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
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)2.89%
PT rev (3m)2.89%
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 | ||
| Fwd PE | 4.68 | ||
| P/S | 0.11 | ||
| P/FCF | 4.6 | ||
| P/OCF | 4.24 | ||
| P/B | 0.38 | ||
| P/tB | 0.67 | ||
| EV/EBITDA | 4.44 |
EPS(TTM)1.96
EY14.29%
EPS(NY)2.93
Fwd EY21.35%
FCF(TTM)2.98
FCFY21.74%
OCF(TTM)3.23
OCFY23.58%
SpS127.54
BVpS35.92
TBVpS20.45
PEG (NY)N/A
PEG (5Y)5.54
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 | 3.02 |
F-Score5
WACC8.35%
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%