KELLY SERVICES INC -CL B (KELYB)
US4881523074 - Common Stock
KELYB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. KELYB has an excellent financial health rating, but there are some minor concerns on its profitability. KELYB is valued correctly, but it does not seem to be growing.
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.
The reported net income has been mixed in the past 5 years: KELYB reported negative net income in multiple years.
KELYB had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
KELYB has a Return On Assets of 2.10%. This is comparable to the rest of the industry: KELYB outperforms 45.68% of its industry peers.
Looking at the Return On Equity, with a value of 3.93%, KELYB is in line with its industry, outperforming 45.68% of the companies in the same industry.
The Return On Invested Capital of KELYB (3.29%) is worse than 60.49% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KELYB is significantly below the industry average of 11.79%.
The last Return On Invested Capital (3.29%) for KELYB is above the 3 year average (3.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 3.93% | ||
| ROIC | 3.29% |
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
KELYB's Profit Margin of 1.09% is in line compared to the rest of the industry. KELYB outperforms 40.74% of its industry peers.
In the last couple of years the Profit Margin of KELYB has grown nicely.
KELYB's Operating Margin of 1.44% is on the low side compared to the rest of the industry. KELYB is outperformed by 67.90% of its industry peers.
In the last couple of years the Operating Margin of KELYB has declined.
Looking at the Gross Margin, with a value of 19.79%, KELYB is doing worse than 80.25% of the companies in the same industry.
In the last couple of years the Gross Margin of KELYB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.44% | ||
| PM (TTM) | 1.09% | ||
| GM | 19.79% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KELYB is destroying value.
The number of shares outstanding for KELYB has been reduced compared to 1 year ago.
The number of shares outstanding for KELYB has been reduced compared to 5 years ago.
There is no outstanding debt for KELYB. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
An Altman-Z score of 3.51 indicates that KELYB is not in any danger for bankruptcy at the moment.
KELYB has a Altman-Z score of 3.51. This is in the better half of the industry: KELYB outperforms 66.67% of its industry peers.
There is no outstanding debt for KELYB. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 3.51 |
ROIC/WACC0.35
WACC9.28%
2.3 Liquidity
A Current Ratio of 1.80 indicates that KELYB should not have too much problems paying its short term obligations.
The Current ratio of KELYB (1.80) is better than 69.14% of its industry peers.
KELYB has a Quick Ratio of 1.80. This is a normal value and indicates that KELYB is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.80, KELYB is doing good in the industry, outperforming 70.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.8 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 83.59% over the past year.
KELYB shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.89% yearly.
KELYB shows a decrease in Revenue. In the last year, the revenue decreased by -6.58%.
The Revenue has been decreasing by -2.59% on average over the past years.
EPS 1Y (TTM)83.59%
EPS 3Y15.81%
EPS 5Y-0.89%
EPS growth Q2Q40%
Revenue 1Y (TTM)-6.58%
Revenue growth 3Y2.31%
Revenue growth 5Y-2.59%
Revenue growth Q2Q-17.6%
3.2 Future
Based on estimates for the next years, KELYB will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.54% on average per year.
KELYB 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
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.71, the valuation of KELYB can be described as reasonable.
KELYB's Price/Earnings ratio is rather cheap when compared to the industry. KELYB is cheaper than 93.83% of the companies in the same industry.
KELYB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
Based on the Price/Forward Earnings ratio of 8.84, the valuation of KELYB can be described as reasonable.
92.59% of the companies in the same industry are more expensive than KELYB, based on the Price/Forward Earnings ratio.
KELYB's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 20.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.71 | ||
| Fwd PE | 8.84 |
4.2 Price Multiples
90.12% of the companies in the same industry are more expensive than KELYB, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, KELYB is valued a bit cheaper than 75.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.07 | ||
| EV/EBITDA | 6.04 |
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
KELYB has a Yearly Dividend Yield of 1.31%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.99, KELYB pays a better dividend. On top of this KELYB pays more dividend than 81.48% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, KELYB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
5.2 History
On average, the dividend of KELYB grows each year by 6.38%, which is quite nice.
KELYB has paid a dividend for at least 10 years, which is a reliable track record.
KELYB 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
21.71% of the earnings are spent on dividend by KELYB. This is a low number and sustainable payout ratio.
KELYB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP21.71%
EPS Next 2Y8.54%
EPS Next 3YN/A
KELLY SERVICES INC -CL B
NASDAQ:KELYB (5/17/2024, 7:09:18 PM)
22.81
-0.22 (-0.96%)
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 Cap804.96M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.31% |
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)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
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 | 9.71 | ||
| Fwd PE | 8.84 | ||
| 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 | 2.1% | ||
| ROE | 3.93% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1.44% | ||
| PM (TTM) | 1.09% | ||
| GM | 19.79% | ||
| 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 Turnover1.93
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.8 | ||
| Quick Ratio | 1.8 | ||
| 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)83.59%
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)-6.58%
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