KELLY SERVICES INC -CL B (KELYB) Stock Fundamental Analysis
NASDAQ:KELYB - Nasdaq - US4881523074 - Common Stock - Currency: USD
Overall KELYB gets a fundamental rating of 4 out of 10. We evaluated KELYB against 82 industry peers in the Professional Services industry. The financial health of KELYB is average, but there are quite some concerns on its profitability. KELYB has a bad growth rate and is valued cheaply.
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
The Return On Assets of KELYB (-0.78%) is worse than 67.07% of its industry peers.
The Return On Equity of KELYB (-1.63%) is worse than 68.29% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.31%, KELYB is in line with its industry, outperforming 43.90% of the companies in the same industry.
KELYB had an Average Return On Invested Capital over the past 3 years of 3.33%. This is significantly below the industry average of 12.98%.
| 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
KELYB has a worse Operating Margin (1.67%) than 62.20% of its industry peers.
KELYB's Operating Margin has been stable in the last couple of years.
KELYB has a Gross Margin of 20.52%. This is in the lower half of the industry: KELYB underperforms 74.39% of its industry peers.
In the last couple of years the Gross Margin of KELYB has grown nicely.
| 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
KELYB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for KELYB has been reduced compared to 1 year ago.
Compared to 5 years ago, KELYB has less shares outstanding
Compared to 1 year ago, KELYB has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.92 indicates that KELYB is not a great score, but indicates only limited risk for bankruptcy at the moment.
KELYB has a Altman-Z score of 2.92. This is comparable to the rest of the industry: KELYB outperforms 52.44% of its industry peers.
The Debt to FCF ratio of KELYB is 3.08, which is a good value as it means it would take KELYB, 3.08 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.08, KELYB is doing good in the industry, outperforming 63.41% of the companies in the same industry.
KELYB has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
KELYB's Debt to Equity ratio of 0.16 is fine compared to the rest of the industry. KELYB outperforms 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 2.92 |
ROIC/WACC0.37
WACC9.06%
2.3 Liquidity
A Current Ratio of 1.64 indicates that KELYB should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.64, KELYB is doing good in the industry, outperforming 64.63% of the companies in the same industry.
A Quick Ratio of 1.64 indicates that KELYB should not have too much problems paying its short term obligations.
KELYB has a Quick ratio of 1.64. This is in the better half of the industry: KELYB outperforms 64.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
KELYB shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -9.36%.
The Earnings Per Share has been growing slightly by 1.26% on average over the past years.
The Revenue has decreased by -3.49% in the past year.
Measured over the past years, KELYB 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
KELYB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.73% yearly.
The Revenue is expected to grow by 5.63% on average over the next years.
EPS Next Y-0.92%
EPS Next 2Y11.73%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.15%
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
A Price/Earnings ratio of 5.99 indicates a rather cheap valuation of KELYB.
Based on the Price/Earnings ratio, KELYB is valued cheaply inside the industry as 91.46% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of KELYB to the average of the S&P500 Index (26.70), we can say KELYB is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 4.44, the valuation of KELYB can be described as very cheap.
Based on the Price/Forward Earnings ratio, KELYB is valued cheaply inside the industry as 97.56% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of KELYB to the average of the S&P500 Index (22.49), we can say KELYB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.99 | ||
| Fwd PE | 4.44 |
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 91.46% of the companies listed in the same industry.
97.56% of the companies in the same industry are more expensive than KELYB, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.7 | ||
| EV/EBITDA | 5.29 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.74
EPS Next 2Y11.73%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KELYB has a Yearly Dividend Yield of 2.44%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 1.98, KELYB pays a better dividend. On top of this KELYB pays more dividend than 89.02% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, KELYB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
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 Years3
Div Non Decr Years4
5.3 Sustainability
The earnings of KELYB are negative and hence is the payout ratio. KELYB will probably not be able to sustain this dividend level.
KELYB's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-54.46%
EPS Next 2Y11.73%
EPS Next 3YN/A
NASDAQ:KELYB (5/14/2025, 8:00:08 PM)
12.7541
+0.68 (+5.66%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners92.99%
Inst Owner Change-0.28%
Ins Owners4.29%
Ins Owner Change-3.29%
Market Cap444.99M
Analysts83.64
Price Target27 (111.7%)
Short Float %0%
Short Ratio0.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
Yearly Dividend0.31
Dividend Growth(5Y)2.03%
DP-54.46%
Div Incr Years3
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)1.71%
PT rev (3m)1.71%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)-10.93%
EPS NY rev (1m)-3.59%
EPS NY rev (3m)-10.33%
Revenue NQ rev (1m)-0.59%
Revenue NQ rev (3m)-1.83%
Revenue NY rev (1m)-0.21%
Revenue NY rev (3m)-0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.99 | ||
| Fwd PE | 4.44 | ||
| P/S | 0.1 | ||
| P/FCF | 6.7 | ||
| P/OCF | 5.83 | ||
| P/B | 0.36 | ||
| P/tB | 0.65 | ||
| EV/EBITDA | 5.29 |
EPS(TTM)2.13
EY16.7%
EPS(NY)2.87
Fwd EY22.51%
FCF(TTM)1.9
FCFY14.92%
OCF(TTM)2.19
OCFY17.15%
SpS127.59
BVpS35.55
TBVpS19.72
PEG (NY)N/A
PEG (5Y)4.74
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 | 2.92 |
F-Score3
WACC9.06%
ROIC/WACC0.37
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-0.92%
EPS Next 2Y11.73%
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 Year7.15%
Revenue Next 2Y5.63%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y11.73%
EBIT growth 3Y10.15%
EBIT growth 5Y-4.99%
EBIT Next Year156.57%
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%