KELLY SERVICES INC -CL B (KELYB) Stock Fundamental Analysis
NASDAQ:KELYB - Nasdaq - US4881523074 - Common Stock - Currency: USD
KELYB gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 81 industry peers in the Professional Services industry. The financial health of KELYB is average, but there are quite some concerns on its profitability. KELYB is valued quite cheap, 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.
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 worse Return On Assets (-0.78%) than 63.41% of its industry peers.
KELYB has a Return On Equity of -1.63%. This is in the lower half of the industry: KELYB underperforms 64.63% of its industry peers.
KELYB has a Return On Invested Capital of 3.31%. This is comparable to the rest of the industry: KELYB outperforms 45.12% 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 12.78%.
| 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
With a Operating Margin value of 1.67%, KELYB perfoms like the industry average, outperforming 40.24% of the companies in the same industry.
KELYB's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 20.52%, KELYB is doing worse than 71.95% 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 | 1.67% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KELYB is destroying value.
KELYB has less shares outstanding than it did 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 2.90 indicates that KELYB is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.90, KELYB is in line with its industry, outperforming 54.88% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 3.08, KELYB is in the better half of the industry, outperforming 60.98% of the companies in the same industry.
A Debt/Equity ratio of 0.16 indicates that KELYB is not too dependend on debt financing.
The Debt to Equity ratio of KELYB (0.16) is better than 65.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 2.9 |
ROIC/WACC0.37
WACC8.84%
2.3 Liquidity
KELYB has a Current Ratio of 1.64. 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 Current ratio value of 1.64, KELYB is doing good in the industry, outperforming 63.41% of the companies in the same industry.
KELYB has a Quick Ratio of 1.64. This is a normal value and indicates that KELYB is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of KELYB (1.64) is better than 63.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.64 |
3. Growth
3.1 Past
The earnings per share for KELYB have decreased by -9.36% in the last year.
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.
The Revenue has been decreasing by -4.15% on average over the past years.
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
The Earnings Per Share is expected to grow by 11.73% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.00% 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 Year5.93%
Revenue Next 2Y5%
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
A Price/Earnings ratio of 5.69 indicates a rather cheap valuation of KELYB.
Based on the Price/Earnings ratio, KELYB is valued cheaply inside the industry as 96.34% of the companies are valued more expensively.
KELYB is valuated cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
KELYB is valuated cheaply with a Price/Forward Earnings ratio of 4.22.
Based on the Price/Forward Earnings ratio, KELYB is valued cheaply inside the industry as 97.56% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.19. KELYB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.69 | ||
| Fwd PE | 4.22 |
4.2 Price Multiples
KELYB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KELYB is cheaper than 96.34% of the companies in the same industry.
96.34% 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 | 6.42 | ||
| EV/EBITDA | 4.93 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.5
EPS Next 2Y11.73%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.50%, KELYB has a reasonable but not impressive dividend return.
KELYB's Dividend Yield is rather good when compared to the industry average which is at 2.09. KELYB pays more dividend than 87.80% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, KELYB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
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
The earnings of KELYB are negative and hence is the payout ratio. KELYB will probably not be able to sustain this dividend level.
The dividend of KELYB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-54.46%
EPS Next 2Y11.73%
EPS Next 3YN/A
NASDAQ:KELYB (6/17/2025, 8:00:02 PM)
12.1107
+0.67 (+5.86%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners91.06%
Inst Owner Change-0.28%
Ins Owners3.71%
Ins Owner Change-3.29%
Market Cap426.30M
Analysts83.64
Price Target27 (122.94%)
Short Float %0%
Short Ratio0.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
Yearly Dividend0.31
Dividend Growth(5Y)2.03%
DP-54.46%
Div Incr Years0
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)0%
PT rev (3m)1.71%
EPS NQ rev (1m)0.31%
EPS NQ rev (3m)-0.31%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.8%
Revenue NQ rev (1m)-1.87%
Revenue NQ rev (3m)-2.45%
Revenue NY rev (1m)-1.14%
Revenue NY rev (3m)-1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.69 | ||
| Fwd PE | 4.22 | ||
| P/S | 0.1 | ||
| P/FCF | 6.42 | ||
| P/OCF | 5.59 | ||
| P/B | 0.34 | ||
| P/tB | 0.62 | ||
| EV/EBITDA | 4.93 |
EPS(TTM)2.13
EY17.59%
EPS(NY)2.87
Fwd EY23.71%
FCF(TTM)1.89
FCFY15.58%
OCF(TTM)2.17
OCFY17.9%
SpS126.47
BVpS35.24
TBVpS19.55
PEG (NY)N/A
PEG (5Y)4.5
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 | 2.9 |
F-Score3
WACC8.84%
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 Year5.93%
Revenue Next 2Y5%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y11.73%
EBIT growth 3Y10.15%
EBIT growth 5Y-4.99%
EBIT Next Year148.46%
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%