KELLY SERVICES INC -CL B (KELYB) Stock Fundamental Analysis
USA - NASDAQ:KELYB - US4881523074 - Common Stock
13.025 USD
-0.19 (-1.4%)
We assign a fundamental rating of 5 out of 10 to KELYB. KELYB was compared to 82 industry peers in the Professional Services industry. KELYB scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. A decent growth rate in combination with a cheap valuation! Better keep an eye on KELYB.
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
With a Return On Assets value of -0.25%, KELYB is not doing good in the industry: 63.41% of the companies in the same industry are doing better.
KELYB's Return On Equity of -0.50% is on the low side compared to the rest of the industry. KELYB is outperformed by 62.20% of its industry peers.
With a Return On Invested Capital value of 3.38%, KELYB is not doing good in the industry: 60.98% of the companies in the same industry are doing better.
Measured over the past 3 years, the Average Return On Invested Capital for KELYB is significantly below the industry average of 13.18%.
The 3 year average ROIC (3.33%) for KELYB is below the current ROIC(3.38%), indicating increased profibility in the last year.
| 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 Operating Margin of 1.60%. This is in the lower half of the industry: KELYB underperforms 62.20% of its industry peers.
KELYB's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 20.58%, KELYB is doing worse than 74.39% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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
KELYB has an Altman-Z score of 3.01. This indicates that KELYB is financially healthy and has little risk of bankruptcy at the moment.
KELYB's Altman-Z score of 3.01 is in line compared to the rest of the industry. KELYB outperforms 54.88% 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.
KELYB has a Debt to FCF ratio of 0.71. This is in the better half of the industry: KELYB outperforms 78.05% of its industry peers.
KELYB has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of KELYB (0.06) is better than 69.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.71 | ||
| Altman-Z | 3.01 |
ROIC/WACC0.41
WACC8.26%
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.
A Quick Ratio of 1.52 indicates that KELYB should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.52, KELYB is in line with its industry, outperforming 54.88% of the companies in the same industry.
| 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
The Earnings Per Share is expected to grow by 11.38% on average over the next years. This is quite good.
KELYB is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.74% yearly.
EPS Next Y-3.38%
EPS Next 2Y11.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.49%
Revenue Next 2Y3.74%
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
Based on the Price/Earnings ratio of 6.65, the valuation of KELYB can be described as very cheap.
92.68% of the companies in the same industry are more expensive than KELYB, based on the Price/Earnings ratio.
KELYB is valuated cheaply when we compare the Price/Earnings ratio to 27.02, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 4.57, the valuation of KELYB can be described as very cheap.
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.
When comparing the Price/Forward Earnings ratio of KELYB to the average of the S&P500 Index (22.57), we can say KELYB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.65 | ||
| Fwd PE | 4.57 |
4.2 Price Multiples
KELYB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KELYB is cheaper than 95.12% of the companies in the same industry.
93.90% 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 | 4.37 | ||
| EV/EBITDA | 4.44 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.26
EPS Next 2Y11.38%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KELYB has a Yearly Dividend Yield of 2.35%. Purely for dividend investing, there may be better candidates out there.
KELYB's Dividend Yield is rather good when compared to the industry average which is at 3.89. KELYB pays more dividend than 87.80% of the companies in the same industry.
KELYB's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
5.2 History
The dividend of KELYB has a limited annual growth rate of 2.03%.
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)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-174.6%
EPS Next 2Y11.38%
EPS Next 3YN/A
NASDAQ:KELYB (10/8/2025, 8:00:02 PM)
13.025
-0.19 (-1.4%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners89.44%
Inst Owner Change0%
Ins Owners3.34%
Ins Owner Change0%
Market Cap459.13M
Analysts83.64
Price Target27.78 (113.28%)
Short Float %0%
Short Ratio0.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.35% |
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)0%
PT rev (3m)2.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.61%
EPS NY rev (1m)-1.15%
EPS NY rev (3m)2.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-8.74%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.65 | ||
| Fwd PE | 4.57 | ||
| P/S | 0.1 | ||
| P/FCF | 4.37 | ||
| P/OCF | 4.03 | ||
| P/B | 0.36 | ||
| P/tB | 0.64 | ||
| EV/EBITDA | 4.44 |
EPS(TTM)1.96
EY15.05%
EPS(NY)2.85
Fwd EY21.9%
FCF(TTM)2.98
FCFY22.89%
OCF(TTM)3.23
OCFY24.83%
SpS127.54
BVpS35.92
TBVpS20.45
PEG (NY)N/A
PEG (5Y)5.26
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 | 0.64 | ||
| Cap/Depr | 20.18% | ||
| Cap/Sales | 0.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 98.11% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 3.01 |
F-Score5
WACC8.26%
ROIC/WACC0.41
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-3.38%
EPS Next 2Y11.38%
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 Year2.49%
Revenue Next 2Y3.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-7.33%
EBIT growth 3Y10.15%
EBIT growth 5Y-4.99%
EBIT Next Year154%
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%