KELLY SERVICES INC -A (KELYA) Stock Fundamental Analysis
NASDAQ:KELYA - Nasdaq - US4881522084 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to KELYA. KELYA was compared to 81 industry peers in the Professional Services industry. KELYA scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. KELYA is cheap, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
KELYA had positive earnings in the past year.
In the past year KELYA had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: KELYA reported negative net income in multiple years.
KELYA had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
KELYA has a Return On Assets of -0.78%. This is in the lower half of the industry: KELYA underperforms 64.20% of its industry peers.
KELYA has a Return On Equity of -1.63%. This is in the lower half of the industry: KELYA underperforms 65.43% of its industry peers.
KELYA has a Return On Invested Capital of 3.31%. This is comparable to the rest of the industry: KELYA outperforms 44.44% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for KELYA is significantly below the industry average of 12.53%.
| 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
KELYA has a Operating Margin of 1.67%. This is in the lower half of the industry: KELYA underperforms 60.49% of its industry peers.
KELYA's Operating Margin has been stable in the last couple of years.
KELYA has a Gross Margin of 20.52%. This is in the lower half of the industry: KELYA underperforms 72.84% of its industry peers.
KELYA's Gross Margin has improved in the last couple of years.
| 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 KELYA is destroying value.
The number of shares outstanding for KELYA has been reduced compared to 1 year ago.
KELYA has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, KELYA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.91 indicates that KELYA is not a great score, but indicates only limited risk for bankruptcy at the moment.
KELYA's Altman-Z score of 2.91 is in line compared to the rest of the industry. KELYA outperforms 50.62% of its industry peers.
KELYA has a debt to FCF ratio of 3.08. This is a good value and a sign of high solvency as KELYA would need 3.08 years to pay back of all of its debts.
KELYA has a Debt to FCF ratio of 3.08. This is in the better half of the industry: KELYA outperforms 60.49% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that KELYA is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.16, KELYA is doing good in the industry, outperforming 65.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 2.91 |
ROIC/WACC0.38
WACC8.81%
2.3 Liquidity
A Current Ratio of 1.64 indicates that KELYA should not have too much problems paying its short term obligations.
KELYA's Current ratio of 1.64 is fine compared to the rest of the industry. KELYA outperforms 61.73% of its industry peers.
A Quick Ratio of 1.64 indicates that KELYA should not have too much problems paying its short term obligations.
KELYA's Quick ratio of 1.64 is fine compared to the rest of the industry. KELYA outperforms 61.73% 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 KELYA 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.
Looking at the last year, KELYA shows a decrease in Revenue. The Revenue has decreased by -3.49% in the last year.
KELYA shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.15% yearly.
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 10.92% on average over the next years. This is quite good.
Based on estimates for the next years, KELYA will show a small growth in Revenue. The Revenue will grow by 5.00% on average per year.
EPS Next Y-5.51%
EPS Next 2Y10.92%
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
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
KELYA is valuated cheaply with a Price/Earnings ratio of 5.82.
Based on the Price/Earnings ratio, KELYA is valued cheaply inside the industry as 97.53% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.45. KELYA is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 4.38 indicates a rather cheap valuation of KELYA.
Based on the Price/Forward Earnings ratio, KELYA is valued cheaper than 98.77% of the companies in the same industry.
KELYA is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.82 | ||
| Fwd PE | 4.38 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, KELYA is valued cheaply inside the industry as 97.53% of the companies are valued more expensively.
93.83% of the companies in the same industry are more expensive than KELYA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.57 | ||
| EV/EBITDA | 5.19 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.6
EPS Next 2Y10.92%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.62%, KELYA has a reasonable but not impressive dividend return.
KELYA's Dividend Yield is rather good when compared to the industry average which is at 2.12. KELYA pays more dividend than 88.89% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, KELYA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
5.2 History
The dividend of KELYA has a limited annual growth rate of 2.03%.
KELYA has been paying a dividend for at least 10 years, so it has a reliable track record.
KELYA 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 KELYA are negative and hence is the payout ratio. KELYA will probably not be able to sustain this dividend level.
KELYA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-54.46%
EPS Next 2Y10.92%
EPS Next 3YN/A
12.39
+0.08 (+0.65%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners91.06%
Inst Owner Change2.4%
Ins Owners3.71%
Ins Owner Change3.46%
Market Cap436.13M
Analysts83.64
Price Target27.54 (122.28%)
Short Float %1.06%
Short Ratio1.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.62% |
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.31%
EPS NY rev (1m)-4.63%
EPS NY rev (3m)-8.26%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.45%
Revenue NY rev (1m)-1.14%
Revenue NY rev (3m)-1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.82 | ||
| Fwd PE | 4.38 | ||
| P/S | 0.1 | ||
| P/FCF | 6.57 | ||
| P/OCF | 5.72 | ||
| P/B | 0.35 | ||
| P/tB | 0.63 | ||
| EV/EBITDA | 5.19 |
EPS(TTM)2.13
EY17.19%
EPS(NY)2.83
Fwd EY22.84%
FCF(TTM)1.89
FCFY15.22%
OCF(TTM)2.17
OCFY17.49%
SpS126.47
BVpS35.24
TBVpS19.55
PEG (NY)N/A
PEG (5Y)4.6
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 | 2.91 |
F-Score3
WACC8.81%
ROIC/WACC0.38
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-5.51%
EPS Next 2Y10.92%
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%