KELLY SERVICES INC -A (KELYA) Stock Fundamental Analysis
NASDAQ:KELYA - Nasdaq - US4881522084 - Common Stock - Currency: USD
Taking everything into account, KELYA scores 4 out of 10 in our fundamental rating. KELYA was compared to 81 industry peers in the Professional Services industry. While KELYA seems to be doing ok healthwise, there are quite some concerns on its profitability. KELYA has a decent growth rate and is not valued too expensively.
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
With a Return On Assets value of -0.02%, KELYA is not doing good in the industry: 63.29% of the companies in the same industry are doing better.
With a Return On Equity value of -0.05%, KELYA is not doing good in the industry: 63.29% of the companies in the same industry are doing better.
Looking at the Return On Invested Capital, with a value of 3.08%, KELYA is in line with its industry, outperforming 40.51% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for KELYA is significantly below the industry average of 13.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.02% | ||
| ROE | -0.05% | ||
| ROIC | 3.08% |
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
Looking at the Operating Margin, with a value of 1.62%, KELYA is doing worse than 68.35% of the companies in the same industry.
In the last couple of years the Operating Margin of KELYA has remained more or less at the same level.
KELYA's Gross Margin of 20.37% is on the low side compared to the rest of the industry. KELYA is outperformed by 77.22% of its industry peers.
KELYA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.62% | ||
| PM (TTM) | N/A | ||
| GM | 20.37% |
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), KELYA is destroying value.
Compared to 1 year ago, KELYA has less shares outstanding
Compared to 5 years ago, KELYA has less shares outstanding
The debt/assets ratio for KELYA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.85 indicates that KELYA is not a great score, but indicates only limited risk for bankruptcy at the moment.
KELYA has a Altman-Z score (2.85) which is comparable to the rest of the industry.
KELYA has a debt to FCF ratio of 15.15. This is a negative value and a sign of low solvency as KELYA would need 15.15 years to pay back of all of its debts.
The Debt to FCF ratio of KELYA (15.15) is worse than 65.82% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that KELYA is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.19, KELYA is in line with its industry, outperforming 58.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 15.15 | ||
| Altman-Z | 2.85 |
ROIC/WACC0.33
WACC9.29%
2.3 Liquidity
KELYA has a Current Ratio of 1.65. This is a normal value and indicates that KELYA is financially healthy and should not expect problems in meeting its short term obligations.
KELYA's Current ratio of 1.65 is fine compared to the rest of the industry. KELYA outperforms 62.03% of its industry peers.
A Quick Ratio of 1.65 indicates that KELYA should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.65, KELYA is in the better half of the industry, outperforming 63.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
KELYA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.02%.
The Earnings Per Share has been growing slightly by 1.26% on average over the past years.
KELYA shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.42%.
Measured over the past years, KELYA shows a decrease in Revenue. The Revenue has been decreasing by -4.15% on average per year.
EPS 1Y (TTM)5.02%
EPS 3Y15.06%
EPS 5Y1.26%
EPS Q2Q%-11.83%
Revenue 1Y (TTM)-10.42%
Revenue growth 3Y-4.09%
Revenue growth 5Y-4.15%
Sales Q2Q%-3.34%
3.2 Future
KELYA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.73% yearly.
Based on estimates for the next years, KELYA will show a small growth in Revenue. The Revenue will grow by 5.63% on average per year.
EPS Next Y3%
EPS Next 2Y11.73%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.94%
Revenue Next 2Y5.63%
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.
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
With a Price/Earnings ratio of 6.03, the valuation of KELYA can be described as very cheap.
Based on the Price/Earnings ratio, KELYA is valued cheaply inside the industry as 92.41% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of KELYA to the average of the S&P500 Index (29.62), we can say KELYA is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.85, the valuation of KELYA can be described as very cheap.
KELYA's Price/Forward Earnings ratio is rather cheap when compared to the industry. KELYA is cheaper than 93.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of KELYA to the average of the S&P500 Index (22.70), we can say KELYA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.03 | ||
| Fwd PE | 5.85 |
4.2 Price Multiples
KELYA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KELYA is cheaper than 89.87% of the companies in the same industry.
KELYA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.26 | ||
| EV/EBITDA | 6.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)2.01
PEG (5Y)4.77
EPS Next 2Y11.73%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KELYA has a Yearly Dividend Yield of 2.19%.
Compared to an average industry Dividend Yield of 1.92, KELYA pays a better dividend. On top of this KELYA pays more dividend than 89.87% of the companies listed in the same industry.
KELYA's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
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 Years3
Div Non Decr Years4
5.3 Sustainability
KELYA has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of KELYA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-1816.67%
EPS Next 2Y11.73%
EPS Next 3YN/A
13.87
+0.18 (+1.31%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners92.99%
Inst Owner Change-95.05%
Ins Owners4.29%
Ins Owner Change3.81%
Market Cap493.91M
Analysts83.64
Price Target27.54 (98.56%)
Short Float %2.07%
Short Ratio0.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
Yearly Dividend0.31
Dividend Growth(5Y)2.03%
DP-1816.67%
Div Incr Years3
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)14.85%
Min EPS beat(2)-43.37%
Max EPS beat(2)73.07%
EPS beat(4)3
Avg EPS beat(4)17.16%
Min EPS beat(4)-43.37%
Max EPS beat(4)73.07%
EPS beat(8)6
Avg EPS beat(8)29.48%
EPS beat(12)7
Avg EPS beat(12)20.83%
EPS beat(16)9
Avg EPS beat(16)24.34%
Revenue beat(2)1
Avg Revenue beat(2)-2.73%
Min Revenue beat(2)-6.05%
Max Revenue beat(2)0.6%
Revenue beat(4)1
Avg Revenue beat(4)-2.6%
Min Revenue beat(4)-6.05%
Max Revenue beat(4)0.6%
Revenue beat(8)1
Avg Revenue beat(8)-3.14%
Revenue beat(12)1
Avg Revenue beat(12)-3.32%
Revenue beat(16)1
Avg Revenue beat(16)-3.67%
PT rev (1m)2.53%
PT rev (3m)-4.71%
EPS NQ rev (1m)-14.29%
EPS NQ rev (3m)18.75%
EPS NY rev (1m)-6.79%
EPS NY rev (3m)-20.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)12.35%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-2.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.03 | ||
| Fwd PE | 5.85 | ||
| P/S | 0.11 | ||
| P/FCF | 31.26 | ||
| P/OCF | 18.36 | ||
| P/B | 0.4 | ||
| P/tB | 0.73 | ||
| EV/EBITDA | 6.28 |
EPS(TTM)2.3
EY16.58%
EPS(NY)2.37
Fwd EY17.08%
FCF(TTM)0.44
FCFY3.2%
OCF(TTM)0.76
OCFY5.45%
SpS121.65
BVpS34.67
TBVpS18.93
PEG (NY)2.01
PEG (5Y)4.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.02% | ||
| ROE | -0.05% | ||
| ROCE | 3.89% | ||
| ROIC | 3.08% | ||
| ROICexc | 3.14% | ||
| ROICexgc | 4.6% | ||
| OM | 1.62% | ||
| PM (TTM) | N/A | ||
| GM | 20.37% | ||
| FCFM | 0.36% |
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 Turnover1.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 15.15 | ||
| Debt/EBITDA | 2.17 | ||
| Cap/Depr | 27.61% | ||
| Cap/Sales | 0.26% | ||
| Interest Coverage | 7.03 | ||
| Cash Conversion | 24.34% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 2.85 |
F-Score5
WACC9.29%
ROIC/WACC0.33
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)5.02%
EPS 3Y15.06%
EPS 5Y1.26%
EPS Q2Q%-11.83%
EPS Next Y3%
EPS Next 2Y11.73%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-10.42%
Revenue growth 3Y-4.09%
Revenue growth 5Y-4.15%
Sales Q2Q%-3.34%
Revenue Next Year7.94%
Revenue Next 2Y5.63%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y7.49%
EBIT growth 3Y10.15%
EBIT growth 5Y-4.99%
EBIT Next Year190.77%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-74.27%
FCF growth 3Y-40.18%
FCF growth 5Y-28.1%
OCF growth 1Y-64.93%
OCF growth 3Y-31.85%
OCF growth 5Y-23.43%