KELLY SERVICES INC -A (KELYA) Stock Fundamental Analysis
NASDAQ:KELYA - Nasdaq - US4881522084 - Common Stock - Currency: USD
KELYA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. The financial health of KELYA is average, but 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
In the past year KELYA was profitable.
KELYA had a positive operating cash flow in the past year.
In multiple years KELYA reported negative net income over the last 5 years.
KELYA had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.02%, KELYA is doing worse than 64.63% of the companies in the same industry.
KELYA's Return On Equity of -0.05% is on the low side compared to the rest of the industry. KELYA is outperformed by 64.63% of its industry peers.
KELYA has a Return On Invested Capital (3.08%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for KELYA is significantly below the industry average of 13.48%.
| 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
The Operating Margin of KELYA (1.62%) is worse than 63.41% of its industry peers.
In the last couple of years the Operating Margin of KELYA has remained more or less at the same level.
KELYA has a Gross Margin of 20.37%. This is in the lower half of the industry: KELYA underperforms 74.39% of its industry peers.
In the last couple of years the Gross Margin of KELYA has grown nicely.
| 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
The number of shares outstanding for KELYA has been reduced compared to 5 years ago.
The debt/assets ratio for KELYA is higher compared to a year ago.
2.2 Solvency
KELYA has an Altman-Z score of 2.81. This is not the best score and indicates that KELYA is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.81, KELYA is in line with its industry, outperforming 51.22% of the companies in the same industry.
The Debt to FCF ratio of KELYA is 15.15, which is on the high side as it means it would take KELYA, 15.15 years of fcf income to pay off all of its debts.
KELYA has a Debt to FCF ratio (15.15) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.19 indicates that KELYA is not too dependend on debt financing.
KELYA has a Debt to Equity ratio (0.19) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 15.15 | ||
| Altman-Z | 2.81 |
ROIC/WACC0.35
WACC8.72%
2.3 Liquidity
A Current Ratio of 1.65 indicates that KELYA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.65, KELYA is in the better half of the industry, outperforming 63.41% of the companies in the same industry.
KELYA has a Quick 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 has a Quick ratio of 1.65. This is in the better half of the industry: KELYA outperforms 64.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.02% over the past year.
Measured over the past 5 years, KELYA shows a small growth in Earnings Per Share. The EPS has been growing by 1.26% on average per year.
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.
The Revenue is expected to grow by 5.63% on average over the next years.
EPS Next Y2.78%
EPS Next 2Y11.73%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.38%
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 5.01 indicates a rather cheap valuation of KELYA.
Compared to the rest of the industry, the Price/Earnings ratio of KELYA indicates a rather cheap valuation: KELYA is cheaper than 92.68% of the companies listed in the same industry.
KELYA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.88.
KELYA is valuated cheaply with a Price/Forward Earnings ratio of 4.88.
Based on the Price/Forward Earnings ratio, KELYA is valued cheaper than 97.56% of the companies in the same industry.
KELYA is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.01 | ||
| Fwd PE | 4.88 |
4.2 Price Multiples
90.24% of the companies in the same industry are more expensive than KELYA, based on the Enterprise Value to EBITDA ratio.
KELYA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.46 | ||
| EV/EBITDA | 5.46 |
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)1.81
PEG (5Y)3.97
EPS Next 2Y11.73%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KELYA has a Yearly Dividend Yield of 2.63%. Purely for dividend investing, there may be better candidates out there.
KELYA's Dividend Yield is rather good when compared to the industry average which is at 2.37. KELYA pays more dividend than 89.02% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, KELYA has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
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
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-1816.67%
EPS Next 2Y11.73%
EPS Next 3YN/A
NASDAQ:KELYA (5/1/2025, 10:09:31 AM)
11.53
-0.02 (-0.17%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners92.99%
Inst Owner Change-0.11%
Ins Owners4.29%
Ins Owner Change3.06%
Market Cap402.28M
Analysts83.64
Price Target27.54 (138.86%)
Short Float %2.49%
Short Ratio2.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
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)0%
PT rev (3m)2.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-21.05%
EPS NY rev (1m)-0.22%
EPS NY rev (3m)-6.99%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.01 | ||
| Fwd PE | 4.88 | ||
| P/S | 0.09 | ||
| P/FCF | 25.46 | ||
| P/OCF | 14.95 | ||
| P/B | 0.33 | ||
| P/tB | 0.6 | ||
| EV/EBITDA | 5.46 |
EPS(TTM)2.3
EY19.95%
EPS(NY)2.36
Fwd EY20.5%
FCF(TTM)0.45
FCFY3.93%
OCF(TTM)0.77
OCFY6.69%
SpS124.16
BVpS35.39
TBVpS19.32
PEG (NY)1.81
PEG (5Y)3.97
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 | 2.81 |
F-Score5
WACC8.72%
ROIC/WACC0.35
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 Y2.78%
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 Year7.38%
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 Year156.57%
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%