KELLY SERVICES INC -A (KELYA) Stock Fundamental Analysis
USA - NASDAQ:KELYA - US4881522084 - Common Stock
13.645 USD
+0 (+0.04%)
Overall KELYA gets a fundamental rating of 5 out of 10. We evaluated KELYA against 82 industry peers in the Professional Services industry. While KELYA seems to be doing ok healthwise, there are quite some concerns on its profitability. KELYA scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
In the past year KELYA was profitable.
In the past year KELYA had a positive cash flow from operations.
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
The Return On Assets of KELYA (-0.25%) is worse than 62.20% of its industry peers.
KELYA has a Return On Equity of -0.50%. This is in the lower half of the industry: KELYA underperforms 60.98% of its industry peers.
KELYA has a Return On Invested Capital (3.38%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for KELYA is significantly below the industry average of 12.76%.
The 3 year average ROIC (3.33%) for KELYA 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
KELYA has a Operating Margin of 1.60%. This is comparable to the rest of the industry: KELYA outperforms 40.24% of its industry peers.
KELYA's Operating Margin has been stable in the last couple of years.
KELYA has a Gross Margin of 20.58%. This is in the lower half of the industry: KELYA underperforms 70.73% of its industry peers.
KELYA'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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so KELYA is destroying value.
KELYA has less shares outstanding than it did 1 year ago.
The number of shares outstanding for KELYA has been reduced compared to 5 years ago.
KELYA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.02 indicates that KELYA is not in any danger for bankruptcy at the moment.
KELYA's Altman-Z score of 3.02 is in line compared to the rest of the industry. KELYA outperforms 54.88% of its industry peers.
The Debt to FCF ratio of KELYA is 0.71, which is an excellent value as it means it would take KELYA, only 0.71 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 0.71, KELYA is doing good in the industry, outperforming 78.05% of the companies in the same industry.
A Debt/Equity ratio of 0.06 indicates that KELYA is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.06, KELYA is doing good in the industry, outperforming 70.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 0.71 | ||
| Altman-Z | 3.02 |
ROIC/WACC0.41
WACC8.28%
2.3 Liquidity
KELYA has a Current Ratio of 1.52. This is a normal value and indicates that KELYA is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.52, KELYA is in line with its industry, outperforming 54.88% of the companies in the same industry.
A Quick Ratio of 1.52 indicates that KELYA should not have too much problems paying its short term obligations.
KELYA has a Quick ratio (1.52) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 |
3. Growth
3.1 Past
The earnings per share for KELYA have decreased strongly by -27.41% in the last 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.
The Revenue has been growing slightly by 0.97% in the past year.
KELYA shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.15% yearly.
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 12.82% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.74% on average over the next years.
EPS Next Y-2.26%
EPS Next 2Y12.82%
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.
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 6.96.
Based on the Price/Earnings ratio, KELYA is valued cheaper than 93.90% of the companies in the same industry.
KELYA is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 4.66 indicates a rather cheap valuation of KELYA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KELYA indicates a rather cheap valuation: KELYA is cheaper than 98.78% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of KELYA to the average of the S&P500 Index (22.73), we can say KELYA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.96 | ||
| Fwd PE | 4.66 |
4.2 Price Multiples
96.34% of the companies in the same industry are more expensive than KELYA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, KELYA is valued cheaply inside the industry as 97.56% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.58 | ||
| EV/EBITDA | 4.42 |
4.3 Compensation for Growth
A more expensive valuation may be justified as KELYA's earnings are expected to grow with 12.82% in the coming years.
PEG (NY)N/A
PEG (5Y)5.51
EPS Next 2Y12.82%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.17%, 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 2.07. KELYA pays more dividend than 87.80% of the companies in the same industry.
KELYA's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
5.2 History
The dividend of KELYA has a limited annual growth rate of 2.03%.
KELYA has paid a dividend for at least 10 years, which is 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
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-174.6%
EPS Next 2Y12.82%
EPS Next 3YN/A
NASDAQ:KELYA (9/15/2025, 3:31:57 PM)
13.645
+0 (+0.04%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners90.82%
Inst Owner Change-2.15%
Ins Owners3.71%
Ins Owner Change0.58%
Market Cap480.99M
Analysts83.64
Price Target26.52 (94.36%)
Short Float %1.65%
Short Ratio1.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
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)-3.7%
PT rev (3m)-3.7%
EPS NQ rev (1m)-1.19%
EPS NQ rev (3m)0.61%
EPS NY rev (1m)3.44%
EPS NY rev (3m)-1.36%
Revenue NQ rev (1m)-3.65%
Revenue NQ rev (3m)-8.74%
Revenue NY rev (1m)-3.25%
Revenue NY rev (3m)-3.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.96 | ||
| Fwd PE | 4.66 | ||
| P/S | 0.11 | ||
| P/FCF | 4.58 | ||
| P/OCF | 4.22 | ||
| P/B | 0.38 | ||
| P/tB | 0.67 | ||
| EV/EBITDA | 4.42 |
EPS(TTM)1.96
EY14.36%
EPS(NY)2.93
Fwd EY21.46%
FCF(TTM)2.98
FCFY21.85%
OCF(TTM)3.23
OCFY23.7%
SpS127.54
BVpS35.92
TBVpS20.45
PEG (NY)N/A
PEG (5Y)5.51
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 | 0.61 | ||
| Cap/Depr | 17.98% | ||
| Cap/Sales | 0.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 93.75% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.52 | ||
| Quick Ratio | 1.52 | ||
| Altman-Z | 3.02 |
F-Score5
WACC8.28%
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-2.26%
EPS Next 2Y12.82%
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 Year148.46%
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%