KELLY SERVICES INC -A (KELYA) Stock Fundamental Analysis
USA - NASDAQ:KELYA - US4881522084 - Common Stock
8.34 USD
-0.38 (-4.36%)
8.34 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to KELYA. KELYA was compared to 86 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
KELYA had positive earnings in the past year.
KELYA had a positive operating cash flow in the past year.
In multiple years KELYA reported negative net income over the last 5 years.
Of the past 5 years KELYA 4 years had a positive operating cash flow.
1.2 Ratios
KELYA has a Return On Assets of -6.56%. This is in the lower half of the industry: KELYA underperforms 70.93% of its industry peers.
The Return On Equity of KELYA (-14.09%) is worse than 72.09% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.62%, KELYA is in line with its industry, outperforming 45.35% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for KELYA is significantly below the industry average of 22.51%.
The 3 year average ROIC (3.33%) for KELYA is below the current ROIC(3.62%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.56% | ||
| ROE | -14.09% | ||
| ROIC | 3.62% |
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 (1.65%) which is in line with its industry peers.
KELYA's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 20.43%, KELYA is doing worse than 74.42% of the companies in the same industry.
KELYA's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.65% | ||
| PM (TTM) | N/A | ||
| GM | 20.43% |
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.
The debt/assets ratio for KELYA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.96 indicates that KELYA is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of KELYA (2.96) is comparable to the rest of the industry.
KELYA has a debt to FCF ratio of 1.18. This is a very positive value and a sign of high solvency as it would only need 1.18 years to pay back of all of its debts.
KELYA has a better Debt to FCF ratio (1.18) than 75.58% of its industry peers.
KELYA has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
KELYA has a Debt to Equity ratio of 0.11. This is in the better half of the industry: KELYA outperforms 65.12% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | 2.96 |
ROIC/WACC0.44
WACC8.15%
2.3 Liquidity
KELYA has a Current Ratio of 1.59. 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 1.59, KELYA is in the better half of the industry, outperforming 61.63% of the companies in the same industry.
A Quick Ratio of 1.59 indicates that KELYA should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.59, KELYA is doing good in the industry, outperforming 61.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
The earnings per share for KELYA have decreased strongly by -19.92% in the last year.
KELYA shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 1.26% yearly.
The Revenue has been growing slightly by 0.46% in the past year.
The Revenue has been decreasing by -4.15% on average over the past years.
EPS 1Y (TTM)-19.92%
EPS 3Y15.06%
EPS 5Y1.26%
EPS Q2Q%-14.29%
Revenue 1Y (TTM)0.46%
Revenue growth 3Y-4.09%
Revenue growth 5Y-4.15%
Sales Q2Q%-9.93%
3.2 Future
The Earnings Per Share is expected to grow by 11.38% on average over the next years. This is quite good.
KELYA 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
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
KELYA is valuated cheaply with a Price/Earnings ratio of 4.32.
Based on the Price/Earnings ratio, KELYA is valued cheaper than 96.51% of the companies in the same industry.
When comparing the Price/Earnings ratio of KELYA to the average of the S&P500 Index (25.89), we can say KELYA is valued rather cheaply.
With a Price/Forward Earnings ratio of 2.92, the valuation of KELYA can be described as very cheap.
97.67% of the companies in the same industry are more expensive than KELYA, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.59. KELYA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.32 | ||
| Fwd PE | 2.92 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of KELYA indicates a rather cheap valuation: KELYA is cheaper than 96.51% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, KELYA is valued cheaply inside the industry as 98.84% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.93 | ||
| EV/EBITDA | 3.41 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)3.42
EPS Next 2Y11.38%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.44%, KELYA has a reasonable but not impressive dividend return.
The stock price of KELYA dropped by -40.56% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
Compared to an average industry Dividend Yield of 4.30, KELYA pays a better dividend. On top of this KELYA pays more dividend than 89.53% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, KELYA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
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
KELYA has negative earnings and hence a negative payout ratio. The dividend may be in danger.
KELYA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-7%
EPS Next 2Y11.38%
EPS Next 3YN/A
8.34
-0.38 (-4.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners89.44%
Inst Owner Change1.41%
Ins Owners3.34%
Ins Owner Change4.37%
Market Cap293.99M
Revenue(TTM)4.39B
Net Income(TTM)-157.10M
Analysts83.64
Price Target26.52 (217.99%)
Short Float %1.95%
Short Ratio1.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.44% |
Yearly Dividend0.31
Dividend Growth(5Y)2.03%
DP-7%
Div Incr Years0
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-30.85%
Min EPS beat(2)-57.89%
Max EPS beat(2)-3.8%
EPS beat(4)1
Avg EPS beat(4)-4.13%
Min EPS beat(4)-57.89%
Max EPS beat(4)73.07%
EPS beat(8)4
Avg EPS beat(8)4.95%
EPS beat(12)6
Avg EPS beat(12)8.75%
EPS beat(16)8
Avg EPS beat(16)17.61%
Revenue beat(2)0
Avg Revenue beat(2)-5.69%
Min Revenue beat(2)-6.69%
Max Revenue beat(2)-4.69%
Revenue beat(4)1
Avg Revenue beat(4)-3.26%
Min Revenue beat(4)-6.69%
Max Revenue beat(4)0.6%
Revenue beat(8)1
Avg Revenue beat(8)-3.28%
Revenue beat(12)1
Avg Revenue beat(12)-3.61%
Revenue beat(16)1
Avg Revenue beat(16)-3.76%
PT rev (1m)0%
PT rev (3m)-3.7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.61%
EPS NY rev (1m)0%
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 | 4.32 | ||
| Fwd PE | 2.92 | ||
| P/S | 0.07 | ||
| P/FCF | 2.93 | ||
| P/OCF | 2.7 | ||
| P/B | 0.26 | ||
| P/tB | 0.43 | ||
| EV/EBITDA | 3.41 |
EPS(TTM)1.93
EY23.14%
EPS(NY)2.85
Fwd EY34.21%
FCF(TTM)2.84
FCFY34.08%
OCF(TTM)3.09
OCFY37.08%
SpS124.62
BVpS31.63
TBVpS19.27
PEG (NY)N/A
PEG (5Y)3.42
Graham Number37.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.56% | ||
| ROE | -14.09% | ||
| ROCE | 4.58% | ||
| ROIC | 3.62% | ||
| ROICexc | 3.69% | ||
| ROICexgc | 5.12% | ||
| OM | 1.65% | ||
| PM (TTM) | N/A | ||
| GM | 20.43% | ||
| FCFM | 2.28% |
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%
ROICexgc growth 3Y17.31%
ROICexgc 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 Turnover1.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.18 | ||
| Debt/EBITDA | 1.02 | ||
| Cap/Depr | 20.23% | ||
| Cap/Sales | 0.2% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 93.8% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.59 | ||
| Altman-Z | 2.96 |
F-Score5
WACC8.15%
ROIC/WACC0.44
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)-19.92%
EPS 3Y15.06%
EPS 5Y1.26%
EPS Q2Q%-14.29%
EPS Next Y-3.38%
EPS Next 2Y11.38%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)0.46%
Revenue growth 3Y-4.09%
Revenue growth 5Y-4.15%
Sales Q2Q%-9.93%
Revenue Next Year2.49%
Revenue Next 2Y3.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y12.19%
EBIT growth 3Y10.15%
EBIT growth 5Y-4.99%
EBIT Next Year154%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y100.4%
FCF growth 3Y-40.18%
FCF growth 5Y-28.1%
OCF growth 1Y58.43%
OCF growth 3Y-31.85%
OCF growth 5Y-23.43%
KELLY SERVICES INC -A / KELYA FAQ
What is the ChartMill fundamental rating of KELLY SERVICES INC -A (KELYA) stock?
ChartMill assigns a fundamental rating of 5 / 10 to KELYA.
What is the valuation status of KELLY SERVICES INC -A (KELYA) stock?
ChartMill assigns a valuation rating of 7 / 10 to KELLY SERVICES INC -A (KELYA). This can be considered as Undervalued.
Can you provide the profitability details for KELLY SERVICES INC -A?
KELLY SERVICES INC -A (KELYA) has a profitability rating of 3 / 10.
Can you provide the PE and PB ratios for KELYA stock?
The Price/Earnings (PE) ratio for KELLY SERVICES INC -A (KELYA) is 4.32 and the Price/Book (PB) ratio is 0.26.
Can you provide the financial health for KELYA stock?
The financial health rating of KELLY SERVICES INC -A (KELYA) is 6 / 10.