KELLY SERVICES INC -CL B (KELYB) Stock Fundamental Analysis
NASDAQ:KELYB - Nasdaq - US4881523074 - Common Stock - Currency: USD
KELYB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. KELYB scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. KELYB has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year KELYB was profitable.
In the past year KELYB had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: KELYB reported negative net income in multiple years.
Of the past 5 years KELYB 4 years had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.78%, KELYB is doing worse than 64.63% of the companies in the same industry.
KELYB's Return On Equity of -1.63% is on the low side compared to the rest of the industry. KELYB is outperformed by 65.85% of its industry peers.
KELYB has a Return On Invested Capital (3.31%) which is in line with its industry peers.
KELYB had an Average Return On Invested Capital over the past 3 years of 3.33%. This is significantly below the industry average of 12.28%.
| 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
KELYB has a worse Operating Margin (1.67%) than 60.98% of its industry peers.
In the last couple of years the Operating Margin of KELYB has remained more or less at the same level.
KELYB's Gross Margin of 20.52% is on the low side compared to the rest of the industry. KELYB is outperformed by 74.39% of its industry peers.
In the last couple of years the Gross Margin of KELYB has grown nicely.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KELYB is destroying value.
KELYB has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, KELYB has less shares outstanding
Compared to 1 year ago, KELYB has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.92 indicates that KELYB is not a great score, but indicates only limited risk for bankruptcy at the moment.
KELYB has a Altman-Z score (2.92) which is in line with its industry peers.
KELYB has a debt to FCF ratio of 3.08. This is a good value and a sign of high solvency as KELYB would need 3.08 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.08, KELYB is in line with its industry, outperforming 59.76% of the companies in the same industry.
KELYB has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of KELYB (0.16) is better than 64.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 3.08 | ||
| Altman-Z | 2.92 |
ROIC/WACC0.36
WACC9.25%
2.3 Liquidity
A Current Ratio of 1.64 indicates that KELYB should not have too much problems paying its short term obligations.
KELYB's Current ratio of 1.64 is fine compared to the rest of the industry. KELYB outperforms 60.98% of its industry peers.
A Quick Ratio of 1.64 indicates that KELYB should not have too much problems paying its short term obligations.
KELYB has a better Quick ratio (1.64) than 60.98% 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 KELYB 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, KELYB shows a decrease in Revenue. The Revenue has decreased by -3.49% in the last year.
The Revenue has been decreasing by -4.15% on average over the past years.
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.
The Revenue is expected to grow by 5.00% on average over the next years.
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
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
With a Price/Earnings ratio of 5.54, the valuation of KELYB can be described as very cheap.
Based on the Price/Earnings ratio, KELYB is valued cheaper than 95.12% of the companies in the same industry.
When comparing the Price/Earnings ratio of KELYB to the average of the S&P500 Index (27.18), we can say KELYB is valued rather cheaply.
A Price/Forward Earnings ratio of 4.17 indicates a rather cheap valuation of KELYB.
KELYB's Price/Forward Earnings ratio is rather cheap when compared to the industry. KELYB is cheaper than 97.56% of the companies in the same industry.
KELYB is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.34, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.54 | ||
| Fwd PE | 4.17 |
4.2 Price Multiples
KELYB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KELYB is cheaper than 96.34% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, KELYB is valued cheaply inside the industry as 92.68% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.26 | ||
| EV/EBITDA | 5.27 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)4.39
EPS Next 2Y10.92%
EPS Next 3YN/A
5. Dividend
5.1 Amount
KELYB has a Yearly Dividend Yield of 2.36%. Purely for dividend investing, there may be better candidates out there.
KELYB's Dividend Yield is rather good when compared to the industry average which is at 2.06. KELYB pays more dividend than 89.02% of the companies in the same industry.
KELYB's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
5.2 History
The dividend of KELYB has a limited annual growth rate of 2.03%.
KELYB has been paying a dividend for at least 10 years, so it has a reliable track record.
KELYB 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
KELYB has negative earnings and hence a negative payout ratio. The dividend may be in danger.
KELYB'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
NASDAQ:KELYB (7/16/2025, 12:07:44 PM)
11.81
-0.78 (-6.2%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners91.06%
Inst Owner Change0%
Ins Owners3.71%
Ins Owner Change-3.29%
Market Cap415.71M
Analysts83.64
Price Target27 (128.62%)
Short Float %0%
Short Ratio0.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.36% |
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)1.71%
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)0%
Revenue NY rev (3m)-1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.54 | ||
| Fwd PE | 4.17 | ||
| P/S | 0.09 | ||
| P/FCF | 6.26 | ||
| P/OCF | 5.45 | ||
| P/B | 0.34 | ||
| P/tB | 0.6 | ||
| EV/EBITDA | 5.27 |
EPS(TTM)2.13
EY18.04%
EPS(NY)2.83
Fwd EY23.96%
FCF(TTM)1.89
FCFY15.97%
OCF(TTM)2.17
OCFY18.35%
SpS126.47
BVpS35.24
TBVpS19.55
PEG (NY)N/A
PEG (5Y)4.39
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 | 2.92 |
F-Score3
WACC9.25%
ROIC/WACC0.36
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%