13.76 USD
+0.76 (+5.85%)
We assign a fundamental rating of 4 out of 10 to KELYB. KELYB was compared to 87 industry peers in the Professional Services industry. While KELYB seems to be doing ok healthwise, there are quite some concerns on its profitability. KELYB is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- KELYB had positive earnings in the past year.
- 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 -6.56%, KELYB is doing worse than 72.41% of the companies in the same industry.
- KELYB has a worse Return On Equity (-14.09%) than 70.11% of its industry peers.
- With a Return On Invested Capital value of 3.62%, KELYB perfoms like the industry average, outperforming 42.53% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for KELYB is significantly below the industry average of 11.85%.
- The last Return On Invested Capital (3.62%) for KELYB is above the 3 year average (3.33%), which is a sign of increasing profitability.
| 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
- KELYB has a Operating Margin (1.65%) which is in line with its industry peers.
- KELYB's Operating Margin has been stable in the last couple of years.
- The Gross Margin of KELYB (20.43%) is worse than 71.26% of its industry peers.
- KELYB'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 KELYB is destroying value.
- The number of shares outstanding for KELYB has been reduced compared to 1 year ago.
- KELYB has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, KELYB has a worse debt to assets ratio.
2.2 Solvency
- KELYB has an Altman-Z score of 3.04. This indicates that KELYB is financially healthy and has little risk of bankruptcy at the moment.
- KELYB has a Altman-Z score of 3.04. This is comparable to the rest of the industry: KELYB outperforms 59.77% of its industry peers.
- KELYB 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.
- KELYB's Debt to FCF ratio of 1.18 is amongst the best of the industry. KELYB outperforms 80.46% of its industry peers.
- KELYB has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
- KELYB has a Debt to Equity ratio of 0.11. This is in the better half of the industry: KELYB outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | 3.04 |
ROIC/WACC0.43
WACC8.41%
2.3 Liquidity
- A Current Ratio of 1.59 indicates that KELYB should not have too much problems paying its short term obligations.
- KELYB has a Current ratio (1.59) which is in line with its industry peers.
- A Quick Ratio of 1.59 indicates that KELYB should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.59, KELYB is in line with its industry, outperforming 57.47% 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 KELYB have decreased strongly by -19.92% in the last year.
- KELYB 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.
- KELYB shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.15% yearly.
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
- Based on estimates for the next years, KELYB will show a decrease in Earnings Per Share. The EPS will decrease by -0.50% on average per year.
- Based on estimates for the next years, KELYB will show a small growth in Revenue. The Revenue will grow by 1.04% on average per year.
EPS Next Y-29.8%
EPS Next 2Y-11.66%
EPS Next 3Y-0.5%
EPS Next 5YN/A
Revenue Next Year-1.27%
Revenue Next 2Y-1.23%
Revenue Next 3Y1.04%
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 decreasing.
- 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
- KELYB is valuated cheaply with a Price/Earnings ratio of 7.13.
- KELYB's Price/Earnings ratio is rather cheap when compared to the industry. KELYB is cheaper than 89.66% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.87, KELYB is valued rather cheaply.
- With a Price/Forward Earnings ratio of 7.67, the valuation of KELYB can be described as very cheap.
- Based on the Price/Forward Earnings ratio, KELYB is valued cheaper than 89.66% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of KELYB to the average of the S&P500 Index (25.96), we can say KELYB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.13 | ||
| Fwd PE | 7.67 |
4.2 Price Multiples
- 91.95% of the companies in the same industry are more expensive than KELYB, based on the Enterprise Value to EBITDA ratio.
- KELYB's Price/Free Cash Flow ratio is rather cheap when compared to the industry. KELYB is cheaper than 95.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.85 | ||
| EV/EBITDA | 4.94 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.64
EPS Next 2Y-11.66%
EPS Next 3Y-0.5%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.89%, KELYB has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 1.44, KELYB pays a better dividend. On top of this KELYB pays more dividend than 89.66% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, KELYB pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.89% |
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
- The earnings of KELYB are negative and hence is the payout ratio. KELYB will probably not be able to sustain this dividend level.
DP-7%
EPS Next 2Y-11.66%
EPS Next 3Y-0.5%
KELLY SERVICES INC -CL B / KELYB FAQ
Can you provide the ChartMill fundamental rating for KELLY SERVICES INC -CL B?
ChartMill assigns a fundamental rating of 4 / 10 to KELYB.
Can you provide the valuation status for KELLY SERVICES INC -CL B?
ChartMill assigns a valuation rating of 7 / 10 to KELLY SERVICES INC -CL B (KELYB). This can be considered as Undervalued.
What is the profitability of KELYB stock?
KELLY SERVICES INC -CL B (KELYB) has a profitability rating of 3 / 10.
What are the PE and PB ratios of KELLY SERVICES INC -CL B (KELYB) stock?
The Price/Earnings (PE) ratio for KELLY SERVICES INC -CL B (KELYB) is 7.13 and the Price/Book (PB) ratio is 0.44.
What is the financial health of KELLY SERVICES INC -CL B (KELYB) stock?
The financial health rating of KELLY SERVICES INC -CL B (KELYB) is 6 / 10.