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. 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
- 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.
- KELYB 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 -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.
- KELYB has a Return On Invested Capital (3.62%) which is in line with its industry peers.
- The Average Return On Invested Capital over the past 3 years 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's Operating Margin of 1.65% is in line compared to the rest of the industry. KELYB outperforms 42.53% of its industry peers.
- KELYB's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 20.43%, KELYB is doing worse than 71.26% of the companies in the same industry.
- 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
- KELYB has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, KELYB has less shares outstanding
- The number of shares outstanding for KELYB has been reduced compared to 5 years ago.
- KELYB has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 3.04 indicates that KELYB is not in any danger for bankruptcy at the moment.
- KELYB has a Altman-Z score (3.04) which is in line with its industry peers.
- The Debt to FCF ratio of KELYB is 1.18, which is an excellent value as it means it would take KELYB, only 1.18 years of fcf income to pay off 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.
- With a decent Debt to Equity ratio value of 0.11, KELYB is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.18 | ||
| Altman-Z | 3.04 |
ROIC/WACC0.43
WACC8.43%
2.3 Liquidity
- A Current Ratio of 1.59 indicates that KELYB should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.59, KELYB perfoms like the industry average, outperforming 56.32% of the companies in the same industry.
- KELYB has a Quick Ratio of 1.59. This is a normal value and indicates that KELYB is financially healthy and should not expect problems in meeting its short term obligations.
- KELYB has a Quick ratio (1.59) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.59 | ||
| Quick Ratio | 1.59 |
3. Growth
3.1 Past
- KELYB shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -19.92%.
- The Earnings Per Share has been growing slightly by 1.26% on average over the past years.
- The Revenue has been growing slightly by 0.46% in the past year.
- Measured over the past years, KELYB shows a decrease in Revenue. The Revenue has been decreasing by -4.15% on average per year.
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 decrease by -0.50% on average over the next years.
- The Revenue is expected to grow by 1.04% on average over the next years.
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
- A Price/Earnings ratio of 7.13 indicates a rather cheap valuation of KELYB.
- Compared to the rest of the industry, the Price/Earnings ratio of KELYB indicates a rather cheap valuation: KELYB is cheaper than 89.66% of the companies listed in the same industry.
- KELYB's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.60.
- Based on the Price/Forward Earnings ratio of 7.67, the valuation of KELYB can be described as very cheap.
- 89.66% of the companies in the same industry are more expensive than KELYB, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, KELYB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.13 | ||
| Fwd PE | 7.67 |
4.2 Price Multiples
- KELYB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KELYB is cheaper than 91.95% of the companies in the same industry.
- 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
- KELYB has a Yearly Dividend Yield of 2.89%.
- 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 paid a dividend for at least 10 years, which is 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.
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.