12.9999 USD
0 (0%)
KELYB gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
- In the past year KELYB was profitable.
- KELYB had a positive operating cash flow in the past year.
- 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.
- Looking at the Return On Equity, with a value of -14.09%, KELYB is doing worse than 70.11% of the companies in the same industry.
- 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 3 year average ROIC (3.33%) for KELYB 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
- KELYB has a Operating Margin of 1.65%. This is comparable to the rest of the industry: KELYB outperforms 42.53% 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 has a Gross Margin of 20.43%. This is in the lower half of the industry: KELYB underperforms 71.26% of its industry peers.
- In the last couple of years the Gross Margin of KELYB has grown nicely.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), KELYB is destroying value.
- The number of shares outstanding for KELYB has been reduced compared to 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 3.03 indicates that KELYB is not in any danger for bankruptcy at the moment.
- KELYB has a Altman-Z score (3.03) which is comparable to the rest of the industry.
- 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 has a better Debt to FCF ratio (1.18) than 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's Debt to Equity ratio of 0.11 is fine compared to the rest 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 | 3.03 |
ROIC/WACC0.43
WACC8.41%
2.3 Liquidity
- KELYB has a Current 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 Current ratio (1.59) which is comparable to the rest of the industry.
- A Quick Ratio of 1.59 indicates that KELYB should not have too much problems paying its short term obligations.
- The Quick ratio of KELYB (1.59) is comparable to the rest of the industry.
| 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.
- KELYB shows a small growth in Revenue. In the last year, the Revenue has grown by 0.46%.
- 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
- KELYB is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.50% yearly.
- 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
- The EPS growth rate is decreasing: in the next years the growth will be less 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
- KELYB is valuated cheaply with a Price/Earnings ratio of 6.74.
- Based on the Price/Earnings ratio, KELYB is valued cheaper than 89.66% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, KELYB is valued rather cheaply.
- KELYB is valuated cheaply with a Price/Forward Earnings ratio of 7.24.
- Based on the Price/Forward Earnings ratio, KELYB is valued cheaply inside the industry as 90.80% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, KELYB is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.74 | ||
| Fwd PE | 7.24 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, KELYB is valued cheaper than 91.95% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of KELYB indicates a rather cheap valuation: KELYB is cheaper than 95.40% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.59 | ||
| EV/EBITDA | 4.71 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)5.33
EPS Next 2Y-11.66%
EPS Next 3Y-0.5%
5. Dividend
5.1 Amount
- KELYB has a Yearly Dividend Yield of 2.89%.
- KELYB's Dividend Yield is rather good when compared to the industry average which is at 1.44. KELYB pays more dividend than 89.66% of the companies in the same industry.
- KELYB's Dividend Yield is rather good when compared to the S&P500 average which is at 1.82.
| 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 6.74 and the Price/Book (PB) ratio is 0.41.
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.