KELLY SERVICES INC -CL B (KELYB) Stock Fundamental Analysis
NASDAQ:KELYB - Nasdaq - US4881523074 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to KELYB. KELYB was compared to 81 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 is not valued too expensively and it also shows a decent growth rate.
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.
In multiple years KELYB reported negative net income over the last 5 years.
Of the past 5 years KELYB 4 years had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -0.02%, KELYB is not doing good in the industry: 62.82% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -0.05%, KELYB is doing worse than 62.82% of the companies in the same industry.
KELYB has a Return On Invested Capital (3.08%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for KELYB is significantly below the industry average of 13.71%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.02% | ||
| ROE | -0.05% | ||
| ROIC | 3.08% |
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 1.62%. This is in the lower half of the industry: KELYB underperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of KELYB has remained more or less at the same level.
The Gross Margin of KELYB (20.37%) is worse than 76.92% of its industry peers.
In the last couple of years the Gross Margin of KELYB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.62% | ||
| PM (TTM) | N/A | ||
| GM | 20.37% |
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.
Compared to 5 years ago, KELYB has less shares outstanding
The debt/assets ratio for KELYB is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.85 indicates that KELYB is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.85, KELYB is in line with its industry, outperforming 46.15% of the companies in the same industry.
KELYB has a debt to FCF ratio of 15.15. This is a negative value and a sign of low solvency as KELYB would need 15.15 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 15.15, KELYB is doing worse than 64.10% of the companies in the same industry.
A Debt/Equity ratio of 0.19 indicates that KELYB is not too dependend on debt financing.
KELYB has a Debt to Equity ratio (0.19) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 15.15 | ||
| Altman-Z | 2.85 |
ROIC/WACC0.33
WACC9.29%
2.3 Liquidity
A Current Ratio of 1.65 indicates that KELYB should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.65, KELYB is in the better half of the industry, outperforming 62.82% of the companies in the same industry.
KELYB has a Quick Ratio of 1.65. 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 of 1.65. This is in the better half of the industry: KELYB outperforms 64.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.65 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 5.02% over the past year.
Measured over the past 5 years, KELYB shows a small growth in Earnings Per Share. The EPS has been growing by 1.26% on average per year.
Looking at the last year, KELYB shows a very negative growth in Revenue. The Revenue has decreased by -10.42% in the last year.
The Revenue has been decreasing by -4.15% on average over the past years.
EPS 1Y (TTM)5.02%
EPS 3Y15.06%
EPS 5Y1.26%
EPS Q2Q%-11.83%
Revenue 1Y (TTM)-10.42%
Revenue growth 3Y-4.09%
Revenue growth 5Y-4.15%
Sales Q2Q%-3.34%
3.2 Future
KELYB is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.73% yearly.
The Revenue is expected to grow by 5.63% on average over the next years.
EPS Next Y3%
EPS Next 2Y11.73%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.94%
Revenue Next 2Y5.63%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.02, which 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 93.59% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of KELYB to the average of the S&P500 Index (29.62), we can say KELYB is valued rather cheaply.
With a Price/Forward Earnings ratio of 5.84, the valuation of KELYB can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of KELYB indicates a rather cheap valuation: KELYB is cheaper than 96.15% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.70. KELYB is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.02 | ||
| Fwd PE | 5.84 |
4.2 Price Multiples
KELYB's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. KELYB is cheaper than 91.03% of the companies in the same industry.
KELYB's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.19 | ||
| EV/EBITDA | 6.27 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates KELYB does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)2.01
PEG (5Y)4.76
EPS Next 2Y11.73%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.19%, KELYB has a reasonable but not impressive dividend return.
The stock price of KELYB dropped by -32.98% 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.
KELYB's Dividend Yield is rather good when compared to the industry average which is at 1.92. KELYB pays more dividend than 88.46% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, KELYB has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
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 Years3
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.
The dividend of KELYB is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-1816.67%
EPS Next 2Y11.73%
EPS Next 3YN/A
NASDAQ:KELYB (2/19/2025, 8:07:53 PM)
13.84
+0.44 (+3.28%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners92.99%
Inst Owner Change-98.53%
Ins Owners4.29%
Ins Owner Change0%
Market Cap492.84M
Analysts83.64
Price Target26.55 (91.84%)
Short Float %0.01%
Short Ratio1.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.19% |
Yearly Dividend0.31
Dividend Growth(5Y)2.03%
DP-1816.67%
Div Incr Years3
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)14.85%
Min EPS beat(2)-43.37%
Max EPS beat(2)73.07%
EPS beat(4)3
Avg EPS beat(4)17.16%
Min EPS beat(4)-43.37%
Max EPS beat(4)73.07%
EPS beat(8)6
Avg EPS beat(8)29.48%
EPS beat(12)7
Avg EPS beat(12)20.83%
EPS beat(16)9
Avg EPS beat(16)24.34%
Revenue beat(2)1
Avg Revenue beat(2)-2.73%
Min Revenue beat(2)-6.05%
Max Revenue beat(2)0.6%
Revenue beat(4)1
Avg Revenue beat(4)-2.6%
Min Revenue beat(4)-6.05%
Max Revenue beat(4)0.6%
Revenue beat(8)1
Avg Revenue beat(8)-3.14%
Revenue beat(12)1
Avg Revenue beat(12)-3.32%
Revenue beat(16)1
Avg Revenue beat(16)-3.67%
PT rev (1m)-3.87%
PT rev (3m)-11.83%
EPS NQ rev (1m)-14.29%
EPS NQ rev (3m)18.75%
EPS NY rev (1m)-6.79%
EPS NY rev (3m)-20.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)12.35%
Revenue NY rev (1m)-0.25%
Revenue NY rev (3m)-2.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.02 | ||
| Fwd PE | 5.84 | ||
| P/S | 0.11 | ||
| P/FCF | 31.19 | ||
| P/OCF | 18.32 | ||
| P/B | 0.4 | ||
| P/tB | 0.73 | ||
| EV/EBITDA | 6.27 |
EPS(TTM)2.3
EY16.62%
EPS(NY)2.37
Fwd EY17.12%
FCF(TTM)0.44
FCFY3.21%
OCF(TTM)0.76
OCFY5.46%
SpS121.65
BVpS34.67
TBVpS18.93
PEG (NY)2.01
PEG (5Y)4.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.02% | ||
| ROE | -0.05% | ||
| ROCE | 3.89% | ||
| ROIC | 3.08% | ||
| ROICexc | 3.14% | ||
| ROICexgc | 4.6% | ||
| OM | 1.62% | ||
| PM (TTM) | N/A | ||
| GM | 20.37% | ||
| FCFM | 0.36% |
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-Score5
Asset Turnover1.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 15.15 | ||
| Debt/EBITDA | 2.17 | ||
| Cap/Depr | 27.61% | ||
| Cap/Sales | 0.26% | ||
| Interest Coverage | 7.03 | ||
| Cash Conversion | 24.34% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.65 | ||
| Altman-Z | 2.85 |
F-Score5
WACC9.29%
ROIC/WACC0.33
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)5.02%
EPS 3Y15.06%
EPS 5Y1.26%
EPS Q2Q%-11.83%
EPS Next Y3%
EPS Next 2Y11.73%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-10.42%
Revenue growth 3Y-4.09%
Revenue growth 5Y-4.15%
Sales Q2Q%-3.34%
Revenue Next Year7.94%
Revenue Next 2Y5.63%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y7.49%
EBIT growth 3Y10.15%
EBIT growth 5Y-4.99%
EBIT Next Year190.77%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-74.27%
FCF growth 3Y-40.18%
FCF growth 5Y-28.1%
OCF growth 1Y-64.93%
OCF growth 3Y-31.85%
OCF growth 5Y-23.43%