Kelly Services (NasdaqGS:KELY.A) - Share price, News & Analysis

KELY.A fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	3/6
Past Performance	0/6
Financial Health	4/6
Dividends	2/6

KELY.A Stock Overview

Kelly Services, Inc., together with its subsidiaries, provides workforce solutions to various industries.

Rewards

Price-To-Earnings ratio (9x) is below the US market (14.9x)

Earnings are forecast to grow 40.39% per year

Risk Analysis

Large one-off items impacting financial results

Profit margins (1.6%) are lower than last year (2.3%)

Kelly Services Competitors

ASGN

NYSE:ASGN

US$4.8b

TriNet Group

NYSE:TNET

US$4.6b

Insperity

NYSE:NSP

US$3.6b

Korn Ferry

NYSE:KFY

US$3.2b

Price History & Performance

Summary of all time highs, changes and price drops for Kelly Services
Historical stock prices
Current Share Price	US$19.44
52 Week High	US$26.35
52 Week Low	US$15.89
Beta	1.03
1 Month Change	-8.13%
3 Month Change	-9.71%
1 Year Change	-23.16%
3 Year Change	-17.90%
5 Year Change	-16.31%
Change since IPO	-38.09%

Recent News & Updates

Mar 18

Is Now The Time To Look At Buying Kelly Services, Inc. (NASDAQ:KELY.A)?

While Kelly Services, Inc. ( NASDAQ:KELY.A ) might not be the most widely known stock at the moment, it led the...

Shareholder Returns

	KELY.A	US Professional Services	US Market
7D	1.6%	2.4%	1.0%
1Y	-23.2%	-16.4%	-15.1%

Return vs Industry: KELY.A underperformed the US Professional Services industry which returned -17.2% over the past year.

Return vs Market: KELY.A underperformed the US Market which returned -13.2% over the past year.

Price Volatility

Is KELY.A's price volatile compared to industry and market?
KELY.A volatility
KELY.A Average Weekly Movement	6.2%
Professional Services Industry Average Movement	6.8%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: KELY.A is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: KELY.A's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1946	7,400	Peter W. Quigley	https://www.kellyservices.com

Kelly Services, Inc., together with its subsidiaries, provides workforce solutions to various industries. The company operates through five segments: Professional & Industrial; Science, Engineering & Technology; Education; Outsourcing & Consulting; and International. The Professional & Industrial segment delivers staffing, outcome-based, and direct-hire services in the areas of office, professional, light industrial, and contact center specialties.

Kelly Services Fundamentals Summary

How do Kelly Services's earnings and revenue compare to its market cap?
KELY.A fundamental statistics
Market Cap	US$734.40m
Earnings (TTM)	US$81.70m
Revenue (TTM)	US$5.00b

9.0x

P/E Ratio

0.1x

P/S Ratio

Is KELY.A overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
KELY.A income statement (TTM)
Revenue	US$5.00b
Cost of Revenue	US$4.04b
Gross Profit	US$964.50m
Other Expenses	US$882.80m
Earnings	US$81.70m

Last Reported Earnings

Apr 03, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	2.15
Gross Margin	19.29%
Net Profit Margin	1.63%
Debt/Equity Ratio	0.01%

How did KELY.A perform over the long term?

See historical performance and comparison

Dividends

1.5%

Current Dividend Yield

7%

Payout Ratio

Does KELY.A pay a reliable dividends?

See KELY.A dividend history and benchmarks

When do you need to buy KELY.A by to receive an upcoming dividend?
Kelly Services dividend dates
Ex Dividend Date	May 25 2022
Dividend Pay Date	Jun 09 2022
Days until Ex dividend	2 days
Days until Dividend pay date	13 days

Does KELY.A pay a reliable dividends?

See KELY.A dividend history and benchmarks

Valuation

Is Kelly Services undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

9.02x

Price to Earnings (PE) ratio

Share Price vs. Fair Value

Below Fair Value: KELY.A ($19.44) is trading above our estimate of fair value ($7.58)

Significantly Below Fair Value: KELY.A is trading above our estimate of fair value.

Price To Earnings Ratio

PE vs Industry: KELY.A is good value based on its Price-To-Earnings Ratio (9x) compared to the US Professional Services industry average (16.8x).

PE vs Market: KELY.A is good value based on its Price-To-Earnings Ratio (9x) compared to the US market (14.9x).

Price to Earnings Growth Ratio

PEG Ratio: KELY.A is good value based on its PEG Ratio (0.2x)

Price to Book Ratio

PB vs Industry: KELY.A is good value based on its Price-To-Book Ratio (0.6x) compared to the US Professional Services industry average (2.5x).

Future Growth

How is Kelly Services forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

40.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: KELY.A's forecast earnings growth (40.4% per year) is above the savings rate (1.9%).

Earnings vs Market: KELY.A's earnings (40.4% per year) are forecast to grow faster than the US market (12.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: KELY.A's revenue (4.5% per year) is forecast to grow slower than the US market (7.7% per year).

High Growth Revenue: KELY.A's revenue (4.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if KELY.A's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Kelly Services performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-8.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: KELY.A has a large one-off gain of $35.1M impacting its April 3 2022 financial results.

Growing Profit Margin: KELY.A's current net profit margins (1.6%) are lower than last year (2.3%).

Past Earnings Growth Analysis

Earnings Trend: KELY.A's earnings have declined by 8.2% per year over the past 5 years.

Accelerating Growth: KELY.A's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: KELY.A had negative earnings growth (-21.9%) over the past year, making it difficult to compare to the Professional Services industry average (32.6%).

Return on Equity

High ROE: KELY.A's Return on Equity (6.5%) is considered low.

Financial Health

How is Kelly Services's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: KELY.A's short term assets ($1.8B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: KELY.A's short term assets ($1.8B) exceed its long term liabilities ($315.8M).

Debt to Equity History and Analysis

Debt Level: KELY.A has more cash than its total debt.

Reducing Debt: KELY.A's debt to equity ratio has increased from 0% to 0.02% over the past 5 years.

Debt Coverage: KELY.A's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: KELY.A earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

Dividend

What is Kelly Services's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.54%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: KELY.A's dividend (1.54%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: KELY.A's dividend (1.54%) is low compared to the top 25% of dividend payers in the US market (4.06%).

Stability and Growth of Payments

Stable Dividend: KELY.A's dividend payments have been volatile in the past 10 years.

Growing Dividend: KELY.A's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (7.2%), KELY.A's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: KELY.A is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure

CEO

Peter W. Quigley (60 yo)

2.58yrs

Tenure

US$3,938,608

Compensation

Mr. Peter W. Quigley has been President, Chief Executive Officer and Director of Kelly Services, Inc. since October 01, 2019. He served as Executive Vice President, General Manager of Global Information Te...

CEO Compensation Analysis

Compensation vs Market: Peter W.'s total compensation ($USD3.94M) is about average for companies of similar size in the US market ($USD3.95M).

Compensation vs Earnings: Peter W.'s compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: KELY.A's management team is considered experienced (2.4 years average tenure).

Board Members

Experienced Board: KELY.A's board of directors are considered experienced (5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2022/04/03
Annual Earnings	2022/01/02