Quality Investor

Kelly Services, Inc.

Rank #154Decline

KELYB · Nasdaq · Industrials

Kelly Services, Inc. (KELYB) — Rank #154 by gross profitability (GP/assets 0.37) · ROE -25.9% · Piotroski F-Score N/A.

As-of 2026-09-15 · CIK 0000055135 · all metrics point-in-time as of the filing date.

About

Kelly Services, Inc., together with its subsidiaries, provides workforce solutions to various industries in the Americas, Europe, Mexico, and the Asia-Pacific region.

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It operates in three segments: Enterprise Talent Management, Science, Engineering & Technology, and Education. The Enterprise Talent Management segment delivers temporary staffing, outcome-based, and permanent placement services providing administrative, accounting, and finance; light industrial; contact center staffing; and other workforce solutions. This segment also delivers talent solutions, including managed service provider, payroll process outsourcing, recruitment process outsourcing solutions, and executive coaching programs to customers on a global basis that includes its RocketPower and Sevenstep brands. The Science, Engineering & Technology segment offers temporary staffing, outcome-based, and permanent placement services in the areas of science and clinical research, engineering, technology, and telecommunications specialties. The Education segment provides staffing, permanent placement, and executive search services to pre-K-12 school districts and education organizations. Kelly Services, Inc.

was founded in 1946 and is headquartered in Troy, Michigan.

Industry
Staffing & Employment Services
Sector
Industrials
State
DE
Filer Category
Accelerated filer
Fiscal Year End
January 3

Price History

KELYB+22.7% · +4.2% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/E, P/B, and dividend yield matter most — book value provides a floor.

Market Cap

$802.56M

P/E (annual)

P/S (annual)

0.2

P/B

0.8

P/OCF (annual)

6.5

Shareholder Yield

11.6%

Employees

4,900

Industry

Staffing & Employment Services

Exchange

Nasdaq

Signal Flags

1 green3 red
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Revenue declining YoYRevenue contracted year over year
Operating margin decliningOperating margin lower than prior year
Balance sheet deterioratingNet cash collapsed with receivables or inventory outpacing revenue

Quality Profile

Profitability

1/1 pass
GP / assets
0.37
Return on equity
-25.9%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.32
Current ratio
1.50×
Net cash
-$53.90M

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
0.3%

Growth

1/2 pass
Revenue growth
-22.9%
Piotroski F-Score
N/A
Share dilution
-10.2%

Terry Smith quality gate

Passes 0/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

-6.8%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -10.2% — per-share value needs a total required return of -17.0% once share-count change is priced in.

vs. own 6-year median revenue growth: -6.4%

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

-10.2%

r = 10% (base)

-6.8%

r = 12%

-3.8%

Net debt / market cap: 6.6%

Base FCF: $114.1M3Y mean FCF: $51.3M

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

N/A
5.6xmed 9.1x37.9x

P / S

Price / revenue per share

0.1xCheap
0.1xmed 0.2x0.2x

P / B

Price / book value per share

0.5xCheap
0.5xmed 0.7x0.7x

P / GP

Price / gross profit per share

0.6xCheap
0.6xmed 0.9x1.0x

P / FCF

Price / free cash flow per share

N/A
4.8xmed 11.6x24.0x

Asset value and restructuring potential (balance-sheet strength) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.37

Primary signal (Novy-Marx).

51st pctl of 98 SIC 73 peers

Return on equity

-25.9%

Gross margin

20.1%

3rd pctl of 97 SIC 73 peers

Revenue growth (YoY)

-22.9%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2019202120222023
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

-5.0%

Revenue CAGR (5Y)

-1.2%

Earnings CAGR (3Y)

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.32

20th pctl of 87 SIC 73 peers (best = lowest)

Current ratio

1.50×

31st pctl of 97 SIC 73 peers

Quick ratio

1.44×

Net cash

-$53.90M

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$114.10M

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

1.45

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

0.3%

Stock-based comp intensity.

Dividend safety

Composite score

1.8 / 5

Weak
Payout ratio
N/A0/5 Weak
FCF coverage
10.37×5/5 Strong
Dividend growth streak
1 yr1/5 Weak
Balance-sheet health
D/E 1.32 · IC -5.63×1/5 Weak

Piotroski F-Score

F-Score

N/A

Only 8/9 components determinable.

Lifecycle Phase History

20172023
Value
Decline