📊 KELYB Key Takeaways
Is KELYB a Good Investment? Thesis Analysis
Kelly Services is experiencing operational deterioration with a $254.1M net loss, negative operating margins (-1.6%), and declining revenue (-1.9% YoY), indicating the staffing services business is under structural pressure. While positive free cash flow ($114.1M) provides a liquidity buffer and the debt/equity ratio (0.10x) remains conservative, the company's negative interest coverage (-5.6x), severely depleted cash position ($33M on $4.3B revenue base), and return metrics (ROE -26%, ROA -11.3%) demonstrate deteriorating financial health and shareholder value destruction.
Why Buy KELYB? Key Strengths
- Positive free cash flow of $114.1M despite operating losses suggests operational cash generation capability
- Conservative debt levels with debt-to-equity of 0.10x and manageable interest obligations
- Adequate current ratio of 1.54x indicates near-term liquidity for current obligations
KELYB Investment Risks to Consider
- Unprofitable operations with -6.0% net margin and negative operating income unable to support debt servicing
- Revenue contraction (-1.9% YoY) indicates loss of market share or declining demand in staffing sector
- Critically low cash reserves of $33M relative to $4.3B revenue base limits financial flexibility and operating margin for error
- Negative return metrics (ROE -26%, ROA -11.3%) demonstrate ongoing shareholder value destruction
Key Metrics to Watch
- Operating margin trajectory - must return to positive territory
- Revenue stabilization - need reversal of YoY decline to indicate demand recovery
- Cash position and working capital efficiency - critical given depleted cash reserves
- Net income and EPS progression toward profitability
KELYB Financial Metrics
💡 AI Analyst Insight
The relatively thin 2.7% FCF margin may limit capital allocation flexibility.
KELYB Profitability Ratios
KELYB vs Default Sector
How KELLY SERVICES INC compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is KELYB Overvalued or Undervalued?
Based on fundamental analysis, KELLY SERVICES INC has mixed fundamental signals relative to the Default sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
KELYB Balance Sheet & Liquidity
KELYB 5-Year Financial Trend & Growth Analysis
5-Year Trend Summary: KELLY SERVICES INC's revenue has remained relatively flat over the 5-year period, with a 10% decline. The most recent EPS of $0.98 reflects profitable operations.
KELYB Growth Metrics (YoY)
KELYB Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $935.0M | $800.0K | $0.02 |
| Q2 2025 | $1.1B | $4.6M | $0.12 |
| Q1 2025 | $1.0B | $5.8M | $0.16 |
| Q3 2024 | $1.0B | $800.0K | $0.02 |
| Q2 2024 | $1.1B | $4.6M | $0.12 |
| Q1 2024 | $1.0B | $10.9M | $0.29 |
| Q3 2023 | $1.1B | $6.6M | $0.18 |
| Q2 2023 | $1.2B | $2.2M | $0.06 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
KELYB Capital Allocation
KELYB SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for KELLY SERVICES INC (CIK: 0000055135)
📋 Recent SEC Filings
❓ Frequently Asked Questions about KELYB
What is the AI rating for KELYB?
KELLY SERVICES INC (KELYB) has an AI rating of SELL with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are KELYB's key strengths?
Claude: Positive free cash flow of $114.1M despite operating losses suggests operational cash generation capability. Conservative debt levels with debt-to-equity of 0.10x and manageable interest obligations.
What are the risks of investing in KELYB?
Claude: Unprofitable operations with -6.0% net margin and negative operating income unable to support debt servicing. Revenue contraction (-1.9% YoY) indicates loss of market share or declining demand in staffing sector.
What is KELYB's revenue and growth?
KELLY SERVICES INC reported revenue of $4.3B.
Does KELYB pay dividends?
KELLY SERVICES INC pays dividends, with $11.0M distributed to shareholders in the trailing twelve months.
Where can I find KELYB SEC filings?
Official SEC filings for KELLY SERVICES INC (CIK: 0000055135) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is KELYB's EPS?
KELLY SERVICES INC has a diluted EPS of $-7.24.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is KELYB a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, KELLY SERVICES INC has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is KELYB stock overvalued or undervalued?
Valuation metrics for KELYB: ROE of -26.0% (sector avg: 15%), net margin of -6.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy KELYB stock in 2026?
Our dual AI analysis gives KELLY SERVICES INC a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is KELYB's free cash flow?
KELLY SERVICES INC's operating cash flow is $122.6M, with capital expenditures of $8.5M. FCF margin is 2.7%.
How does KELYB compare to other Default stocks?
Vs Default sector averages: Net margin -6.0% (avg: 12%), ROE -26.0% (avg: 15%), current ratio 1.54 (avg: 1.8).