📊 KELYB Key Takeaways
Is Kelly Services Inc. (KELYB) a Good Investment?
Kelly Services is currently unprofitable with negative operating and free cash flows, indicating the company is burning cash at an accelerating rate. Revenue has declined year-over-year while operating margins remain deeply negative, and the company cannot cover interest expenses from operations. While leverage is conservative and short-term liquidity is adequate, the fundamental deterioration in profitability and cash generation creates an unsustainable financial position.
Revenue is contracting and profitability is weak, with negative operating income, net losses, and negative returns on equity and assets, signaling structural pressure in a low‑margin staffing model. While leverage is low and free cash flow is positive, margins remain thin and interest coverage is negative, leaving limited evidence of a near‑term return to sustainable profitability without clear execution on cost and growth initiatives.
Why Buy Kelly Services Inc. Stock? KELYB Key Strengths
- Conservative balance sheet with low debt-to-equity ratio (0.13x) providing financial flexibility
- Adequate short-term liquidity with 1.59x current and quick ratios to meet obligations
- Gross margin of 18.9% demonstrates the core staffing business model remains viable at the operational level
- Low leverage (0.10x D/E) provides flexibility
- Positive operating cash flow and free cash flow despite losses
- Adequate liquidity with 1.54x current and quick ratios
KELYB Stock Risks: Kelly Services Inc. Investment Risks
- Negative operating cash flow of -$25.4M indicates the business cannot fund operations from core activities
- Operating and net income both negative with -0.5% and -0.6% margins respectively, showing company-wide unprofitability
- Free cash flow negative at -$26.5M with FCF margin of -2.5%, forcing depletion of $25.6M cash reserves
- Revenue declining 1.9% year-over-year while cash burn accelerates, creating a deteriorating trajectory
- Interest coverage ratio negative at -0.4x, indicating inability to service debt from operating earnings
- Persistent operating and net losses with negative interest coverage
- Revenue decline in a cyclical, low‑margin industry
- Small cash balance ($33M) if cash generation weakens
Key Metrics to Watch
- Operating cash flow trend and return to positive territory
- Revenue stabilization and margin recovery path
- Cash burn rate relative to remaining reserves and runway months
- Operating margin improvement and path to profitability
- Debt covenant compliance and refinancing needs
- Operating margin and interest coverage turning positive
- Free cash flow margin and revenue growth trend
Kelly Services Inc. (KELYB) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Kelly Services Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
KELYB Profit Margin, ROE & Profitability Analysis
KELYB vs Services Sector: How Kelly Services Inc. Compares
How Kelly Services Inc. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Kelly Services Inc. Stock Overvalued? KELYB Valuation Analysis 2026
Based on fundamental analysis, Kelly Services Inc. has mixed fundamental signals relative to the Services 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.
Kelly Services Inc. Balance Sheet: KELYB Debt, Cash & Liquidity
KELYB Revenue & Earnings Growth: 5-Year Financial Trend
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 Revenue Growth, EPS Growth & YoY Performance
KELYB Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.0B | $5.8M | $0.16 |
| 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 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Kelly Services Inc. Dividends, Buybacks & Capital Allocation
KELYB SEC Filings: Latest 10-K & 10-Q 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 a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 75% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are KELYB's key strengths?
Claude: Conservative balance sheet with low debt-to-equity ratio (0.13x) providing financial flexibility. Adequate short-term liquidity with 1.59x current and quick ratios to meet obligations. ChatGPT: Low leverage (0.10x D/E) provides flexibility. Positive operating cash flow and free cash flow despite losses.
What are the risks of investing in KELYB?
Claude: Negative operating cash flow of -$25.4M indicates the business cannot fund operations from core activities. Operating and net income both negative with -0.5% and -0.6% margins respectively, showing company-wide unprofitability. ChatGPT: Persistent operating and net losses with negative interest coverage. Revenue decline in a cyclical, low‑margin industry.
What is KELYB's revenue and growth?
Kelly Services Inc. reported revenue of $1.0B.
Does KELYB pay dividends?
Kelly Services Inc. pays dividends, with $2.7M 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 $-0.17.
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 May 2026, Kelly Services Inc. has a SELL rating with 75% 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 -0.6% (sector avg: 16%), net margin of -0.6% (sector avg: 10%). 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 $-25.4M, with capital expenditures of $1.1M. FCF margin is -2.5%.
How does KELYB compare to other Services stocks?
Vs Services sector averages: Net margin -0.6% (avg: 10%), ROE -0.6% (avg: 16%), current ratio 1.59 (avg: 1.5).