📊 KELYB Key Takeaways
Is Kelly Services Inc. (KELYB) a Good Investment?
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.
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
- 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
- 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
- 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
- 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 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
- 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
The relatively thin 2.7% FCF margin may limit capital allocation flexibility.
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 |
|---|---|---|---|
| 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.
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 (SELL) and ChatGPT (SELL) with 67% combined 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. 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: 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. 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 $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 67% 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: 16%), net margin of -6.0% (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 $122.6M, with capital expenditures of $8.5M. FCF margin is 2.7%.
How does KELYB compare to other Services stocks?
Vs Services sector averages: Net margin -6.0% (avg: 10%), ROE -26.0% (avg: 16%), current ratio 1.54 (avg: 1.5).