Kelly Services, Inc. (KELYA) AI Stock Analysis

Kelly Services, Inc. provides workforce solutions across multiple industries through five operating segments: Professional & Industrial, Science, Engineering & Technology, Education, Outsourcing & Consulting, and International. Headquartered in Troy, Michigan, the company was established in 1946. Its Professional & Industrial unit provides staffing, outcome-based services, and direct-hire placements across office administration, light industrial positions, and contact centers. The Science, Engineering & Technology segment supplies staffing and recruiting for clinical research, IT, engineering, and telecommunications. In addition, the Education segment delivers staffing solutions and executive search services to early childhood and higher education markets.

Kelly Services generated $4.25B in revenue for FY2025, representing a 1.9% decline from $4.33B in FY2024 and continuing a 5-year revenue CAGR of -1.2%. Gross margin stood at 20.1% in FY2025, while operating margin fell to -1.6%, down from -0.3% in FY2024 and 1.0% in FY2021. Net income dropped to -$254.1M in FY2025 from -$600,000 in FY2024, although EPS was $1.27. Over the trailing twelve months, revenue was $4.06B with an operating margin of 1.9% and a profit margin of -6.7%. For the latest quarter ended June 30, 2026, quarterly revenue fell 5.8% year-over-year and quarterly earnings declined 40.4%.

As of June 30, 2026, Kelly Services held $24.2M in cash and short-term investments against total debt of $128.7M, resulting in net debt of $104.5M. Total assets stood at $2.28B and shareholders' equity was $982.0M, supporting a debt-to-equity ratio of 0.13 and a current ratio of 1.50. In FY2025, operating cash flow reached $122.6M and free cash flow was $114.1M. Capital allocation in FY2025 included $8.5M in capital expenditures, $12.3M for share buybacks, and $11.0M in dividends paid, alongside an 11.1% reduction in share count over 5 years.

Kelly Services closed at $15.14 on October 16, 2026, giving it a market capitalization of $525.8M and an enterprise value of $701.8M. The stock trades at a forward P/E of 8.9x, below the 17.2x median of its US-listed Industrials peers. Its price-to-sales ratio of 0.1x also sits below the peer median of 1.5x, while its EV-to-EBITDA multiple of 13.9x matches the peer median of 13.9x. The shares have advanced 27.2% over the past year, outperforming the 16.8% return of the S&P 500 (SPY), though its 5-year return of -15.4% trails the index's 83.0% gain.

Kelly Services pays a quarterly dividend with an annualized forward payout of $0.30 per share, representing a 1.98% dividend yield. The company has paid dividends for 16 consecutive years, supported by a 5-year annualized dividend growth rate of 32.0%. In FY2025, dividends paid totaled $11.0M with a payout ratio of 40.5%. The last ex-dividend date was August 19, 2026.

Wall Street coverage consists of 1 Strong Buy, 1 Buy, and 1 Hold rating. The mean price target is $20.00, representing 32.1% upside over the last close of $15.14. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $4.10B and EPS of $1.09, a 13.1% decline. For the next fiscal year, 4 analysts forecast revenue of $4.25B and EPS of $1.82, reflecting 66.2% growth. Kelly Services beat EPS estimates in 1 of the last 4 quarters, with next earnings scheduled for November 5, 2026.

This page is an AI-written research summary of Kelly Services, Inc. (KELYA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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