Kelly Services, Inc. (KELYB) AI Stock Analysis

Kelly Services, Inc. is a global provider of workforce solutions operating across five segments. The Professional & Industrial segment provides office, professional, light industrial, and contact center staffing. The Science, Engineering & Technology segment serves science, clinical research, engineering, IT, and telecommunications clients. The Education segment provides staffing and executive search services to early childhood and higher education. The Outsourcing & Consulting segment provides recruitment process outsourcing, payroll process outsourcing, talent advisory, and managed services. The International segment provides staffing, RPO, and direct-hire solutions across Europe and Mexico. Headquartered in Troy, Michigan, the company was established in 1946.

Kelly Services recorded $4.91B in revenue in FY2021, rising 1.1% to $4.97B in FY2022. Revenue then dropped 2.6% to $4.84B in FY2023, fell 10.4% to $4.33B in FY2024, and declined 1.9% to $4.25B in FY2025. Over the 5-year period from FY2020 to FY2025, revenue contracted at a CAGR of -1.2%. Operating margin stood at 1.0% in FY2021 before weakening to -1.6% in FY2025, when net income was -$254.1M and EPS was -$7.01. For the trailing twelve months ended June 30, 2026, revenue was $4.06B, with a profit margin of -6.7% and EPS of -$7.79. In the latest quarter, quarterly revenue fell 5.8% year-over-year, while 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, reflecting a debt-to-equity ratio of 0.13 and a current ratio of 1.50. During FY2025, the company generated $122.6M in operating cash flow and $114.1M in free cash flow. It deployed capital toward $8.5M in capital expenditures, $12.3M in share buybacks, and $11.0M in dividends paid, while reducing share count by 11.1% over five years.

KELYB traded at $22.80 as of October 16, 2026, giving it a market cap of $791.9M and an enterprise value of $695.2M. The stock trades at a forward P/E of 11.9x, compared to the median of 17.2x for its US-listed Industrials peers. Its price-to-sales multiple is 0.2x versus the peer median of 1.5x, and EV/EBITDA is 13.9x, matching the peer median of 13.9x. The stock has generated a 1-year return of 85.9% and a year-to-date return of 165.1%, outperforming the S&P 500's 1-year return of 16.8%, though its 5-year return of 24.7% trails the S&P 500's 83.0%.

The company pays a forward annual dividend of $0.30 per share, representing a dividend yield of 1.32% as of October 16, 2026. Kelly Services has paid dividends for 16 consecutive years and achieved a 5-year annualized dividend growth rate of 32.0%. Its payout ratio is 25.9%, and its last ex-dividend date was August 19, 2026.

Consensus estimates project revenue of $4.10B for the fiscal year ending December 31, 2026. For the next fiscal year, analysts forecast revenue to grow 3.7% to $4.25B. Over the last four quarters, Kelly Services recorded 0 EPS beats. The company's next earnings report is scheduled for November 5, 2026.

This page is an AI-written research summary of Kelly Services, Inc. (KELYB). 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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