Kelly Services
KELYA Small CapIndustrials · Staffing & Employment Services
Updated: Jul 6, 2026, 22:20 UTC
Price Chart
Key Metrics
Valuation Analysis
About the Company
Kelly Services, Inc., together with its subsidiaries, provides workforce solutions to various industries in the Americas, Europe, Mexico, and the Asia-Pacific region. It operates in three segments: Enterprise Talent Management, Science, Engineering & Technology, and Education. The Enterprise Talent Management segment delivers temporary staffing, outcome-based, and permanent placement services providing administrative, accounting, and finance; light industrial; contact center staffing; and other workforce solutions. This segment also delivers talent solutions, including managed service provider, payroll process outsourcing, recruitment process outsourcing solutions, and executive coaching programs to customers on a global basis that includes its RocketPower and Sevenstep brands. The Science
Kelly Services Stock at a Glance
Kelly Services (KELYA) is currently trading at $12.96 with a market capitalization of $449.3M. The 52-week range spans from $7.98 to $14.94; the current price is 13.3% below the yearly high. Year-over-year revenue growth stands at -10.7%.
💰 Dividend
Kelly Services pays an annual dividend of $0.30 per share, representing a yield of 2.31%. The payout ratio stands at 25.86%.
📊 Analyst Rating
3 analysts rate Kelly Services (KELYA) on consensus: Buy. The average price target is $16.67, implying +28.6% from the current price. Analyst price targets range from $15.00 to $18.00.
Kelly Services: The Investment Case in Detail
Kelly Services (KELYA) operates in the Industrials — specifically Staffing & Employment Services — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.
The Bull Case
Wall Street consensus sits at Buy with an average price target implying roughly 28.6% upside from current levels — analyst sentiment is firmly constructive.
The Bear Case
Revenue is contracting at -10.7% year-over-year — until that trend reverses, valuation is exposed to further downgrades. Net margins remain negative, meaning every euro of revenue is still producing losses — the path to profitability is the central question for shareholders.
Valuation in Context
With a PEG ratio of 0.94, the price-to-earnings multiple is actually below the company's growth rate — classic value-meets-growth territory that Peter Lynch would have called a 'GARP' opportunity. The EV/EBITDA multiple of 7.82x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.
What to Watch Next
- The analyst consensus price target implies 28.6% upside — if the next two quarters confirm the underlying thesis, target hikes typically follow.
Investment Thesis: Strengths & Weaknesses
- Analyst consensus: Buy
- Solid dividend yield of 2.31%
- Solid balance sheet with low debt (D/E 18.99)
- Positive free cash flow
- –Revenue shrinking (-10.7% YoY)
- –Currently unprofitable
Technical Snapshot
Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).
Risk Profile
The data points to relatively defensive market behavior.
Trading Data
💵 Dividend Info
Related Stocks in the Same Sector
Kelly Services at 9.60 dollars: 79-year-old staffing giant at 0.34x book and 3.1 percent dividend
The Real Story
Kelly Services is the United States workforce-solutions pioneer (the Kelly Girls of 1946 essentially invented temporary staffing). Today it runs three segments: Enterprise Talent Management (broad temporary/permanent placement), Science Engineering and Technology (specialty staffing for life sciences, semis, energy clients), and Education (substitute teachers and educators in K-12 districts). Revenue 4.1 billion USD, with science-engineering and education growing while the legacy enterprise-staffing segment treads water.
The market has discounted KELYA aggressively. P/B 0.34 says the market does not believe the goodwill from past acquisitions is real, and the trailing minus 7.57 EPS reflects a big goodwill writedown in 2024. Strip out non-cash impairments and core operations are profitable, with consensus forward EPS 1.74 USD — making forward P/E 5.5, the cheapest staffing multiple anywhere.
What Smart Money Thinks
Kelly family controls Class B shares (super-voting) — typical dual-class staffing-industry setup. No major hedge-fund 13F whale. The Kelly family is conservative and has paid dividends for decades.
Explore the BMI Smart-Money Tracker →
📈 The 3 Real Bull Points
📉 The 3 Real Bear Points
Valuation in Context
At 9.60 USD with negative trailing EPS (impairment-driven), the trailing P/E is meaningless. Forward P/E 5.5 on consensus 1.74 USD EPS. P/B 0.34 and P/S 0.08 are at the deep-value end of staffing multiples. EV/EBITDA 6.3 reflects the recession-cyclical risk premium.
🗓️ Next 3 Catalyst Dates
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💬 Daniel's Take
KELYA is exactly the kind of forgotten-staffing value play I find appealing for a deep-value sleeve. Forward P/E 5.5 with a 3.12 percent dividend yield and visible specialty-staffing growth gives multiple ways to win. Risk is recession-driven volume drop; reward is multiple expansion as specialty segment grows. I size 1 percent in a deep-value sleeve. The Kelly family will not sell — accept that and own for the dividend plus mean-reversion.
Sources (3)
Disclaimer: This article is not investment advice. Investing in stocks carries risks, including total loss.
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