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Kelly Services Inc.
KELYA : NASDAQ : Services

$21.28 0.47 | 2.26%
Today's Range: 20.71 - 21.33
Avg. Daily Volume: 185,100
04/16/14 - 3:21 PM ET

Financial Analysis


KELLY SERVICES INC's gross profit margin for the fourth quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. KELLY SERVICES INC has strong liquidity. Currently, the Quick Ratio is 1.51 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 11.01% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q4 FY13 Q4 FY12
Net Sales ($mil)1385.81375.4
EBITDA ($mil)14.919.7
EBIT ($mil)9.914.2
Net Income ($mil)17.28.9


Balance Sheet Q4 FY13 Q4 FY12
Cash & Equiv. ($mil)125.778.6
Total Assets ($mil)1798.61635.7
Total Debt ($mil)28.364.1
Equity ($mil)822.6741.0


Profitability Q4 FY13 Q4 FY12
Gross Profit Margin17.0716.56
EBITDA Margin1.071.43
Operating Margin0.711.03
Sales Turnover3.013.33
Return on Assets3.273.06
Return on Equity7.166.7
Debt Q4 FY13 Q4 FY12
Current Ratio1.621.65
Debt/Capital0.030.08
Interest Expense0.60.8
Interest Coverage16.517.75


Share Data Q4 FY13 Q4 FY12
Shares outstanding (mil)37.437.2
Div / share0.050.05
EPS0.450.23
Book value / share21.9919.92
Institutional Own % n/a n/a
Avg Daily Volume177741.0129567.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 33.89 for the Professional Services industry and a discount compared to the S&P 500 average of 18.29. To use another comparison, its price-to-book ratio of 1.04 indicates a discount versus the S&P 500 average of 2.52 and a significant discount versus the industry average of 10.67. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, KELLY SERVICES INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
KELYA 14.79 Peers 33.89   KELYA 7.39 Peers 38.15

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

KELYA is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

KELYA is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
KELYA 12.59 Peers 21.19   KELYA NM Peers 1.14

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

KELYA is trading at a premium to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

KELYA's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
KELYA 1.04 Peers 10.67   KELYA 18.46 Peers 25.32

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

KELYA is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, KELYA is expected to significantly trail its peers on the basis of its earnings growth rate

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
KELYA 0.16 Peers 3.02   KELYA -0.69 Peers 8.85

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

KELYA is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

KELYA significantly trails its peers on the basis of sales growth

 

 

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