Kelly Services, Inc. (KELYA) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Kelly Services, Inc. (KELYA) Industrial Operations Profile

Kelly Services, Inc. delivers workforce solutions globally, operating through diverse segments like Professional & Industrial, Science & Technology, and International. With a history dating back to 1946, the company provides staffing, outsourcing, and consulting services, distinguishing itself through a broad service portfolio and geographic reach.

What Is the Investment Thesis for KELYA?

Kelly Services, Inc. presents a mixed investment thesis. The company's diverse service offerings and global presence provide a stable revenue base. However, a negative profit margin of -8.6% raises concerns about profitability. The dividend yield of 3.04% offers some appeal to income-seeking investors. Key growth catalysts include expansion of outsourcing and consulting services and increased demand for STEM professionals. The company's beta of 0.79 suggests lower volatility compared to the market. Investors should closely monitor the company's ability to improve profitability and capitalize on growth opportunities in key segments.

Based on FMP financials and quantitative analysis

KELYA Key Highlights

Market capitalization of $548M indicates a mid-sized player in the staffing and employment services industry.

• Gross margin of 26.3% reflects the company's ability to manage the cost of services provided.
• Dividend yield of 3.04% provides an income stream for investors.
• Beta of 0.79 suggests lower volatility compared to the broader market, potentially appealing to risk-averse investors.
• Operates in five segments: Professional & Industrial; Science, Engineering & Technology; Education; Outsourcing & Consulting; and International, providing diversification.

Who Are KELYA's Competitors?

KELYA is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are KELYA's Key Strengths?

Diverse service offerings across multiple segments.

• Global presence in key markets.
• Established brand reputation.
• Expertise in specialized staffing areas.

What Are KELYA's Weaknesses?

Negative profit margin.

• Dependence on economic cycles.
• Intense competition in the staffing industry.
• Exposure to labor market fluctuations.

What Could Drive KELYA Stock Higher?

Expansion of outsourcing and consulting services to drive revenue growth.

• Increased demand for STEM professionals boosting the Science, Engineering & Technology segment.
• Growth in the education sector creating opportunities for staffing solutions.
• International expansion into emerging markets to diversify revenue streams.

What Are the Key Risks for KELYA?

Negative return on equity (-24.6%) — the business is not currently generating profit on shareholder capital.

• Inconsistent delivery — missed Wall Street EPS estimates in 5 of the last 8 reported quarters.
• Economic downturns impacting demand for staffing services.
• Increased competition from online platforms disrupting traditional staffing models.
• Changes in labor laws and regulations affecting workforce solutions.
• Negative profit margin impacting financial performance.

What Are the Growth Opportunities for KELYA?

• Expansion of Outsourcing & Consulting Services: The market for recruitment process outsourcing (RPO) and payroll process outsourcing is growing as companies seek to streamline HR functions. Kelly Services can capitalize on this trend by expanding its Outsourcing & Consulting segment. This segment offers recruitment process outsourcing (RPO), payroll process outsourcing, and talent advisory services, as well as managed services. The global RPO market is projected to reach $9.5 billion by 2028, offering significant growth potential.
• Increased Demand for STEM Professionals: The Science, Engineering & Technology segment can benefit from the increasing demand for STEM professionals. Kelly Services can focus on providing staffing solutions for science and clinical research, engineering, information technology, and telecommunications specialties. The STEM workforce is projected to grow significantly in the coming years, driven by technological advancements and innovation.
• Growth in the Education Segment: The Education segment can expand by providing staffing and executive search services to early childhood and higher education markets. With increasing enrollment in educational institutions and a growing need for qualified educators, Kelly Services can capitalize on this trend. The education staffing market is expected to grow as schools and universities seek flexible staffing solutions.
• International Expansion: Kelly Services can further expand its international presence, particularly in emerging markets. The International segment provides staffing, RPO, and direct-hire services in Europe and Mexico. By targeting high-growth regions, Kelly Services can diversify its revenue streams and reduce reliance on domestic markets. Emerging markets offer significant opportunities for workforce solutions providers.
• Leveraging Technology: Kelly Services can leverage technology to improve its service delivery and efficiency. Investing in AI-powered recruitment tools and online platforms can enhance candidate sourcing, screening, and placement. By embracing digital transformation, Kelly Services can gain a competitive edge and attract tech-savvy clients and candidates. The use of technology in staffing is expected to increase in the coming years.

What Are KELYA's Competitive Advantages?

• Established brand reputation in the staffing industry.
• Global presence and diverse service offerings.
• Long-standing relationships with clients.
• Expertise in specialized staffing areas such as science, engineering, and technology.

What Does KELYA Do?

Founded in 1946 and headquartered in Troy, Michigan, Kelly Services, Inc. has evolved into a global provider of workforce solutions. Initially focused on office staffing, the company has expanded its services to include professional and industrial staffing, science, engineering, and technology staffing, education staffing, outsourcing and consulting, and international staffing. Kelly Services operates through five key segments: Professional & Industrial, which focuses on office, professional, light industrial, and contact center specialties; Science, Engineering & Technology, catering to science and clinical research, engineering, IT, and telecommunications; Education, providing staffing for early childhood and higher education; Outsourcing & Consulting, offering RPO, payroll process outsourcing, and talent advisory services; and International, providing staffing solutions in Europe and Mexico. Kelly Services serves a diverse range of customers across the United States, Canada, Mexico, Europe, and the Asia-Pacific region, offering tailored workforce solutions to meet specific industry needs. The company's comprehensive service offerings and global presence position it as a key player in the workforce solutions market.

What Products and Services Does KELYA Offer?

• Provides temporary staffing services across various industries.
• Offers direct-hire placement services.
• Delivers recruitment process outsourcing (RPO) solutions.
• Provides payroll process outsourcing services.
• Offers talent advisory services.
• Provides managed services.
• Serves customers in the United States, Canada, Mexico, Europe, and the Asia-Pacific region.

How Does KELYA Make Money?

• Generates revenue through fees charged for staffing services.
• Earns revenue from outsourcing and consulting services.
• Receives fees for direct-hire placement services.
• Operates through five segments: Professional & Industrial; Science, Engineering & Technology; Education; Outsourcing & Consulting; and International.

What Industry Does KELYA Operate In?

Kelly Services operates within the staffing and employment services industry, which is influenced by economic cycles and labor market trends. The industry is experiencing growth due to increasing demand for flexible workforce solutions and specialized skills. Key competitors include companies like ManpowerGroup and Adecco. Kelly Services differentiates itself through its diverse service offerings and global presence. The market is expected to continue growing, driven by technological advancements and the need for specialized talent.

Who Are KELYA's Key Customers?

• Companies in the office and professional sectors.
• Organizations in the light industrial and contact center sectors.
• Companies in the science and clinical research sectors.
• Organizations in the engineering, IT, and telecommunications sectors.
• Educational institutions, including early childhood and higher education.

Company Profile

Kelly Services, Inc. operates in the Staffing & Employment Services industry within the Industrials sector. It is headquartered in Troy, US. The company is led by CEO Christopher D. Layden. KELYA has traded publicly since 1980.

Return on equity for Kelly Services, Inc. stands at -24.6%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -11.8%, showing how much profit it generates from its asset base. Its free cash flow yield is 15.0%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.59 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -60.5%, the inverse of the P/E and a quick read on earnings relative to price.

KELYA Valuation & Market Position

With a $548M market cap, Kelly Services, Inc. sits in the small-cap segment of the market. Analyst price targets span from $20.00 to $20.00, with a consensus of $20.00. At the current price of $15.81, that implies approximately 27% upside potential. Relative to its peer group, KELYA's quantitative score of 53/100 is below the peer average of 66/100.

Quarterly Financial Performance: Kelly Services, Inc.

Revenue for Kelly Services, Inc. came in at $1.04B during Q2 FY2026. The company recorded net income of $11.4M, with diluted EPS of $0.32. Revenue has contracted over three consecutive quarters, which investors in this small-cap Industrials stock should monitor closely. Across the four most recent quarters, KELYA averaged $-1.95 in diluted EPS.

Kelly Services, Inc.'s Piotroski F-Score is 4/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 2.73 places it in the grey zone, a middle ground that warrants monitoring.

Kelly Services, Inc. has missed Wall Street's EPS estimate in 5 of its last 8 reported quarters — a mixed record worth weighing. Reported results have landed about 16.4% below estimates on average.

Over the past six months, Kelly Services, Inc. insiders filed 29 SEC Form 4 transactions — 4 sales and 25 purchases. On net that is roughly 249K shares acquired (about $429K) — insiders putting money in tends to read as conviction.

KELYA Financials

KELYA Latest News

KELYA Analyst Consensus

KELYA MoonshotScore

KELYA Industrials Stock FAQ

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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