Kelly Services Inc. Class A Common Stock (KELYA)

FairStock Score: 38/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I start with the business: Kelly is a staffing and workforce solutions firm, a competitive, cyclical, low-margin trade with little pricing power. The numbers confirm the strain. In fiscal 2025, the year ended 2025-12-28, revenue was $4.3B and net income was a loss of $254.1M, or diluted EPS of -$7.24. That followed a small loss of $600,000 in fiscal 2024 and profit of $36.4M in fiscal 2023, so the trend is unstable. The latest quarter offers a flicker: in fiscal Q2 2026, the quarter ended 2026-06-28, Kelly earned $11.4M, or $0.31 per diluted share, on $1.0B of revenue, though fiscal Q1 2026, the quarter ended 2026-03-29, had a $5.9M loss. The balance sheet is the main attraction. Debt to equity is only 0.13, trailing free cash flow is $20.5M, and the FairStock FCF yield is 3.7%. At the 2026-10-13 close of $15.88, the FairStock P/B is 0.56, so the market values the equity below book. But the FairStock P/E is -2.04, ROE is -24.32%, ROCE is 0.82%, and Altman Z-score is 1.56, signaling financial stress. Piotroski is 6/9, not bad for a turnaround. FairStock classifies Kelly as a TURNAROUND—loss in the latest year after earlier profits. The price may already discount much bad news, but a cheap-looking book value is not a margin of safety if losses persist. I need evidence that Q2 2026 profitability and free cash flow are durable, not just a cyclical bounce.

In plain English: Kelly Services supplies temporary and permanent staffing and workforce solutions in areas like science, engineering, technology, and education. The business looks weak now: it lost money in its latest full year and sales have fallen from earlier levels. The share price looks low compared with the company's accounting value, but because earnings are negative it is not clearly cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-28) · fiscal Q1 2026 10-Q (period ended 2026-03-29) · fiscal Q3 2025 10-Q (period ended 2025-09-28) · fiscal Q2 2025 10-Q (period ended 2025-06-29) · FY2025 10-K (period ended 2025-12-28) · FY2024 10-K (period ended 2024-12-29) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer