Kelly Services Inc. Class B Common Stock (KELYB)

FairStock Score: 36/100 — MIXED

Key Financials

AI Analysis

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

I begin with business quality and a margin of safety. Kelly Services is a workforce solutions company, mainly staffing, science, engineering and education talent. It has real scale: FY2025, the year ended 2025-12-28, revenue was $4.3B, but the business has not earned dependable profits. In FY2023, the year ended 2023-12-31, net income was $36.4M and diluted EPS was $0.98. In FY2024, the year ended 2024-12-29, net income was about break-even at a loss of $0.6M. In FY2025 net income fell to a loss of $254.1M, or diluted EPS of -$7.24. That is a severe swing. The latest filing offers a flicker of recovery: fiscal Q2 2026, the quarter ended 2026-06-28, revenue was $1.0B, net income was $11.4M, and diluted EPS was $0.31. But fiscal Q1 2026, the quarter ended 2026-03-29, still lost $5.9M. FairStock's revenue growth is -11.91%, and its profit growth is -305.03%. The industry is competitive, and the latest quarter's net margin was only 1.10%; that argues against a strong moat. The balance sheet has low debt, with D/E of 0.13, but Altman Z-Score of 1.66 and ROE of -24.32% show stress. ROCE is only 0.82%, so capital is not working hard. At the close on 2026-10-13, the price was $22.13, P/B was 0.78, P/E was -2.85, and FCF yield was 2.6% on TTM FCF of $20.5M. A below-book price can tempt a Graham investor, but negative earnings mean no reliable margin of safety. FairStock calls this a TURNAROUND, with a loss in the latest year after earlier profits. I need evidence of durable profit recovery before calling it a bargain.

In plain English: Kelly Services supplies temporary and permanent workers and other workforce services to businesses. The company has lost money in its latest full year and revenue has been falling, though the most recent quarter showed a small profit. The share price looks low compared with the value of its net assets on paper, but because profits 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