Latest Ratios: P/E Ratio -2.3x · EV/EBITDA N/A · ROE -23.0%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $570M | $302M | $468M | $785M | $644M | $662M | $808M | $885M | $801M | $1.1B | $880M |
| Enterprise Value | $696M | $428M | $731M | $710M | $561M | $629M | $673M | $925M | $768M | $1.0B | $851M |
| P/E Ratio → | -2.27 | — | — | 22.06 | — | 4.28 | — | 7.95 | 34.71 | 15.07 | 7.32 |
| P/S Ratio | 0.13 | 0.07 | 0.11 | 0.16 | 0.13 | 0.13 | 0.18 | 0.17 | 0.15 | 0.20 | 0.17 |
| P/B Ratio | 0.59 | 0.31 | 0.38 | 0.63 | 0.51 | 0.50 | 0.67 | 0.70 | 0.69 | 0.92 | 0.87 |
| P/FCF | 5.00 | 2.65 | 29.61 | 12.78 | — | 8.98 | 4.74 | 10.77 | 22.37 | 22.44 | 34.79 |
| P/OCF | 4.65 | 2.47 | 17.39 | 10.23 | — | 7.79 | 4.35 | 8.66 | 13.04 | 15.13 | 23.16 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.10 | 0.17 | 0.15 | 0.11 | 0.13 | 0.15 | 0.17 | 0.14 | 0.19 | 0.16 |
| EV / EBITDA | — | — | 20.43 | 12.20 | 11.63 | 8.02 | — | 6.86 | 6.78 | 9.82 | 9.86 |
| EV / EBIT | — | 7.22 | — | 10.88 | 8.01 | 11.95 | 19.28 | 7.67 | — | 12.33 | 5.54 |
| EV / FCF | — | 3.75 | 46.30 | 11.57 | — | 8.52 | 3.95 | 11.25 | 21.44 | 21.95 | 33.62 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 20.1% | 20.1% | 20.4% | 19.9% | 20.4% | 18.7% | 18.3% | 18.1% | 17.6% | 17.8% | 17.2% |
| Operating Margin | -1.6% | -1.6% | -0.3% | 0.5% | 0.3% | 1.0% | -2.1% | 1.5% | 1.6% | 1.5% | 1.2% |
| Net Profit Margin | -6.0% | -6.0% | -0.0% | 0.8% | -1.3% | 3.2% | -1.6% | 2.1% | 0.4% | 1.3% | 2.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -23.0% | -23.0% | -0.0% | 2.9% | -4.8% | 12.3% | -5.8% | 9.3% | 2.0% | 6.6% | 12.8% |
| ROA | -10.4% | -10.4% | -0.0% | 1.4% | -2.2% | 5.7% | -2.9% | 4.7% | 1.0% | 3.3% | 6.2% |
| ROIC | -4.0% | -4.0% | -0.8% | 1.6% | 0.9% | 3.1% | -5.9% | 5.0% | 5.8% | 5.9% | 5.2% |
| ROCE | -4.3% | -4.3% | -0.9% | 1.6% | 0.9% | 2.8% | -5.8% | 5.4% | 6.1% | 6.1% | 5.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.16 | 0.16 | 0.25 | 0.04 | 0.06 | 0.06 | 0.07 | 0.05 | 0.00 | 0.01 | — |
| Debt / EBITDA | — | — | 8.45 | 0.88 | 1.46 | 1.01 | — | 0.48 | 0.02 | 0.10 | — |
| Net Debt / Equity | — | 0.13 | 0.21 | -0.06 | -0.07 | -0.03 | -0.11 | 0.03 | -0.03 | -0.02 | -0.03 |
| Net Debt / EBITDA | — | — | 7.36 | -1.28 | -1.73 | -0.43 | — | 0.29 | -0.29 | -0.22 | -0.34 |
| Debt / FCF | — | 1.11 | 16.68 | -1.21 | — | -0.46 | -0.80 | 0.48 | -0.92 | -0.49 | -1.17 |
| Interest Coverage | — | — | -1.01 | 20.41 | 33.33 | 21.04 | 11.63 | 28.71 | -2.03 | 31.26 | 40.39 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.54 | 1.54 | 1.65 | 1.59 | 1.52 | 1.45 | 1.67 | 1.59 | 1.56 | 1.50 | 1.58 |
| Quick Ratio | 1.54 | 1.54 | 1.65 | 1.59 | 1.52 | 1.45 | 1.67 | 1.59 | 1.56 | 1.50 | 1.58 |
| Cash Ratio | 0.04 | 0.04 | 0.05 | 0.12 | 0.14 | 0.10 | 0.24 | 0.03 | 0.04 | 0.04 | 0.04 |
| Asset Turnover | — | 1.89 | 1.65 | 1.87 | 1.86 | 1.70 | 1.76 | 2.16 | 2.38 | 2.26 | 2.60 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 102.07 | 105.79 | 87.60 | 109.65 | 105.80 | 102.26 | 87.39 | 85.61 | 87.39 | 78.74 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.9% | 3.6% | 2.3% | 1.4% | 1.6% | 0.6% | 0.4% | 1.3% | 1.5% | 1.1% | 1.2% |
| Payout Ratio | — | — | — | 30.2% | — | 2.6% | — | 10.6% | 51.5% | 16.2% | 8.7% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | 4.5% | — | 23.4% | — | 12.6% | 2.9% | 6.6% | 13.7% |
| FCF Yield | 20.0% | 37.8% | 3.4% | 7.8% | — | 11.1% | 21.1% | 9.3% | 4.5% | 4.5% | 2.9% |
| Buyback Yield | 2.2% | 4.1% | 2.1% | 5.4% | 5.4% | 0.1% | 0.1% | 0.3% | 0.9% | 0.2% | 0.3% |
| Total Shareholder Yield | 4.1% | 7.7% | 4.5% | 6.8% | 7.1% | 0.7% | 0.5% | 1.6% | 2.3% | 1.3% | 1.5% |
| Shares Outstanding | — | $35M | $36M | $36M | $38M | $40M | $39M | $39M | $39M | $39M | $38M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying KELYA stock.
Kelly Services, Inc.'s current P/E ratio is -2.3x. The historical average is 19.7x.
Kelly Services, Inc.'s return on equity (ROE) is -23.0%. The historical average is 4.3%.
Based on historical data, Kelly Services, Inc. is trading at a P/E of -2.3x. Compare with industry peers and growth rates for a complete picture.
Kelly Services, Inc.'s current dividend yield is 1.91%.
Kelly Services, Inc. has 20.1% gross margin and -1.6% operating margin.
Key Metrics
Top Statement Risk
Persistent earnings volatility and cash flow instability
Metrics are mathematically derived from official filings.
Deep Value Discount Amidst Operational Strain
Kelly Services trades at a significant discount to peers with a P/B of 0.62 and P/S of 0.14, suggesting the market is pricing in severe operational challenges and a potential impairment of its asset base.
The forward P/E of 15.78 appears misleading given the trailing P/E of -2.39, which reflects recent net losses. The P/B ratio of 0.62 is well below the peer average, indicating the market values Kelly's equity at a steep discount to its book value, likely due to concerns about the sustainability of its earnings and the quality of its asset base, particularly goodwill. This valuation implies the market expects continued weak returns on capital and does not anticipate a near-term recovery to historical profitability levels.
Margin Resilience Masked by Operating Leverage
Despite a stable gross margin around 20%, Kelly's operating margin has been volatile and turned negative in several quarters, indicating that fixed costs amplify losses during revenue declines and that true earning power is currently minimal.
The gross margin has remained relatively resilient in the 18-21% range, which is a positive sign of pricing discipline. However, the operating margin has swung from 2.6% in 2024Q1 to -10.9% in 2025Q3, demonstrating severe negative operating leverage. This volatility suggests that the company's cost structure is not sufficiently flexible to maintain profitability during periods of revenue contraction, making the stable gross margin less meaningful for predicting net profitability.
Capital Returns Eroded by Sustained Losses
ROIC has been negative or near-zero for most of the past ten quarters, with a -5.8% reading in 2025Q3, indicating the company is destroying value and failing to generate adequate returns on its invested capital.
The trend in ROIC is deeply concerning, as it has been negative in four of the last ten quarters and has only recently returned to a marginal 1.1% in 2026Q2. This pattern suggests that the company's operational model is currently not generating returns above its cost of capital. The drivers appear to be collapsing operating margins rather than capital efficiency, as asset turnover has remained relatively stable around 0.42-0.46, pointing to a profitability crisis rather than an asset utilization problem.
Working Capital Management Under Pressure
Days Sales Outstanding (DSO) has trended higher to 107 days in 2026Q2, suggesting potential customer payment delays or a shift in business mix that could strain cash conversion and working capital efficiency.
The increase in DSO from 96 days in 2025Q1 to 107 days in 2026Q2 is a negative development, as it indicates the company is taking longer to collect cash from its customers. This trend, combined with the absence of inventory data, makes a full cash conversion cycle analysis difficult but raises concerns about the quality of receivables. The company's ability to manage its working capital is critical given its tight cash position, and a prolonged increase in DSO could exacerbate liquidity pressures.
Low Leverage Provides Limited Comfort
While Kelly's D/E ratio of 0.13 is low, its interest coverage ratio has been erratic, swinging from 60.60 to -43.21, indicating that debt serviceability is highly sensitive to earnings volatility and operational performance.
The company's low absolute debt level provides a cushion, but the interest coverage ratio's extreme volatility is a red flag. The negative coverage in 2025Q3 (-43.21) and 2026Q1 (-2.35) shows that in loss-making quarters, the company's earnings are insufficient to cover interest expenses. This suggests that while the balance sheet is not overleveraged, the company's ability to service its debt is entirely dependent on achieving consistent profitability, which has been elusive.
The Misleading Stability of Gross Margin
The most commonly misapplied ratio for Kelly Services is likely the gross margin, as its apparent stability around 20% obscures the severe negative operating leverage and collapsing profitability that occur below the gross profit line.
Investors may focus on the stable gross margin as a sign of fundamental health, but this metric is misleading for a high-fixed-cost staffing business. The real story is in the operating margin, which has been highly volatile and frequently negative. The gross margin does not account for the substantial SG&A burden that must be covered, and its stability provides false comfort when the company's revenue base is shrinking. A more appropriate metric to assess true operational health would be the operating margin or the ratio of SG&A to revenue, which better captures the company's struggle to manage its cost structure in a declining market.