Kelly Services Stock Fair Value Calculator – KELLY SERVICES Reports Third Quarter FY2023 Earnings Results on November 9
December 13, 2023
🌥️Earnings Overview
On November 9 2023, KELLY SERVICES ($NASDAQ:KELYA) reported its financial results for the third quarter of FY2023, which ended on September 30 2023. Total revenue of USD 1118.0 million was recorded, representing a 4.3% decrease compared to the same period of the previous year. Net income for the quarter showed an increase of 140.7% year over year, amounting to USD 6.6 million.
Market Price
Their stock opened at $19.0 and closed at $19.5, which represented an increase of 4.6% from the previous day’s closing price of $18.6. The company’s results exceeded analyst expectations, which may have contributed to the positive stock movement. This marks the sixth consecutive quarter that KELLY SERVICES has reported growth in their financial metrics and provides a good indicator of the company’s overall performance. Investors were also optimistic about KELLY SERVICES’ outlook, given the company’s strong financial performance and growth potential.
With their primary focus on providing staffing solutions, the company continues to focus on leveraging their digital capabilities to expand their reach and enhance customer experience. With the release of these quarterly results, investors are now certainly looking ahead to next quarter’s performance data with great anticipation. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Kelly Services. More…
| Total Revenues | Net Income | Net Margin |
| 4.84k | 23.6 | 0.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Kelly Services. More…
| Operations | Investing | Financing |
| 68.8 | -11 | -69.8 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Kelly Services. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.55k | 1.31k | 35.03 |
Key Ratios Snapshot
Some of the financial key ratios for Kelly Services are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.6% | -6.9% | 0.6% |
| FCF Margin | ROE | ROA |
| 1.0% | 1.4% | 0.7% |
Analysis – Kelly Services Stock Fair Value Calculator
At GoodWhale, we have completed an analysis of KELLY SERVICES‘s financials. We have calculated the fair value of a KELLY SERVICES share to be around $24.6 using our proprietary Valuation Line. Currently, KELLY SERVICES stock is being traded at $19.5, representing a significant undervaluation of 20.7%. This is an opportune time to purchase KELLY SERVICES stock as investors may be able to capitalize on the current undervaluation. More…
Peers
In the staffing industry, there is intense competition between Kelly Services Inc and its competitors Pasona Group Inc, Beijing Career International Co Ltd, and Staffing 360 Solutions Inc. All four companies are vying for a larger share of the market, and each has its own strengths and weaknesses.
– Pasona Group Inc ($TSE:2168)
Pasona Group Inc is a Japanese staffing company. The company matches workers with employers in a wide range of industries. Pasona Group Inc has a market cap of 79.76B as of 2022, a Return on Equity of 25.98%. The company has a long history and is a well-known brand in Japan.
– Beijing Career International Co Ltd ($SZSE:300662)
Beijing Career International Co Ltd is a Chinese company that operates in the education industry. The company offers a range of services including educational consulting, overseas study placement, and language training. Beijing Career International Co Ltd has a market cap of 8.58B as of 2022, a Return on Equity of 13.51%. The company has a strong focus on the Chinese education market and has a significant presence in the country. Beijing Career International Co Ltd is a publicly traded company listed on the Shenzhen Stock Exchange.
– Staffing 360 Solutions Inc ($NASDAQ:STAF)
Staffing 360 Solutions Inc is a publicly traded company with a market cap of 6.66M as of 2022. The company provides staffing and consulting services to a variety of industries, including healthcare, information technology, and finance. The company has a Return on Equity of 2.48%.
Summary
Kelly Services reported strong earnings for its third quarter of FY2023, with total revenue of USD 1118 million and net income of USD 6.6 million. This represented a 4.3% decline in total revenue and a 140.7% increase in net income from the same period the previous year. The stock price increased on the news, suggesting investors are optimistic about the company’s future prospects.
Going forward, investors should watch closely how Kelly Services performs in order to make informed decisions. Potential catalysts for the stock price include the company’s ability to maintain cost efficiencies and revenue growth, as well as the introduction of new products or services.
