Kelly Services Stock Intrinsic Value – Kelly Services Reports Q2 2021 Earnings Results
August 26, 2023
🌥️Earnings Overview
Kelly Services ($NASDAQ:KELYA) released their financial report for the second quarter of 2021, which ended on June 30 2023. The total revenue remained the same as the previous year at USD 1217.2 million, and net income was USD 7.5 million, remaining equal to that of the prior year.
Stock Price
On Thursday, Kelly Services reported its Q2 2021 earnings results. The company saw the stock price open at $18.1 and close at $17.5, representing a decrease of 4.5% from the previous closing price of 18.3. The decrease in price indicates investor skepticism towards the company’s outlook for the quarter and the future of earnings. These results were affected by the pandemic and the resulting economic downturn, as well as increased competition in the market. Despite these figures, Kelly Services maintains a financially sound position with a strong balance sheet.
The company also has a large backlog of orders and a healthy portfolio of businesses, which gives them confidence in their ability to remain successful in the near future. They have also put in place various cost-cutting strategies to ensure profitability in the upcoming quarters. Going forward, Kelly Services expects to be able to benefit from growing demand for their services and products, as well as an increase in their customer base. With their solid fundamentals and cost-cutting measures in place, they are positioned to make a comeback in the coming quarters and deliver strong earnings results for shareholders. 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 |
| 4.89k | 0.9 | 0.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Kelly Services. More…
| Operations | Investing | Financing |
| 54.4 | -15.8 | -62.1 |
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 |
| 2.6k | 1.35k | 35.09 |
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 |
| 0.3% | -11.1% | 0.1% |
| FCF Margin | ROE | ROA |
| 0.7% | 0.2% | 0.1% |
Analysis – Kelly Services Stock Intrinsic Value
At GoodWhale, we take an in-depth look at the fundamentals of KELLY SERVICES to provide our users with an accurate and up-to-date stock analysis. Our proprietary Valuation Line provides us with an indication of the fair value of KELLY SERVICES’s stock, which is currently around $26.9. At the time of writing, KELLY SERVICES’s stock is trading at $17.5, which is 34.8% lower than its estimated fair value. This suggests that investors may be able to take advantage of what appears to be an attractive opportunity to buy KELLY SERVICES stock at a discount. More…
Peers
In the staffing industry, there is intense competition between Kelly Services Inc and its competitors Pasona Group Inc, Beijing Career International Co Ltd, and Staffing 360 Solutions Inc. All four companies are vying for a larger share of the market, and each has its own strengths and weaknesses.
– Pasona Group Inc ($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
Despite this, the stock price fell on the news, likely due to its lack of growth. Investors are likely looking for more robust numbers to justify a higher stock price. Long-term prospects of the stock will depend on the company’s ability to increase its revenue and net income going forward.
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