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Kelly Services

KELYB
22
Staffing & Employment Services · Industrials
Price
$23.19
-0.28 (-1.19%)
Market Cap
$529.5M
Exchange
NASDAQ Global Select
Winston Score
22
Winston is worried
Weak fundamentals across most pillars.
Data as of Aug 23, 2026 · filings through Jun 28, 2026
How the score breaks down
Quality
Weak
Growth
Weak
Cash Flow
Weak
Stability
Good
Valuation
Data not available
Dividends
Weak

Share count falling — buybacks

11.1% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 39.5M (2021) → 35.1M (2025)

Winston Score History

The full picture

Kelly Services is a staffing company that connects workers with employers who need temporary, contract, or permanent employees. It focuses on specialized fields like science, engineering, technology, education, and healthcare, placing workers at companies across many industries. Founded in 1946, Kelly is one of the oldest and most recognized names in the staffing industry.

Kelly makes money by charging employers a fee or markup on the wages of workers it places — essentially acting as a middleman between job seekers and businesses. The company operates mainly in the United States but also has international operations. Its long history and industry specialization give it some brand recognition, but staffing is a highly competitive, low-margin business with many rivals. The biggest risk Kelly faces is economic slowdown — when companies cut costs, temporary workers are often the first to go, which directly hurts Kelly's revenue and profitability, as reflected in its current negative operating margin.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-5.8% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-42.6% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

95.3%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$31M cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Kelly Services's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
20.4%
Thin — 20.4% gross margin
Profit after running costs
Operating Margin
1.6%
Thin — 1.6% operating margin
Return on the money invested
ROCE
-8.0%
Weak — -8.0% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth
Sales YoY
-9.6%
Shrinking sales (-9.6% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
1/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
N/A
Data not available
Spare cash per sale
FCF Margin
0.5%
Thin free cash flow (0.5%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

What it owes vs what it owns
Debt / Equity
0.08
Conservative — low debt load (0.08)
Covers its interest
Interest Cover
N/A
Data not available

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Valuation

Price vs profit
P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

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Dividends

Dividend
Dividend Yield
1.86%
Small dividend — 1.86% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend record
Dividend Growth
+0.0%
Dividend flat

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