Fair value: the average of the applicable valuation models (discounted cash flow, multiples, residual income, dividend discount, shareholder yield), each run on the latest financial statements and the market price shown. Opinion columns (fair value, target, rating) are shown apart from the data. Full methodology: acceinvestments.com/data/how-we-value-stocks
Conflicts of interest: The author holds no personal position in this security. General statement
Produced by ACCE Investments (acceinvestments.com)
Data
Price vs fair value
22.5% below
+29.0% to fair value
ACCE score
52
out of 100
1-year return
+109.2%
Dividend yield
1.34%
Kelly Services Inc. Class B Common Stock in four questions
Plain answers, details below
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Overview
ACCE thesis
Kelly Services runs staffing and workforce solutions, placing temporary and contract workers across clerical, professional, education and industrial roles, with a managed services and outsourcing arm layered on top. The bear case is visible in the numbers: revenue is shrinking 5.8%, return on equity is negative at -24.3%, and operating margin is just 1.9% on a 19.7% gross margin, so there is little cushion if staffing demand keeps softening. The forward P/E of 11.9 is the reason it is on the list, since it prices in a recovery that the trailing figures do not yet show. The stock is outside any index, which often means less sell-side coverage and more room for a mispricing, though the score of 52 out of 100 says the quality signals are mixed at best. Worth a deeper look only if the work can establish that margins and revenue trends are bottoming rather than still declining.