This staffing firm just purchased two consulting firms, which should be immediately accretive. Analyst are forecasting an annual growth rate of 15% for the company.
Kelly Services, Inc. (KELYA)
From 2 for 1 Stock Split Newsletter
Back in the day, a person hired for temporary work in an office was often referred to as a Kelly Girl. Kelly Services, Inc. (KELYA) has evolved to provide a much more comprehensive list of staffing services, but we can still think of it as the company you can go to for a quality temporary or contract employee.
Founded in 1946 in Troy, Michigan, Kelly is now a worldwide business with 7900 employees and annual revenues of over $5.5B. Kelly will place over a half million employees in work positions this year.
Kelly will probably not be splitting its stock, but it generates a terrific number on our scoring
algorithm. Selling at below book value, with a forward looking PE of less than 10, KELYA is way over at the value end of the value-to-growth spectrum.
The company has some short-term debt but zero long-term debt and pays a respectable dividend.
There is a lot to like here but this will probably not be a rocket. KELYA’s profit margin and returns are rather thin and sales have been fairly flat for several years. However, Kelly has recently acquired Global Technology Associates and NextGen, two niche engineering consulting firms that should be adding to the bottom line immediately.
It appears the market has not recognized this change in circumstances. This is a defensive play, but with the potential for an increase in the stock price over the next few years.
Neil Macneale, 2 for 1 Stock Split Newsletter, www.2-for-1.com, 408-210-6881, July 2019