Kelly ServicesKELYB +1.50%65 Gross Margin % is 18.87% as of Mar. 2026, which is 2% above its 10-year median of 18.53. GuruFocus rates KELYB with a GF Score™ of 65/100 and a GF Value™ of $20.34 (Modestly Undervalued). The stock has 9 warning signs investors should review. Among 1,007 Business Services companies, Kelly Services ranks worse than 77.56% on this metric.
The historical rank and industry rank for Kelly Services's Gross Margin % or its related term are showing as below:
KELYB'
s Gross Margin % Range Over the Past 10 Years
Min: 17.18 Med: 18.53 Max: 20.38
Current: 19.7
During the past 13 years, the highestGross Margin % of Kelly Services was 20.38%. The lowest was 17.18%. And the median was 18.53%.
KELYB's Gross Margin % is ranked worse than 77.56% of 1007
companies
in the Business Services industry
Industry Median: 34.46
vs KELYB: 19.70
Kelly Services had a gross margin of 18.87% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Kelly Services was 2.00% per year.
Kelly Services (NAS:KELYB) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Kelly Services had a gross margin of 18.87% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Kelly Services Gross Margin % Related Terms
Kelly Services Gross Margin % Historical Data
* Premium members only.
The historical data trend for Kelly Services's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
KELYB vs TBI, HQI, ATLN: Gross Margin % Comparison
For the Staffing & Employment Services subindustry, Kelly Services's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Kelly Services Gross Margin % vs Business Services Industry
For the Business Services industry and Industrials sector, Kelly Services's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Kelly Services's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Kelly Services (KELYB) has a Gross Margin % of 18.87% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Kelly Services and its competitors. This is near median its historical median of 18.53. Over the past decade, Kelly Services' Gross Margin % has ranged from 17.18 to 20.38. According to the industry distribution chart, Kelly Services ranks #781 out of 1007 companies in the Business Services industry, placing it in the top 77.6%.
Is Kelly Services' Gross Margin % too high?
Kelly Services' current Gross Margin % of 18.87% is near median its 10-year median of 18.53. Over the past 10 years, this metric has ranged from a low of 17.18 to a high of 20.38. The Business Services industry median Gross Margin % is 34.46. Kelly Services' value of 18.87% is 45.2% below this industry median. Based on the distribution chart, Kelly Services ranks #781 out of 1007 companies in the Business Services industry, which is in the bottom quartile relative to peers. Overall, Kelly Services has a GF Score™ of 65/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Kelly Services' Gross Margin % compare to TBI and HQI?
According to the Business Services industry distribution chart, Kelly Services ranks #781 out of 1007 companies for Gross Margin %. This places Kelly Services in the lower half of its industry. The industry median Gross Margin % is 34.46. Kelly Services' value of 18.87% is 45.2% below this benchmark. Historically, Kelly Services' own Gross Margin % has ranged from 17.18 to 20.38 over the past decade. While the company's 10-year median is 18.53 vs. the industry median of 34.46, Kelly Services has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Business Services company?
The median Gross Margin % among Business Services companies is 34.46, based on 1,007 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Kelly Services's current Gross Margin % of 18.87% is 45.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Kelly Services and its competitors. For the Business Services industry, the median Gross Margin % is 34.46 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Kelly Services's current Gross Margin % is 18.87%, which is near median its own 10-year median of 18.53. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Kelly Services stock overvalued right now?
Based on GuruFocus' analysis, Kelly Services (KELYB) is currently considered Modestly Undervalued. The stock's GF Value™ is $20.34, compared to a current price of $18.27 — trading 10.2% below its estimated fair value. The current Gross Margin % is 18.87%, which is near median its 10-year median of 18.53 and 45.2% below the Business Services industry median of 34.46. Kelly Services' overall GF Score™ is 65/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Kelly Services (KELYB), the current Gross Margin % is 18.87% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Kelly Services (KELYB) Overvalued in 2026?
Based on GuruFocus' analysis, Kelly Services stock appears to be undervalued.
The current stock price of $18.27 is trading 10.2% below its estimated GF Value™ of $20.34.
GuruFocus considers Kelly Services to be Modestly Undervalued.
Key valuation signals for KELYB:
Gross Margin %: 18.87% (near median its 10-year median of 18.53)
GF Value™: $20.34 vs. price of $18.27 (10.2% below fair value)
Industry Position: 45.2% below the Business Services median (#781 of 1007)
No single metric tells the full story. See the KELYB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Kelly Services Inc is a specialty talent solutions company. The company operates through three reportable segments: i) Enterprise Talent Management, which provides temporary staffing, outsourcing, and permanent placement services across industrial, contact center, and clerical roles, ii) Science, Engineering & Technology, which supplies specialized talent across multiple industries, and iii) Education, which delivers staffing, placement, and executive search services to Pre-K-12 school districts and education organizations in the United States. The majority of the company's revenue is derived from the Enterprise Talent Management segment. Geographically, it generates the maximum revenue from the United States, followed by Europe and the Asia-Pacific Region.
65GF Score
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