ManpowerGroup Greater China Limited (2180) AI Stock Analysis

• Market Cap: HK$1.11B
• Dividend Yield: 36.73%
• Average Volume (3M): 21.18K
• Price to Earnings (P/E): 7.3
• Beta (1Y): 0.20
• Revenue Growth: 17.49%
• EPS Growth: 9.67%
• Country: HK
• Employees: 1,116
• Sector: Industrials
• Sector Strength: 72
• Industry: Staffing & Employment Services
• EPS (TTM): 0.33
• Shares Outstanding: 207,505,000
• 10 Day Avg. Volume: 20,825
• 30 Day Avg. Volume: 21,183
• PEG Ratio: 2.00
• Price to Book (P/B): 0.67
• Price to Sales (P/S): 0.13
• P/FCF Ratio: 10.96
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: HK$6.00 ▲(15.38% Upside)

ManpowerGroup Greater China Limited's overall stock score is driven by its strong valuation metrics, including a low P/E ratio and high dividend yield, which suggest potential undervaluation and attractive income potential. Financial performance is stable, with a strong balance sheet, though margin pressures need addressing. Technical analysis indicates mild bullish sentiment but limited momentum.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a positive trajectory, reflecting the company's ability to expand its market presence and attract more clients.

Balance Sheet Health

A strong balance sheet with low leverage enhances financial stability, providing the company with flexibility to invest in growth opportunities.

Cash Conversion

Efficient cash conversion indicates robust financial management, ensuring that most net income is translated into free cash flow, supporting future investments.

Negative Factors

Margin Pressure

Declining margins suggest challenges in maintaining profitability, which could impact long-term financial performance unless addressed.

Free Cash Flow Decline

A decline in free cash flow growth can strain the company's ability to fund operations and growth initiatives, potentially affecting its financial health.

Operational Efficiency Challenges

Modest operational efficiency reflects potential challenges in cost management, which could hinder profitability improvements and competitive positioning.

ManpowerGroup Greater China Limited Business Overview & Revenue Model

Company Description

ManpowerGroup Greater China Limited, an investment holding company, provides workforce solutions and services in the People's Republic of China, Hong Kong, Macau, and Taiwan. The company operates through Workforce Solutions and Other HR Services segments. It offers flexible staffing solutions to provide contingent workers to manage headcount or only require workers for a limited time or a specific project; headhunting services that help enterprises in selecting various senior-level talents; recruiting process outsourcing management services and recruitment services; and candidate assessments, screening, conducting candidate interviews, sourcing technology, and marketing and recruiting expertise. The company provides human resource (HR) services, including HR consultancy services, training and development services, career transition services, payroll services, and compensation and benefits services, as well as leadership development, career management, and talent assessment. ManpowerGroup Greater China Limited was founded in 1997 and is headquartered in Shanghai, the People's Republic of China.

How the Company Makes Money

ManpowerGroup Greater China Limited generates revenue primarily through its staffing and recruitment services, which include temporary staffing, permanent placement, and workforce consulting. The company charges fees to client organizations for providing candidates and managing workforce solutions, typically structured as a percentage of the candidate's salary or a flat fee based on the service provided. Additionally, revenue is derived from recruitment process outsourcing and managed services, where clients pay for the comprehensive management of their hiring processes and workforce needs. Key revenue streams also include project-based contracts and long-term partnerships with organizations looking for specialized workforce solutions. Factors contributing to its earnings include the growing demand for flexible staffing solutions, the expansion of the gig economy, and strategic collaborations with businesses across diverse industries.

ManpowerGroup Greater China Limited Financial Statement Overview

Summary

ManpowerGroup Greater China Limited demonstrates a stable financial position with strong balance sheet metrics, including low leverage and healthy return on equity. The income statement shows growth in revenue but declining margins, which could impact future profitability. Cash flow metrics indicate some challenges in free cash flow growth, but overall cash conversion remains strong. The company is well-positioned in terms of financial stability, but needs to address margin pressures to enhance profitability.

Income Statement

The company shows a steady revenue growth rate of 3.61% TTM, indicating a positive trajectory. However, the gross profit margin has decreased over the years, currently at 9.79% TTM, which is relatively low for the industry. The net profit margin is stable at 2.07% TTM, but it has declined from previous years, suggesting pressure on profitability. EBIT and EBITDA margins are modest, reflecting operational efficiency challenges.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.028 TTM, indicating low leverage and financial stability. The return on equity is healthy at 10.96% TTM, showing effective use of equity to generate profits. The equity ratio is solid, suggesting a strong capital structure with a good proportion of equity financing.

Cash Flow

The cash flow statement reveals a decline in free cash flow growth by 9.61% TTM, which is a concern. However, the operating cash flow to net income ratio is 0.07, indicating that cash flows are covering net income, albeit at a low level. The free cash flow to net income ratio is strong at 0.96, suggesting that most of the net income is being converted into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.74B	6.27B	5.30B	4.59B	3.97B	3.22B
Gross Profit	618.14M	613.63M	622.58M	623.93M	638.23M	535.50M
EBITDA	202.39M	186.50M	226.96M	221.72M	236.85M	212.53M
Net Income	137.79M	129.85M	126.48M	118.61M	139.17M	126.36M
Balance Sheet
Total Assets	2.63B	2.55B	2.14B	1.93B	1.99B	1.86B
Cash, Cash Equivalents and Short-Term Investments	940.23M	930.05M	935.14M	928.14M	1.05B	1.06B
Total Debt	41.00M	35.38M	39.85M	55.87M	44.97M	64.94M
Total Liabilities	1.24B	1.18B	857.65M	779.07M	659.78M	604.10M
Stockholders Equity	1.26B	1.25B	1.17B	1.06B	1.25B	1.19B
Cash Flow
Free Cash Flow	63.08M	76.49M	71.13M	251.43M	81.20M	249.34M
Operating Cash Flow	65.29M	79.88M	82.26M	266.24M	99.83M	272.55M
Investing Cash Flow	132.37M	60.75M	-63.52M	75.22M	126.41M	-281.27M
Financing Cash Flow	-87.17M	-92.36M	-61.70M	-417.31M	-97.83M	-90.14M

ManpowerGroup Greater China Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2180, the sentiment is Positive. The current price of 5.2 is below the 20-day moving average (MA) of 5.21, above the 50-day MA of 5.18, and above the 200-day MA of 4.31, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 57.21 is Neutral, neither overbought nor oversold. The STOCH value of 53.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2180.

ManpowerGroup Greater China Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
1568	78 Outperform	HK$1.60B	5.53	8.17%	8.00%	-9.50%	-24.73%
2180	73 Outperform	HK$1.11B	7.31	11.29%	36.73%	17.49%	9.67%
6100	72 Outperform	HK$1.91B	12.39	―	―	-10.48%	30250.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
1719	59 Neutral	HK$569.27M	48.53	1.52%	―	19.79%	-33.33%
6919	46 Neutral	HK$685.64M	-11.88	-4.09%	2.26%	14.29%	-200.37%