ManpowerGroup (MAN) AI Stock Analysis

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ManpowerGroup

(NYSE:MAN)

68Neutral

ManpowerGroup's stock is rated at 68, reflecting a stable financial position with efficient cost and cash flow management, but facing revenue growth challenges. The technical analysis indicates a neutral trend, and the valuation is fair with an attractive dividend yield. Earnings call insights highlight regional challenges but also potential growth areas, particularly in AI and Talent Solutions. Overall, while the company has a solid foundation, it needs to address profitability volatility and leverage growth strategies to improve its outlook.

Positive Factors

Growth in US Market

The Manpower brand and Talent Solutions crossed over to growth in the US in Q3.

Investment in Technology

MAN has been heavily investing in the PowerSuite cloud-based platform to help recruiter productivity and enhance efficiency.

Revenue Growth

MSP grew ~double-digits in 3Q24, driving +7% constant currency Talent Solutions growth.

Negative Factors

European Economic Challenges

MAN's valuation has been negatively affected by its European exposure, compounded by greater recessionary fears in Europe.

Regulatory Uncertainty

Uncertainty in the regulatory outlook, especially with recent tweaks in Sweden on temp staffing and the French budget reform impact on corporate taxes.

Tariff Impact

Increases in tariffs could hurt some of its non-US business, particularly the auto sector, which accounts for about 7% of global revenues.

ManpowerGroup (MAN) vs. S&P 500 (SPY)

Market Cap

$2.39B

Dividend Yield6.03%

Average Volume (3M)876.14K

Price to Earnings (P/E)17.0

Beta (1Y)0.73

Revenue Growth-5.61%

EPS Growth77.92%

CountryUS

Employees26,700

SectorIndustrials

Sector Strength69

IndustryStaffing & Employment Services

Share Statistics

EPS (TTM)3.00

Shares Outstanding46,740,196

10 Day Avg. Volume831,419

30 Day Avg. Volume876,145

Financial Highlights & Ratios

PEG Ratio0.22

Price to Book (P/B)N/A

Price to Sales (P/S)0.15

Price to Cash Flow (P/CF)2.70

P/FCF Ratio2.10

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$59.20

Price Target Upside15.85% Upside

Rating ConsensusHold

Number of Analyst Covering5

ManpowerGroup Business Overview & Revenue Model

Company DescriptionManpowerGroup (MAN) is a global leader in workforce solutions, offering a comprehensive suite of services to help companies manage their talent needs. The company operates across multiple sectors, including staffing, recruitment, workforce management, and talent development. Its core services include temporary staffing, permanent placement, career management, and outsourcing solutions. ManpowerGroup is dedicated to connecting people with meaningful employment opportunities while providing businesses with skilled workforce solutions.

How the Company Makes MoneyManpowerGroup makes money primarily through its staffing and workforce solutions services. The company generates revenue by providing temporary and permanent staffing solutions, charging client companies for the placement of workers. Its key revenue streams include fees from temporary staffing assignments, which are typically based on the number of hours worked by placed employees, and permanent placement services, which involve a one-time fee based on a percentage of the hired employee's salary. Additionally, the company's talent management and workforce development services contribute to its earnings by offering training and development programs that help clients enhance the skills of their workforce. ManpowerGroup's global presence and partnerships with various industries and sectors further bolster its revenue streams by ensuring a diverse client base and a steady demand for its services.

ManpowerGroup Financial Statement Overview

Summary

ManpowerGroup demonstrates stable financial performance with efficient cost management and strong cash flow. However, challenges in revenue growth and fluctuating profitability metrics present areas for improvement. The balance sheet remains solid with controlled leverage, but volatility in return metrics suggests potential profitability issues.

Income Statement

Positive

ManpowerGroup shows a mixed performance in its income statement. The gross profit margin remains stable due to consistent gross profit figures. However, the net profit margin has seen significant fluctuations, with a reduction in net income in recent years impacting profitability. Revenue growth has been negative, indicating challenges in expanding sales, although EBIT and EBITDA margins are relatively stable, suggesting cost management efficiency.

Balance Sheet

Positive

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio, indicating prudent financial leverage. The equity ratio suggests a reasonable level of equity financing, although a slight decrease in stockholders' equity in recent years may pose a concern. Return on Equity has been volatile, highlighting potential profitability issues.

Cash Flow

Positive

Cash flow analysis shows a strong operating cash flow, which supports liquidity and operational efficiency. However, free cash flow has seen fluctuations, impacted by changes in capital expenditure and operating cash flow. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to net income.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
3.09B	18.91B	19.83B	20.72B	18.00B
	Gross Profit
3.09B	3.36B	3.57B	3.41B	2.82B
	EBIT
306.00M	255.80M	581.70M	585.40M	262.70M
	EBITDA
433.40M	374.20M	688.60M	680.30M	267.30M
	Net Income Common Stockholders
145.10M	88.80M	373.80M	382.40M	23.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
509.40M	581.30M	639.00M	847.80M	1.57B
	Total Assets
8.20B	8.83B	9.13B	9.83B	9.35B
	Total Debt
1.23B	1.43B	1.25B	1.39B	1.45B
	Net Debt
722.40M	844.70M	614.10M	546.30M	-119.90M
	Total Liabilities
6.07B	6.60B	6.67B	7.30B	6.89B
	Stockholders Equity
2.13B	2.22B	2.45B	2.52B	2.44B
Cash Flow		Free Cash Flow
258.10M	270.00M	347.70M	580.60M	885.70M
	Operating Cash Flow
309.20M	348.20M	423.30M	644.80M	936.40M
	Investing Cash Flow
-68.20M	-74.10M	-85.30M	-987.00M	-42.40M
	Financing Cash Flow
-282.40M	-349.50M	-482.10M	-283.70M	-435.20M

ManpowerGroup Technical Analysis

Technical Analysis Sentiment

Negative

Last Price51.10

Price Trends

50DMA

56.95

Negative

100DMA

58.24

Negative

200DMA

63.30

Negative

Market Momentum

MACD

-2.03

Positive

RSI

37.59

Neutral

STOCH

36.25

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAN, the sentiment is Negative. The current price of 51.1 is below the 20-day moving average (MA) of 56.28, below the 50-day MA of 56.95, and below the 200-day MA of 63.30, indicating a bearish trend. The MACD of -2.03 indicates Positive momentum. The RSI at 37.59 is Neutral, neither overbought nor oversold. The STOCH value of 36.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MAN.

ManpowerGroup Risk Analysis

ManpowerGroup disclosed 33 risk factors in its most recent earnings report. ManpowerGroup reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

ManpowerGroup Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSP	77 Outperform	$3.17B	35.55	95.48%	2.82%	1.47%	-45.91%
BBSI	75 Outperform	$1.03B	20.08	25.20%	0.79%	7.03%	7.75%
KFY	74 Outperform	$3.30B	13.75	13.92%	2.48%	-3.27%	62.57%
MAN	68 Neutral	$2.39B	17.01	6.67%	6.03%	-5.61%	77.92%
Sector *	62 Neutral	$7.62B	13.01	3.19%	3.32%	3.77%	-14.28%
TNET	61 Neutral	$3.81B	22.73	235.37%	1.27%	1.67%	-47.56%
RHI	60 Neutral	$5.05B	20.23	16.96%	4.41%	-9.33%	-37.06%

* Industrials Sector Average

Performance Comparison

MAN

ManpowerGroup

51.72

-15.73

-23.32%

BBSI

Barrett Business Services

39.84

9.95

33.29%

NSP

Insperity

85.13

-17.31

-16.90%

KFY

Korn Ferry

63.96

4.51

7.59%

RHI

Robert Half

49.41

-18.83

-27.59%

TNET

TriNet Group

78.63

-46.67

-37.25%

ManpowerGroup Earnings Call Summary

Earnings Call Date: Jan 30, 2025 | % Change Since: -15.37% | Next Earnings Date: Apr 17, 2025

Earnings Call Sentiment Negative

The earnings call presented a mixed picture. While there are some positive developments, such as growth in the Americas and strong cash flow, the overall business faced significant challenges. There were notable declines in revenue and earnings, particularly in Europe, which contributed to a negative sentiment. The company's focus on AI and Talent Solutions offers some hope for future growth, but current economic conditions remain challenging.

Highlights

AI Potential and Talent Solutions Growth

Experis Tech Talent Outlook found 58% of employers believe AI will be a job creator. Talent Solutions brand saw a revenue increase of 6% year-over-year, driven by MSP business's strong double-digit revenue growth.

Americas Segment Revenue Increase

Revenue in the Americas increased 7% year-over-year in constant currency, with the U.S. Manpower brand experiencing a 2% revenue increase.

Strong Cash Flow and Share Repurchases

Free cash flow for the full year was $258 million. In the fourth quarter, ManpowerGroup repurchased 552,000 shares of stock for $34 million.

Lowlights

Revenue Decline

Fourth-quarter revenue was $4.4 billion, down 3% year-over-year in constant currency. Full-year revenue decreased 3% in constant currency to $17.9 billion.

Significant EBITA and EPS Declines

Adjusted EBITA was $94 million, representing a decrease of 12% year-over-year. Adjusted earnings per share decreased 27% year-over-year in constant currency.

Challenging Environment in Europe

Northern Europe reported a 16% revenue decline in constant currency. The German market, in particular, experienced a 24% revenue decrease due to weak manufacturing trends.

Company Guidance

During the call, ManpowerGroup provided guidance for the first quarter of 2025, projecting earnings per share to range between $0.47 and $0.57, despite an anticipated revenue decline of 5% to 9% in constant currency. The company noted several factors impacting this guidance, including a strong U.S. dollar, fewer working days due to the leap year in 2024, and a higher tax rate compared to the prior year. Foreign currency translation is expected to negatively impact earnings by $0.06 per share. The adjusted EBITA margin is forecasted to decrease by 30 basis points compared to the prior year. ManpowerGroup also highlighted the continued investment in transformation programs, while cost reductions are being implemented in regions with challenging market conditions, such as Northern Europe and the U.K.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.