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ManpowerGroup (MAN)
NYSE:MAN
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ManpowerGroup
(NYSE:MAN)58Neutral
Positive Factors
Investment in Technology
MAN has been heavily investing in the PowerSuite cloud-based platform for front office to help recruiter productivity and back office to enhance efficiency and drive savings.
Negative Factors
European Economic Concerns
MAN's valuation has been negatively affected by its European exposure, compounded by greater recessionary fears in Europe.
Tariffs and Revenue 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
$2.69B
Dividend Yield5.35%
Average Volume (3M)788.09K
Price to Earnings (P/E)19.2
Beta (1Y)0.90
Revenue Growth-5.61%
EPS Growth77.92%
CountryUS
Employees27,900
SectorIndustrials
Sector Strength66
IndustryCorporate Services
Share Statistics
EPS (TTM)3.00
Shares Outstanding46,692,204
10 Day Avg. Volume796,068
30 Day Avg. Volume788,086
Financial Highlights & Ratios
PEG Ratio0.25
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
$62.17Price Target Upside8.40% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering6
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 a stable overall financial performance with efficient cost management and a strong cash flow position. 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
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.67
Positive
Balance Sheet
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.72
Positive
Cash Flow
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.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| 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
Neutral
57.35
Price Trends
57.40
Positive
60.27
Negative
65.29
Negative
Market Momentum
-0.51
Negative
53.83
Neutral
74.29
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAN, the sentiment is Neutral. The current price of 57.35 is above the 20-day moving average (MA) of 56.14, below the 50-day MA of 57.40, and below the 200-day MA of 65.29, indicating a neutral trend. The MACD of -0.51 indicates Negative momentum. The RSI at 53.83 is Neutral, neither overbought nor oversold. The STOCH value of 74.29 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $3.19B | 35.79 | 93.81% | 2.76% | 1.47% | -45.91% | |
69 Neutral | $23.61B | 22.35 | 45.81% | 1.40% | -1.77% | -1.82% | |
62 Neutral | $8.11B | 13.34 | 1.17% | 3.02% | 4.16% | -15.14% | |
60 Neutral | $5.76B | 23.09 | 18.26% | 3.87% | -9.33% | -37.06% | |
58 Neutral | $2.69B | 19.18 | 6.83% | 5.35% | -5.61% | 77.92% | |
56 Neutral | $470.21M | 11.43 | -0.05% | 2.33% | -10.42% | -101.51% | |
44 Neutral | $186.57M | ― | -39.87% | ― | -17.78% | -820.48% |
* Industrials Sector Average
Performance Comparison
MAN
ManpowerGroup
57.35
-11.95
-17.24%
NSP
Insperity
85.71
-7.43
-7.98%
KELYA
Kelly Services
12.94
-10.55
-44.91%
RHI
Robert Half
54.98
-20.93
-27.57%
TBI
Trueblue
5.66
-5.70
-50.18%
CDW
CDW
171.32
-70.68
-29.21%
ManpowerGroup Earnings Call Summary
Earnings Call Date: Jan 30, 2025 | % Change Since: -5.02% | Next Earnings Date: Apr 22, 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.