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ManpowerGroup (MAN)
NYSE:MAN
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ManpowerGroup
(NYSE:MAN)
Rating:57Neutral
Price Target:―
Positive Factors
Defense Spending
Announced defense spending initiatives in Europe could provide a tailwind to the company’s manufacturing-heavy footprint in the region.
Regional Growth
The U.S. Manpower brand rebounded nicely to 7% days-adjusted growth, indicating a positive shift in performance.
Trade Policy
Most clients are optimistic that the 'trade wars' will be modified, potentially leading to hiring once again.
Negative Factors
Dividend Reduction
MAN announced it was reducing its semi-annual dividend by 53% to $0.72, citing the 'current environment and related payout and yield ratios.'
Earnings and Guidance
Guidance for margins and EPS was disappointing, with a drag from softness in higher-margin businesses like permanent placement.
European Exposure
MAN's valuation historically has been negatively affected by its European exposure, with greater recessionary fears in Europe.
ManpowerGroup (MAN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.05B
Dividend Yield3.27%
Average Volume (3M)808.52K
Price to Earnings (P/E)19.2
Beta (1Y)0.90
Revenue Growth-5.52%
EPS Growth133.51%
CountryUS
Employees26,700
SectorIndustrials
Sector Strength86
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.44
Shares Outstanding46,282,436
10 Day Avg. Volume919,640
30 Day Avg. Volume808,524
Financial Highlights & Ratios
PEG Ratio-0.59
Price to Book (P/B)1.78
Price to Sales (P/S)0.00
P/FCF Ratio14.66
Enterprise Value/Market Cap2.42
Enterprise Value/Revenue0.08
Enterprise Value/Gross Profit1.64
Enterprise Value/Ebitda3.65
Forecast
1Y Price Target
$47.80Price Target Upside8.00% Upside
Rating ConsensusHold
Number of Analyst Covering8
ManpowerGroup Business Overview & Revenue Model
Company DescriptionManpowerGroup Inc. provides workforce solutions and services in the Americas, Southern Europe, Northern Europe, and the Asia Pacific Middle East region. The company offers recruitment services, including permanent, temporary, and contract recruitment of professionals, as well as administrative and industrial positions under the Manpower and Experis brands. It also offers various assessment services; training and development services; career management; and outsourcing services related to human resources functions primarily in the areas of large-scale recruiting and workforce-intensive initiatives. In addition, the company provides workforce consulting services; contingent staffing and permanent recruitment services; professional resourcing and project-based solutions in information technology, engineering, and finance fields; solutions in the areas of organizational efficiency, individual development, and career mobility; and recruitment process outsourcing, TAPFIN managed, and talent based outsourcing services, as well as Proservia services in the areas of digital services market and IT infrastructure sector. It operates through a network of approximately 2,200 offices in 75 countries and territories. The company was incorporated in 1948 and is based in Milwaukee, Wisconsin.
How the Company Makes MoneyManpowerGroup makes money primarily through its staffing and workforce solutions services. The company generates revenue by supplying temporary and permanent staffing to businesses, charging fees for the placement and use of its personnel. Additionally, ManpowerGroup earns income from consulting services related to workforce management, talent assessment, and development. Key revenue streams include temporary staffing, which involves providing employees on a contractual basis, and permanent recruitment, where the company charges businesses for successfully placing candidates in long-term positions. Partnerships with organizations across diverse industries and its global reach contribute significantly to its earnings, allowing the company to capitalize on varying market demands and economic conditions.
ManpowerGroup Earnings Call Summary
Earnings Call Date:Apr 17, 2025
(Q1-2025)
| % Change Since: -9.04%|
Next Earnings Date:Jul 17, 2025
Earnings Call Sentiment Negative
The earnings call highlights some positive developments in specific regions and segments, such as growth in the Americas and APME, and advancements in technology and AI. However, these are overshadowed by significant revenue declines, challenges in Northern Europe, and increased tax charges in France. The overall sentiment is cautious due to the uncertainty surrounding trade policies and weak permanent recruitment trends.Q1-2025 Updates
Positive Updates
Revenue Growth in Key Regions
The Americas segment saw a 5% revenue increase year-over-year on a constant currency basis, with the U.S. reporting a 2% increase. Italy also experienced a 5% revenue increase in constant currency.
Strong Performance in APME
Asia Pacific Middle East segment revenues increased by 7% in organic constant currency, with Japan growing 9% on a days-adjusted constant currency basis.
U.S. Manpower Brand Improvement
The U.S. Manpower brand reported a 7% increase in revenue on a days-adjusted basis, indicating strong market performance and improvement from previous quarters.
MSP Business Growth
The Managed Service Provider (MSP) business recorded a strong double-digit revenue increase compared to the prior year.
Technological Advancements
Continued investment in technology and AI, with plans to showcase innovations at VivaTech in Paris. The company is leveraging AI for workforce insights and improving candidate experience.
Negative Updates
Overall Revenue Decline
First quarter revenue was $4.1 billion, down 5% year-over-year in constant currency. Adjusted EBITDA decreased by 32% year-over-year in constant currency.
Decline in Permanent Recruitment
Permanent recruitment softened further, contributing to weaker gross profit margins, with a year-over-year decrease of 8% in the first quarter.
Challenges in Northern Europe
Northern Europe segment revenue declined by 14% in constant currency, with significant restructuring charges, particularly in the Nordics, Belgium, and the U.K.
Gross Profit Decrease
Consolidated gross profit decreased by 6% on an organic constant currency basis year-over-year, with notable declines in Experis and Talent Solutions.
Increased Tax Charges in France
Higher tax charges from a France law change imposed for the fiscal year 2025 impacted earnings, increasing the global effective tax rate.
Company Guidance
In the first quarter of 2025, ManpowerGroup reported revenue of $4.1 billion, a 5% decline year-over-year in constant currency, while adjusted EBITDA stood at $52 million, down 32% in constant currency. The company's adjusted EBITDA margin was 1.3%, and adjusted earnings per share were $0.44, reflecting a 51% decrease year-over-year in constant currency. Despite challenges, particularly in Europe and North America, the company's Latin America and Asia Pacific Middle East segments showed positive demand trends. ManpowerGroup's second-quarter guidance anticipates earnings per share between $0.65 and $0.75, with a constant currency revenue decrease of 3% to 7%, and an estimated effective tax rate of 46.5%, impacted by a one-year French tax increase. The company continues to focus on cost management, technology investments, and strategic brand alignment to navigate the uncertain economic environment.ManpowerGroup Financial Statement Overview
Summary
ManpowerGroup presents a mixed financial picture with moderate revenue growth and stable leverage, but struggles with profitability and cash flow generation. The company maintains a balanced debt position, yet its returns on equity and cash flow metrics suggest potential areas for improvement. Overall, a focus on enhancing operational efficiencies and cash management could strengthen financial stability.Income Statement
ManpowerGroup has shown moderate revenue growth with some fluctuations. The TTM gross profit margin is 28.78%, indicating healthy profitability. However, the net profit margin is relatively low at 1.06%, reflecting some challenges in controlling costs or competitive pricing pressure. The EBIT and EBITDA margins are also modest at 2.55% and 3.11% respectively, suggesting operational efficiencies can be improved.65
Positive
Balance Sheet
The balance sheet is stable with a debt-to-equity ratio of 0.70, indicating a balanced leverage position. The equity ratio of 26.16% shows a reasonable proportion of assets financed by equity. However, the return on equity is low at 5.28%, suggesting the company is not generating high returns on shareholders' equity.70
Positive
Cash Flow
Cash flow performance is below average with a negative TTM free cash flow. The operating cash flow to net income ratio is 0.36, indicating that net income is not translating effectively into cash. The free cash flow to net income ratio is negative, further highlighting challenges in cash generation.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 10.50B | 17.85B | 18.91B | 19.83B | 20.72B | 18.00B |
| Gross Profit | 3.02B | 3.09B | 3.36B | 3.57B | 3.41B | 2.82B |
| EBITDA | 359.20M | 433.40M | 374.20M | 688.60M | 680.30M | 267.30M |
| Net Income | 111.00M | 145.10M | 88.80M | 373.80M | 382.40M | 23.80M |
Balance Sheet | ||||||
| Total Assets | 9.22B | 8.20B | 8.83B | 9.13B | 9.83B | 9.35B |
| Cash, Cash Equivalents and Short-Term Investments | 1.03B | 509.40M | 581.30M | 639.00M | 847.80M | 1.57B |
| Total Debt | 1.41B | 1.23B | 1.43B | 1.25B | 1.39B | 1.45B |
| Total Liabilities | 6.46B | 6.07B | 6.60B | 6.67B | 7.30B | 6.89B |
| Stockholders Equity | 2.74B | 2.13B | 2.22B | 2.45B | 2.52B | 2.44B |
Cash Flow | ||||||
| Free Cash Flow | -13.00M | 258.10M | 270.00M | 347.70M | 580.60M | 885.70M |
| Operating Cash Flow | 40.00M | 309.20M | 348.20M | 423.30M | 644.80M | 936.40M |
| Investing Cash Flow | -73.10M | -68.20M | -74.10M | -85.30M | -987.00M | -42.40M |
| Financing Cash Flow | -179.20M | -282.40M | -349.50M | -482.10M | -283.70M | -435.20M |
ManpowerGroup Technical Analysis
Neutral
44.26
Price Trends
41.34
Positive
47.91
Negative
54.73
Negative
Market Momentum
0.14
Negative
62.26
Neutral
89.50
Negative
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 44.26 is above the 20-day moving average (MA) of 40.97, above the 50-day MA of 41.34, and below the 200-day MA of 54.73, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 62.26 is Neutral, neither overbought nor oversold. The STOCH value of 89.50 is Negative, 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 (71)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.84B | 16.08 | 13.49% | 2.57% | -1.23% | 44.06% | |
77 Outperform | $1.10B | 21.91 | 25.86% | 0.75% | 8.41% | 7.93% | |
71 Outperform | ¥254.55B | 13.00 | 8.49% | 3.09% | 6.31% | 12.77% | |
63 Neutral | $3.60B | 22.19 | 162.14% | 1.49% | 1.50% | -44.95% | |
61 Neutral | $4.38B | 21.40 | 14.49% | 5.48% | -7.81% | -40.22% | |
57 Neutral | $2.31B | 37.12 | 48.65% | 3.89% | 1.90% | -60.33% | |
57 Neutral | $2.05B | 19.20 | 5.19% | 3.27% | -5.52% | 133.51% |
* Industrials Sector Average
Performance Comparison
MAN
ManpowerGroup
44.26
-23.41
-34.59%
BBSI
Barrett Business Services
43.17
10.83
33.49%
NSP
Insperity
61.36
-24.99
-28.94%
KFY
Korn Ferry
73.98
9.13
14.08%
RHI
Robert Half
42.85
-19.02
-30.74%
TNET
TriNet Group
74.36
-22.80
-23.47%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.