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ManpowerGroup (MAN)
NYSE:MAN
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ManpowerGroup
(NYSE:MAN)
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Rating:54Neutral
Price Target:
$42.00
â–²(11.17% Upside)
ManpowerGroup's overall stock score is influenced by financial challenges, including declining revenues and profitability, and a bearish technical outlook. While the company is making strategic moves to stabilize and gain market share, significant risks remain, particularly in profitability and cash flow pressures. The high dividend yield offers some appeal to income investors, but the negative P/E ratio reflects ongoing financial difficulties.
Positive Factors
Market Share Gains
Gaining market share through strategic initiatives and AI-enhanced analytics positions the company for long-term growth and competitive advantage.
Strong Cash Generation
Strong cash generation supports financial stability and provides flexibility for investments and debt management, crucial for long-term sustainability.
Recognition and Awards
Recognition as a top staffing firm enhances brand reputation, attracting clients and talent, which can drive sustained business growth.
Negative Factors
Revenue Decline
Declining revenue indicates challenges in maintaining market demand and could impact long-term profitability and market positioning.
Profitability Pressures
Significant decline in EBITDA suggests ongoing profitability challenges, which may affect the company's ability to invest and grow.
Negative Free Cash Flow
Negative free cash flow indicates potential liquidity issues, limiting the company's ability to fund operations and strategic initiatives.
ManpowerGroup (MAN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.81B
Dividend Yield6.05%
Average Volume (3M)1.11M
Price to Earnings (P/E)18.4
Beta (1Y)0.95
Revenue Growth-3.79%
EPS Growth-138.56%
CountryUS
Employees26,700
SectorIndustrials
Sector Strength72
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.78
Shares Outstanding46,291,084
10 Day Avg. Volume1,751,100
30 Day Avg. Volume1,107,381
Financial Highlights & Ratios
PEG Ratio0.27
Price to Book (P/B)1.30
Price to Sales (P/S)0.15
P/FCF Ratio10.69
Enterprise Value/Market Cap1.83
Enterprise Value/Revenue0.19
Enterprise Value/Gross Profit1.10
Enterprise Value/Ebitda14.20
Forecast
1Y Price Target
$47.17Price Target Upside24.85% Upside
Rating ConsensusHold
Number of Analyst Covering9
ManpowerGroup Business Overview & Revenue Model
Company DescriptionManpowerGroup (MAN) is a global leader in innovative workforce solutions, providing a range of staffing and recruitment services. The company operates in several sectors, including staffing, recruitment, and talent management, serving various industries such as IT, finance, engineering, and healthcare. Core products and services include temporary staffing, permanent placement, employee assessments, and workforce consulting, aimed at connecting businesses with the right talent to meet their needs.
How the Company Makes MoneyManpowerGroup generates revenue primarily through its staffing and recruitment services. The company earns money by charging clients a fee for the placement of temporary and permanent employees, which is typically a percentage of the employee's salary or an hourly rate multiplied by the hours worked. Additionally, ManpowerGroup offers value-added services such as training, talent assessment, and workforce management solutions, which further contribute to its revenue streams. Significant partnerships with businesses across various industries enhance its ability to provide tailored workforce solutions, thereby driving earnings. The company also benefits from economic trends that affect employment levels, as demand for staffing services often increases during periods of economic growth.
ManpowerGroup Earnings Call Summary
Earnings Call Date:Jul 17, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with encouraging signs of stabilization in some markets, particularly in the U.S. and specific segments like Manpower and Talent Solutions. However, significant challenges persist in terms of overall revenue decline, particularly in the Experis brand and Northern Europe. The company is making strategic moves to gain market share and is recognized for its achievements, but profitability and cash flow pressures remain.Q2-2025 Updates
Positive Updates
Encouraging Signs of Stabilization
The company observed encouraging signs of stabilization in the U.S. and parts of Europe, with a return to revenue growth in the Manpower and Talent Solutions brands.
Strong Performance in Specific Segments
System-wide revenue was $4.9 billion, and specific growth was noted in the Manpower brand (1% growth) and Talent Solutions brand (1% growth) on an organic constant currency basis.
Positive Market Share Gains
The company is gaining market share through targeted industry verticals using AI-enhanced data analytics and anticipates further growth in the U.S. Manpower segment, which saw 9% growth.
Recognition and Awards
ManpowerGroup received Forbes America's #1 rating as the best temp staffing firm and was recognized by Everest Group as a global leader in RPO.
Negative Updates
Revenue and Profit Declines
Reported revenue was $4.5 billion, down 3% year-over-year in constant currency. Adjusted EBITDA decreased 25% year-over-year in constant currency.
Significant Decline in Experis Brand
The Experis brand experienced a 9% decline in revenue on an organic constant currency basis, largely due to the nonrecurrence of healthcare technology projects.
Northern Europe Challenges
Northern Europe faced significant declines with a 10% revenue drop in constant currency, and restructuring charges were taken in the Nordics, Netherlands, and Germany.
Negative Free Cash Flow
Free cash flow represented an outflow of $207 million compared to an outflow of $150 million in the prior year, influenced by timing of payables and other factors.
Company Guidance
During ManpowerGroup's second quarter 2025 earnings call, the company provided guidance for the third quarter, projecting earnings per share (EPS) to range between $0.77 to $0.87. This guidance includes a favorable foreign currency impact of $0.03 per share. The company anticipates a constant currency revenue guidance range between a flat and 4% decrease, with the midpoint reflecting a 2% decrease. Adjusted EBITDA margin for the third quarter is expected to decline by 50 basis points compared to the prior year. The effective tax rate for the full year is estimated to be 46.5%, with a slightly higher rate of 48% for the third quarter, influenced by a temporary French tax change. The guidance does not factor in restructuring charges or additional share repurchases, with weighted average shares estimated at 47 million.ManpowerGroup Financial Statement Overview
Summary
ManpowerGroup faces challenges with declining revenues and profitability, as shown in the income statement. The balance sheet is stable but shows signs of increasing leverage. Cash flow remains strong, but growth is slowing, necessitating careful financial management moving forward.Income Statement
The income statement shows a decrease in total revenue in recent years, with a significant drop in net income for TTM, leading to a negative net profit margin. Gross profit margin remains stable, but declining EBIT and EBITDA margins are concerning. Overall, the company faces challenges in maintaining profitability.55
Neutral
Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio, indicating a balanced approach to leverage. However, the equity ratio is declining, suggesting increased reliance on liabilities. Return on equity has fallen recently, aligning with weaker net income performance.62
Positive
Cash Flow
Cash flow statements indicate stable operating cash flow, but free cash flow growth has slowed. The operating cash flow to net income ratio is high, reflecting strong cash generation capabilities despite net income volatility.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.54B | 17.85B | 18.91B | 19.83B | 20.72B | 18.00B |
| Gross Profit | 3.00B | 3.09B | 3.36B | 3.57B | 3.41B | 2.82B |
| EBITDA | 233.20M | 433.40M | 374.20M | 688.60M | 680.30M | 267.30M |
| Net Income | -16.20M | 145.10M | 88.80M | 373.80M | 382.40M | 23.80M |
Balance Sheet | ||||||
| Total Assets | 8.51B | 8.20B | 8.83B | 9.13B | 9.83B | 9.35B |
| Cash, Cash Equivalents and Short-Term Investments | 289.80M | 509.40M | 581.30M | 639.00M | 847.80M | 1.57B |
| Total Debt | 1.72B | 1.23B | 1.43B | 1.25B | 1.39B | 1.45B |
| Total Liabilities | 6.51B | 6.07B | 6.60B | 6.67B | 7.30B | 6.89B |
| Stockholders Equity | 1.99B | 2.13B | 2.22B | 2.45B | 2.52B | 2.44B |
Cash Flow | ||||||
| Free Cash Flow | 272.40M | 258.10M | 270.00M | 347.70M | 580.60M | 885.70M |
| Operating Cash Flow | 331.10M | 309.20M | 348.20M | 423.30M | 644.80M | 936.40M |
| Investing Cash Flow | -80.40M | -68.20M | -74.10M | -85.30M | -987.00M | -42.40M |
| Financing Cash Flow | -120.00M | -282.40M | -349.50M | -482.10M | -283.70M | -435.20M |
ManpowerGroup Technical Analysis
Neutral
37.78
Price Trends
40.97
Negative
41.30
Negative
48.15
Negative
Market Momentum
-0.94
Positive
48.19
Neutral
41.51
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 37.78 is below the 20-day moving average (MA) of 39.34, below the 50-day MA of 40.97, and below the 200-day MA of 48.15, indicating a bearish trend. The MACD of -0.94 indicates Positive momentum. The RSI at 48.19 is Neutral, neither overbought nor oversold. The STOCH value of 41.51 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | 3.76B | 15.24 | 13.22% | 2.57% | 0.79% | 34.85% | |
66 Neutral | 1.16B | 22.14 | 23.85% | 0.73% | 9.48% | 11.62% | |
64 Neutral | 3.52B | 19.78 | 13.57% | 6.87% | -6.95% | -41.84% | |
59 Neutral | 3.31B | 23.22 | 134.58% | 1.60% | 1.39% | -50.47% | |
54 Neutral | $1.81B | 18.36 | -0.78% | 6.05% | -3.79% | -138.56% | |
49 Neutral | 1.92B | 48.56 | 35.71% | 4.87% | 2.40% | -75.66% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
MAN
ManpowerGroup
37.78
-32.52
-46.26%
BBSI
Barrett Business Services
44.00
7.73
21.31%
NSP
Insperity
49.31
-34.71
-41.31%
KELYA
Kelly Services
12.87
-7.79
-37.71%
KFY
Korn Ferry
70.53
-1.48
-2.06%
RHI
Robert Half
33.49
-30.88
-47.97%
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.