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ManpowerGroup (MAN)
NYSE:MAN
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ManpowerGroup
(NYSE:MAN)
Rating:59Neutral
Price Target:
$46.00
â–²(0.66%Upside)
Positive Factors
Earnings
ManpowerGroup stock outperformed as second-quarter adjusted EPS and third-quarter guidance exceeded expectations.
Financial Performance
Manpower’s second-quarter results beat consensus on both the top and bottom lines.
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.'
European Exposure
Greater recessionary fears in Europe make it tough to recommend this name at this time.
Market Environment
Growth is still hard to find, and the industry is far from out of the woods from a macro perspective.
ManpowerGroup (MAN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.07B
Dividend Yield4.95%
Average Volume (3M)1.02M
Price to Earnings (P/E)18.4
Beta (1Y)0.89
Revenue Growth-3.79%
EPS Growth-138.56%
CountryUS
Employees26,700
SectorIndustrials
Sector Strength93
IndustryStaffing & Employment Services
Share Statistics
EPS (TTM)0.78
Shares Outstanding46,282,436
10 Day Avg. Volume1,259,148
30 Day Avg. Volume1,017,764
Financial Highlights & Ratios
PEG Ratio1.11
Price to Book (P/B)1.04
Price to Sales (P/S)0.00
P/FCF Ratio7.55
Enterprise Value/Market Cap1.68
Enterprise Value/Revenue0.05
Enterprise Value/Gross Profit1.16
Enterprise Value/Ebitda2.63
Forecast
1Y Price Target
$48.20Price Target Upside5.47% Upside
Rating ConsensusHold
Number of Analyst Covering8
ManpowerGroup Business Overview & Revenue Model
Company DescriptionManpowerGroup Inc. is a global leader in workforce solutions, providing a range of services to help businesses manage their staffing needs. The company operates in multiple sectors including temporary staffing, permanent recruitment, and workforce management. Through its family of brands, including Manpower, Experis, and Talent Solutions, ManpowerGroup offers a comprehensive suite of services to find, assess, and develop talent for organizations across industries.
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:Jul 17, 2025
(Q2-2025)
| % Change Since: 6.03%|
Next Earnings Date:Oct 16, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture. While there were notable achievements in certain markets like Italy and Japan, as well as strong performance in the U.S. Manpower brand and recognition for sustainability and leadership, these were counterbalanced by significant challenges in revenue decline, particularly in Northern Europe, the U.K., and Germany. The company also faced a substantial decrease in adjusted EBITDA and free cash flow outflows.Q2-2025 Updates
Positive Updates
Global Hiring Outlook Holding Steady
The global hiring outlook is holding steady, with a slight year-over-year increase and just 1 point lower than last quarter. Latin America and Asia Pacific labor markets are performing well.
Revenue Growth in Manpower and Talent Solutions Brands
Return to revenue growth in the Manpower and Talent Solutions brands this quarter, with system-wide revenue including franchise revenue at $4.9 billion.
Strong Performance in Italy and Japan
Italy's revenue increased by 4% on a days adjusted constant currency basis, with OUP margin at 6.7%. Japan's revenue grew 7% on a days adjusted constant currency basis.
Market Share Gains in the U.S. Manpower Brand
The U.S. Manpower brand saw a revenue increase of 9% on a days adjusted basis during the quarter, showing strong market performance.
Recognition and Awards
ManpowerGroup received Forbes America's #1 rating as the best temp staffing firm, Talent Solutions recognized by Everest Group as a global leader in RPO, and named to Times World's most Sustainable Companies for the 15th consecutive year.
Negative Updates
Decline in Reported Revenue and EBITDA
Reported revenue was $4.5 billion, down 3% year-over-year in constant currency. Adjusted EBITDA was $89 million, representing a decrease of 25% in constant currency year-over-year.
Northern Europe Revenue Decline
Northern Europe faced a 10% decline in constant currency revenue, with restructuring charges of $12 million in the Nordics, the Netherlands, and Germany.
Weak Performance in the U.K. and Germany
U.K. revenues decreased 13% on a days adjusted constant currency basis, while Germany revenues decreased 22% in the same terms, partly due to weak automotive manufacturing trends.
Adjusted EPS Decrease
Adjusted earnings per share decreased 43% year-over-year in constant currency, with restructuring costs and disposition losses impacting the results.
Negative Free Cash Flow
Free cash flow represented an outflow of $207 million in the second quarter, compared to an outflow of $150 million in the prior year.
Company Guidance
During the second quarter of 2025 conference call, ManpowerGroup provided guidance for the third quarter, anticipating earnings per share (EPS) to range between $0.77 and $0.87, including a favorable foreign currency impact of $0.03 per share. The company expects constant currency revenue to be flat or decrease by up to 4%, with the midpoint reflecting a 2% decrease. The EBITDA margin is projected to decline by 50 basis points year-over-year. ManpowerGroup highlighted the impact of restructuring costs and foreign currency translation on second quarter results, reporting system-wide revenue of $4.9 billion and adjusted EBITDA of $89 million. The U.S. business is expected to show a slightly improved low single-digit percentage revenue decline in the third quarter, with the overall guidance reflecting ongoing stability in most markets.ManpowerGroup Financial Statement Overview
Summary
The company's financial performance is under pressure with declining revenues and profitability. Despite stable cash flow, the increasing leverage and falling ROE are concerning. Challenges in maintaining profitability and a decrease in net income further impact the score.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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 17.85B | 18.91B | 19.83B | 20.72B | 18.00B |
| Gross Profit | 3.09B | 3.36B | 3.57B | 3.41B | 2.82B |
| EBITDA | 433.40M | 374.20M | 688.60M | 680.30M | 267.30M |
| Net Income | 145.10M | 88.80M | 373.80M | 382.40M | 23.80M |
Balance Sheet | |||||
| Total Assets | 8.20B | 8.83B | 9.13B | 9.83B | 9.35B |
| Cash, Cash Equivalents and Short-Term Investments | 509.40M | 581.30M | 639.00M | 847.80M | 1.57B |
| Total Debt | 1.23B | 1.43B | 1.25B | 1.39B | 1.45B |
| 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
Positive
45.70
Price Trends
42.09
Positive
46.43
Negative
52.89
Negative
Market Momentum
0.68
Negative
57.09
Neutral
52.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAN, the sentiment is Positive. The current price of 45.7 is above the 20-day moving average (MA) of 43.30, above the 50-day MA of 42.09, and below the 200-day MA of 52.89, indicating a neutral trend. The MACD of 0.68 indicates Negative momentum. The RSI at 57.09 is Neutral, neither overbought nor oversold. The STOCH value of 52.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $3.82B | 16.10 | 13.49% | 2.31% | -1.23% | 44.06% | |
77 Outperform | $1.18B | 23.32 | 25.86% | 0.70% | 8.41% | 7.93% | |
66 Neutral | $3.18B | 19.69 | 139.13% | 1.60% | 1.39% | -50.47% | |
65 Neutral | $11.05B | 15.76 | 5.13% | 1.92% | 3.11% | -24.90% | |
61 Neutral | $4.07B | 24.22 | 12.75% | 5.62% | -6.95% | -41.84% | |
59 Neutral | $2.07B | 18.36 | -0.78% | 4.95% | -3.79% | -138.56% | |
57 Neutral | $2.24B | 36.11 | 48.65% | 4.04% | 1.90% | -60.33% |
* Industrials Sector Average
Performance Comparison
MAN
ManpowerGroup
45.70
-26.07
-36.32%
BBSI
Barrett Business Services
45.70
9.96
27.87%
NSP
Insperity
60.37
-38.46
-38.92%
KFY
Korn Ferry
73.71
3.89
5.57%
RHI
Robert Half
39.81
-20.15
-33.61%
TNET
TriNet Group
68.83
-40.77
-37.20%
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.