MAN: Dividend And Earnings Outlook Will Support Attractive Upside Potential

Analysts have trimmed their price target on ManpowerGroup by approximately 3 percent to about $40, citing slightly lower long term revenue growth and margin expectations, even as they assign a higher future P/E multiple.

What's in the News

• Mahah Human Resources Company signed a brand license agreement to operate ManpowerGroup's business in Saudi Arabia under the Manpower brand, expanding access to staffing, recruitment, and workforce solutions in the Kingdom (Key Developments).
• ManpowerGroup formed a strategic partnership with Maricopa Community Colleges in Arizona to build end to end training pathways for semiconductor and advanced manufacturing roles, aiming to ease critical skilled labor shortages (Key Developments).
• The Board declared a semi annual dividend of $0.72 per share, payable on December 15, 2025 to shareholders of record as of December 1, 2025 (Key Developments).
• The company reported no share repurchases in the latest quarter, while confirming completion of a prior buyback totaling about 6.4% of shares outstanding for $205.95 million (Key Developments).
• ManpowerGroup issued fourth quarter 2025 guidance, projecting diluted EPS between $0.78 and $0.88, including a modest favorable currency impact and a 46.5% effective tax rate (Key Developments).

Valuation Changes

• The fair value estimate has been reduced slightly, moving from approximately $41.56 to $40.33 per share.
• The discount rate has edged down marginally, from about 9.56 percent to 9.54 percent, indicating a slightly lower required return.
• Revenue growth has been revised modestly lower, from roughly 3.94 percent to 3.62 percent in the long-term outlook.
• Net profit margin has fallen significantly in the model, decreasing from about 2.36 percent to 1.32 percent.
• The future P/E has risen materially, increasing from roughly 5.27x to 9.18x, implying a higher valuation multiple applied to earnings.