company background image
MAN

ManpowerGroup NYSE:MAN Stock Report

Last Price

US$81.30

Market Cap

US$4.2b

7D

4.7%

1Y

-33.8%

Updated

14 Aug, 2022

Data

Company Financials +
MAN fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance4/6
Financial Health5/6
Dividends5/6

MAN Stock Overview

ManpowerGroup Inc. provides workforce solutions and services in the Americas, Southern Europe, Northern Europe, and the Asia Pacific Middle East region.

ManpowerGroup Competitors

Price History & Performance

Summary of all time highs, changes and price drops for ManpowerGroup
Historical stock prices
Current Share PriceUS$81.30
52 Week HighUS$123.84
52 Week LowUS$73.66
Beta1.69
1 Month Change6.30%
3 Month Change-8.76%
1 Year Change-33.84%
3 Year Change-4.30%
5 Year Change-23.78%
Change since IPO550.40%

Recent News & Updates

Jul 27
We Think ManpowerGroup (NYSE:MAN) Can Manage Its Debt With Ease

We Think ManpowerGroup (NYSE:MAN) Can Manage Its Debt With Ease

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it seems the smart money knows that...

Jul 27

Randstad Vs. ManpowerGroup After Q2 2022 Results: One Buy And One Hold

The HR services industry offers an interesting point of view on economic conditions. ManpowerGroup and Randstad just reported their earnings stating that they still both see a strong labor market, even though uncertainties are looming on the horizon. While ManpowerGroup was particularly hurt by FX and posted negative or stagnant results worldwide, Randstad is still seeing constant growth and increasing margins. Introduction I recently started monitoring the Human Resource and Employment Service Industry as I think it offers an interesting and always updated point of view on the labor market and, more in general, on the development of the economic cycle. Given the attention investors are paying to any sign of a possible economic slowdown and an eventual recession, many are trying to figure out the ifs, whens and hows of this upcoming part of the economic cycle. Companies in the HR and the ES are among the first ones to understand the underlying economic trends. I covered both Adecco (OTCPK:AHEXY, OTCPK:AHEXF) and ManpowerGroup (MAN) in the past quarter pointing out how the two had seen quite a sell-off from their highs. However, while Adecco seemed to me to have reached a bottom, trading at its 2009 and 2020 lows, my valuation for ManpowerGroup was that the company was trading at its fair value in case of no recession in the future years. The possibility of a recession, in my opinion, was still not fully priced in. Now, this time I would like to turn to Dutch Randstad (OTCPK:RANJY, OTCPK:RANJF), that just reported its Q2 2022 earnings. I will run my analysis by comparing it to ManpowerGroup's recently reported earnings, in order to get a feeling of how the industry leaders are faring. Until a few years ago, ManpowerGroup was the industry leader until the beginning of the last decade, but Randstad has managed to surpass it and keep on growing, while the first one, as I already outlined in my previous article, stopped growing. A key point was the 2016 acquisition of Monster Worldwide by Randstad. However, this added only approximately $650-700 million in yearly revenue while we see that from 2017 Randstad's revenue and gross profit sped up, leaving ManpowerGroup (and Adecco) behind. Author, with data from Seeking Alpha The Market The addressable market is huge and it is estimated to be a little less than half a trillion, as shown in the graph below. More than half focuses on staffing, which is the most sought for service by many companies as it enables them to have a flexible workforce always on par with their real needs. Randstad 2021 Annual Report Another characteristic of the market is that it is high fragmented as the three main competitors only hold together a 13% share. This is due to the fact that there is really no real entry barrier that prevents new and local competitors from springing up as most of the business is run through employees who know their territory and the companies in it and know how to deal with the local labor market. Randstad 2021 Annual Report Given this kind of market composition, Randstad is very active on M&As and from September 2021 the company has already announced 4 acquisitions: Cella Inc. in the U.S. Hudson Benelux in Belgium Side in France Finite Group in Australia and New Zealand In the meantime, ManpowerGroup completed only the acquisition of ettain group. Q2 2022 Results Let's take a look at how the two competitors are currently doing. Randstad The Netherland-based company posted good and improving results for the quarter and for the first half of the year. Its quarterly revenue increased by 9% from €6.01 billion to €6.89. Along with an increased revenue, which is a data that, with the current economic environment could just be boosted by inflation, Randstad was able to increase both its EBITA and its profit margin, showing a company that is able to retain a larger part of its revenue, reaching thus the goal of increasing its free cash flow. As we can see from the slide below, Randstad was able to increase its gross margin on all three of its main branches (temporary placement, permanent placement, HR services) which is a sign of a healthy overall business. Randstad Q2 Results Presentation As reported, Randstad's EBITA increased organically by 13% YoY to €308 million. EBITA margin reached 4.5% in the quarter, 0.2% above Q2 2021. Overall, Randstad achieved a 28% organic incremental conversion on a last four quarter basis in Q2 2022. As we will see also with ManpowerGroup, Randstad has been affected by currency effects with a larger than usual impact. However, with the strengthening of the USD, Randstad was positively impacted as its currency is the EUR. For example, currency effects had a positive €51 million impact on gross profit compared to Q2 2021. Randstad's adjusted net income was up 21% YoY to €230 million with EPS up to €1.25 from €1.03 YoY. There was also a small decrease in the outstanding shares which, at the end of Q2, were 183.7 million compared to last year's 185.0 million. Let's take a look at Randstad's geographical diversification. The company doesn't rely for more than 20% on any particular country, with the U.S. being the source of 20% percent of the revenue and 25% of the EBITA. The Netherlands and France come in very close together at second and third place. The real surprise is Italy, which, for Randstad, is a more important country than Germany, both from a revenue perspective (9% vs. 7%) and, even more, from an EBITA one with a 12% vs. 3%. Randstad Q2 Results The company did point out this strong performance which is being recorded since the late 2020, as shown below. Randstad Q2 Results Presentation At the moment, Italy is for Randstad the country with the highest margin, higher even than the U.S. and the Nordic countries, which are usually known for higher margins. This situation can be explained by the strong economic recovery that Italy saw last year (2021 GDP +6.6%) after the pandemic which is still running across many sectors. I don't know if this situation will last, but the strong rebound in tourism and the European Recovery and Resilience Plan should support the country even in case a recession. Now, getting back to Randstad as a whole, investors should know that the Group usually generates its strongest revenue and profits in the second half of the year, while the cash flow in the second quarters is usually negative due to the timing of payments of dividend and holiday allowances. This is why we see Randstad posting a decrease in its FCF for the quarter from €78 million to €55 million. However, if we combine the first two quarters of the year together, FCF is up from €82 million to €188 (+129% YoY). Usually, Randstad and its peers tend to have the strongest cash flow in the second half of the year, so we can expect outstanding results by the end of the year, given the fact that during the earnings presentation, Randstad management said that it is seeing a strong July and still sees the problem of talent scarcity across many industries. We should also keep in mind that in case of a mild recession, staffing companies could actually see an increase in their revenue due to the need for flexible workers that many companies may have. It is, in fact, likely that, instead of hiring permanent workers, in an environment of uncertainty, many companies may actually choose to postpone hiring while addressing their productivity needs with temporary solutions. But, let's get back to FCF. Randstad has a policy that aims at rewarding shareholders both through dividends and, sometimes, through share buybacks. As many European companies, Randstad is not mainly focused on keeping its dividend stable and growing. As we can see, during the financial crisis, the company suspended it in order to preserve cash. In the same manner, it suspended its 2019 dividend that was supposed to be paid in 2020 in order to face the Covid-19 crisis. However, over the long term, we see a dividend that is indeed growing (from €0.25 in 2003 to €5 this year) and that, in the last five years, has become semi-annual with an ordinary dividend paid in April and a special dividend paid in October. Non-Dutch investors should, in any case, know that the Dutch dividend tax is 15%. Author with data from Randstad Investor Relations ManpowerGroup On the other side, ManpowerGroup's earnings must be understood from a currency perspective. In fact, since the company's currency is the U.S. dollar, and given the fact that most of its revenue comes from outside the U.S., the results were greatly affected by the rally of the dollar in the recent months, which clearly decreased the revenue coming from non-USD regions. The revenue for the quarter declined by -3.8% YoY coming in at $5.07 billion versus $5.28 billion last year. The operating profit was $180 million, up 6.3% YoY. Net EPS were also up YoY at $2.29 from $2.02. From a geographical perspective, while the revenue from U.S. was up 43.7% YoY, Europe saw a slowdown, with southern Europe down 8.1% and northern Europe down 13.7%. However, on a constant currency basis, southern Europe would have been up 4.1%, while northern Europe would have been down only by 2.4%. The countries with the best operating profit for ManpowerGroup are the U.S. with $64 million (70% operating profit) and Italy which contributed with $35 million (12% operating profit, 27% constant currency. The other geographies were either down or flat, given the appreciation of the dollar. As we can see from the slide below, on constant currency ManpowerGroup did grow YoY in all its three main branches, even though ManpowerGroup registered only modest growth. ManpowerGroup Q2 2022 Results Presentation However, since the U.S. dollar appreciated very rapidly against the euro and other currencies, ManpowerGroup saw its revenue greatly chopped, resulting in a -10% for ManpowerGroup and a 12% decrease for Experis, whose revenue could have reached a +22% instead of the actual 10% it did. As expected, this was one of the main themes discussed in the recent Q2 earnings call. Jack McGinnis, ManpowerGroup's CFO, explained this quite clearly: Due to the significant strengthening of the dollar, particularly against the euro, year-over-year foreign currency movements had a much bigger impact than usual on our results. This drove an almost 10% swing between the U.S. dollar reported revenue trend and the constant currency related growth rate. After adjusting for the negative impact of foreign exchange rates, our constant currency revenue increased 6%. I think the decline in revenue and operating profit can't be blamed on poor performance of the company, since it is clear that it comes from FX dynamics ManpowerGroup can't control. Furthermore, we are still seeing very strong U.S. performance which made the company state during its last earnings call that it still sees a very healthy labor market. Furthermore, some news were given regarding wage inflation which seems to be more stable. This could possibly be another sign that we have reached the peak and that now inflation should come slowly down.

Jul 18

Manpower Q2 2022 Earnings Preview

Manpower (NYSE:MAN) is scheduled to announce Q2 earnings results on Tuesday, July 19th, before market open. The consensus EPS Estimate is $2.32 (+14.9% Y/Y) and the consensus Revenue Estimate is $5.26B (-0.2% Y/Y). Over the last 2 years, MAN has beaten EPS estimates 88% of the time and has beaten revenue estimates 75% of the time. Over the last 3 months, EPS estimates have seen 7 upward revisions and 1 downward. Revenue estimates have seen 2 upward revisions and 5 downward.

Shareholder Returns

MANUS Professional ServicesUS Market
7D4.7%3.4%3.2%
1Y-33.8%-10.9%-10.2%

Return vs Industry: MAN underperformed the US Professional Services industry which returned -10.9% over the past year.

Return vs Market: MAN underperformed the US Market which returned -10.2% over the past year.

Price Volatility

Is MAN's price volatile compared to industry and market?
MAN volatility
MAN Average Weekly Movement5.8%
Professional Services Industry Average Movement6.3%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: MAN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: MAN's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
194830,000Jonas Prisinghttps://www.manpowergroup.com

ManpowerGroup 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.

ManpowerGroup Fundamentals Summary

How do ManpowerGroup's earnings and revenue compare to its market cap?
MAN fundamental statistics
Market CapUS$4.21b
Earnings (TTM)US$422.60m
Revenue (TTM)US$20.74b

10.0x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MAN income statement (TTM)
RevenueUS$20.74b
Cost of RevenueUS$17.14b
Gross ProfitUS$3.60b
Other ExpensesUS$3.18b
EarningsUS$422.60m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)8.17
Gross Margin17.35%
Net Profit Margin2.04%
Debt/Equity Ratio58.2%

How did MAN perform over the long term?

See historical performance and comparison

Dividends

3.3%

Current Dividend Yield

33%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is MAN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MAN?

Other financial metrics that can be useful for relative valuation.

MAN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.2x
Enterprise Value/EBITDA6.7x
PEG Ratio-2.7x

Price to Earnings Ratio vs Peers

How does MAN's PE Ratio compare to its peers?

MAN PE Ratio vs Peers
The above table shows the PE ratio for MAN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average27.8x
ALIT Alight
48.9x-27.5%US$4.8b
NSP Insperity
31.4x6.3%US$4.4b
ASGN ASGN
19.7x11.9%US$5.4b
KFY Korn Ferry
11x-7.3%US$3.5b
MAN ManpowerGroup
10x-3.7%US$4.2b

Price-To-Earnings vs Peers: MAN is good value based on its Price-To-Earnings Ratio (10x) compared to the peer average (27.8x).


Price to Earnings Ratio vs Industry

How does MAN's PE Ratio compare vs other companies in the US Professional Services Industry?

Price-To-Earnings vs Industry: MAN is good value based on its Price-To-Earnings Ratio (10x) compared to the US Professional Services industry average (18.8x)


Price to Earnings Ratio vs Fair Ratio

What is MAN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MAN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio10x
Fair PE Ratio16.1x

Price-To-Earnings vs Fair Ratio: MAN is good value based on its Price-To-Earnings Ratio (10x) compared to the estimated Fair Price-To-Earnings Ratio (16.1x).


Share Price vs Fair Value

What is the Fair Price of MAN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MAN ($81.3) is trading below our estimate of fair value ($259.47)

Significantly Below Fair Value: MAN is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


Discover undervalued companies

Future Growth

How is ManpowerGroup forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-3.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAN's earnings are forecast to decline over the next 3 years (-3.7% per year).

Earnings vs Market: MAN's earnings are forecast to decline over the next 3 years (-3.7% per year).

High Growth Earnings: MAN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MAN's revenue (0.3% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: MAN's revenue (0.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MAN's Return on Equity is forecast to be low in 3 years time (18.4%).


Discover growth companies

Past Performance

How has ManpowerGroup performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-15.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MAN has high quality earnings.

Growing Profit Margin: MAN's current net profit margins (2%) are higher than last year (1.3%).


Past Earnings Growth Analysis

Earnings Trend: MAN's earnings have declined by 15.8% per year over the past 5 years.

Accelerating Growth: MAN's earnings growth over the past year (62.5%) exceeds its 5-year average (-15.8% per year).

Earnings vs Industry: MAN earnings growth over the past year (62.5%) exceeded the Professional Services industry 21.4%.


Return on Equity

High ROE: MAN's Return on Equity (17.3%) is considered low.


Discover strong past performing companies

Financial Health

How is ManpowerGroup's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MAN's short term assets ($6.4B) exceed its short term liabilities ($5.4B).

Long Term Liabilities: MAN's short term assets ($6.4B) exceed its long term liabilities ($1.8B).


Debt to Equity History and Analysis

Debt Level: MAN's net debt to equity ratio (22%) is considered satisfactory.

Reducing Debt: MAN's debt to equity ratio has increased from 34.3% to 58.2% over the past 5 years.

Debt Coverage: MAN's debt is well covered by operating cash flow (33.1%).

Interest Coverage: MAN's interest payments on its debt are well covered by EBIT (23.8x coverage).


Balance Sheet


Discover healthy companies

Dividend

What is ManpowerGroup current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.35%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MAN's dividend (3.35%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: MAN's dividend (3.35%) is low compared to the top 25% of dividend payers in the US market (3.95%).


Stability and Growth of Payments

Stable Dividend: MAN's dividends per share have been stable in the past 10 years.

Growing Dividend: MAN's dividend payments have increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (33.3%), MAN's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (36.1%), MAN's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

5.5yrs

Average management tenure


CEO

Jonas Prising (57 yo)

8.25yrs

Tenure

US$18,787,835

Compensation

Mr. Jonas Prising has been the Chairman and Chief Executive Officer of ManpowerGroup Inc. (Former Name: Manpower Inc) since December 31, 2015 and May 1, 2014 respectively. Mr. Prising was the Executive Pre...


CEO Compensation Analysis

Compensation vs Market: Jonas's total compensation ($USD18.79M) is above average for companies of similar size in the US market ($USD6.53M).

Compensation vs Earnings: Jonas's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: MAN's management team is seasoned and experienced (5.5 years average tenure).


Board Members

Experienced Board: MAN's board of directors are considered experienced (8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MAN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

ManpowerGroup Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: ManpowerGroup Inc.
  • Ticker: MAN
  • Exchange: NYSE
  • Founded: 1948
  • Industry: Human Resource and Employment Services
  • Sector: Commercial Services
  • Implied Market Cap: US$4.207b
  • Shares outstanding: 51.74m
  • Website: https://www.manpowergroup.com

Number of Employees


Location

  • ManpowerGroup Inc.
  • 100 Manpower Place
  • Milwaukee
  • Wisconsin
  • 53212
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/14 00:00
End of Day Share Price2022/08/12 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.