NYSE:MAN

Stock Analysis Report

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Market Cap

US$6.2b

Last Updated

2021/07/27 00:58 UTC

Data Sources

Company Financials +

Executive Summary

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


Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

How has ManpowerGroup's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MAN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MAN's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.8%

MAN

2.7%

US Professional Services

3.3%

US Market


1 Year Return

57.2%

MAN

31.5%

US Professional Services

37.8%

US Market

Return vs Industry: MAN exceeded the US Professional Services industry which returned 33.1% over the past year.

Return vs Market: MAN exceeded the US Market which returned 39.1% over the past year.


Shareholder returns

MANIndustryMarket
7 Day1.8%2.7%3.3%
30 Day-7.6%0.4%1.1%
90 Day-6.4%1.0%2.9%
1 Year60.9%57.2%32.3%31.5%39.9%37.8%
3 Year31.6%22.1%68.7%64.3%65.8%55.4%
5 Year86.8%67.1%142.3%125.6%124.3%99.4%

Long-Term Price Volatility Vs. Market

How volatile is ManpowerGroup's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ManpowerGroup undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MAN ($113.36) is trading below our estimate of fair value ($454.76)

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


Price To Earnings Ratio

PE vs Industry: MAN is good value based on its PE Ratio (24.5x) compared to the US Professional Services industry average (26.2x).

PE vs Market: MAN is poor value based on its PE Ratio (24.5x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: MAN is poor value based on its PEG Ratio (5.3x)


Price to Book Ratio

PB vs Industry: MAN is good value based on its PB Ratio (2.6x) compared to the US Professional Services industry average (3.1x).


Future Growth

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

4.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAN's forecast earnings growth (4.6% per year) is above the savings rate (2%).

Earnings vs Market: MAN's earnings (4.6% per year) are forecast to grow slower than the US market (15% per year).

High Growth Earnings: MAN's earnings are forecast to grow, but not significantly.

Revenue vs Market: MAN's revenue (0.7% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: MAN's revenue (0.7% 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 (19.7%).


Past Performance

How has ManpowerGroup performed over the past 5 years?

-16.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MAN has a large one-off loss of $126.9M impacting its June 30 2021 financial results.

Growing Profit Margin: MAN's current net profit margins (1.3%) are higher than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: MAN's earnings have declined by 16.8% per year over the past 5 years.

Accelerating Growth: MAN's earnings growth over the past year (17.1%) exceeds its 5-year average (-16.8% per year).

Earnings vs Industry: MAN earnings growth over the past year (17.1%) underperformed the Professional Services industry 17.4%.


Return on Equity

High ROE: MAN's Return on Equity (10.9%) is considered low.


Financial Health

How is ManpowerGroup's financial position?


Financial Position Analysis

Short Term Liabilities: MAN's short term assets ($6.8B) exceed its short term liabilities ($5.0B).

Long Term Liabilities: MAN's short term assets ($6.8B) exceed its long term liabilities ($2.1B).


Debt to Equity History and Analysis

Debt Level: MAN's debt to equity ratio (40.9%) is considered high.

Reducing Debt: MAN's debt to equity ratio has increased from 34% to 40.9% over the past 5 years.

Debt Coverage: MAN's debt is well covered by operating cash flow (54.7%).

Interest Coverage: MAN's interest payments on its debt are well covered by EBIT (20x coverage).


Balance Sheet


Dividend

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

2.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MAN's dividend (2.22%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: MAN's dividend (2.22%) is low compared to the top 25% of dividend payers in the US market (3.56%).


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.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.5%), MAN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MAN's dividends in 3 years are forecast to be well covered by earnings (22.6% payout ratio).


Next Steps

Management

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

6.0yrs

Average management tenure


CEO

Jonas Prising (56 yo)

7.17yrs

Tenure

US$11,903,571

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 ($USD11.90M) is above average for companies of similar size in the US market ($USD6.50M).

Compensation vs Earnings: Jonas's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MAN's management team is seasoned and experienced (6 years average tenure).


Board Members

Experienced Board: MAN's board of directors are considered experienced (5.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 company bio, 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
  • Market Cap: US$6.181b
  • Shares outstanding: 54.53m
  • Website: https://www.manpowergroup.com

Number of Employees


Location

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

Listings


Biography

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 p...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/27 00:58
End of Day Share Price2021/07/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.