MANPOWERGROUP INC (MAN) Stock Fundamental Analysis
NYSE:MAN - New York Stock Exchange, Inc. - US56418H1005 - Common Stock - Currency: USD
Overall MAN gets a fundamental rating of 5 out of 10. We evaluated MAN against 82 industry peers in the Professional Services industry. The financial health of MAN is average, but there are quite some concerns on its profitability. MAN is valued correctly, but it does not seem to be growing. MAN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year MAN was profitable.
MAN had a positive operating cash flow in the past year.
In the past 5 years MAN has always been profitable.
Each year in the past 5 years MAN had a positive operating cash flow.
1.2 Ratios
MAN's Return On Assets of 1.38% is in line compared to the rest of the industry. MAN outperforms 41.46% of its industry peers.
MAN's Return On Equity of 5.28% is in line compared to the rest of the industry. MAN outperforms 46.34% of its industry peers.
With a Return On Invested Capital value of 5.58%, MAN perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
MAN had an Average Return On Invested Capital over the past 3 years of 9.54%. This is below the industry average of 13.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.38% | ||
| ROE | 5.28% | ||
| ROIC | 5.58% |
ROA(3y)2.29%
ROA(5y)2.2%
ROE(3y)8.7%
ROE(5y)8.45%
ROIC(3y)9.54%
ROIC(5y)9.39%
1.3 Margins
MAN has a Profit Margin of 0.63%. This is in the lower half of the industry: MAN underperforms 60.98% of its industry peers.
MAN's Profit Margin has declined in the last couple of years.
The Operating Margin of MAN (1.53%) is worse than 64.63% of its industry peers.
MAN's Operating Margin has declined in the last couple of years.
MAN's Gross Margin of 17.22% is on the low side compared to the rest of the industry. MAN is outperformed by 78.05% of its industry peers.
In the last couple of years the Gross Margin of MAN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.53% | ||
| PM (TTM) | 0.63% | ||
| GM | 17.22% |
OM growth 3Y-12.76%
OM growth 5Y-10.46%
PM growth 3Y-23.89%
PM growth 5Y-18.31%
GM growth 3Y1.68%
GM growth 5Y1.34%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MAN is creating some value.
Compared to 1 year ago, MAN has less shares outstanding
Compared to 5 years ago, MAN has less shares outstanding
The debt/assets ratio for MAN is higher compared to a year ago.
2.2 Solvency
MAN has an Altman-Z score of 3.24. This indicates that MAN is financially healthy and has little risk of bankruptcy at the moment.
MAN's Altman-Z score of 3.24 is fine compared to the rest of the industry. MAN outperforms 62.20% of its industry peers.
The Debt to FCF ratio of MAN is 2.07, which is a good value as it means it would take MAN, 2.07 years of fcf income to pay off all of its debts.
MAN's Debt to FCF ratio of 2.07 is fine compared to the rest of the industry. MAN outperforms 70.73% of its industry peers.
MAN has a Debt/Equity ratio of 0.46. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of MAN (0.46) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.07 | ||
| Altman-Z | 3.24 |
ROIC/WACC0.62
WACC9.04%
2.3 Liquidity
MAN has a Current Ratio of 1.12. This is a normal value and indicates that MAN is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.12, MAN perfoms like the industry average, outperforming 42.68% of the companies in the same industry.
A Quick Ratio of 1.12 indicates that MAN should not have too much problems paying its short term obligations.
MAN has a Quick ratio (1.12) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The earnings per share for MAN have decreased strongly by -24.30% in the last year.
MAN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -9.54% yearly.
Looking at the last year, MAN shows a decrease in Revenue. The Revenue has decreased by -5.52% in the last year.
The Revenue has been decreasing by -3.07% on average over the past years.
EPS 1Y (TTM)-24.3%
EPS 3Y-14.42%
EPS 5Y-9.54%
EPS Q2Q%-53.19%
Revenue 1Y (TTM)-5.52%
Revenue growth 3Y-4.85%
Revenue growth 5Y-3.07%
Sales Q2Q%-7.11%
3.2 Future
Based on estimates for the next years, MAN will show a very strong growth in Earnings Per Share. The EPS will grow by 26.51% on average per year.
MAN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.21% yearly.
EPS Next Y-20.68%
EPS Next 2Y5.42%
EPS Next 3Y11.99%
EPS Next 5Y26.51%
Revenue Next Year-4.08%
Revenue Next 2Y-0.82%
Revenue Next 3Y0.74%
Revenue Next 5Y3.21%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 10.93, which indicates a very decent valuation of MAN.
Based on the Price/Earnings ratio, MAN is valued a bit cheaper than the industry average as 79.27% of the companies are valued more expensively.
MAN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.22.
With a Price/Forward Earnings ratio of 8.75, the valuation of MAN can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MAN indicates a rather cheap valuation: MAN is cheaper than 90.24% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MAN to the average of the S&P500 Index (20.86), we can say MAN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.93 | ||
| Fwd PE | 8.75 |
4.2 Price Multiples
81.71% of the companies in the same industry are more expensive than MAN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MAN indicates a rather cheap valuation: MAN is cheaper than 98.78% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4 | ||
| EV/EBITDA | 7.74 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.42%
EPS Next 3Y11.99%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 7.21%, MAN is a good candidate for dividend investing.
In the last 3 months the price of MAN has falen by -26.52%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.39, MAN pays a better dividend. On top of this MAN pays more dividend than 98.78% of the companies listed in the same industry.
MAN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.21% |
5.2 History
The dividend of MAN is nicely growing with an annual growth rate of 7.20%!
MAN has been paying a dividend for at least 10 years, so it has a reliable track record.
MAN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.2%
Div Incr Years14
Div Non Decr Years30
5.3 Sustainability
MAN pays out 131.35% of its income as dividend. This is not a sustainable payout ratio.
The dividend of MAN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP131.35%
EPS Next 2Y5.42%
EPS Next 3Y11.99%
44.25
+1.53 (+3.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners101.02%
Inst Owner Change2.89%
Ins Owners1.46%
Ins Owner Change10.59%
Market Cap2.07B
Analysts68.24
Price Target52.93 (19.62%)
Short Float %6.32%
Short Ratio3.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 7.21% |
Yearly Dividend3.06
Dividend Growth(5Y)7.2%
DP131.35%
Div Incr Years14
Div Non Decr Years30
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.75%
Min EPS beat(2)-12.39%
Max EPS beat(2)2.9%
EPS beat(4)2
Avg EPS beat(4)-2.52%
Min EPS beat(4)-12.39%
Max EPS beat(4)2.9%
EPS beat(8)5
Avg EPS beat(8)1.33%
EPS beat(12)6
Avg EPS beat(12)0.54%
EPS beat(16)10
Avg EPS beat(16)4.6%
Revenue beat(2)1
Avg Revenue beat(2)0.31%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)2.23%
Revenue beat(4)1
Avg Revenue beat(4)-0.23%
Min Revenue beat(4)-1.62%
Max Revenue beat(4)2.23%
Revenue beat(8)2
Avg Revenue beat(8)-0.5%
Revenue beat(12)3
Avg Revenue beat(12)-1.21%
Revenue beat(16)5
Avg Revenue beat(16)-1.09%
PT rev (1m)-20.44%
PT rev (3m)-22.21%
EPS NQ rev (1m)-28.3%
EPS NQ rev (3m)-42.05%
EPS NY rev (1m)-9.27%
EPS NY rev (3m)-26.16%
Revenue NQ rev (1m)2.67%
Revenue NQ rev (3m)-0.77%
Revenue NY rev (1m)1.52%
Revenue NY rev (3m)-3.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.93 | ||
| Fwd PE | 8.75 | ||
| P/S | 0.12 | ||
| P/FCF | 4 | ||
| P/OCF | 3.63 | ||
| P/B | 0.98 | ||
| P/tB | 45.46 | ||
| EV/EBITDA | 7.74 |
EPS(TTM)4.05
EY9.15%
EPS(NY)5.06
Fwd EY11.43%
FCF(TTM)11.07
FCFY25.01%
OCF(TTM)12.2
OCFY27.57%
SpS375.29
BVpS44.99
TBVpS0.97
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.38% | ||
| ROE | 5.28% | ||
| ROCE | 7.06% | ||
| ROIC | 5.58% | ||
| ROICexc | 6.23% | ||
| ROICexgc | 15.74% | ||
| OM | 1.53% | ||
| PM (TTM) | 0.63% | ||
| GM | 17.22% | ||
| FCFM | 2.95% |
ROA(3y)2.29%
ROA(5y)2.2%
ROE(3y)8.7%
ROE(5y)8.45%
ROIC(3y)9.54%
ROIC(5y)9.39%
ROICexc(3y)11.15%
ROICexc(5y)11.63%
ROICexgc(3y)28.72%
ROICexgc(5y)31.59%
ROCE(3y)12.13%
ROCE(5y)11.94%
ROICexcg growth 3Y-24.79%
ROICexcg growth 5Y-1.66%
ROICexc growth 3Y-17.48%
ROICexc growth 5Y-10.5%
OM growth 3Y-12.76%
OM growth 5Y-10.46%
PM growth 3Y-23.89%
PM growth 5Y-18.31%
GM growth 3Y1.68%
GM growth 5Y1.34%
F-Score5
Asset Turnover2.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | 2.07 | ||
| Debt/EBITDA | 2.74 | ||
| Cap/Depr | 61.48% | ||
| Cap/Sales | 0.3% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 160.85% | ||
| Profit Quality | 465.95% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 3.24 |
F-Score5
WACC9.04%
ROIC/WACC0.62
Cap/Depr(3y)78.88%
Cap/Depr(5y)78.11%
Cap/Sales(3y)0.36%
Cap/Sales(5y)0.33%
Profit Quality(3y)191.63%
Profit Quality(5y)883.46%
High Growth Momentum
Growth
EPS 1Y (TTM)-24.3%
EPS 3Y-14.42%
EPS 5Y-9.54%
EPS Q2Q%-53.19%
EPS Next Y-20.68%
EPS Next 2Y5.42%
EPS Next 3Y11.99%
EPS Next 5Y26.51%
Revenue 1Y (TTM)-5.52%
Revenue growth 3Y-4.85%
Revenue growth 5Y-3.07%
Sales Q2Q%-7.11%
Revenue Next Year-4.08%
Revenue Next 2Y-0.82%
Revenue Next 3Y0.74%
Revenue Next 5Y3.21%
EBIT growth 1Y-25.68%
EBIT growth 3Y-16.98%
EBIT growth 5Y-13.2%
EBIT Next Year22.41%
EBIT Next 3Y17.08%
EBIT Next 5Y21.93%
FCF growth 1Y26.8%
FCF growth 3Y-23.68%
FCF growth 5Y-19.46%
OCF growth 1Y19.46%
OCF growth 3Y-21.73%
OCF growth 5Y-17.61%