MANPOWERGROUP INC (MAN)
US56418H1005 - Common Stock
MAN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the Professional Services industry. MAN has an average financial health and profitability rating. MAN has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally MAN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
MAN had positive earnings in the past year.
In the past year MAN had a positive cash flow from operations.
In the past 5 years MAN has always been profitable.
MAN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MAN (0.60%) is comparable to the rest of the industry.
MAN has a Return On Equity of 2.33%. This is comparable to the rest of the industry: MAN outperforms 43.21% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.13%, MAN is in line with its industry, outperforming 49.38% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MAN is in line with the industry average of 11.66%.
The 3 year average ROIC (10.12%) for MAN is well above the current ROIC(5.13%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | 2.33% | ||
| ROIC | 5.13% |
ROA(3y)3%
ROA(5y)2.86%
ROE(3y)11.47%
ROE(5y)10.48%
ROIC(3y)10.12%
ROIC(5y)9.68%
1.3 Margins
With a Profit Margin value of 0.27%, MAN is not doing good in the industry: 61.73% of the companies in the same industry are doing better.
MAN's Profit Margin has declined in the last couple of years.
The Operating Margin of MAN (1.39%) is worse than 67.90% of its industry peers.
MAN's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 17.55%, MAN is not doing good in the industry: 81.48% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of MAN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.39% | ||
| PM (TTM) | 0.27% | ||
| GM | 17.55% |
OM growth 3Y-7.26%
OM growth 5Y-15.44%
PM growth 3Y52.14%
PM growth 5Y-28.62%
GM growth 3Y4.2%
GM growth 5Y1.75%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MAN is still creating some value.
The number of shares outstanding for MAN has been reduced compared to 1 year ago.
MAN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MAN is higher compared to a year ago.
2.2 Solvency
MAN has an Altman-Z score of 3.39. This indicates that MAN is financially healthy and has little risk of bankruptcy at the moment.
MAN's Altman-Z score of 3.39 is fine compared to the rest of the industry. MAN outperforms 61.73% of its industry peers.
The Debt to FCF ratio of MAN is 3.75, which is a good value as it means it would take MAN, 3.75 years of fcf income to pay off all of its debts.
MAN has a Debt to FCF ratio (3.75) which is in line with its industry peers.
A Debt/Equity ratio of 0.45 indicates that MAN is not too dependend on debt financing.
MAN has a Debt to Equity ratio (0.45) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 3.75 | ||
| Altman-Z | 3.39 |
ROIC/WACC0.61
WACC8.45%
2.3 Liquidity
A Current Ratio of 1.17 indicates that MAN should not have too much problems paying its short term obligations.
MAN's Current ratio of 1.17 is on the low side compared to the rest of the industry. MAN is outperformed by 60.49% of its industry peers.
MAN has a Quick Ratio of 1.17. 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 Quick ratio value of 1.17, MAN perfoms like the industry average, outperforming 41.98% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
The earnings per share for MAN have decreased strongly by -34.99% in the last year.
MAN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -6.64% yearly.
The Revenue has decreased by -4.48% in the past year.
Measured over the past years, MAN shows a decrease in Revenue. The Revenue has been decreasing by -2.97% on average per year.
EPS 1Y (TTM)-34.99%
EPS 3Y17.83%
EPS 5Y-6.64%
EPS growth Q2Q-41.61%
Revenue 1Y (TTM)-4.48%
Revenue growth 3Y1.66%
Revenue growth 5Y-2.97%
Revenue growth Q2Q-7.34%
3.2 Future
The Earnings Per Share is expected to grow by 18.15% on average over the next years. This is quite good.
Based on estimates for the next years, MAN will show a small growth in Revenue. The Revenue will grow by 2.10% on average per year.
EPS Next Y-16.11%
EPS Next 2Y5.32%
EPS Next 3Y12.1%
EPS Next 5Y18.15%
Revenue Next Year-2.68%
Revenue Next 2Y1.03%
Revenue Next 3Y2.36%
Revenue Next 5Y2.1%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.44, MAN is valued correctly.
Based on the Price/Earnings ratio, MAN is valued a bit cheaper than 79.01% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.91, MAN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.57, the valuation of MAN can be described as reasonable.
80.25% of the companies in the same industry are more expensive than MAN, based on the Price/Forward Earnings ratio.
MAN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.44 | ||
| Fwd PE | 11.57 |
4.2 Price Multiples
MAN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MAN is cheaper than 71.60% of the companies in the same industry.
MAN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MAN is cheaper than 81.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.22 | ||
| EV/EBITDA | 11.9 |
4.3 Compensation for Growth
MAN's earnings are expected to grow with 12.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.32%
EPS Next 3Y12.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.04%, MAN is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.01, MAN pays a better dividend. On top of this MAN pays more dividend than 96.30% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, MAN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.04% |
5.2 History
The dividend of MAN is nicely growing with an annual growth rate of 7.75%!
MAN has paid a dividend for at least 10 years, which is a reliable track record.
MAN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)7.75%
Div Incr Years13
Div Non Decr Years19
5.3 Sustainability
MAN pays out 284.62% 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.
DP284.62%
EPS Next 2Y5.32%
EPS Next 3Y12.1%
MANPOWERGROUP INC
NYSE:MAN (5/16/2024, 8:59:45 AM)
77.245
-0.52 (-0.66%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.74B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.04% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.44 | ||
| Fwd PE | 11.57 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.6% | ||
| ROE | 2.33% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 1.39% | ||
| PM (TTM) | 0.27% | ||
| GM | 17.55% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.19
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-34.99%
EPS 3Y17.83%
EPS 5Y
EPS growth Q2Q
EPS Next Y-16.11%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-4.48%
Revenue growth 3Y1.66%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y