MANPOWERGROUP INC (MAN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MAN - US56418H1005 - Common Stock
30.4 USD
-0.2 (-0.65%)
30.4 USD
0 (0%)
MAN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 87 industry peers in the Professional Services industry. MAN may be in some trouble as it scores bad on both profitability and health. MAN has a valuation in line with the averages, 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.
- In the past year MAN has reported a negative cash flow from operations.
- MAN had positive earnings in each of the past 5 years.
- MAN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- MAN has a Return On Assets of -0.25%. This is comparable to the rest of the industry: MAN outperforms 43.68% of its industry peers.
- The Return On Equity of MAN (-1.04%) is comparable to the rest of the industry.
- MAN has a Return On Invested Capital (6.61%) which is comparable to the rest of the industry.
- The Average Return On Invested Capital over the past 3 years for MAN is below the industry average of 11.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.25% | ||
| ROE | -1.04% | ||
| ROIC | 6.61% |
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's Profit Margin has declined in the last couple of years.
- With a Operating Margin value of 1.58%, MAN perfoms like the industry average, outperforming 41.38% of the companies in the same industry.
- In the last couple of years the Operating Margin of MAN has declined.
- MAN's Gross Margin of 16.92% is on the low side compared to the rest of the industry. MAN is outperformed by 75.86% 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 | 1.58% | ||
| PM (TTM) | N/A | ||
| GM | 16.92% |
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.
- MAN has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for MAN has been reduced compared to 5 years ago.
- MAN has a worse debt/assets ratio than last year.
2.2 Solvency
- MAN has an Altman-Z score of 2.95. This is not the best score and indicates that MAN is in the grey zone with still only limited risk for bankruptcy at the moment.
- MAN has a Altman-Z score (2.95) which is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.23 indicates that MAN is not too dependend on debt financing.
- The Debt to Equity ratio of MAN (0.23) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.95 |
ROIC/WACC0.77
WACC8.63%
2.3 Liquidity
- A Current Ratio of 1.00 indicates that MAN may have some problems paying its short term obligations.
- MAN's Current ratio of 1.00 is on the low side compared to the rest of the industry. MAN is outperformed by 75.86% of its industry peers.
- MAN has a Quick Ratio of 1.00. This is a bad value and indicates that MAN is not financially healthy enough and could expect problems in meeting its short term obligations.
- MAN has a Quick ratio of 1.00. This is in the lower half of the industry: MAN underperforms 75.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
- The earnings per share for MAN have decreased strongly by -38.35% 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.
- The Revenue has decreased by -2.44% in the past year.
- MAN shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.07% yearly.
EPS 1Y (TTM)-38.35%
EPS 3Y-14.42%
EPS 5Y-9.54%
EPS Q2Q%-35.66%
Revenue 1Y (TTM)-2.44%
Revenue growth 3Y-4.85%
Revenue growth 5Y-3.07%
Sales Q2Q%2.3%
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-36.29%
EPS Next 2Y-8.45%
EPS Next 3Y5.19%
EPS Next 5Y26.51%
Revenue Next Year0.08%
Revenue Next 2Y1.8%
Revenue Next 3Y2.47%
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 9.90, which indicates a very decent valuation of MAN.
- MAN's Price/Earnings ratio is rather cheap when compared to the industry. MAN is cheaper than 87.36% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. MAN is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 7.97, which indicates a rather cheap valuation of MAN.
- Based on the Price/Forward Earnings ratio, MAN is valued cheaply inside the industry as 88.51% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of MAN to the average of the S&P500 Index (25.98), we can say MAN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.9 | ||
| Fwd PE | 7.97 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MAN is valued cheaply inside the industry as 88.51% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.46 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-8.45%
EPS Next 3Y5.19%
5. Dividend
5.1 Amount
- MAN has a Yearly Dividend Yield of 4.59%, which is a nice return.
- MAN's Dividend Yield is rather good when compared to the industry average which is at 1.44. MAN pays more dividend than 93.10% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, MAN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.59% |
5.2 History
- On average, the dividend of MAN grows each year by 7.20%, which is quite nice.
- MAN has paid a dividend for at least 10 years, which is a reliable track record.
- MAN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)7.2%
Div Incr Years14
Div Non Decr Years30
5.3 Sustainability
- The earnings of MAN are negative and hence is the payout ratio. MAN will probably not be able to sustain this dividend level.
- The dividend of MAN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-502.86%
EPS Next 2Y-8.45%
EPS Next 3Y5.19%
MANPOWERGROUP INC / MAN FAQ
What is the ChartMill fundamental rating of MANPOWERGROUP INC (MAN) stock?
ChartMill assigns a fundamental rating of 4 / 10 to MAN.
What is the valuation status of MANPOWERGROUP INC (MAN) stock?
ChartMill assigns a valuation rating of 5 / 10 to MANPOWERGROUP INC (MAN). This can be considered as Fairly Valued.
How profitable is MANPOWERGROUP INC (MAN) stock?
MANPOWERGROUP INC (MAN) has a profitability rating of 3 / 10.
What is the earnings growth outlook for MANPOWERGROUP INC?
The Earnings per Share (EPS) of MANPOWERGROUP INC (MAN) is expected to decline by -36.29% in the next year.
Can you provide the dividend sustainability for MAN stock?
The dividend rating of MANPOWERGROUP INC (MAN) is 8 / 10 and the dividend payout ratio is -502.86%.