MANPOWERGROUP INC (MAN) Stock Fundamental Analysis
NYSE:MAN - US56418H1005 - Common Stock
40.84 USD
-0.38 (-0.92%)
40.79 USD
-0.05 (-0.12%)
We assign a fundamental rating of 3 out of 10 to MAN. MAN was compared to 83 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 on the other hand it scores bad on growth. MAN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
MAN had positive earnings in the past year.
MAN had a negative operating cash flow in the past year.
MAN had positive earnings in each of the past 5 years.
Each year in the past 5 years MAN had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MAN (-0.19%) is worse than 60.24% of its industry peers.
The Return On Equity of MAN (-0.81%) is worse than 62.65% of its industry peers.
The Return On Invested Capital of MAN (6.36%) is comparable to the rest of the industry.
MAN had an Average Return On Invested Capital over the past 3 years of 9.54%. This is below the industry average of 12.57%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.19% | ||
| ROE | -0.81% | ||
| ROIC | 6.36% |
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
In the last couple of years the Profit Margin of MAN has declined.
The Operating Margin of MAN (1.49%) is worse than 62.65% of its industry peers.
In the last couple of years the Operating Margin of MAN has declined.
MAN has a worse Gross Margin (17.10%) than 79.52% of its industry peers.
MAN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.49% | ||
| PM (TTM) | N/A | ||
| GM | 17.1% |
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
An Altman-Z score of 2.93 indicates that MAN is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.93, MAN perfoms like the industry average, outperforming 50.60% of the companies in the same industry.
MAN has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
MAN's Debt to Equity ratio of 0.24 is in line compared to the rest of the industry. MAN outperforms 56.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.93 |
ROIC/WACC0.73
WACC8.73%
2.3 Liquidity
MAN has a Current Ratio of 0.98. 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 worse Current ratio (0.98) than 74.70% of its industry peers.
A Quick Ratio of 0.98 indicates that MAN may have some problems paying its short term obligations.
The Quick ratio of MAN (0.98) is worse than 74.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
MAN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.37%.
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 -3.79% in the last year.
Measured over the past years, MAN shows a decrease in Revenue. The Revenue has been decreasing by -3.07% on average per year.
EPS 1Y (TTM)-30.37%
EPS 3Y-14.42%
EPS 5Y-9.54%
EPS Q2Q%-40%
Revenue 1Y (TTM)-3.79%
Revenue growth 3Y-4.85%
Revenue growth 5Y-3.07%
Sales Q2Q%-0.03%
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.
The Revenue is expected to grow by 3.21% on average over the next years.
EPS Next Y-35.55%
EPS Next 2Y-1.35%
EPS Next 3Y9.85%
EPS Next 5Y26.51%
Revenue Next Year-0.33%
Revenue Next 2Y1.52%
Revenue Next 3Y2.42%
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.
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 11.57, the valuation of MAN can be described as very reasonable.
Based on the Price/Earnings ratio, MAN is valued cheaper than 86.75% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.84. MAN is valued rather cheaply when compared to this.
MAN is valuated reasonably with a Price/Forward Earnings ratio of 9.22.
Based on the Price/Forward Earnings ratio, MAN is valued cheaper than 85.54% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.48. MAN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.57 | ||
| Fwd PE | 9.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MAN is valued cheaply inside the industry as 80.72% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.3 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-1.35%
EPS Next 3Y9.85%
5. Dividend
5.1 Amount
MAN has a Yearly Dividend Yield of 3.49%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.17, MAN pays a better dividend. On top of this MAN pays more dividend than 92.77% of the companies listed in the same industry.
MAN's Dividend Yield is a higher than the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
5.2 History
On average, the dividend of MAN grows each year by 7.20%, which is quite nice.
MAN has been paying a dividend for at least 10 years, so it has 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.
MAN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-651.85%
EPS Next 2Y-1.35%
EPS Next 3Y9.85%
40.84
-0.38 (-0.92%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners105.73%
Inst Owner Change2.78%
Ins Owners1.54%
Ins Owner Change0%
Market Cap1.89B
Analysts67.5
Price Target49.6 (21.45%)
Short Float %7.48%
Short Ratio3.55
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.49% |
Yearly Dividend3.06
Dividend Growth(5Y)7.2%
DP-651.85%
Div Incr Years14
Div Non Decr Years30
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.23%
Min EPS beat(2)-12.39%
Max EPS beat(2)12.86%
EPS beat(4)2
Avg EPS beat(4)0.61%
Min EPS beat(4)-12.39%
Max EPS beat(4)12.86%
EPS beat(8)6
Avg EPS beat(8)3.34%
EPS beat(12)7
Avg EPS beat(12)1.67%
EPS beat(16)10
Avg EPS beat(16)2.82%
Revenue beat(2)2
Avg Revenue beat(2)2.39%
Min Revenue beat(2)2.23%
Max Revenue beat(2)2.55%
Revenue beat(4)2
Avg Revenue beat(4)0.68%
Min Revenue beat(4)-1.62%
Max Revenue beat(4)2.55%
Revenue beat(8)3
Avg Revenue beat(8)-0.09%
Revenue beat(12)4
Avg Revenue beat(12)-0.61%
Revenue beat(16)5
Avg Revenue beat(16)-1.04%
PT rev (1m)0.78%
PT rev (3m)-6.29%
EPS NQ rev (1m)0.87%
EPS NQ rev (3m)-30.89%
EPS NY rev (1m)1.39%
EPS NY rev (3m)1.37%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.07%
Revenue NY rev (1m)0.67%
Revenue NY rev (3m)3.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.57 | ||
| Fwd PE | 9.22 | ||
| P/S | 0.11 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.95 | ||
| P/tB | 6301.61 | ||
| EV/EBITDA | 8.3 |
EPS(TTM)3.53
EY8.64%
EPS(NY)4.43
Fwd EY10.84%
FCF(TTM)-1.52
FCFYN/A
OCF(TTM)-0.25
OCFYN/A
SpS378.9
BVpS43.08
TBVpS0.01
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.19% | ||
| ROE | -0.81% | ||
| ROCE | 8.05% | ||
| ROIC | 6.36% | ||
| ROICexc | 6.99% | ||
| ROICexgc | 21.59% | ||
| OM | 1.49% | ||
| PM (TTM) | N/A | ||
| GM | 17.1% | ||
| FCFM | N/A |
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-Score3
Asset Turnover2.06
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 1.35 | ||
| Cap/Depr | 67.47% | ||
| Cap/Sales | 0.33% | ||
| Interest Coverage | 2.35 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 2.93 |
F-Score3
WACC8.73%
ROIC/WACC0.73
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)-30.37%
EPS 3Y-14.42%
EPS 5Y-9.54%
EPS Q2Q%-40%
EPS Next Y-35.55%
EPS Next 2Y-1.35%
EPS Next 3Y9.85%
EPS Next 5Y26.51%
Revenue 1Y (TTM)-3.79%
Revenue growth 3Y-4.85%
Revenue growth 5Y-3.07%
Sales Q2Q%-0.03%
Revenue Next Year-0.33%
Revenue Next 2Y1.52%
Revenue Next 3Y2.42%
Revenue Next 5Y3.21%
EBIT growth 1Y-26.43%
EBIT growth 3Y-16.98%
EBIT growth 5Y-13.2%
EBIT Next Year10.03%
EBIT Next 3Y16.59%
EBIT Next 5Y21.93%
FCF growth 1Y-123.29%
FCF growth 3Y-23.68%
FCF growth 5Y-19.46%
OCF growth 1Y-103.15%
OCF growth 3Y-21.73%
OCF growth 5Y-17.61%