MANPOWERGROUP INC (MAN) Stock Fundamental Analysis
NYSE:MAN - New York Stock Exchange, Inc. - US56418H1005 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to MAN. MAN was compared to 82 industry peers in the Professional Services industry. While MAN seems to be doing ok healthwise, 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.
In the past 5 years MAN always reported a positive cash flow from operatings.
1.2 Ratios
MAN has a Return On Assets of 1.38%. This is comparable to the rest of the industry: MAN outperforms 42.68% of its industry peers.
Looking at the Return On Equity, with a value of 5.28%, MAN is in line with its industry, outperforming 51.22% of the companies in the same industry.
The Return On Invested Capital of MAN (5.91%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for MAN is below the industry average of 12.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.38% | ||
| ROE | 5.28% | ||
| ROIC | 5.91% |
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
Looking at the Profit Margin, with a value of 0.63%, MAN is in line with its industry, outperforming 41.46% of the companies in the same industry.
In the last couple of years the Profit Margin of MAN has declined.
With a Operating Margin value of 1.62%, MAN is not doing good in the industry: 62.20% of the companies in the same industry are doing better.
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.
MAN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.62% | ||
| 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
MAN has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for MAN has been reduced compared to 1 year ago.
The number of shares outstanding for MAN has been reduced compared to 5 years ago.
Compared to 1 year ago, MAN has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.22 indicates that MAN is not in any danger for bankruptcy at the moment.
MAN has a Altman-Z score of 3.22. This is in the better half of the industry: MAN outperforms 62.20% of its industry peers.
A Debt/Equity ratio of 0.46 indicates that MAN is not too dependend on debt financing.
MAN has a Debt to Equity ratio (0.46) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.22 |
ROIC/WACC0.65
WACC9.08%
2.3 Liquidity
A Current Ratio of 1.12 indicates that MAN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.12, MAN is doing worse than 64.63% 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.
With a Quick ratio value of 1.12, MAN is not doing good in the industry: 64.63% of the companies in the same industry are doing better.
| 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.
MAN shows a decrease in Revenue. In the last year, the revenue decreased by -5.52%.
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)-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
MAN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.51% yearly.
Based on estimates for the next years, MAN will show a small growth in Revenue. The Revenue will grow by 3.21% on average per year.
EPS Next Y-36.43%
EPS Next 2Y-2%
EPS Next 3Y9.16%
EPS Next 5Y26.51%
Revenue Next Year-4.23%
Revenue Next 2Y-0.9%
Revenue Next 3Y0.81%
Revenue Next 5Y3.21%
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
Based on the Price/Earnings ratio of 9.73, the valuation of MAN can be described as reasonable.
Based on the Price/Earnings ratio, MAN is valued cheaply inside the industry as 89.02% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.69, MAN is valued rather cheaply.
A Price/Forward Earnings ratio of 9.02 indicates a reasonable valuation of MAN.
Based on the Price/Forward Earnings ratio, MAN is valued cheaper than 86.59% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.29. MAN is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.73 | ||
| Fwd PE | 9.02 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MAN indicates a rather cheap valuation: MAN is cheaper than 85.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 6.75 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-2%
EPS Next 3Y9.16%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.62%, MAN has a reasonable but not impressive dividend return.
In the last 3 months the price of MAN has falen by -32.83%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
MAN's Dividend Yield is rather good when compared to the industry average which is at 2.14. MAN pays more dividend than 93.90% of the companies in the same industry.
MAN's Dividend Yield is a higher than the S&P500 average which is at 2.43.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
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
MAN pays out 131.35% of its income as dividend. This is not a sustainable payout ratio.
MAN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP131.35%
EPS Next 2Y-2%
EPS Next 3Y9.16%
39.4
-0.5 (-1.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners107.71%
Inst Owner Change4.48%
Ins Owners1.54%
Ins Owner Change10.59%
Market Cap1.82B
Analysts68.24
Price Target48.83 (23.93%)
Short Float %6.41%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.62% |
Yearly Dividend3.06
Dividend Growth(5Y)7.2%
DP131.35%
Div Incr Years14
Div Non Decr Years30
Ex-Date
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)-7.74%
PT rev (3m)-26.47%
EPS NQ rev (1m)0.39%
EPS NQ rev (3m)-28.02%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-27.46%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)2.57%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)1.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.73 | ||
| Fwd PE | 9.02 | ||
| P/S | 0.1 | ||
| P/FCF | N/A | ||
| P/OCF | 45.59 | ||
| P/B | 0.87 | ||
| P/tB | 40.08 | ||
| EV/EBITDA | 6.75 |
EPS(TTM)4.05
EY10.28%
EPS(NY)4.37
Fwd EY11.09%
FCF(TTM)-0.28
FCFYN/A
OCF(TTM)0.86
OCFY2.19%
SpS379.02
BVpS45.44
TBVpS0.98
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.38% | ||
| ROE | 5.28% | ||
| ROCE | 7.48% | ||
| ROIC | 5.91% | ||
| ROICexc | 6.59% | ||
| ROICexgc | 16.67% | ||
| OM | 1.62% | ||
| PM (TTM) | 0.63% | ||
| GM | 17.22% | ||
| 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-Score4
Asset Turnover2.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.46 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.62 | ||
| Cap/Depr | 61.48% | ||
| Cap/Sales | 0.3% | ||
| Interest Coverage | 3.28 | ||
| Cash Conversion | 10.8% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 3.22 |
F-Score4
WACC9.08%
ROIC/WACC0.65
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-36.43%
EPS Next 2Y-2%
EPS Next 3Y9.16%
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-4.23%
Revenue Next 2Y-0.9%
Revenue Next 3Y0.81%
Revenue Next 5Y3.21%
EBIT growth 1Y-21.3%
EBIT growth 3Y-16.98%
EBIT growth 5Y-13.2%
EBIT Next Year10.47%
EBIT Next 3Y16.09%
EBIT Next 5Y21.93%
FCF growth 1Y-103.19%
FCF growth 3Y-23.68%
FCF growth 5Y-19.46%
OCF growth 1Y-91.62%
OCF growth 3Y-21.73%
OCF growth 5Y-17.61%