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 3 out of 10. We evaluated MAN against 82 industry peers in the Professional Services industry. MAN has a bad profitability rating. Also its financial health evaluation is rather negative. 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 has reported a negative cash flow from operations.
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
Looking at the Return On Assets, with a value of -0.19%, MAN is doing worse than 60.98% of the companies in the same industry.
Looking at the Return On Equity, with a value of -0.81%, MAN is doing worse than 62.20% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.01%, MAN is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MAN is below the industry average of 12.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.19% | ||
| ROE | -0.81% | ||
| ROIC | 6.01% |
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.
Looking at the Operating Margin, with a value of 1.40%, MAN is doing worse than 62.20% of the companies in the same industry.
In the last couple of years the Operating Margin of MAN has declined.
The Gross Margin of MAN (17.10%) is worse than 79.27% of its industry peers.
MAN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.4% | ||
| 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
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.
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 2.93. 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's Altman-Z score of 2.93 is in line compared to the rest of the industry. MAN outperforms 54.88% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that MAN is not too dependend on debt financing.
The Debt to Equity ratio of MAN (0.24) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 2.93 |
ROIC/WACC0.74
WACC8.17%
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's Current ratio of 0.98 is on the low side compared to the rest of the industry. MAN is outperformed by 76.83% of its industry peers.
MAN has a Quick 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.
The Quick ratio of MAN (0.98) is worse than 76.83% 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%.
Measured over the past years, MAN shows a decrease in Earnings Per Share. The EPS has been decreasing by -9.54% on average per year.
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
MAN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.51% yearly.
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-36.43%
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
The Price/Earnings ratio is 11.12, which indicates a very decent valuation of MAN.
Based on the Price/Earnings ratio, MAN is valued cheaper than 84.15% of the companies in the same industry.
MAN is valuated cheaply when we compare the Price/Earnings ratio to 26.82, which is the current average of the S&P500 Index.
MAN is valuated reasonably with a Price/Forward Earnings ratio of 8.98.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MAN indicates a rather cheap valuation: MAN is cheaper than 81.71% of the companies listed in the same industry.
MAN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.12 | ||
| Fwd PE | 8.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MAN is valued cheaply inside the industry as 81.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.71 |
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 3.49%, MAN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.17, MAN pays a better dividend. On top of this MAN pays more dividend than 93.90% of the companies listed in the same industry.
MAN's Dividend Yield is a higher than the S&P500 average which is at 2.39.
| 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 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)7.2%
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-2%
EPS Next 3Y9.16%
39.25
-2 (-4.85%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners107.71%
Inst Owner Change-2.59%
Ins Owners1.54%
Ins Owner Change4.56%
Market Cap1.82B
Analysts67.5
Price Target49.22 (25.4%)
Short Float %7.25%
Short Ratio3.47
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)-7.01%
EPS NQ rev (1m)-0.57%
EPS NQ rev (3m)-31.49%
EPS NY rev (1m)0%
EPS NY rev (3m)-19.86%
Revenue NQ rev (1m)6.17%
Revenue NQ rev (3m)6.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.12 | ||
| Fwd PE | 8.98 | ||
| P/S | 0.1 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 0.91 | ||
| P/tB | 6054.97 | ||
| EV/EBITDA | 8.71 |
EPS(TTM)3.53
EY8.99%
EPS(NY)4.37
Fwd EY11.13%
FCF(TTM)-1.52
FCFYN/A
OCF(TTM)-0.25
OCFYN/A
SpS378.99
BVpS43.09
TBVpS0.01
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.19% | ||
| ROE | -0.81% | ||
| ROCE | 7.61% | ||
| ROIC | 6.01% | ||
| ROICexc | 6.6% | ||
| ROICexgc | 20.4% | ||
| OM | 1.4% | ||
| 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 | 1.41 | ||
| Cap/Depr | 67.47% | ||
| Cap/Sales | 0.33% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 2.93 |
F-Score3
WACC8.17%
ROIC/WACC0.74
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-36.43%
EPS Next 2Y-2%
EPS Next 3Y9.16%
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-4.23%
Revenue Next 2Y-0.9%
Revenue Next 3Y0.81%
Revenue Next 5Y3.21%
EBIT growth 1Y-30.49%
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-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%