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 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
MAN had positive earnings in the past year.
In the past year MAN had a positive cash flow from operations.
Each year in the past 5 years MAN has been profitable.
Each year in the past 5 years MAN had a positive operating cash flow.
1.2 Ratios
MAN has a Return On Assets of 1.77%. This is comparable to the rest of the industry: MAN outperforms 45.57% of its industry peers.
MAN's Return On Equity of 6.83% is in line compared to the rest of the industry. MAN outperforms 50.63% of its industry peers.
The Return On Invested Capital of MAN (6.42%) 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 13.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.77% | ||
| ROE | 6.83% | ||
| ROIC | 6.42% |
ROA(3y)2.29%
ROA(5y)2.2%
ROE(3y)8.7%
ROE(5y)8.45%
ROIC(3y)9.21%
ROIC(5y)9.2%
1.3 Margins
With a Profit Margin value of 0.81%, MAN perfoms like the industry average, outperforming 40.51% of the companies in the same industry.
MAN's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 1.71%, MAN is not doing good in the industry: 65.82% 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 17.29% is on the low side compared to the rest of the industry. MAN is outperformed by 81.01% 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 | 1.71% | ||
| PM (TTM) | 0.81% | ||
| GM | 17.29% |
OM growth 3Y-16.95%
OM growth 5Y-13.06%
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.
Compared to 1 year ago, MAN has less shares outstanding
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
An Altman-Z score of 3.28 indicates that MAN is not in any danger for bankruptcy at the moment.
With a Altman-Z score value of 3.28, MAN perfoms like the industry average, outperforming 59.49% of the companies in the same industry.
The Debt to FCF ratio of MAN is 3.69, which is a good value as it means it would take MAN, 3.69 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MAN (3.69) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.44 indicates that MAN is not too dependend on debt financing.
The Debt to Equity ratio of MAN (0.44) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.69 | ||
| Altman-Z | 3.28 |
ROIC/WACC0.74
WACC8.66%
2.3 Liquidity
A Current Ratio of 1.12 indicates that MAN should not have too much problems paying its short term obligations.
MAN has a worse Current ratio (1.12) than 63.29% of its industry peers.
A Quick Ratio of 1.12 indicates that MAN should not have too much problems paying its short term obligations.
MAN has a Quick ratio of 1.12. This is in the lower half of the industry: MAN underperforms 63.29% of its industry peers.
| 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 -24.42% 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 -5.61% in the past year.
The Revenue has been decreasing by -3.07% on average over the past years.
EPS 1Y (TTM)-24.42%
EPS 3Y-14.42%
EPS 5Y-9.54%
EPS Q2Q%-29.66%
Revenue 1Y (TTM)-5.61%
Revenue growth 3Y-4.85%
Revenue growth 5Y-3.07%
Sales Q2Q%-4.98%
3.2 Future
The Earnings Per Share is expected to grow by 26.51% on average over the next years. This is a very strong growth
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-12.37%
EPS Next 2Y7.86%
EPS Next 3Y12.82%
EPS Next 5Y26.51%
Revenue Next Year-5.57%
Revenue Next 2Y-1.02%
Revenue Next 3Y0.15%
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.
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 11.82, which indicates a very decent valuation of MAN.
Based on the Price/Earnings ratio, MAN is valued cheaper than 84.81% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, MAN is valued rather cheaply.
With a Price/Forward Earnings ratio of 13.49, MAN is valued correctly.
Based on the Price/Forward Earnings ratio, MAN is valued a bit cheaper than the industry average as 69.62% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.68. MAN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 13.49 |
4.2 Price Multiples
84.81% of the companies in the same industry are more expensive than MAN, based on the Enterprise Value to EBITDA ratio.
MAN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MAN is cheaper than 93.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.78 | ||
| EV/EBITDA | 7.7 |
4.3 Compensation for Growth
MAN's earnings are expected to grow with 12.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.86%
EPS Next 3Y12.82%
5. Dividend
5.1 Amount
MAN has a Yearly Dividend Yield of 5.61%, which is a nice return.
Compared to an average industry Dividend Yield of 1.93, MAN pays a better dividend. On top of this MAN pays more dividend than 98.73% of the companies listed in the same industry.
MAN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
5.2 History
The dividend of MAN is nicely growing with an annual growth rate of 7.16%!
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)7.16%
Div Incr Years14
Div Non Decr Years30
5.3 Sustainability
MAN pays out 100.48% 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.
DP100.48%
EPS Next 2Y7.86%
EPS Next 3Y12.82%
53.77
-1.18 (-2.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners101.02%
Inst Owner Change-1.94%
Ins Owners1.46%
Ins Owner Change9.11%
Market Cap2.52B
Analysts67.06
Price Target66.41 (23.51%)
Short Float %5.76%
Short Ratio3.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.61% |
Yearly Dividend3.06
Dividend Growth(5Y)7.16%
DP100.48%
Div Incr Years14
Div Non Decr Years30
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1%
Min EPS beat(2)-0.91%
Max EPS beat(2)2.9%
EPS beat(4)3
Avg EPS beat(4)1.23%
Min EPS beat(4)-0.91%
Max EPS beat(4)2.9%
EPS beat(8)5
Avg EPS beat(8)2.62%
EPS beat(12)7
Avg EPS beat(12)2.99%
EPS beat(16)11
Avg EPS beat(16)9.26%
Revenue beat(2)0
Avg Revenue beat(2)-1.03%
Min Revenue beat(2)-1.62%
Max Revenue beat(2)-0.44%
Revenue beat(4)0
Avg Revenue beat(4)-1.16%
Min Revenue beat(4)-1.62%
Max Revenue beat(4)-0.44%
Revenue beat(8)1
Avg Revenue beat(8)-1.06%
Revenue beat(12)3
Avg Revenue beat(12)-1.37%
Revenue beat(16)5
Avg Revenue beat(16)-0.97%
PT rev (1m)-5.26%
PT rev (3m)-7.36%
EPS NQ rev (1m)-45.68%
EPS NQ rev (3m)-54.31%
EPS NY rev (1m)-23.31%
EPS NY rev (3m)-23.31%
Revenue NQ rev (1m)-8.78%
Revenue NQ rev (3m)-12.87%
Revenue NY rev (1m)-6.6%
Revenue NY rev (3m)-7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.82 | ||
| Fwd PE | 13.49 | ||
| P/S | 0.14 | ||
| P/FCF | 9.78 | ||
| P/OCF | 8.16 | ||
| P/B | 1.19 | ||
| P/tB | 33.34 | ||
| EV/EBITDA | 7.7 |
EPS(TTM)4.55
EY8.46%
EPS(NY)3.99
Fwd EY7.42%
FCF(TTM)5.5
FCFY10.23%
OCF(TTM)6.59
OCFY12.25%
SpS380.36
BVpS45.27
TBVpS1.61
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.77% | ||
| ROE | 6.83% | ||
| ROCE | 8.13% | ||
| ROIC | 6.42% | ||
| ROICexc | 7.43% | ||
| ROICexgc | 20.06% | ||
| OM | 1.71% | ||
| PM (TTM) | 0.81% | ||
| GM | 17.29% | ||
| FCFM | 1.45% |
ROA(3y)2.29%
ROA(5y)2.2%
ROE(3y)8.7%
ROE(5y)8.45%
ROIC(3y)9.21%
ROIC(5y)9.2%
ROICexc(3y)10.78%
ROICexc(5y)11.4%
ROICexgc(3y)27.78%
ROICexgc(5y)31.03%
ROCE(3y)11.7%
ROCE(5y)11.68%
ROICexcg growth 3Y-27.99%
ROICexcg growth 5Y-4.19%
ROICexc growth 3Y-21.27%
ROICexc growth 5Y-13%
OM growth 3Y-16.95%
OM growth 5Y-13.06%
PM growth 3Y-23.89%
PM growth 5Y-18.31%
GM growth 3Y1.68%
GM growth 5Y1.34%
F-Score6
Asset Turnover2.18
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.69 | ||
| Debt/EBITDA | 2.37 | ||
| Cap/Depr | 59.01% | ||
| Cap/Sales | 0.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.76% | ||
| Profit Quality | 177.88% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 3.28 |
F-Score6
WACC8.66%
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)-24.42%
EPS 3Y-14.42%
EPS 5Y-9.54%
EPS Q2Q%-29.66%
EPS Next Y-12.37%
EPS Next 2Y7.86%
EPS Next 3Y12.82%
EPS Next 5Y26.51%
Revenue 1Y (TTM)-5.61%
Revenue growth 3Y-4.85%
Revenue growth 5Y-3.07%
Sales Q2Q%-4.98%
Revenue Next Year-5.57%
Revenue Next 2Y-1.02%
Revenue Next 3Y0.15%
Revenue Next 5Y3.21%
EBIT growth 1Y-27.07%
EBIT growth 3Y-20.97%
EBIT growth 5Y-15.73%
EBIT Next Year23.23%
EBIT Next 3Y17.39%
EBIT Next 5Y21.93%
FCF growth 1Y-4.41%
FCF growth 3Y-23.68%
FCF growth 5Y-19.46%
OCF growth 1Y-11.2%
OCF growth 3Y-21.73%
OCF growth 5Y-17.61%