MANPOWERGROUP INC (MAN) Stock Fundamental Analysis
NYSE:MAN - New York Stock Exchange, Inc. - US56418H1005 - Common Stock - Currency: USD
MAN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 83 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 bad growth rate and is valued cheaply. 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 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 (1.77%) which is in line with its industry peers.
MAN's Return On Equity of 6.83% is in line compared to the rest of the industry. MAN outperforms 50.60% of its industry peers.
MAN's Return On Invested Capital of 6.42% is in line compared to the rest of the industry. MAN outperforms 51.81% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MAN is below the industry average of 13.57%.
| 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)9.54%
ROIC(5y)9.39%
1.3 Margins
MAN has a Profit Margin (0.81%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of MAN has declined.
MAN has a Operating Margin of 1.71%. This is in the lower half of the industry: MAN underperforms 60.24% of its industry peers.
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 77.11% 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-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.
MAN has less shares outstanding than it did 1 year ago.
MAN has less shares outstanding than it did 5 years ago.
MAN has a worse debt/assets ratio than last year.
2.2 Solvency
MAN has an Altman-Z score of 3.21. This indicates that MAN is financially healthy and has little risk of bankruptcy at the moment.
MAN has a better Altman-Z score (3.21) than 65.06% of its industry peers.
MAN has a debt to FCF ratio of 3.69. This is a good value and a sign of high solvency as MAN would need 3.69 years to pay back of all of its debts.
MAN's Debt to FCF ratio of 3.69 is fine compared to the rest of the industry. MAN outperforms 61.45% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that MAN is not too dependend on debt financing.
MAN has a Debt to Equity ratio (0.44) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 3.69 | ||
| Altman-Z | 3.21 |
ROIC/WACC0.7
WACC9.18%
2.3 Liquidity
A Current Ratio of 1.12 indicates that MAN should not have too much problems paying its short term obligations.
With a Current ratio value of 1.12, MAN perfoms like the industry average, outperforming 42.17% of the companies in the same industry.
MAN has a Quick Ratio of 1.12. This is a normal value and indicates that MAN is financially healthy and should not expect problems in meeting its short term obligations.
MAN has a Quick ratio of 1.12. This is comparable to the rest of the industry: MAN outperforms 42.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
MAN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -24.30%.
The Earnings Per Share has been decreasing by -9.54% on average over the past years.
The Revenue has decreased by -5.61% 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)-24.3%
EPS 3Y-14.42%
EPS 5Y-9.54%
EPS Q2Q%-53.19%
Revenue 1Y (TTM)-5.61%
Revenue growth 3Y-4.85%
Revenue growth 5Y-3.07%
Sales Q2Q%-7.11%
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-12.57%
EPS Next 2Y8.03%
EPS Next 3Y13.14%
EPS Next 5Y26.51%
Revenue Next Year-5.15%
Revenue Next 2Y-0.75%
Revenue Next 3Y0.86%
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
A Price/Earnings ratio of 9.89 indicates a reasonable valuation of MAN.
Based on the Price/Earnings ratio, MAN is valued cheaply inside the industry as 84.34% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.29, MAN is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.55, the valuation of MAN can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MAN indicates a rather cheap valuation: MAN is cheaper than 91.57% 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 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.89 | ||
| Fwd PE | 7.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MAN is valued cheaply inside the industry as 89.16% of the companies are valued more expensively.
93.98% of the companies in the same industry are more expensive than MAN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.26 | ||
| EV/EBITDA | 5.9 |
4.3 Compensation for Growth
A more expensive valuation may be justified as MAN's earnings are expected to grow with 13.14% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y8.03%
EPS Next 3Y13.14%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 6.22%, MAN is a good candidate for dividend investing.
The stock price of MAN dropped by -32.70% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
MAN's Dividend Yield is rather good when compared to the industry average which is at 2.24. MAN pays more dividend than 98.80% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.57, MAN pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.22% |
5.2 History
The dividend of MAN is nicely growing with an annual growth rate of 7.20%!
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
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 2Y8.03%
EPS Next 3Y13.14%
40.07
-9.44 (-19.07%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCommercial & Professional Services
GICS IndustryProfessional Services
Earnings (Last)
Earnings (Next)
Inst Owners101.02%
Inst Owner Change0%
Ins Owners1.46%
Ins Owner Change12.43%
Market Cap1.87B
Analysts67.06
Price Target66.53 (66.03%)
Short Float %6.94%
Short Ratio3.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 6.22% |
Yearly Dividend3.06
Dividend Growth(5Y)7.2%
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)0.17%
PT rev (3m)-7.35%
EPS NQ rev (1m)-0.72%
EPS NQ rev (3m)-46.07%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)-23.49%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)-8.49%
Revenue NY rev (1m)0.44%
Revenue NY rev (3m)-6.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.89 | ||
| Fwd PE | 7.55 | ||
| P/S | 0.1 | ||
| P/FCF | 7.26 | ||
| P/OCF | 6.06 | ||
| P/B | 0.88 | ||
| P/tB | 24.74 | ||
| EV/EBITDA | 5.9 |
EPS(TTM)4.05
EY10.11%
EPS(NY)5.31
Fwd EY13.25%
FCF(TTM)5.52
FCFY13.78%
OCF(TTM)6.62
OCFY16.51%
SpS381.98
BVpS45.47
TBVpS1.62
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)9.54%
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-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 | 3.6 | ||
| Cash Conversion | 78.76% | ||
| Profit Quality | 177.88% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 3.21 |
F-Score6
WACC9.18%
ROIC/WACC0.7
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-12.57%
EPS Next 2Y8.03%
EPS Next 3Y13.14%
EPS Next 5Y26.51%
Revenue 1Y (TTM)-5.61%
Revenue growth 3Y-4.85%
Revenue growth 5Y-3.07%
Sales Q2Q%-7.11%
Revenue Next Year-5.15%
Revenue Next 2Y-0.75%
Revenue Next 3Y0.86%
Revenue Next 5Y3.21%
EBIT growth 1Y-27.07%
EBIT growth 3Y-16.98%
EBIT growth 5Y-13.2%
EBIT Next Year22.41%
EBIT Next 3Y17.08%
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%