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ManpowerGroup (MAN)
NYSE:MAN

ManpowerGroup (MAN) AI Stock Analysis

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MA

ManpowerGroup

(NYSE:MAN)

68Neutral
ManpowerGroup's stock is rated at 68, reflecting a stable financial position with efficient cost and cash flow management, but facing revenue growth challenges. The technical analysis indicates a neutral trend, and the valuation is fair with an attractive dividend yield. Earnings call insights highlight regional challenges but also potential growth areas, particularly in AI and Talent Solutions. Overall, while the company has a solid foundation, it needs to address profitability volatility and leverage growth strategies to improve its outlook.
Positive Factors
Growth in US Market
The Manpower brand and Talent Solutions crossed over to growth in the US in Q3.
Investment in Technology
MAN has been heavily investing in the PowerSuite cloud-based platform to help recruiter productivity and enhance efficiency.
Negative Factors
Challenging Conditions in Northern Europe
Northern Europe is particularly challenged with conditions worsening in the UK, Germany, and the Nordics.
European Market Exposure
MAN's valuation has been negatively affected by its European exposure, compounded by greater recessionary fears in Europe.
Tariff Increases
Increases in tariffs could hurt some of its non-US business, particularly the auto sector, which accounts for about 7% of global revenues.

ManpowerGroup (MAN) vs. S&P 500 (SPY)

ManpowerGroup Business Overview & Revenue Model

Company DescriptionManpowerGroup Inc. provides workforce solutions and services in the Americas, Southern Europe, Northern Europe, and the Asia Pacific Middle East region. The company offers recruitment services, including permanent, temporary, and contract recruitment of professionals, as well as administrative and industrial positions under the Manpower and Experis brands. It also offers various assessment services; training and development services; career management; and outsourcing services related to human resources functions primarily in the areas of large-scale recruiting and workforce-intensive initiatives. In addition, the company provides workforce consulting services; contingent staffing and permanent recruitment services; professional resourcing and project-based solutions in information technology, engineering, and finance fields; solutions in the areas of organizational efficiency, individual development, and career mobility; and recruitment process outsourcing, TAPFIN managed, and talent based outsourcing services, as well as Proservia services in the areas of digital services market and IT infrastructure sector. It operates through a network of approximately 2,200 offices in 75 countries and territories. The company was incorporated in 1948 and is based in Milwaukee, Wisconsin.
How the Company Makes MoneyManpowerGroup makes money primarily through its staffing and workforce solutions services. The company generates revenue by providing temporary and permanent staffing solutions, charging client companies for the placement of workers. Its key revenue streams include fees from temporary staffing assignments, which are typically based on the number of hours worked by placed employees, and permanent placement services, which involve a one-time fee based on a percentage of the hired employee's salary. Additionally, the company's talent management and workforce development services contribute to its earnings by offering training and development programs that help clients enhance the skills of their workforce. ManpowerGroup's global presence and partnerships with various industries and sectors further bolster its revenue streams by ensuring a diverse client base and a steady demand for its services.

ManpowerGroup Financial Statement Overview

Summary
ManpowerGroup demonstrates stable financial performance with efficient cost management and strong cash flow. However, challenges in revenue growth and fluctuating profitability metrics present areas for improvement. The balance sheet remains solid with controlled leverage, but volatility in return metrics suggests potential profitability issues.
Income Statement
67
Positive
ManpowerGroup shows a mixed performance in its income statement. The gross profit margin remains stable due to consistent gross profit figures. However, the net profit margin has seen significant fluctuations, with a reduction in net income in recent years impacting profitability. Revenue growth has been negative, indicating challenges in expanding sales, although EBIT and EBITDA margins are relatively stable, suggesting cost management efficiency.
Balance Sheet
72
Positive
The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio, indicating prudent financial leverage. The equity ratio suggests a reasonable level of equity financing, although a slight decrease in stockholders' equity in recent years may pose a concern. Return on Equity has been volatile, highlighting potential profitability issues.
Cash Flow
70
Positive
Cash flow analysis shows a strong operating cash flow, which supports liquidity and operational efficiency. However, free cash flow has seen fluctuations, impacted by changes in capital expenditure and operating cash flow. The operating cash flow to net income ratio is healthy, indicating efficient cash generation relative to net income.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
3.09B18.91B19.83B20.72B18.00B
Gross Profit
3.09B3.36B3.57B3.41B2.82B
EBIT
306.00M255.80M581.70M585.40M262.70M
EBITDA
433.40M374.20M688.60M680.30M267.30M
Net Income Common Stockholders
145.10M88.80M373.80M382.40M23.80M
Balance SheetCash, Cash Equivalents and Short-Term Investments
509.40M581.30M639.00M847.80M1.57B
Total Assets
8.20B8.83B9.13B9.83B9.35B
Total Debt
1.23B1.43B1.25B1.39B1.45B
Net Debt
722.40M844.70M614.10M546.30M-119.90M
Total Liabilities
6.07B6.60B6.67B7.30B6.89B
Stockholders Equity
2.13B2.22B2.45B2.52B2.44B
Cash FlowFree Cash Flow
258.10M270.00M347.70M580.60M885.70M
Operating Cash Flow
309.20M348.20M423.30M644.80M936.40M
Investing Cash Flow
-68.20M-74.10M-85.30M-987.00M-42.40M
Financing Cash Flow
-282.40M-349.50M-482.10M-283.70M-435.20M

ManpowerGroup Technical Analysis

Technical Analysis Sentiment
Negative
Last Price52.19
Price Trends
50DMA
57.95
Negative
100DMA
58.83
Negative
200DMA
63.80
Negative
Market Momentum
MACD
0.12
Positive
RSI
50.26
Neutral
STOCH
34.97
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAN, the sentiment is Negative. The current price of 52.19 is below the 20-day moving average (MA) of 58.56, below the 50-day MA of 57.95, and below the 200-day MA of 63.80, indicating a bearish trend. The MACD of 0.12 indicates Positive momentum. The RSI at 50.26 is Neutral, neither overbought nor oversold. The STOCH value of 34.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MAN.

ManpowerGroup Risk Analysis

ManpowerGroup disclosed 33 risk factors in its most recent earnings report. ManpowerGroup reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

ManpowerGroup Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
NSNSP
77
Outperform
$3.15B35.3595.48%2.83%1.47%-45.91%
CDCDW
69
Neutral
$19.14B18.1249.04%1.72%-1.77%-1.82%
MAMAN
68
Neutral
$2.44B17.376.67%5.90%-5.61%77.92%
62
Neutral
$7.25B12.393.08%3.39%3.63%-14.32%
RHRHI
60
Neutral
$4.95B19.8216.96%4.50%-9.33%-37.06%
56
Neutral
$427.21M11.43-0.05%2.45%-10.42%-101.51%
TBTBI
44
Neutral
$149.13M-32.53%-17.78%-820.48%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MAN
ManpowerGroup
52.19
-19.88
-27.58%
NSP
Insperity
84.65
-20.31
-19.35%
KELYA
Kelly Services
12.25
-11.90
-49.28%
RHI
Robert Half
48.41
-24.70
-33.78%
TBI
Trueblue
5.02
-6.82
-57.60%
CDW
CDW
144.49
-106.69
-42.48%

ManpowerGroup Earnings Call Summary

Earnings Call Date: Jan 30, 2025 | % Change Since: -13.56% | Next Earnings Date: Apr 17, 2025
Earnings Call Sentiment Negative
The earnings call presented a mixed picture. While there are some positive developments, such as growth in the Americas and strong cash flow, the overall business faced significant challenges. There were notable declines in revenue and earnings, particularly in Europe, which contributed to a negative sentiment. The company's focus on AI and Talent Solutions offers some hope for future growth, but current economic conditions remain challenging.
Highlights
AI Potential and Talent Solutions Growth
Experis Tech Talent Outlook found 58% of employers believe AI will be a job creator. Talent Solutions brand saw a revenue increase of 6% year-over-year, driven by MSP business's strong double-digit revenue growth.
Americas Segment Revenue Increase
Revenue in the Americas increased 7% year-over-year in constant currency, with the U.S. Manpower brand experiencing a 2% revenue increase.
Strong Cash Flow and Share Repurchases
Free cash flow for the full year was $258 million. In the fourth quarter, ManpowerGroup repurchased 552,000 shares of stock for $34 million.
Lowlights
Revenue Decline
Fourth-quarter revenue was $4.4 billion, down 3% year-over-year in constant currency. Full-year revenue decreased 3% in constant currency to $17.9 billion.
Significant EBITA and EPS Declines
Adjusted EBITA was $94 million, representing a decrease of 12% year-over-year. Adjusted earnings per share decreased 27% year-over-year in constant currency.
Challenging Environment in Europe
Northern Europe reported a 16% revenue decline in constant currency. The German market, in particular, experienced a 24% revenue decrease due to weak manufacturing trends.
Company Guidance
During the call, ManpowerGroup provided guidance for the first quarter of 2025, projecting earnings per share to range between $0.47 and $0.57, despite an anticipated revenue decline of 5% to 9% in constant currency. The company noted several factors impacting this guidance, including a strong U.S. dollar, fewer working days due to the leap year in 2024, and a higher tax rate compared to the prior year. Foreign currency translation is expected to negatively impact earnings by $0.06 per share. The adjusted EBITA margin is forecasted to decrease by 30 basis points compared to the prior year. ManpowerGroup also highlighted the continued investment in transformation programs, while cost reductions are being implemented in regions with challenging market conditions, such as Northern Europe and the U.K.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.