ManpowerGroup Inc

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MAN : NYSE : Services
$92.79 up 1.0 | 1.1%
Today's Range: 91.92 - 93.41
Avg. Daily Volume: 689600.0
01/17/17 - 9:30 AM ET

Financial Analysis


MANPOWERGROUP's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. MANPOWERGROUP has average liquidity. Currently, the Quick Ratio is 1.36 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 8.70% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)5088.24972.5
EBITDA ($mil)232.5228.0
EBIT ($mil)211.1208.5
Net Income ($mil)129.2123.9


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)503.1652.5
Total Assets ($mil)7720.47444.4
Total Debt ($mil)875.7878.7
Equity ($mil)2392.02620.2


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin17.2917.53
EBITDA Margin4.564.58
Operating Margin4.154.19
Sales Turnover2.552.62
Return on Assets5.75.54
Return on Equity18.415.74
Debt Q3 FY16 Q3 FY15
Current Ratio1.391.47
Debt/Capital0.270.25
Interest Expense9.29.2
Interest Coverage22.9522.66


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)67.0173.6
Div / share0.00.0
EPS1.871.61
Book value / share35.6935.6
Institutional Own % n/a n/a
Avg Daily Volume687075.0731830.0

Valuation


BUY. MANPOWERGROUP's P/E ratio indicates a significant discount compared to an average of 36.22 for the Professional Services industry and a significant discount compared to the S&P 500 average of 25.49. To use another comparison, its price-to-book ratio of 2.57 indicates valuation on par with the S&P 500 average of 2.84 and a significant discount versus the industry average of 7.45. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, MANPOWERGROUP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MAN 15.02 Peers 36.22   MAN 10.01 Peers 17.42

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

MAN is trading at a significant discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

MAN is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
MAN 14.22 Peers 20.37   MAN 1.10 Peers 6.07

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

MAN is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

MAN trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MAN 2.57 Peers 7.45   MAN 16.60 Peers 62.78

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

MAN is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, MAN is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MAN 0.31 Peers 3.70   MAN 0.79 Peers 33.26

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

MAN is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

MAN significantly trails its peers on the basis of sales growth

 

 

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