ManpowerGroup Inc

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MAN : NYSE : Services
$69.88 up 0.36 | 0.52%
Today's Range: 69.00 - 70.25
Avg. Daily Volume: 934,300
09/27/16 - 10:43 AM ET

Financial Analysis


MANPOWERGROUP's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. MANPOWERGROUP has average liquidity. Currently, the Quick Ratio is 1.40 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 14.49% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)5022.14861.3
EBITDA ($mil)217.3198.8
EBIT ($mil)196.0179.9
Net Income ($mil)115.4105.7


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)546.3465.9
Total Assets ($mil)7506.07072.7
Total Debt ($mil)854.0430.2
Equity ($mil)2443.62858.0


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin17.5617.47
EBITDA Margin4.324.08
Operating Margin3.93.7
Sales Turnover2.62.82
Return on Assets5.795.92
Return on Equity17.7914.66
Debt Q2 FY16 Q2 FY15
Current Ratio1.431.48
Debt/Capital0.260.13
Interest Expense9.28.2
Interest Coverage21.321.94


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)69.4376.91
Div / share0.860.8
EPS1.61.33
Book value / share35.237.16
Institutional Own % n/a n/a
Avg Daily Volume985272.0726530.0

Valuation


BUY. MANPOWERGROUP's P/E ratio indicates a significant discount compared to an average of 35.35 for the Professional Services industry and a significant discount compared to the S&P 500 average of 25.19. To use another comparison, its price-to-book ratio of 1.99 indicates a discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 7.94. 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 11.99 Peers 35.35   MAN 6.83 Peers 17.10

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 11.10 Peers 20.61   MAN 1.30 Peers 1.21

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.

 

Average. 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 valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MAN 1.99 Peers 7.94   MAN 11.64 Peers 101.70

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 0.25 Peers 3.70   MAN -2.03 Peers 41.32

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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