Our trade recommendation on ManpowerGroup based on the latest fundamentals

Although quite unfluctuating basic indicators, ManpowerGroup may actually be approaching a critical reversion point that can send shares even higher in August 2020. Will institutional investors continue to hold, or should we expect a sell-off?
Published over a year ago
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Reviewed by Raphi Shpitalnik

ManpowerGroup is FAIRLY VALUED at 74.15 per share with modest projections ahead. We consider ManpowerGroup very steady. ManpowerGroup has Sharpe Ratio of 0.0367, which conveys that the firm had 0.0367% of return per unit of risk over the last month. Our standpoint towards estimating the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-eight technical indicators for ManpowerGroup, which you can use to evaluate future volatility of the firm. Please verify ManpowerGroup risk adjusted performance of 0.2005, mean deviation of 2.75, and downside deviation of 3.63 to check out if the risk estimate we provide is consistent with the expected return of 0.13%.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include ManpowerGroup income statement, its balance sheet, and the statement of cash flows. Potential ManpowerGroup investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although ManpowerGroup investors may use each financial statement separately, they are all related. The changes in ManpowerGroup's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on ManpowerGroup's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of ManpowerGroup fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of ManpowerGroup performance into the future periods or doing a reasonable stock valuation. The intrinsic value of ManpowerGroup shares is the value that is considered the true value of the share. If the intrinsic value of ManpowerGroup is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares ManpowerGroup. Please read more on our fundamental analysis page.

How effective is ManpowerGroup in utilizing its assets?

ManpowerGroup reports assets on its Balance Sheet. It represents the amount of ManpowerGroup resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, ManpowerGroup aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Human Resource & Employment Services space. To get a better handle on how balance sheet or income statements item affect ManpowerGroup volatility, please check the breakdown of all its fundamentals.

Are ManpowerGroup Earnings Expected to grow?

The future earnings power of ManpowerGroup involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of ManpowerGroup factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. ManpowerGroup stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of ManpowerGroup expected earnings.

And What about dividends?

A dividend is the distribution of a portion of ManpowerGroup earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. ManpowerGroup dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. ManpowerGroup one year expected dividend income is about USD1.89 per share.
As of the 24th of April 2024, Dividends Paid is likely to grow to about 151.5 M. Also, Dividend Yield is likely to grow to 0.04.
Last ReportedProjected for Next Year
Dividends Paid144.3 M151.5 M
Dividend Yield 0.04  0.04 
Dividend Payout Ratio 1.62  1.71 
Dividend Paid And Capex Coverage Ratio 5.27  5.53 
Investing in stocks that pay dividends, such as stock of ManpowerGroup, is one of many strategies that are good for long-term investments. Ex-dividend dates are significant because investors in ManpowerGroup must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for ManpowerGroup. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

ManpowerGroup Gross Profit

ManpowerGroup Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing ManpowerGroup previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show ManpowerGroup Gross Profit growth over the last 10 years. Please check ManpowerGroup's gross profit and other fundamental indicators for more details.

Breaking down ManpowerGroup Indicators

There are few distinct groups of ManpowerGroup stakehholders that the SEC considers insiders. Investors usually gain information through their work as corporate directors, officers, or employees. If these individuals share the information with a friend, family, or business partner and the person who receives the information exchanges stock in the company, he or shie is also an insider. Let's take a look at how the ownership of ManpowerGroup is distributed among investors.

Ownership Allocation

ManpowerGroup maintains a total of fifty-eight million fifty thousand outstanding shares. The majority of ManpowerGroup outstanding shares are owned by institutional investors. These third-party entities are usually referred to as non-private investors looking to shop for positions in ManpowerGroup to benefit from reduced commissions. Consequently, institutional holders are subject to a different set of regulations than regular investors in ManpowerGroup. Please pay attention to any change in the institutional holdings of ManpowerGroup as this could imply that something significant has changed or about to change at the company. Please note that no matter how much assets the company has, if the real value of the firm is less than the current market value, you may not be able to make money on it.
Institutions
97.94%
Retail Investors1.43
Insiders0.63
Institutions97.94
 2017 2018 2019 2020 (projected)
Operating Income789.2 M796.7 M644.9 M642.19 M
Operating Expenses2.7 B2.78 B2.73 B2.64 B

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. ManpowerGroup has an asset utilization ratio of 271.9 percent. This suggests that the company is making $2.72 for each dollar of assets. An increasing asset utilization means that ManpowerGroup is more efficient with each dollar of assets it utilizes for everyday operations.
Current Assets
6.5 B
Assets Non Current
2.7 B
Current Assets6.48 Billion59.34
Assets Non Current2.74 Billion25.08
Goodwill1.65 Billion15.06
Tax Assets57.15 Million0.52

Will ManpowerGroup continue to go insane?

The semi deviation is down to 3.22 as of today. ManpowerGroup shows above-average downside volatility for the selected time horizon. We advise investors to inspect ManpowerGroup further and ensure that all market timing and asset allocation strategies are consistent with the estimation of ManpowerGroup future alpha.

Our Conclusion on ManpowerGroup

Whereas many of the other players in the staffing & employment services industry are either recovering or due for a correction, ManpowerGroup may not be performing as strong as the other in terms of long-term growth potentials. The bottom line, as of the 20th of July 2020, our analysis shows that ManpowerGroup responds to the market. The company is fairly valued and projects below average odds of financial distress for the next 2 years. Our overall 30 days recommendation on the company is Hold.

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Editorial Staff

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