Company Overview
ManpowerGroup Inc. operates as a global provider of workforce solutions and services, delivering recruitment capabilities through its Manpower, Experis, and Talent Solutions brands across the Americas, Southern Europe, Northern Europe, and the Asia Pacific and Middle East regions. The company functions within the Industrials sector, specifically serving the Staffing & Employment Services industry, where it facilitates permanent, temporary, and contract placements to meet diverse organizational needs. With a market capitalization of $1.32B, annual revenue of $17.96B, and a workforce of 25,400 employees, the entity represents a significant operational footprint in the global labor market. These financial metrics, particularly the substantial revenue generation relative to its market cap, indicate a company that generates significant top-line volume but operates with a valuation profile that reflects specific market or earnings expectations, positioning it as a large-scale player with broad geographic reach.
Financial Health
The company reported a total revenue of $17.96B for the trailing twelve months, while recording a net income of -$13.3M and an EBITDA of $374.20M. The significant disparity between the $17.96B revenue and the -$13.3M net income highlights a cost structure where operating expenses and taxes exceed the operating profit generated, resulting in a negative bottom line despite positive cash earnings before interest, taxes, depreciation, and amortization. Free cash flow stands at -$86.15M, which suggests the company is currently utilizing cash reserves or incurring capital expenditures that outpace operational cash generation, thereby limiting immediate financial flexibility for discretionary spending or large-scale acquisitions. Gross margin is calculated at 16.7%, indicating that the company retains 16.7 cents for every dollar of revenue after direct costs, a level typical for labor-intensive staffing models where margins are compressed by high wage expenses. Operating margin sits at 2.0%, reflecting the thin profitability before interest and taxes, while the profit margin is negative at -0.1%, confirming that the company is currently unprofitable on a net basis. The balance sheet shows a cash position of $871.00M against total debt of $2.09B, resulting in a debt-to-equity ratio of 101.38, which characterizes the balance sheet as highly leveraged rather than conservative. The current ratio of 1.11 indicates that the company holds slightly more current assets than current liabilities, suggesting a tight but sufficient short-term liquidity position to meet immediate obligations. Return on Equity is reported at -0.6%, signaling that shareholder equity is currently being eroded, while Return on Assets stands at 2.2%, showing that the company is generating a modest positive return on its total asset base.
Valuation Assessment
The P/E Ratio (TTM) is listed as N/A due to the negative net income, whereas the Forward P/E is 5.84, implying that the market anticipates a substantial turnaround in earnings performance that will allow for a meaningful trailing multiple in the future. The price-to-book ratio is 0.64, indicating that the stock trades at a significant discount to its book value, suggesting the market is pricing in risks or expecting a reversion to mean rather than paying a premium for the assets held. Alternative valuation metrics such as the price-to-sales ratio of 0.07 and an EV/EBITDA of 6.78 further illustrate that the company is valued on a very low multiple relative to its sales and earnings power, often seen in cyclical or distressed turnaround scenarios. The 52-week high is $59.54 and the 52-week low is $25.15; without a specific current price provided in the source facts, the range establishes a volatility band where the current market price could theoretically sit anywhere within these bounds, though the low forward P/E suggests the price is currently closer to the lower end of this historical range relative to earnings expectations. The beta value of 0.89 indicates that the stock's price volatility is slightly lower than the broader market, suggesting it may act as a slightly less volatile component within a diversified portfolio compared to the overall market index.
Growth & Income
Revenue growth over the past year is 7.1%, while earnings growth is 33.8%, demonstrating that the company's earnings are expanding significantly faster than its revenue base, which often implies improving operational efficiency or a potential one-time gain impacting the bottom line. The dividend yield is 5.1% with a payout ratio of 132.8%, a combination that indicates the company is paying out a portion of its dividends from retained earnings or cash flow rather than current net income, a practice that is generally unsustainable in the long term given the negative net income and negative free cash flow figures. Because the net income is negative, the company technically does not pay dividends from current profits, yet the high yield and payout ratio metrics suggest a reliance on cash reserves or a specific accounting structure that allows for these payments despite the reported loss. The overall growth and income profile presents a dichotomy of strong percentage-based earnings expansion and revenue growth contrasted against a negative net income and a dividend structure that relies on non-operating sources or prior cash balances.