January 8, 2025
ManpowerGroup Inc . MAN benefits from talent solutions, technology investments, strategic acquisitions and strong shareholder returns. However, weak demand in certain geographies has hindered growth in 2024.
MAN currently has an impressive Growth Score of B. This style score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth. The company’s earnings for 2025 are expected to increase 14% year over year.
ManpowerGroup acts as a comprehensive workforce solution partner, assisting businesses in finding, developing and managing talent via recruitment, training, outsourcing and consulting services. Its diversified business mix and geographic footprint help it achieve a steady flow of revenues, mitigating concentration risks.
The company is executing strong pricing and cost control, and making significant investments in technology to increase productivity and efficiency. It has implemented front office systems, cloud-based and mobile applications, and enhanced its global technology infrastructure across several markets. It is investing in the digitalization of its workforce solutions. The 2022 acquisition of Tingari has strengthened ManpowerGroup’s Talent Solutions brand in France. The 2021 acquisition of ettain has strengthened the company's Experis business, increasing strength in Financial Services, Healthcare and Government clients.
ManpowerGroup's commitment to shareholder returns positions it as a reliable long-term wealth compounder for investors. The company returned $179.8 million, $270 million and $210 million through share repurchases in 2023, 2022 and 2021, respectively, alongside dividend payments of $144.3 million, $139.9 million and $136.6 million over the same period. With the Fed’s rate cuts, the economy is expected to become more conducive to growth. This could lead to increased hiring, bolstering ManpowerGroup's income to some extent and maintaining a steady cash flow to support stable dividend payouts.
ManpowerGroup has been facing significant challenges, and a meaningful recovery for the remainder of 2024 appears unlikely. Business in Europe and North America remains weak, as companies are reluctant to hire amid a sluggish macroeconomic environment. In particular, France’s uncertain political climate is likely to remain a pressure on hiring activities. These challenges are reflected in ManpowerGroup's financials, with organic revenues still declining and no signs of improvement in staffing demand.
ManpowerGroup Inc. revenue-ttm | ManpowerGroup Inc. Quote
Given these challenges, ManpowerGroup's liquidity position, represented by a current ratio of 1.15 at the end of the third quarter of 2024, may be something to watch, especially since it lags the industry’s 1.46. While we will be monitoring the situation, it’s worth noting that a current ratio above 1 normally indicates that the company is well positioned to meet its short-term obligations, sometimes even providing a buffer against potential financial challenges.
ManpowerGroup currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are UiPath PATH and RB Global, Inc. RBA.
UiPath sports a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
PATH has a long-term earnings growth expectation of 19.3%. It delivered a trailing four-quarter earnings surprise of 38.8%, on average.
RB Global sports a Zacks Rank of 1 at present. It has a long-term earnings growth expectation of 10.6%. RBA delivered a trailing four-quarter earnings surprise of 16.3%, on average.
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