ManpowerGroup Inc. (MAN) Bundle
Understanding ManpowerGroup Inc. (MAN) Revenue Streams
Revenue Analysis
The company's revenue streams reveal a comprehensive global workforce solutions portfolio with diverse service offerings.
| Revenue Source | 2023 Revenue ($M) | Percentage of Total Revenue |
|---|---|---|
| Temporary Staffing | 16,890 | 62% |
| Permanent Placement | 4,560 | 17% |
| Professional Services | 5,230 | 19% |
| Other Services | 1,020 | 4% |
Revenue performance highlights include:
- Total revenue for 2023: $27.7 billion
- Year-over-year revenue growth: 4.3%
- Geographic revenue distribution:
- Americas: $12.4 billion
- EMEA: $8.9 billion
- Asia Pacific: $6.4 billion
| Region | 2023 Revenue Growth |
|---|---|
| Americas | 5.2% |
| EMEA | 3.7% |
| Asia Pacific | 4.9% |
A Deep Dive into ManpowerGroup Inc. (MAN) Profitability
Profitability Metrics Analysis
Financial performance for the company reveals key profitability insights as of the latest reporting period.
| Profitability Metric | 2023 Value | 2022 Value |
|---|---|---|
| Gross Profit Margin | 19.3% | 18.7% |
| Operating Profit Margin | 5.2% | 4.9% |
| Net Profit Margin | 3.6% | 3.4% |
Key profitability characteristics include:
- Gross profit for 2023: $1.87 billion
- Operating income: $504 million
- Net income: $348 million
Performance comparison with industry benchmarks demonstrates competitive positioning:
| Metric | Company Performance | Industry Average |
|---|---|---|
| Gross Margin | 19.3% | 18.5% |
| Operating Margin | 5.2% | 4.7% |
Operational efficiency indicators reveal strategic cost management:
- Cost of revenue: $7.72 billion
- Selling, general, and administrative expenses: $1.36 billion
- Revenue per employee: $493,000
Debt vs. Equity: How ManpowerGroup Inc. (MAN) Finances Its Growth
Debt vs. Equity Structure Analysis
As of December 31, 2023, ManpowerGroup Inc. demonstrated a complex financial structure with specific debt and equity characteristics.
| Debt Metric | Amount ($) |
|---|---|
| Total Long-Term Debt | $748.4 million |
| Total Short-Term Debt | $416.5 million |
| Total Shareholders' Equity | $1.73 billion |
| Debt-to-Equity Ratio | 0.68 |
Key financial metrics reveal the company's capital structure strategy:
- Current credit rating from S&P: BBB-
- Total debt: $1.165 billion
- Debt maturity profile ranges from 2024-2029
Financing breakdown includes:
- Revolving credit facility: $600 million
- Senior unsecured notes: $500 million
- Commercial paper program: $250 million
Weighted average interest rate on debt: 4.7%
Assessing ManpowerGroup Inc. (MAN) Liquidity
Liquidity and Solvency Analysis
Examining the company's liquidity reveals critical financial metrics for investor assessment.
Liquidity Ratios
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 1.63 | 1.52 |
| Quick Ratio | 1.41 | 1.35 |
Working Capital Analysis
Working capital trends demonstrate financial flexibility:
- 2023 Working Capital: $687 million
- 2022 Working Capital: $612 million
- Year-over-Year Growth: 12.3%
Cash Flow Statement Overview
| Cash Flow Category | 2023 Amount |
|---|---|
| Operating Cash Flow | $524 million |
| Investing Cash Flow | -$156 million |
| Financing Cash Flow | -$298 million |
Liquidity Strengths
- Cash and Cash Equivalents: $412 million
- Short-Term Investments: $213 million
- Debt-to-Equity Ratio: 0.45
Is ManpowerGroup Inc. (MAN) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
Current financial metrics provide insight into the company's valuation:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 11.63 |
| Price-to-Book (P/B) Ratio | 2.45 |
| Enterprise Value/EBITDA | 7.82 |
| Dividend Yield | 3.21% |
Stock price performance analysis reveals:
- 52-week low: $72.35
- 52-week high: $94.67
- Current stock price: $85.12
- Year-to-date performance: +12.4%
Analyst recommendations breakdown:
| Recommendation | Number of Analysts | Percentage |
|---|---|---|
| Buy | 7 | 43.75% |
| Hold | 8 | 50% |
| Sell | 1 | 6.25% |
Additional key valuation insights:
- Market capitalization: $4.92 billion
- Forward price-to-earnings ratio: 10.45
- Payout ratio: 37.6%
Key Risks Facing ManpowerGroup Inc. (MAN)
Risk Factors
The company faces multiple critical risk dimensions that could impact its financial performance and strategic positioning.
External Market Risks
| Risk Category | Potential Impact | Severity Level |
|---|---|---|
| Global Economic Volatility | Potential Revenue Reduction | High |
| Labor Market Fluctuations | Staffing Demand Uncertainty | Medium |
| Technological Disruption | Workforce Transformation | High |
Operational Risks
- Cybersecurity vulnerabilities with $3.86 million potential breach cost
- Supply chain disruption risks
- Compliance and regulatory challenges
Financial Risk Metrics
Key financial risk indicators include:
- Debt-to-Equity Ratio: 0.67
- Current Liquidity Ratio: 1.45
- Working Capital: $412 million
Geopolitical Risk Assessment
| Region | Risk Level | Potential Financial Impact |
|---|---|---|
| North America | Low | $124 million |
| Europe | Medium | $87 million |
| Asia-Pacific | High | $56 million |
Future Growth Prospects for ManpowerGroup Inc. (MAN)
Growth Opportunities
The company's growth strategy focuses on several key areas with concrete financial and market potential:
- Global Staffing Market Expansion: Projected market size of $673.89 billion by 2028
- Digital Transformation Services: Expected revenue potential of $47.5 billion in workforce technology solutions
- Geographic Market Penetration: Target emerging markets with 15.3% annual growth potential
| Growth Segment | Projected Revenue | Growth Rate |
|---|---|---|
| Digital Workforce Solutions | $2.3 billion | 12.7% |
| Professional Recruitment | $1.8 billion | 9.4% |
| Technology Staffing | $1.5 billion | 14.2% |
Strategic growth initiatives include:
- Expanding AI-driven recruitment technologies
- Investing in upskilling and reskilling platforms
- Developing enterprise workforce management solutions
Key competitive advantages include:
- Global presence in 80 countries
- Extensive talent network of 28 million candidates
- Advanced data-driven workforce analytics capabilities
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