Manpower Group Inc. provides workforce solutions and services in the Americas, Southern Europe, Northern Europe, and the Asia Pacific Middle East region. The companys recruitment service portfolio includes permanent, temporary, and contract recruitment of professionals, as well as administrative and industrial positions. The company was founded in 1948 and is based in Milwaukee, Wisconsin.
MAN Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for MAN, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that ManpowerGroup Inc ranked in the 72th percentile in terms of potential gain offered. Moreover, under all the scenarios we modelled, the output consistently forecasted positive returns. As for the metrics that stood out in our discounted cash flow analysis of ManpowerGroup Inc, consider:
As a business, MAN is generating more cash flow than 85.79% of positive cash flow stocks in the Industrials.
ManpowerGroup Inc's effective tax rate, as measured by taxes paid relative to net income, is at 39 -- greater than 92.81% of US stocks with positive free cash flow.
ManpowerGroup Inc's interest coverage rate -- a measure of gross earnings relative to interest payments -- comes in at -9.1. This coverage rate is greater than that of merely 8.93% of stocks we're observing for the purpose of forecasting via discounted cash flows.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
NWPX, ASGN, CVEO, MEC, and RCII can be thought of as valuation peers to MAN, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
Credit Suisse sizes up ManpowerGroup ([[MAN]] +3.3%) after the company reintroduced guidance, but suggested on the earnings call that global labor market improvement will likely be slow."We believe that Q2 could be the bottom as European economies reopen as COVID-19 containment measures ease. Further, normalizing trends—especially in France + Italy...