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1. Company Snapshot

1.a. Company Description

ManpowerGroup Inc.provides workforce solutions and services in the Americas, Southern Europe, Northern Europe, and the Asia Pacific Middle East region.The company offers recruitment services, including permanent, temporary, and contract recruitment of professionals, as well as administrative and industrial positions under the Manpower and Experis brands.


It also offers various assessment services; training and development services; career management; and outsourcing services related to human resources functions primarily in the areas of large-scale recruiting and workforce-intensive initiatives.In addition, the company provides workforce consulting services; contingent staffing and permanent recruitment services; professional resourcing and project-based solutions in information technology, engineering, and finance fields; solutions in the areas of organizational efficiency, individual development, and career mobility; and recruitment process outsourcing, TAPFIN managed, and talent based outsourcing services, as well as Proservia services in the areas of digital services market and IT infrastructure sector.It operates through a network of approximately 2,200 offices in 75 countries and territories.


The company was incorporated in 1948 and is based in Milwaukee, Wisconsin.

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1.b. Last Insights on MAN

ManpowerGroup faces challenges despite recent earnings beat. Liquidity slide and macro risks cloud its outlook, with weak demand in Europe and North America and FX swings posing key risks. The company's efforts to address talent shortage through AI-powered interviewing and focus on human-first approach are notable. However, margin compression and uneven regional recovery remain concerns. With a "Hold" rating from analysts, ManpowerGroup's growth prospects are impacted by global economic uncertainty. (Source: MarketBeat)

1.c. Company Highlights

2. ManpowerGroup's Q4 2025 Earnings: A Shift Towards Stabilization

ManpowerGroup reported revenues of $4.7 billion in Q4 2025, representing an organic constant currency growth of 2%. The adjusted EBITDA margin was 2.1%, and the company delivered an earnings per share (EPS) of $0.92, beating analyst estimates of $0.83. System-wide revenue was $5.1 billion, and the company's diversified multi-brand portfolio continued to perform well in a selective demand environment. The revenue growth was driven by strong double-digit revenue growth in the MSP business and slight growth in Right Management outplacement activity.

Publication Date: Feb -08

📋 Highlights
  • Q4 Revenue Stabilization:: Reported revenues of $4.7B with 2% organic constant currency growth, marking a shift to stabilization amid 2025 headwinds.
  • Adjusted EBITDA Margin:: 2.1% margin in Q4, down 2% year-over-year, reflecting ongoing cost discipline and operational challenges.
  • Regional Performance:: Southern Europe (48% of revenue) led with 1% growth, driven by Italy's 7% increase, while France declined 3% but showed sequential improvement.
  • Cost Discipline:: 4% constant currency SG&A reduction in Q4 despite organic growth, supporting EBITDA margin progression toward 4.5%-5% long-term goals.
  • 2026 Inflection Outlook:: Anticipated recovery with US business facing steeper declines due to 2024 healthcare IT project anniversaries, but Europe’s resilience and AI-driven flexibility expected to drive sustainable growth.

Regional Performance

The company's Southern Europe segment saw revenue growth, with Italy standing out as a clear outperformer on both growth and margin. The region comprised 48% of consolidated revenue in the quarter, with $2.2 billion in revenue and 1% growth in constant currency. France saw a 3% decrease in revenue on a days-adjusted constant currency basis, but trends improved during the fourth quarter. The Northern Europe segment saw a 1% decline in constant currency, while the Asia Pacific Middle East segment saw a 6% increase in organic constant currency.

Operational Highlights

The company is working to ensure it is structurally stronger, more efficient, and agile, with a focus on leveraging its digitization advantage to position the business to generate operating leverage as demand improves. Manpower is also investing in demand-generating activities and is seeing notable productivity improvements due to its PowerSuite technology. According to Becky Frankiewicz, "clients are seeking flexibility to attract talent and remain agile, while candidates are looking for flexible engagement models."

Outlook and Valuation

ManpowerGroup expects 2026 to represent an important inflection point for the business, with a path towards sustainable organic growth and margin expansion. The company's guidance for the first quarter includes earnings per share in the range of $0.45 to $0.55, with a constant currency revenue guidance range of a 1% decrease to a 3% increase. With a current P/E Ratio of -128.1 and an EV/EBITDA of 10.6, the market is pricing in a challenging near-term outlook. Analysts estimate next year's revenue growth at 3.6%, which may indicate a potential rebound in the business.

Long-term Prospects

The company is committed to achieving a 4.5% to 5% EBITDA margin over time, driven by structural cost efficiency, growth, and capturing share. ManpowerGroup is well-positioned to capitalize on the trend of flexibility in the staffing industry, with its core proposition of offering flexibility to clients and candidates. With a Dividend Yield of 3.93%, the stock may appeal to income investors looking for a relatively stable return.

3. NewsRoom

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Global Tech Hiring Remains Strong as U.S. Outlook Shows Measured Q2 Improvement

Mar -19

Source: prnewswire.com

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This Staffing Stock Has Plunged 56% in a Year, but Does a Nearly $10 Million Buy Signal a Turnaround Looming?

Mar -18

Source: fool.com

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ManpowerGroup Named One of the World's Most Ethical Companies for the 17th Time

Mar -18

Source: prnewswire.com

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Experis Launches AI Services Suite, Partnering with SoundHound AI to Help Enterprises Put Humans and Agents to Work Together

Mar -17

Source: prnewswire.com

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ManpowerGroup's Experis and SoundHound AI Announce Strategic Partnership to Accelerate and Scale Enterprise AI Adoption

Mar -17

Source: globenewswire.com

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ManpowerGroup Marks 10 Years with VivaTech as a Platinum Partner, Championing the Human Edge

Mar -12

Source: prnewswire.com

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Strong Strategies & Liquidity Aid ManpowerGroup Amid Stiff Competition

Mar -11

Source: zacks.com

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Global Hiring Intentions Strengthen as Employment Outlook Hits Returns to 2022 Levels

Mar -10

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.81%)

6. Segments

Staffing and Interim

Expected Growth: 1.8%

ManpowerGroup's Staffing and Interim segment growth of 1.8% is driven by increasing demand for temporary and contract workers, particularly in the IT and healthcare sectors. Additionally, the company's strategic investments in digital platforms and its ability to adapt to changing labor market trends have contributed to its growth.

Outcome-Based Solutions and Consulting

Expected Growth: 1.9%

ManpowerGroup's Outcome-Based Solutions and Consulting segment growth of 1.9% is driven by increasing demand for workforce analytics, talent development, and strategic workforce planning. Clients seek to optimize labor costs, improve productivity, and enhance employee experience, leading to higher adoption of outcome-based solutions. Additionally, the company's consulting services, which focus on HR transformation, change management, and organizational design, also contribute to the segment's growth.

Permanent Recruitment

Expected Growth: 2.1%

The 2.1% growth in Permanent Recruitment from ManpowerGroup Inc. is driven by increasing demand for skilled talent, particularly in IT and healthcare, as well as a rise in permanent hiring in emerging markets. Additionally, the growing need for companies to adapt to changing workforce dynamics and upskill their employees is contributing to this growth.

Other

Expected Growth: 1.7%

ManpowerGroup's 1.7% growth in Other segment is driven by increasing demand for workforce solutions, expansion in emerging markets, and strategic acquisitions. Additionally, the company's focus on digital transformation, talent development, and innovative services has contributed to this growth. Furthermore, the rise of the gig economy and changing workforce dynamics have also fueled demand for ManpowerGroup's services.

Intercompany Eliminations

Expected Growth: 0.0%

Intercompany eliminations from ManpowerGroup Inc. remained flat at 0.0% growth, driven by offsetting transactions between subsidiaries, lack of significant M&A activity, and stable internal reorganization. This suggests a focus on operational efficiency and minimal changes to the company's internal structure.

7. Detailed Products

Contingent Workforce Solutions

Provides temporary, contract, and temporary-to-permanent staffing solutions to clients across various industries

Permanent Recruitment

Offers permanent placement services, including executive search, professional search, and recruitment process outsourcing

Outsourcing

Provides business process outsourcing (BPO) services, including payroll, HR, and procurement outsourcing

Career Transition

Offers outplacement services, including career coaching, resume building, and job placement assistance

Talent Development

Provides training and development programs, including leadership development, skills training, and talent analytics

RPO (Recruitment Process Outsourcing)

Offers customized recruitment process outsourcing solutions to manage clients' recruitment needs

MSP (Managed Service Provider)

Provides vendor management and contingent workforce management services to clients

8. ManpowerGroup Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for ManpowerGroup Inc. is medium, as there are some alternatives available in the market, but they are not very attractive to customers.

Bargaining Power Of Customers

The bargaining power of customers for ManpowerGroup Inc. is low, as customers have limited options and the company has a strong brand presence.

Bargaining Power Of Suppliers

The bargaining power of suppliers for ManpowerGroup Inc. is medium, as the company has a diverse supplier base and is not heavily dependent on a single supplier.

Threat Of New Entrants

The threat of new entrants for ManpowerGroup Inc. is high, as the industry is attractive and there are low barriers to entry.

Intensity Of Rivalry

The intensity of rivalry for ManpowerGroup Inc. is high, as the industry is highly competitive and there are many established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 33.16%
Debt Cost 11.39%
Equity Weight 66.84%
Equity Cost 11.39%
WACC 11.39%
Leverage 49.60%

11. Quality Control: ManpowerGroup Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Mueller Industries

A-Score: 6.4/10

Value: 4.3

Growth: 7.1

Quality: 7.9

Yield: 2.0

Momentum: 9.0

Volatility: 8.0

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Korn Ferry

A-Score: 5.8/10

Value: 6.6

Growth: 5.7

Quality: 6.3

Yield: 4.0

Momentum: 3.5

Volatility: 9.0

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Worthington Industries

A-Score: 5.3/10

Value: 3.9

Growth: 3.1

Quality: 5.9

Yield: 4.0

Momentum: 8.5

Volatility: 6.3

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Robert Half

A-Score: 5.0/10

Value: 6.0

Growth: 3.2

Quality: 6.0

Yield: 8.0

Momentum: 0.0

Volatility: 6.7

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ManpowerGroup

A-Score: 4.9/10

Value: 9.0

Growth: 2.9

Quality: 3.6

Yield: 8.0

Momentum: 0.0

Volatility: 5.7

1-Year Total Return ->

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Insperity

A-Score: 4.3/10

Value: 2.8

Growth: 6.9

Quality: 3.9

Yield: 8.0

Momentum: 0.0

Volatility: 4.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

26.62$

Current Price

26.62$

Potential

-0.00%

Expected Cash-Flows