ManpowerGroup Inc. (MAN) Stock Analysis & Investment Insights for 2025
ManpowerGroup Inc. (Ticker: MAN), a global leader in workforce solutions and staffing services, offers compelling opportunities and notable challenges for investors in 2025. With a stock price of $40.33 as of March 13, 2025, and a market cap of $1,866 million, MAN appears undervalued based on a Discounted Cash Flow (DCF) analysis suggesting a share price of $88.51 (upside of 119.5%). This comprehensive analysis dives into ManpowerGroup’s financial performance, strategic initiatives, and investment potential to help you make informed decisions. Explore our detailed MAN stock forecastand earnings reportinsights below.
Business Overview: Strengths in Staffing & Global Reach
ManpowerGroup dominates the Staffing and Interimsegment, contributing 81.0% of its $17,541 million revenue in 2024 ($14,200 million), as per the latest 10-K filing. This focus on temporary and contract staffing positions the company as a leader in flexible workforce solutions amid dynamic labor markets. Additionally, its geographical diversification—Europe (51.5%), Americas (28.0%), and Asia Pacific & Middle East (APME, 20.5%)—provides a balanced revenue base, with a strategic push into high-growth APME markets. The company’s investment in digital transformation, including AI-driven hiring analytics, further strengthens its competitive edge, targeting over 20% of revenue from digital offerings by 2029.
Financial Performance: Challenges Amid Revenue Decline
Despite its market leadership, ManpowerGroup has faced a revenue decline with a compounded annual growth rate (CAGR) of -4.8% from 2020 to 2024, dropping to $17,854 million in 2024. This underperforms the staffing industry’s CAGR of -2.0% (Bloomberg data). Segment declines were notable in Southern Europe (-6.2%), Northern Europe (-5.9%), and APME (-7.1%), with the Americas showing relative resilience (-3.4%). Profitability remains a concern, with an EBIT margin of 1.7% in 2024 (below the industry average of 3.5%) and free cash flow dropping to $258 million from $886 million in 2020. Investors seeking the latest MAN earnings reportdata will find consensus estimates projecting modest recovery, with revenue growth of 0.3% to $17,900 million in 2025.
Valuation Analysis: Undervalued with Upside Potential
At a current MAN stock priceof $40.33, ManpowerGroup appears undervalued across multiple valuation metrics. DCF analysis indicates an implied equity value of $4,096 million, or $88.51 per share, suggesting a significant upside of 119.5%. Relative valuation multiples range from $1,450 million (Net Income at 10x) to $5,160 million (FCF at 20x), with a P/E ratio of 17.38 and a low price-to-sales ratio of 0.106 compared to peers. The analyst consensus target price of $48.11 implies a 19.3% upside, while a high dividend yield of 7.64% ($3.08 per share annually) adds income appeal. Dive into our full MAN stock analysisfor detailed valuation insights.
Investment Outlook: Cautious Buy for 2025
ManpowerGroup presents a compelling yet cautious investment case. Strengths include its staffing dominance, global diversification, and digital initiatives, with forward guidance projecting 3-5% revenue growth annually through 2027. However, risks from revenue declines, thin margins (net income margin of 0.8% in 2024), and economic uncertainty warrant caution. As a cautious buy, MAN offers significant upside potential at its current price, contingent on demand recovery and strategic execution. Stay updated with our latest ManpowerGroup financial reportand forecasts.
Why Invest in ManpowerGroup (MAN)? Key Takeaways
- Market Leadership: Dominates Staffing and Interim with 81.0% of revenue, a key driver in workforce solutions.
- Global Presence: Balanced revenue across Europe, Americas, and APME mitigates regional risks.
- Digital Innovation: Investments in AI and talent platforms position MAN for future growth in the gig economy.
- Attractive Valuation: Current MAN stock pricesuggests undervaluation with high upside potential per DCF analysis.
- Dividend Appeal: Offers a robust 7.64% yield for income-focused investors. Check MAN dividend historyfor more details.
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