As part of a new series here at The Acquirer’s Multiple, we’re providing a new feature called ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.
One of the cheapest stocks in our Stock Screeners is ManpowerGroup Inc. (NYSE: MAN).
ManpowerGroup is one of the largest firms in the fragmented global staffing industry. It serves each main staffing category–temporary, permanent, and project-based–and also offers a suite of HR outsourcing and outplacement services. Manpower generates annual revenue and operating income of more than $20 billion and roughly $800 million, respectively. A vast majority of sales are generated outside the U.S. from operations in 80 countries. Its 30,000 employees serve an estimated 600,000 clients and place millions of job candidates.
A quick look at ManpowerGroup’s share price history (below) over the past twelve months shows that the price is down 29%. Here’s why the company is undervalued.
Market Cap: $3.94 Billion
Enterprise Value: $4.33 Billion
Operating Earnings: $661 Million
Acquirer’s Multiple: 6.56
Free Cash Flow (TTM)
Free Cash Flow: $842 Million
FCF/EV Yield: 19%
Piotroski F-Score: 6
Altman Z-Score: 3.83
Beneish M-Score: -2.83
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