I've been keeping an eye on ManpowerGroup Inc. (NYSE:MAN) because I'm attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe MAN has a lot to offer. Basically, it is a financially-healthy company with a great track record superior dividend payments, trading at a great value. In the following section, I expand a bit more on these key aspects. If you're interested in understanding beyond my broad commentary, take a look at the report on ManpowerGroup here.
Excellent balance sheet established dividend payer
MAN's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is an important determinant of the company’s health. MAN seems to have put its debt to good use, generating operating cash levels of 0.61x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows. MAN's shares are now trading at a price below its true value based on its discounted cash flows, indicating a relatively pessimistic market sentiment. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of MAN's earnings, investors now have the opportunity to buy into the stock to reap capital gains. Also, relative to the rest of its peers with similar levels of earnings, MAN's share price is trading below the group's average. This further reaffirms that MAN is potentially undervalued.
MAN is also a dividend company, with ample net income to cover its dividend payout, which has been consistently growing over the past decade, keeping income investors happy.
For ManpowerGroup, there are three key factors you should look at:
- Future Outlook: What are well-informed industry analysts predicting for MAN’s future growth? Take a look at our free research report of analyst consensus for MAN’s outlook.
- Historical Performance: What has MAN's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MAN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
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If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.