Morningstar | We Lower Our Manpower Fair Value Estimate to $103 as Europe Continues to Be a Headwind
We believe Manpower Group has grown to become one of the premier global staffing companies as a result of its broad reach and extensive job networks. The potency of its job placement business has allowed the company to branch out into all aspects of human resources management and position itself as a strategic partner for a host of multinational and local firms.Manpower operates four main business lines. Manpower ($2.2 billion of 2018 gross profit, 63% of total) provides temporary, permanent, and contract workers mainly in office and industrial positions. Experis ($0.7 billion, 20%) sources professionals in IT, engineering, finance, and healthcare. Manpower Solutions ($0.5 billion, 14%) offers outsourcing of staffing and related HR functions. Right Management ($0.1 billion, 3%) provides career development for current employees and outplacement services for those transitioning.Manpower's broad reach includes offices in 80 countries, positioning it as a one-stop solutions provider for firms with staffing needs in multiple geographies. Its degree of success is determined in many cases by its ability to attract suitable candidates. We believe job seekers open to temporary work often register with multiple agencies, then respond to the first opportunity. The noncareer nature of temporary work weakens the potential loyalty of job seekers to Manpower.Manpower has typically pursued global expansion via a partnership strategy with local firms through franchising. It largely seeks avoiding potentially capital-intensive startups to displace entrenched competitors, favoring plans to enter and grow cooperatively with like-minded local providers.Manpower operates in a highly cyclical industry with the potential for significant fluctuations across most business lines. However, a secular trend favoring rising temporary labor utilization by businesses is under way across many economies. It points to rising employer demand for greater workforce flexibility in order to optimize labor efficiency and control expenses. Project-based and temporary staffing will play an integral role in meeting these goals, and Manpower should benefit from this trend.ManpowerGroup provides a range of workforce solutions and services, which include recruitment and assessment, training and development, career management, outsourcing, and workforce consulting. The company's family of brands and offerings includes Manpower, Experis, Right Management, and ManpowerGroup Solutions. The company's portfolio of recruitment services includes permanent, temporary and contract recruitment of professionals, as well as administrative and industrial positions. All of these services are provided under its Manpower and Experis brands. The company provides services under its Experis brand, particularly in the areas of Information Technology, Engineering, and Finance.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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