Tuesday, December 15, 2009

Staffing Valuations Manpower MAN Kelly Services KELYA Robert Half RHI

So I was looking at the valuations of staffing firms after the recent run up, and with the 3rd quarter results having been reported.

Please do your own research on the following equities.

Points taken that seems surprising amid the still weak conditions for hiring.

  • Among the competition only three had positive earnings, this includes:

  1. ComForce (CFS)

  2. Manpower (MAN)

  3. Robert Half International (RHI)

  • Manpower (MAN) and Robert Half International (RHI) are trading at a significant premium to its enterprise value.

  • RHI has looked more favorable during its recent quarter. As the data above states they have managed their long term debt levels, and actually have a positive return on assets & equity.

  • MAN has continued to look like a balloon that is about to pop. On all metrics its stock has looked expensive. Trading on 86x earnings, market cap that exceed its enterprise value, heavy debt levels compared to its assets and equity, negative return on assets and equity. Margins also look weak compared to the rest of the sector.

As stated in prior posts the staffing sector continues to look fairly rich. RHI looks mildly attractive due to its cost control. While MAN still looks exceedingly rich in its valuations. It is trading as if it is a tech stock without the growth nor the cost control of its peers.

Feel free to chime in to create a discussion.

No comments:

Post a Comment

RSS Feed