MANHATTAN ASSOCIATES INC (MANH)

US5627501092 - Common Stock

272.84  +4 (+1.49%)

Premarket: 276.51 +3.67 (+1.35%)

Fundamental Rating

7

Taking everything into account, MANH scores 7 out of 10 in our fundamental rating. MANH was compared to 280 industry peers in the Software industry. MANH has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. MANH shows excellent growth, but is valued quite expensive already. These ratings could make MANH a good candidate for growth and quality investing.



8

1. Profitability

1.1 Basic Checks

In the past year MANH was profitable.
In the past year MANH had a positive cash flow from operations.
Each year in the past 5 years MANH has been profitable.
In the past 5 years MANH always reported a positive cash flow from operatings.

1.2 Ratios

MANH has a Return On Assets of 31.38%. This is amongst the best in the industry. MANH outperforms 99.27% of its industry peers.
The Return On Equity of MANH (78.82%) is better than 98.53% of its industry peers.
MANH has a Return On Invested Capital of 63.48%. This is amongst the best in the industry. MANH outperforms 99.63% of its industry peers.
MANH had an Average Return On Invested Capital over the past 3 years of 47.73%. This is significantly above the industry average of 12.15%.
The 3 year average ROIC (47.73%) for MANH is below the current ROIC(63.48%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 31.38%
ROE 78.82%
ROIC 63.48%
ROA(3y)23.11%
ROA(5y)22.22%
ROE(3y)54.81%
ROE(5y)52.91%
ROIC(3y)47.73%
ROIC(5y)45.59%

1.3 Margins

The Profit Margin of MANH (21.38%) is better than 89.38% of its industry peers.
MANH's Profit Margin has been stable in the last couple of years.
MANH's Operating Margin of 25.35% is amongst the best of the industry. MANH outperforms 91.94% of its industry peers.
In the last couple of years the Operating Margin of MANH has remained more or less at the same level.
Looking at the Gross Margin, with a value of 54.65%, MANH is doing worse than 67.77% of the companies in the same industry.
MANH's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 25.35%
PM (TTM) 21.38%
GM 54.65%
OM growth 3Y5.12%
OM growth 5Y-1.15%
PM growth 3Y8.53%
PM growth 5Y0.31%
GM growth 3Y-0.21%
GM growth 5Y-1.18%

9

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MANH is creating value.
The number of shares outstanding for MANH has been reduced compared to 1 year ago.
Compared to 5 years ago, MANH has less shares outstanding
There is no outstanding debt for MANH. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.

2.2 Solvency

An Altman-Z score of 27.26 indicates that MANH is not in any danger for bankruptcy at the moment.
MANH's Altman-Z score of 27.26 is amongst the best of the industry. MANH outperforms 94.87% of its industry peers.
MANH has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 27.26
ROIC/WACC5.51
WACC11.53%

2.3 Liquidity

MANH has a Current Ratio of 1.25. This is a normal value and indicates that MANH is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.25, MANH is not doing good in the industry: 63.74% of the companies in the same industry are doing better.
MANH has a Quick Ratio of 1.25. This is a normal value and indicates that MANH is financially healthy and should not expect problems in meeting its short term obligations.
MANH has a worse Quick ratio (1.25) than 63.37% of its industry peers.
MANH does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.25
Quick Ratio 1.25

8

3. Growth

3.1 Past

MANH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.66%, which is quite impressive.
MANH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.00% yearly.
Looking at the last year, MANH shows a quite strong growth in Revenue. The Revenue has grown by 15.34% in the last year.
The Revenue has been growing by 10.68% on average over the past years. This is quite good.
EPS 1Y (TTM)29.66%
EPS 3Y28.79%
EPS 5Y16%
EPS Q2Q%28.57%
Revenue 1Y (TTM)15.34%
Revenue growth 3Y16.56%
Revenue growth 5Y10.68%
Sales Q2Q%11.84%

3.2 Future

MANH is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.41% yearly.
Based on estimates for the next years, MANH will show a quite strong growth in Revenue. The Revenue will grow by 12.22% on average per year.
EPS Next Y25.18%
EPS Next 2Y15.55%
EPS Next 3Y14.75%
EPS Next 5Y22.41%
Revenue Next Year13.8%
Revenue Next 2Y11.69%
Revenue Next 3Y11.43%
Revenue Next 5Y12.22%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.

3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 59.44, which means the current valuation is very expensive for MANH.
MANH's Price/Earnings is on the same level as the industry average.
MANH is valuated expensively when we compare the Price/Earnings ratio to 27.48, which is the current average of the S&P500 Index.
MANH is valuated quite expensively with a Price/Forward Earnings ratio of 54.35.
The rest of the industry has a similar Price/Forward Earnings ratio as MANH.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.73, MANH is valued quite expensively.
Industry RankSector Rank
PE 59.44
Fwd PE 54.35

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MANH is valued a bit cheaper than the industry average as 64.84% of the companies are valued more expensively.
MANH's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 61.46
EV/EBITDA 61.84

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
MANH has an outstanding profitability rating, which may justify a higher PE ratio.
MANH's earnings are expected to grow with 14.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.36
PEG (5Y)3.71
EPS Next 2Y15.55%
EPS Next 3Y14.75%

0

5. Dividend

5.1 Amount

MANH does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

MANHATTAN ASSOCIATES INC

NASDAQ:MANH (1/3/2025, 8:00:01 PM)

Premarket: 276.51 +3.67 (+1.35%)

272.84

+4 (+1.49%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)10-22 2024-10-22/amc
Earnings (Next)01-28 2025-01-28/amc
Inst Owners100.79%
Inst Owner Change0%
Ins Owners1.04%
Ins Owner Change-1.65%
Market Cap16.67B
Analysts80
Price Target308.53 (13.08%)
Short Float %3.01%
Short Ratio4.33
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.64%
Min EPS beat(2)20.93%
Max EPS beat(2)24.36%
EPS beat(4)4
Avg EPS beat(4)21.86%
Min EPS beat(4)16.2%
Max EPS beat(4)25.96%
EPS beat(8)8
Avg EPS beat(8)27.98%
EPS beat(12)12
Avg EPS beat(12)26.37%
EPS beat(16)16
Avg EPS beat(16)28.14%
Revenue beat(2)1
Avg Revenue beat(2)0.51%
Min Revenue beat(2)-0.63%
Max Revenue beat(2)1.65%
Revenue beat(4)3
Avg Revenue beat(4)1.96%
Min Revenue beat(4)-0.63%
Max Revenue beat(4)4.29%
Revenue beat(8)7
Avg Revenue beat(8)3.75%
Revenue beat(12)11
Avg Revenue beat(12)3.85%
Revenue beat(16)15
Avg Revenue beat(16)3.9%
PT rev (1m)1.79%
PT rev (3m)13.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.54%
EPS NY rev (1m)0.01%
EPS NY rev (3m)7.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.11%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.09%
Valuation
Industry RankSector Rank
PE 59.44
Fwd PE 54.35
P/S 16.26
P/FCF 61.46
P/OCF 59.81
P/B 59.96
P/tB 77.26
EV/EBITDA 61.84
EPS(TTM)4.59
EY1.68%
EPS(NY)5.02
Fwd EY1.84%
FCF(TTM)4.44
FCFY1.63%
OCF(TTM)4.56
OCFY1.67%
SpS16.78
BVpS4.55
TBVpS3.53
PEG (NY)2.36
PEG (5Y)3.71
Profitability
Industry RankSector Rank
ROA 31.38%
ROE 78.82%
ROCE 77.34%
ROIC 63.48%
ROICexc 176.3%
ROICexgc 363.2%
OM 25.35%
PM (TTM) 21.38%
GM 54.65%
FCFM 26.46%
ROA(3y)23.11%
ROA(5y)22.22%
ROE(3y)54.81%
ROE(5y)52.91%
ROIC(3y)47.73%
ROIC(5y)45.59%
ROICexc(3y)436.16%
ROICexc(5y)314.88%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)58.15%
ROCE(5y)55.55%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y47.25%
ROICexc growth 5Y21.27%
OM growth 3Y5.12%
OM growth 5Y-1.15%
PM growth 3Y8.53%
PM growth 5Y0.31%
GM growth 3Y-0.21%
GM growth 5Y-1.18%
F-Score8
Asset Turnover1.47
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 120.17%
Cap/Sales 0.73%
Interest Coverage 250
Cash Conversion 104.75%
Profit Quality 123.76%
Current Ratio 1.25
Quick Ratio 1.25
Altman-Z 27.26
F-Score8
WACC11.53%
ROIC/WACC5.51
Cap/Depr(3y)77.12%
Cap/Depr(5y)90.34%
Cap/Sales(3y)0.66%
Cap/Sales(5y)0.98%
Profit Quality(3y)144.95%
Profit Quality(5y)149.37%
High Growth Momentum
Growth
EPS 1Y (TTM)29.66%
EPS 3Y28.79%
EPS 5Y16%
EPS Q2Q%28.57%
EPS Next Y25.18%
EPS Next 2Y15.55%
EPS Next 3Y14.75%
EPS Next 5Y22.41%
Revenue 1Y (TTM)15.34%
Revenue growth 3Y16.56%
Revenue growth 5Y10.68%
Sales Q2Q%11.84%
Revenue Next Year13.8%
Revenue Next 2Y11.69%
Revenue Next 3Y11.43%
Revenue Next 5Y12.22%
EBIT growth 1Y32.74%
EBIT growth 3Y22.53%
EBIT growth 5Y9.41%
EBIT Next Year40.36%
EBIT Next 3Y19.76%
EBIT Next 5Y19.88%
FCF growth 1Y71.07%
FCF growth 3Y20.45%
FCF growth 5Y13.19%
OCF growth 1Y69.37%
OCF growth 3Y20.45%
OCF growth 5Y12.39%