MANHATTAN ASSOCIATES INC (MANH)
US5627501092 - Common Stock
We assign a fundamental rating of 7 out of 10 to MANH. MANH was compared to 279 industry peers in the Software industry. Both the health and profitability get an excellent rating, making MANH a very profitable company, without any liquidiy or solvency issues. MANH is valued quite expensively, but it does show have an excellent growth rating. This makes MANH very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year MANH was profitable.
MANH had a positive operating cash flow in the past year.
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's Return On Assets of 31.38% is amongst the best of the industry. MANH outperforms 99.28% of its industry peers.
Looking at the Return On Equity, with a value of 78.82%, MANH belongs to the top of the industry, outperforming 98.57% of the companies in the same industry.
MANH has a better Return On Invested Capital (63.48%) than 99.64% 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 11.27%.
The last Return On Invested Capital (63.48%) for MANH is above the 3 year average (47.73%), which is a sign of increasing profitability.
| Industry Rank | Sector 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
Looking at the Profit Margin, with a value of 21.38%, MANH belongs to the top of the industry, outperforming 89.61% of the companies in the same industry.
In the last couple of years the Profit Margin of MANH has remained more or less at the same level.
The Operating Margin of MANH (25.35%) is better than 93.55% of its industry peers.
MANH's Operating Margin has been stable in the last couple of years.
MANH's Gross Margin of 54.65% is on the low side compared to the rest of the industry. MANH is outperformed by 66.31% of its industry peers.
MANH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MANH is creating value.
The number of shares outstanding for MANH has been reduced compared to 1 year ago.
MANH has less shares outstanding than it did 5 years ago.
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
MANH has an Altman-Z score of 28.26. This indicates that MANH is financially healthy and has little risk of bankruptcy at the moment.
MANH has a better Altman-Z score (28.26) than 96.06% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 28.26 |
ROIC/WACC5.71
WACC11.11%
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.
MANH has a Current ratio of 1.25. This is in the lower half of the industry: MANH underperforms 63.08% of its industry peers.
A Quick Ratio of 1.25 indicates that MANH should not have too much problems paying its short term obligations.
MANH has a worse Quick ratio (1.25) than 62.72% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 |
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 Y25.16%
EPS Next 2Y15.6%
EPS Next 3Y14.9%
EPS Next 5Y22.41%
Revenue Next Year13.8%
Revenue Next 2Y11.64%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 62.61 indicates a quite expensive valuation of MANH.
Compared to the rest of the industry, the Price/Earnings ratio of MANH is on the same level as its industry peers.
MANH's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 29.12.
A Price/Forward Earnings ratio of 57.20 indicates a quite expensive valuation of MANH.
MANH's Price/Forward Earnings is on the same level as the industry average.
MANH is valuated expensively when we compare the Price/Forward Earnings ratio to 23.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.61 | ||
| Fwd PE | 57.2 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MANH is valued a bit cheaper than the industry average as 62.72% of the companies are valued more expensively.
MANH's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 64.74 | ||
| EV/EBITDA | 64.48 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of MANH may justify a higher PE ratio.
MANH's earnings are expected to grow with 14.90% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.49
PEG (5Y)3.91
EPS Next 2Y15.6%
EPS Next 3Y14.9%
5. Dividend
5.1 Amount
MANH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MANHATTAN ASSOCIATES INC
NASDAQ:MANH (11/13/2024, 4:07:05 PM)
After market: 287.39 0 (0%)287.39
+3.05 (+1.07%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
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Market Cap17.55B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.61 | ||
| Fwd PE | 57.2 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
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EPS(NY)
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OCF(TTM)
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SpS
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PEG (NY)2.49
PEG (5Y)3.91
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 31.38% | ||
| ROE | 78.82% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 25.35% | ||
| PM (TTM) | 21.38% | ||
| GM | 54.65% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)29.66%
EPS 3Y28.79%
EPS 5Y
EPS Q2Q%
EPS Next Y25.16%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.34%
Revenue growth 3Y16.56%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
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EBIT growth 3Y
EBIT growth 5Y
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