MANHATTAN ASSOCIATES INC (MANH) Stock Fundamental Analysis
NASDAQ:MANH - Nasdaq - US5627501092 - Common Stock - Currency: USD
Taking everything into account, MANH scores 7 out of 10 in our fundamental rating. MANH was compared to 283 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 is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make MANH a good candidate for growth and quality investing.
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.
MANH had positive earnings in each of the past 5 years.
Each year in the past 5 years MANH had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 28.82%, MANH belongs to the best of the industry, outperforming 97.53% of the companies in the same industry.
MANH has a better Return On Equity (73.00%) than 97.17% of its industry peers.
With an excellent Return On Invested Capital value of 60.22%, MANH belongs to the best of the industry, outperforming 99.65% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MANH is significantly above the industry average of 11.25%.
The 3 year average ROIC (55.23%) for MANH is below the current ROIC(60.22%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 28.82% | ||
| ROE | 73% | ||
| ROIC | 60.22% |
ROA(3y)25.89%
ROA(5y)23.38%
ROE(3y)64.44%
ROE(5y)55.45%
ROIC(3y)55.23%
ROIC(5y)47.73%
1.3 Margins
The Profit Margin of MANH (20.95%) is better than 85.87% of its industry peers.
MANH's Profit Margin has improved in the last couple of years.
The Operating Margin of MANH (25.10%) is better than 91.17% of its industry peers.
MANH's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 54.82%, MANH is not doing good in the industry: 65.37% of the companies in the same industry are doing better.
MANH's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.1% | ||
| PM (TTM) | 20.95% | ||
| GM | 54.82% |
OM growth 3Y7.44%
OM growth 5Y6%
PM growth 3Y7.95%
PM growth 5Y8.57%
GM growth 3Y-0.19%
GM growth 5Y0.34%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MANH is creating value.
MANH has less shares outstanding than it did 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
MANH has an Altman-Z score of 16.28. This indicates that MANH is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MANH (16.28) is better than 92.93% 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 | 16.28 |
ROIC/WACC5.52
WACC10.9%
2.3 Liquidity
A Current Ratio of 1.26 indicates that MANH should not have too much problems paying its short term obligations.
With a Current ratio value of 1.26, MANH is not doing good in the industry: 61.84% of the companies in the same industry are doing better.
A Quick Ratio of 1.26 indicates that MANH should not have too much problems paying its short term obligations.
MANH's Quick ratio of 1.26 is on the low side compared to the rest of the industry. MANH is outperformed by 61.48% 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 | 1.26 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
MANH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.80%, which is quite impressive.
MANH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.14% yearly.
The Revenue has grown by 12.24% in the past year. This is quite good.
Measured over the past years, MANH shows a quite strong growth in Revenue. The Revenue has been growing by 11.02% on average per year.
EPS 1Y (TTM)25.8%
EPS 3Y28.48%
EPS 5Y22.14%
EPS Q2Q%13.59%
Revenue 1Y (TTM)12.24%
Revenue growth 3Y16.24%
Revenue growth 5Y11.02%
Sales Q2Q%7.36%
3.2 Future
Based on estimates for the next years, MANH will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.55% on average per year.
The Revenue is expected to grow by 8.65% on average over the next years. This is quite good.
EPS Next Y-1.49%
EPS Next 2Y4.87%
EPS Next 3Y8.81%
EPS Next 5Y17.55%
Revenue Next Year1.98%
Revenue Next 2Y4.97%
Revenue Next 3Y7.23%
Revenue Next 5Y8.65%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 34.58 indicates a quite expensive valuation of MANH.
62.54% of the companies in the same industry are more expensive than MANH, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MANH to the average of the S&P500 Index (28.29), we can say MANH is valued slightly more expensively.
With a Price/Forward Earnings ratio of 35.10, MANH can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, MANH is valued a bit cheaper than 62.54% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.08, MANH is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.58 | ||
| Fwd PE | 35.1 |
4.2 Price Multiples
69.61% of the companies in the same industry are more expensive than MANH, based on the Enterprise Value to EBITDA ratio.
67.84% of the companies in the same industry are more expensive than MANH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.68 | ||
| EV/EBITDA | 36.07 |
4.3 Compensation for Growth
The excellent profitability rating of MANH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.56
EPS Next 2Y4.87%
EPS Next 3Y8.81%
5. Dividend
5.1 Amount
MANH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
163.57
+2.48 (+1.54%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners101.69%
Inst Owner Change0%
Ins Owners1.18%
Ins Owner Change7.26%
Market Cap9.93B
Analysts82.35
Price Target250.58 (53.19%)
Short Float %2.3%
Short Ratio1.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/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)16.32%
Min EPS beat(2)8.28%
Max EPS beat(2)24.36%
EPS beat(4)4
Avg EPS beat(4)17.44%
Min EPS beat(4)8.28%
Max EPS beat(4)24.36%
EPS beat(8)8
Avg EPS beat(8)21.53%
EPS beat(12)12
Avg EPS beat(12)25.21%
EPS beat(16)16
Avg EPS beat(16)26.4%
Revenue beat(2)0
Avg Revenue beat(2)-0.78%
Min Revenue beat(2)-0.93%
Max Revenue beat(2)-0.63%
Revenue beat(4)2
Avg Revenue beat(4)0.66%
Min Revenue beat(4)-0.93%
Max Revenue beat(4)2.53%
Revenue beat(8)6
Avg Revenue beat(8)2.85%
Revenue beat(12)10
Avg Revenue beat(12)3.5%
Revenue beat(16)14
Avg Revenue beat(16)3.56%
PT rev (1m)-7.72%
PT rev (3m)-18.78%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)-10.35%
EPS NY rev (1m)0.23%
EPS NY rev (3m)-7.18%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-6.35%
Revenue NY rev (1m)-0.55%
Revenue NY rev (3m)-7.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.58 | ||
| Fwd PE | 35.1 | ||
| P/S | 9.53 | ||
| P/FCF | 34.68 | ||
| P/OCF | 33.66 | ||
| P/B | 33.2 | ||
| P/tB | 41.92 | ||
| EV/EBITDA | 36.07 |
EPS(TTM)4.73
EY2.89%
EPS(NY)4.66
Fwd EY2.85%
FCF(TTM)4.72
FCFY2.88%
OCF(TTM)4.86
OCFY2.97%
SpS17.17
BVpS4.93
TBVpS3.9
PEG (NY)N/A
PEG (5Y)1.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 28.82% | ||
| ROE | 73% | ||
| ROCE | 73.23% | ||
| ROIC | 60.22% | ||
| ROICexc | 236.37% | ||
| ROICexgc | 747.22% | ||
| OM | 25.1% | ||
| PM (TTM) | 20.95% | ||
| GM | 54.82% | ||
| FCFM | 27.47% |
ROA(3y)25.89%
ROA(5y)23.38%
ROE(3y)64.44%
ROE(5y)55.45%
ROIC(3y)55.23%
ROIC(5y)47.73%
ROICexc(3y)379.42%
ROICexc(5y)338.92%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)67.16%
ROCE(5y)58.04%
ROICexcg growth 3YN/A
ROICexcg growth 5Y6.89%
ROICexc growth 3Y-16.71%
ROICexc growth 5Y14.68%
OM growth 3Y7.44%
OM growth 5Y6%
PM growth 3Y7.95%
PM growth 5Y8.57%
GM growth 3Y-0.19%
GM growth 5Y0.34%
F-Score7
Asset Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 137.68% | ||
| Cap/Sales | 0.83% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 110.12% | ||
| Profit Quality | 131.12% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 16.28 |
F-Score7
WACC10.9%
ROIC/WACC5.52
Cap/Depr(3y)106.14%
Cap/Depr(5y)79.88%
Cap/Sales(3y)0.73%
Cap/Sales(5y)0.65%
Profit Quality(3y)134%
Profit Quality(5y)144.89%
High Growth Momentum
Growth
EPS 1Y (TTM)25.8%
EPS 3Y28.48%
EPS 5Y22.14%
EPS Q2Q%13.59%
EPS Next Y-1.49%
EPS Next 2Y4.87%
EPS Next 3Y8.81%
EPS Next 5Y17.55%
Revenue 1Y (TTM)12.24%
Revenue growth 3Y16.24%
Revenue growth 5Y11.02%
Sales Q2Q%7.36%
Revenue Next Year1.98%
Revenue Next 2Y4.97%
Revenue Next 3Y7.23%
Revenue Next 5Y8.65%
EBIT growth 1Y24.65%
EBIT growth 3Y24.89%
EBIT growth 5Y17.68%
EBIT Next Year1.82%
EBIT Next 3Y9.41%
EBIT Next 5Y11.24%
FCF growth 1Y18.57%
FCF growth 3Y16.48%
FCF growth 5Y16.8%
OCF growth 1Y19.81%
OCF growth 3Y16.79%
OCF growth 5Y14.96%