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. MANH has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. MANH is valued quite expensive, but it does show an excellent growth. 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.
Each year in the past 5 years MANH has been profitable.
MANH had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 31.38%, MANH belongs to the top of the industry, outperforming 99.28% of the companies in the same industry.
MANH's Return On Equity of 78.82% is amongst the best of the industry. MANH outperforms 98.57% of its industry peers.
Looking at the Return On Invested Capital, with a value of 63.48%, MANH belongs to the top of the industry, outperforming 99.64% of the companies in the same industry.
MANH had an Average Return On Invested Capital over the past 3 years of 47.73%. This is significantly above the industry average of 11.54%.
The 3 year average ROIC (47.73%) for MANH is below the current ROIC(63.48%), indicating increased profibility in the last year.
| 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
MANH's Profit Margin of 21.38% is amongst the best of the industry. MANH outperforms 89.96% of its industry peers.
MANH's Profit Margin has been stable in the last couple of years.
The Operating Margin of MANH (25.35%) is better than 93.19% of its industry peers.
In the last couple of years the Operating Margin of MANH has remained more or less at the same level.
MANH has a worse Gross Margin (54.65%) than 66.31% of its industry peers.
In the last couple of years the Gross Margin of MANH has remained more or less at the same level.
| 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.
The number of shares outstanding for MANH has been reduced compared to 5 years ago.
MANH has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 27.17 indicates that MANH is not in any danger for bankruptcy at the moment.
The Altman-Z score of MANH (27.17) is better than 95.70% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 27.17 |
ROIC/WACC5.33
WACC11.9%
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: 62.72% 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 Quick ratio of 1.25. This is in the lower half of the industry: MANH underperforms 62.37% of its industry peers.
The current and quick ratio evaluation for MANH is rather negative, while it does have 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
The Earnings Per Share has grown by an impressive 29.66% over the past year.
MANH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 16.00% yearly.
The Revenue has grown by 15.34% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 22.41% on average over the next years. This is a very strong growth
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 60.62, MANH can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as MANH.
Compared to an average S&P500 Price/Earnings ratio of 28.96, MANH is valued quite expensively.
A Price/Forward Earnings ratio of 55.38 indicates a quite expensive valuation of MANH.
The rest of the industry has a similar Price/Forward Earnings ratio as MANH.
MANH's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.62 | ||
| Fwd PE | 55.38 |
4.2 Price Multiples
64.87% of the companies in the same industry are more expensive than MANH, based on the Enterprise Value to EBITDA ratio.
MANH's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 62.68 | ||
| EV/EBITDA | 61.63 |
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.
A more expensive valuation may be justified as MANH's earnings are expected to grow with 14.90% in the coming years.
PEG (NY)2.41
PEG (5Y)3.79
EPS Next 2Y15.6%
EPS Next 3Y14.9%
5. Dividend
5.1 Amount
No dividends for MANH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MANHATTAN ASSOCIATES INC
NASDAQ:MANH (11/22/2024, 10:49:46 AM)
278.25
+6.36 (+2.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap17.00B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.62 | ||
| Fwd PE | 55.38 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.41
PEG (5Y)3.79
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
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 5Y
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OCF growth 5Y