MANHATTAN ASSOCIATES INC (MANH) Stock Fundamental Analysis
NASDAQ:MANH - Nasdaq - US5627501092 - Common Stock - Currency: USD
We assign a fundamental rating of 8 out of 10 to MANH. MANH was compared to 284 industry peers in the Software industry. MANH scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MANH is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make MANH suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
MANH had positive earnings in the past year.
In the past year MANH had a positive cash flow from operations.
In the past 5 years MANH has always been profitable.
Each year in the past 5 years MANH had a positive operating cash flow.
1.2 Ratios
MANH has a better Return On Assets (28.82%) than 98.19% of its industry peers.
Looking at the Return On Equity, with a value of 73.00%, MANH belongs to the top of the industry, outperforming 98.56% of the companies in the same industry.
The Return On Invested Capital of MANH (60.22%) is better than 99.64% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MANH is significantly above the industry average of 12.13%.
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 87.73% of its industry peers.
In the last couple of years the Profit Margin of MANH has grown nicely.
With an excellent Operating Margin value of 25.10%, MANH belongs to the best of the industry, outperforming 91.70% of the companies in the same industry.
In the last couple of years the Operating Margin of MANH has grown nicely.
Looking at the Gross Margin, with a value of 54.82%, MANH is doing worse than 66.79% of the companies in the same industry.
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.
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.
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 19.00 indicates that MANH is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 19.00, MANH belongs to the top of the industry, outperforming 92.78% of the companies in the same industry.
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 | 19 |
ROIC/WACC5.5
WACC10.94%
2.3 Liquidity
MANH has a Current Ratio of 1.26. 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 1.26, MANH is not doing good in the industry: 62.82% of the companies in the same industry are doing better.
MANH has a Quick Ratio of 1.26. This is a normal value and indicates that MANH is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.26, MANH is doing worse than 62.09% of the companies in the same industry.
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.
Measured over the past years, MANH shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.14% on average per year.
Looking at the last year, MANH shows a quite strong growth in Revenue. The Revenue has grown by 12.24% in the last year.
MANH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.02% yearly.
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 very strong growth in Earnings Per Share. The EPS will grow by 21.46% on average per year.
MANH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.38% yearly.
EPS Next Y5.79%
EPS Next 2Y9.59%
EPS Next 3Y13.48%
EPS Next 5Y21.46%
Revenue Next Year3.21%
Revenue Next 2Y5.95%
Revenue Next 3Y7.48%
Revenue Next 5Y12.38%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
The Price/Earnings ratio is 41.74, which means the current valuation is very expensive for MANH.
Based on the Price/Earnings ratio, MANH is valued a bit cheaper than the industry average as 64.98% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of MANH to the average of the S&P500 Index (28.47), we can say MANH is valued slightly more expensively.
With a Price/Forward Earnings ratio of 39.45, MANH can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MANH indicates a somewhat cheap valuation: MANH is cheaper than 63.54% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 92.74. MANH is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.74 | ||
| Fwd PE | 39.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MANH is valued a bit cheaper than the industry average as 70.04% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MANH is valued a bit cheaper than 71.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.11 | ||
| EV/EBITDA | 43.81 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MANH does not grow enough to justify the current Price/Earnings ratio.
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 13.48% in the coming years.
PEG (NY)7.2
PEG (5Y)1.89
EPS Next 2Y9.59%
EPS Next 3Y13.48%
5. Dividend
5.1 Amount
No dividends for MANH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MANHATTAN ASSOCIATES INC
NASDAQ:MANH (2/5/2025, 1:38:07 PM)
197.415
+0.91 (+0.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners100.79%
Inst Owner Change0.28%
Ins Owners1.04%
Ins Owner Change7.52%
Market Cap12.06B
Analysts78.82
Price Target308.07 (56.05%)
Short Float %2.87%
Short Ratio3.55
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)-0.15%
PT rev (3m)8.41%
EPS NQ rev (1m)-0.49%
EPS NQ rev (3m)10.98%
EPS NY rev (1m)-0.32%
EPS NY rev (3m)-0.39%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)0.52%
Revenue NY rev (1m)-0.34%
Revenue NY rev (3m)-0.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.74 | ||
| Fwd PE | 39.45 | ||
| P/S | 11.57 | ||
| P/FCF | 42.11 | ||
| P/OCF | 40.87 | ||
| P/B | 40.31 | ||
| P/tB | 50.9 | ||
| EV/EBITDA | 43.81 |
EPS(TTM)4.73
EY2.4%
EPS(NY)5
Fwd EY2.53%
FCF(TTM)4.69
FCFY2.37%
OCF(TTM)4.83
OCFY2.45%
SpS17.07
BVpS4.9
TBVpS3.88
PEG (NY)7.2
PEG (5Y)1.89
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 | 19 |
F-Score7
WACC10.94%
ROIC/WACC5.5
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 Y5.79%
EPS Next 2Y9.59%
EPS Next 3Y13.48%
EPS Next 5Y21.46%
Revenue 1Y (TTM)12.24%
Revenue growth 3Y16.24%
Revenue growth 5Y11.02%
Sales Q2Q%7.36%
Revenue Next Year3.21%
Revenue Next 2Y5.95%
Revenue Next 3Y7.48%
Revenue Next 5Y12.38%
EBIT growth 1Y24.65%
EBIT growth 3Y24.89%
EBIT growth 5Y17.68%
EBIT Next Year3.01%
EBIT Next 3Y9.89%
EBIT Next 5Y16.83%
FCF growth 1Y18.57%
FCF growth 3Y16.48%
FCF growth 5Y16.8%
OCF growth 1Y19.81%
OCF growth 3Y16.79%
OCF growth 5Y14.96%