MANHATTAN ASSOCIATES INC (MANH) Stock Fundamental Analysis
NASDAQ:MANH - Nasdaq - US5627501092 - Common Stock - Currency: USD
We assign a fundamental rating of 7 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 shows excellent growth, but is valued quite expensive already. 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.
In the past 5 years MANH has always been profitable.
In the past 5 years MANH always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 30.66%, MANH belongs to the top of the industry, outperforming 97.54% of the companies in the same industry.
With an excellent Return On Equity value of 88.60%, MANH belongs to the best of the industry, outperforming 98.24% of the companies in the same industry.
MANH has a Return On Invested Capital of 72.25%. This is amongst the best in the industry. MANH outperforms 99.65% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MANH is significantly above the industry average of 12.30%.
The 3 year average ROIC (55.23%) for MANH is below the current ROIC(72.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 30.66% | ||
| ROE | 88.6% | ||
| ROIC | 72.25% |
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
MANH has a Profit Margin of 20.67%. This is amongst the best in the industry. MANH outperforms 88.38% of its industry peers.
In the last couple of years the Profit Margin of MANH has grown nicely.
MANH has a better Operating Margin (25.35%) than 91.55% of its industry peers.
In the last couple of years the Operating Margin of MANH has grown nicely.
MANH has a worse Gross Margin (55.62%) than 64.08% 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) | 20.67% | ||
| GM | 55.62% |
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.
The number of shares outstanding for MANH has been reduced compared to 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
An Altman-Z score of 18.24 indicates that MANH is not in any danger for bankruptcy at the moment.
MANH has a Altman-Z score of 18.24. This is amongst the best in the industry. MANH outperforms 93.31% 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 | 18.24 |
ROIC/WACC6.44
WACC11.22%
2.3 Liquidity
MANH has a Current Ratio of 1.12. 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 Current ratio (1.12) than 68.31% of its industry peers.
MANH has a Quick Ratio of 1.12. 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 (1.12) than 67.96% 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 | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
MANH shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.56%, 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.
MANH shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.19%.
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)22.56%
EPS 3Y28.48%
EPS 5Y22.14%
EPS Q2Q%15.53%
Revenue 1Y (TTM)9.19%
Revenue growth 3Y16.24%
Revenue growth 5Y11.02%
Sales Q2Q%3.24%
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 16.78% on average per year.
Based on estimates for the next years, MANH will show a quite strong growth in Revenue. The Revenue will grow by 8.30% on average per year.
EPS Next Y-0.99%
EPS Next 2Y3.46%
EPS Next 3Y9.67%
EPS Next 5Y16.78%
Revenue Next Year2.17%
Revenue Next 2Y4.66%
Revenue Next 3Y6.52%
Revenue Next 5Y8.3%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 39.40, 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 64.44% of the companies are valued more expensively.
MANH is valuated rather expensively when we compare the Price/Earnings ratio to 26.55, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 38.05 indicates a quite expensive valuation of MANH.
The rest of the industry has a similar Price/Forward Earnings ratio as MANH.
The average S&P500 Price/Forward Earnings ratio is at 22.40. MANH is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.4 | ||
| Fwd PE | 38.05 |
4.2 Price Multiples
68.66% 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 a bit cheaper when compared to the industry. MANH is cheaper than 69.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.94 | ||
| EV/EBITDA | 41.39 |
4.3 Compensation for Growth
MANH has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.78
EPS Next 2Y3.46%
EPS Next 3Y9.67%
5. Dividend
5.1 Amount
MANH does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:MANH (6/12/2025, 1:01:05 PM)
192.66
+3.33 (+1.76%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners101.69%
Inst Owner Change-3.01%
Ins Owners1.18%
Ins Owner Change8.53%
Market Cap11.70B
Analysts80
Price Target214.85 (11.52%)
Short Float %4.08%
Short Ratio2.66
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)10.97%
Min EPS beat(2)8.28%
Max EPS beat(2)13.66%
EPS beat(4)4
Avg EPS beat(4)16.81%
Min EPS beat(4)8.28%
Max EPS beat(4)24.36%
EPS beat(8)8
Avg EPS beat(8)20.45%
EPS beat(12)12
Avg EPS beat(12)23.78%
EPS beat(16)16
Avg EPS beat(16)25.34%
Revenue beat(2)1
Avg Revenue beat(2)-0.24%
Min Revenue beat(2)-0.93%
Max Revenue beat(2)0.44%
Revenue beat(4)2
Avg Revenue beat(4)0.13%
Min Revenue beat(4)-0.93%
Max Revenue beat(4)1.65%
Revenue beat(8)6
Avg Revenue beat(8)1.9%
Revenue beat(12)10
Avg Revenue beat(12)3.22%
Revenue beat(16)14
Avg Revenue beat(16)3.15%
PT rev (1m)3.32%
PT rev (3m)-20.88%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-1.96%
EPS NY rev (1m)1.79%
EPS NY rev (3m)0.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.07%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)-0.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.4 | ||
| Fwd PE | 38.05 | ||
| P/S | 11.13 | ||
| P/FCF | 37.94 | ||
| P/OCF | 37.07 | ||
| P/B | 47.72 | ||
| P/tB | 63.96 | ||
| EV/EBITDA | 41.39 |
EPS(TTM)4.89
EY2.54%
EPS(NY)5.06
Fwd EY2.63%
FCF(TTM)5.08
FCFY2.64%
OCF(TTM)5.2
OCFY2.7%
SpS17.31
BVpS4.04
TBVpS3.01
PEG (NY)N/A
PEG (5Y)1.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 30.66% | ||
| ROE | 88.6% | ||
| ROCE | 87.85% | ||
| ROIC | 72.25% | ||
| ROICexc | 225.06% | ||
| ROICexgc | 624.09% | ||
| OM | 25.35% | ||
| PM (TTM) | 20.67% | ||
| GM | 55.62% | ||
| FCFM | 29.34% |
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-Score8
Asset Turnover1.48
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 114.11% | ||
| Cap/Sales | 0.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 115.7% | ||
| Profit Quality | 141.97% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 18.24 |
F-Score8
WACC11.22%
ROIC/WACC6.44
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)22.56%
EPS 3Y28.48%
EPS 5Y22.14%
EPS Q2Q%15.53%
EPS Next Y-0.99%
EPS Next 2Y3.46%
EPS Next 3Y9.67%
EPS Next 5Y16.78%
Revenue 1Y (TTM)9.19%
Revenue growth 3Y16.24%
Revenue growth 5Y11.02%
Sales Q2Q%3.24%
Revenue Next Year2.17%
Revenue Next 2Y4.66%
Revenue Next 3Y6.52%
Revenue Next 5Y8.3%
EBIT growth 1Y20.86%
EBIT growth 3Y24.89%
EBIT growth 5Y17.68%
EBIT Next Year1.69%
EBIT Next 3Y7.22%
EBIT Next 5Y11.24%
FCF growth 1Y53.83%
FCF growth 3Y16.48%
FCF growth 5Y16.8%
OCF growth 1Y52.8%
OCF growth 3Y16.79%
OCF growth 5Y14.96%