Overall MANH gets a fundamental rating of 7 out of 10. We evaluated MANH against 278 industry peers in the Software industry. MANH gets an excellent profitability rating and is at the same time showing great financial health properties. MANH is valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make MANH suitable for quality investing!

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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

MANH's Return On Assets of 28.10% is amongst the best of the industry. MANH outperforms 97.84% of its industry peers.
The Return On Equity of MANH (69.86%) is better than 97.84% of its industry peers.
MANH has a better Return On Invested Capital (61.70%) 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 10.76%.
The 3 year average ROIC (55.23%) for MANH is below the current ROIC(61.70%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	28.1%
ROE	69.86%
ROIC	61.7%

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 (20.25%) is better than 83.81% of its industry peers.
In the last couple of years the Profit Margin of MANH has grown nicely.
Looking at the Operating Margin, with a value of 25.91%, MANH belongs to the top of the industry, outperforming 90.29% of the companies in the same industry.
In the last couple of years the Operating Margin of MANH has grown nicely.
With a Gross Margin value of 56.54%, MANH is not doing good in the industry: 64.75% 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	25.91%
PM (TTM)	20.25%
GM	56.54%

OM growth 3Y7.44%

OM growth 5Y6%

PM growth 3Y7.95%

PM growth 5Y8.57%

GM growth 3Y-0.19%

GM growth 5Y0.34%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
Compared to 5 years ago, MANH has less shares outstanding
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 17.08 indicates that MANH is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 17.08, MANH belongs to the top of the industry, outperforming 95.32% of the companies in the same industry.
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	17.08

ROIC/WACC5.56

WACC11.1%

2.3 Liquidity

MANH has a Current Ratio of 1.31. This is a normal value and indicates that MANH is financially healthy and should not expect problems in meeting its short term obligations.
MANH's Current ratio of 1.31 is on the low side compared to the rest of the industry. MANH is outperformed by 60.07% of its industry peers.
MANH has a Quick Ratio of 1.31. 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 Quick ratio value of 1.31, MANH perfoms like the industry average, outperforming 40.65% 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	1.31
Quick Ratio	1.31

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 9.59% over the past year.
The Earnings Per Share has been growing by 22.14% on average over the past years. This is a very strong growth
Looking at the last year, MANH shows a small growth in Revenue. The Revenue has grown by 4.10% in the last year.
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)9.59%

EPS 3Y28.48%

EPS 5Y22.14%

EPS Q2Q%0.74%

Revenue 1Y (TTM)4.1%

Revenue growth 3Y16.24%

Revenue growth 5Y11.02%

Sales Q2Q%3.42%

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 17.35% on average per year.
Based on estimates for the next years, MANH will show a small growth in Revenue. The Revenue will grow by 7.70% on average per year.

EPS Next Y7.12%

EPS Next 2Y6.92%

EPS Next 3Y9.56%

EPS Next 5Y17.35%

Revenue Next Year3.58%

Revenue Next 2Y5.11%

Revenue Next 3Y6.38%

Revenue Next 5Y7.7%

3.3 Evolution

Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

MANH is valuated quite expensively with a Price/Earnings ratio of 35.24.
The rest of the industry has a similar Price/Earnings ratio as MANH.
MANH's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.25.
A Price/Forward Earnings ratio of 32.78 indicates a quite expensive valuation of MANH.
MANH's Price/Forward Earnings ratio is in line with the industry average.
MANH is valuated rather expensively when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	35.24
Fwd PE	32.78

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MANH is valued a bit cheaper than 65.11% of the companies in the same industry.
MANH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MANH is cheaper than 66.91% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	32.06
EV/EBITDA	36.15

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.