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 283 industry peers in the Software industry. Both the health and profitability get an excellent rating, making MANH a very profitable company, without any liquidiy or solvency issues. MANH is valued quite expensive, but it does show an excellent growth. 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.
Each year in the past 5 years MANH has been profitable.
Each year in the past 5 years MANH had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 30.66%, MANH belongs to the top of the industry, outperforming 97.17% of the companies in the same industry.
The Return On Equity of MANH (88.60%) is better than 98.59% of its industry peers.
MANH has a Return On Invested Capital of 73.25%. This is amongst the best in the industry. MANH outperforms 99.65% of its industry peers.
MANH had an Average Return On Invested Capital over the past 3 years of 55.23%. This is significantly above the industry average of 12.21%.
The 3 year average ROIC (55.23%) for MANH is below the current ROIC(73.25%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 30.66% | ||
| ROE | 88.6% | ||
| ROIC | 73.25% |
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's Profit Margin of 20.67% is amongst the best of the industry. MANH outperforms 86.93% of its industry peers.
In the last couple of years the Profit Margin of MANH has grown nicely.
MANH's Operating Margin of 25.71% is amongst the best of the industry. MANH outperforms 91.52% of its industry peers.
MANH's Operating Margin has improved in the last couple of years.
The Gross Margin of MANH (55.62%) is worse than 63.60% 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 | 25.71% | ||
| 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
MANH has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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 18.46 indicates that MANH is not in any danger for bankruptcy at the moment.
MANH has a better Altman-Z score (18.46) than 92.58% 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 | 18.46 |
ROIC/WACC6.7
WACC10.93%
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 68.55% of its industry peers.
A Quick Ratio of 1.12 indicates that MANH should not have too much problems paying its short term obligations.
MANH has a worse Quick ratio (1.12) than 67.84% 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.
The Earnings Per Share has been growing by 22.14% on average over the past years. This is a very strong growth
The Revenue has grown by 9.19% 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)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
MANH is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.55% yearly.
MANH is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.65% yearly.
EPS Next Y-0.99%
EPS Next 2Y3.46%
EPS Next 3Y9.67%
EPS Next 5Y17.55%
Revenue Next Year1.98%
Revenue Next 2Y4.25%
Revenue Next 3Y6.4%
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.
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
MANH is valuated quite expensively with a Price/Earnings ratio of 39.23.
63.25% of the companies in the same industry are more expensive than MANH, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.60. MANH is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 37.89, which means the current valuation is very expensive for MANH.
The rest of the industry has a similar Price/Forward Earnings ratio as MANH.
When comparing the Price/Forward Earnings ratio of MANH to the average of the S&P500 Index (22.43), we can say MANH is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.23 | ||
| Fwd PE | 37.89 |
4.2 Price Multiples
69.26% of the companies in the same industry are more expensive than MANH, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MANH is valued a bit cheaper than 68.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.78 | ||
| EV/EBITDA | 41.39 |
4.3 Compensation for Growth
The excellent profitability rating of MANH may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.77
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 |
191.85
-1.21 (-0.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners101.69%
Inst Owner Change-3.91%
Ins Owners1.18%
Ins Owner Change8.21%
Market Cap11.65B
Analysts81.25
Price Target207.95 (8.39%)
Short Float %4.13%
Short Ratio2.95
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)-17.01%
PT rev (3m)-32.5%
EPS NQ rev (1m)-1.28%
EPS NQ rev (3m)-1.97%
EPS NY rev (1m)1.79%
EPS NY rev (3m)0.73%
Revenue NQ rev (1m)-0.51%
Revenue NQ rev (3m)-1.07%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.23 | ||
| Fwd PE | 37.89 | ||
| P/S | 11.09 | ||
| P/FCF | 37.78 | ||
| P/OCF | 36.91 | ||
| P/B | 47.52 | ||
| P/tB | 63.69 | ||
| EV/EBITDA | 41.39 |
EPS(TTM)4.89
EY2.55%
EPS(NY)5.06
Fwd EY2.64%
FCF(TTM)5.08
FCFY2.65%
OCF(TTM)5.2
OCFY2.71%
SpS17.31
BVpS4.04
TBVpS3.01
PEG (NY)N/A
PEG (5Y)1.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 30.66% | ||
| ROE | 88.6% | ||
| ROCE | 89.07% | ||
| ROIC | 73.25% | ||
| ROICexc | 228.19% | ||
| ROICexgc | 632.76% | ||
| OM | 25.71% | ||
| 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 | 114.15% | ||
| Profit Quality | 141.97% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 18.46 |
F-Score8
WACC10.93%
ROIC/WACC6.7
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 5Y17.55%
Revenue 1Y (TTM)9.19%
Revenue growth 3Y16.24%
Revenue growth 5Y11.02%
Sales Q2Q%3.24%
Revenue Next Year1.98%
Revenue Next 2Y4.25%
Revenue Next 3Y6.4%
Revenue Next 5Y8.65%
EBIT growth 1Y22.54%
EBIT growth 3Y24.89%
EBIT growth 5Y17.68%
EBIT Next Year1.82%
EBIT Next 3Y9.41%
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%