Manhattan Associates, Inc.
Manhattan Associates, Inc. Fundamental Analysis
Manhattan Associates, Inc. (MANH) shows moderate financial fundamentals with a PE ratio of 39.20, profit margin of 19.68%, and ROE of 78.22%. The company generates $1.1B in annual revenue with moderate year-over-year growth of 3.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 70.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze MANH's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMANH demonstrates superior asset utilization.
Valuation Score
WeakMANH trades at a premium to fair value.
Growth Score
WeakMANH faces weak or negative growth trends.
Financial Health Score
ExcellentMANH maintains a strong and stable balance sheet.
Profitability Score
ExcellentMANH achieves industry-leading margins.
Key Financial Metrics
Is MANH Expensive or Cheap?
P/E Ratio
MANH trades at 39.20 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MANH's PEG of 23.19 indicates potential overvaluation.
Price to Book
The market values Manhattan Associates, Inc. at 41.40 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 29.36 times EBITDA. This signals the market has high growth expectations.
How Well Does MANH Make Money?
Net Profit Margin
For every $100 in sales, Manhattan Associates, Inc. keeps $19.68 as profit after all expenses.
Operating Margin
Core operations generate 25.58 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $78.22 in profit for every $100 of shareholder equity.
ROA
Manhattan Associates, Inc. generates $29.26 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Manhattan Associates, Inc. generates strong operating cash flow of $395.27M, reflecting robust business health.
Free Cash Flow
Manhattan Associates, Inc. generates strong free cash flow of $376.74M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.36 in free cash annually.
FCF Yield
MANH converts 4.51% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
39.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
23.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
41.40
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.66
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.27
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.10
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.78
vs 25 benchmark
ROA
Return on assets percentage
0.29
vs 25 benchmark
ROCE
Return on capital employed
1.03
vs 25 benchmark
How MANH Stacks Against Its Sector Peers
| Metric | MANH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 39.20 | 35.31 | Worse (Expensive) |
| ROE | 78.22% | 1063.00% | Weak |
| Net Margin | 19.68% | 5920926810.00% | Weak |
| Debt/Equity | 0.27 | 0.45 | Strong (Low Leverage) |
| Current Ratio | 1.10 | 4.97 | Neutral |
| ROA | 29.26% | -296056.00% (disorted) | Strong |
MANH outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Manhattan Associates, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
93.77%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
164.90%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
190.46%
Industry Style: Growth, Innovation, High Beta
High Growth