Manhattan Associates, Inc. – Value Analysis (NASDAQ:MANH) : December 21, 2016

Capitalcube gives Manhattan Associates, Inc. a score of 78.

Our analysis is based on comparing Manhattan Associates, Inc. with the following peers – American Software, Inc. Class A, Descartes Systems Group Inc., Microsoft Corporation, Pegasystems Inc., International Business Machines Corporation, Amber Road, Inc., Covisint Corp., Tableau Software, Inc. Class A and Paycom Software, Inc. (AMSWA-US, DSGX-US, MSFT-US, PEGA-US, IBM-US, AMBR-US, COVS-US, DATA-US and PAYC-US).

Investment Outlook

Manhattan Associates, Inc. has a fundamental score of 78 and has a relative valuation of OVERVALUED.

Fundamental Score

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Company Overview

  • Compared to peers, relative underperformance over the last year is in contrast with the more recent outperformance.
  • Manhattan Associates, Inc. currently trades at a higher Price/Book ratio (20.68) than its peer median (7.25).
  • MANH-US‘s operating performance is relatively good compared to its peers. The market currently does not expect high earnings growth relative to its peers but seems to expect the company to maintain its relatively high rates of return.
  • MANH-US has a successful operating model with relatively high net profit margins and asset turns.
  • Change in the company’s annual revenues seems to be coming at the expense of earnings.
  • MANH-US‘s return on assets currently and over the past five years suggest that its relatively high operating returns are sustainable.
  • The company’s relatively high pre-tax margin suggests tight control on operating costs versus peers.
  • MANH-US‘s revenue growth in recent years and current P/E ratio are both around their respective peer medians suggesting that historical performance and long-term growth expectations for the company are largely in sync.
  • The company’s level of capital investment is relatively low and suggests it is milking the business.
  • MANH-US currently does not have any debt.

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Leverage & Liquidity

MANH-US currently does not have any debt.

  • We consider the company to have a Quick & Able profile as it currently does not have any debt. In comparison, the median level of debt as percent of enterprise value for its peer group is currently 0.12%.
  • Of the 9 chosen peers for the company, only 5 of the stocks have an outstanding debt balance. Companies with no debt include AMSWA-US, PEGA-US, COVS-US and DATA-US.

Access the detailed analysis for Manhattan Associates, Inc.

Key Liquidity Items

Company Debt/Enterprise Value (%) Current Ratio Interest Coverage (x) Cash Flow To Total Debt (%)
American Software, Inc. Class A 0 2.53 No interest exp 999
Descartes Systems Group Inc. 0.24 2.38 53.36 978.71
Microsoft Corporation 19.56 2.69 14.18 56.07
Pegasystems Inc. 0 1.59 No interest exp 999
International Business Machines Corporation 23.13 1.2 18.6 41.35
Amber Road, Inc. 8.31 0.68 -21.9 -30.9
Covisint Corp. 0 1.9 No interest exp 999
Tableau Software, Inc. Class A 0 3.01 No interest exp 999
Paycom Software, Inc. 1.05 1.08 47.14 243.15
Manhattan Associates, Inc. 0 1.86 No interest exp 999
Peer Median 0.12 1.88 526.18 988.85
Best In Class 0.24 3.01 No interest exp 999

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Company Profile

Manhattan Associates, Inc. designs, builds and delivers supply chain commerce solutions that drive top line growth by converging front-end sales with back-end supply chain execution and efficiency. It provides software solutions for retailers, wholesalers, manufacturers, governments and other organizations. The company operates through three geographically segmented areas which include The Americas, Europe, Middle East and Africa and Asia Pacific. The company’s solutions consist of software, services and hardware, which coordinate people, workflows, assets, events and tasks holistically across the functions linked in a supply chain from planning through execution. These solutions also help to coordinate the actions, data exchange and communication of participants in supply chain ecosystems, such as manufacturers, suppliers, distributors, trading partners, transportation providers, channels and consumers. The company was founded by Deepak Raghavan in October 1990 and is headquartered in Atlanta, GA.

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