Manhattan Associates, Inc. – Value Analysis (NASDAQ:MANH) : June 22, 2017

Capitalcube gives Manhattan Associates, Inc. a score of 72.

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., Tableau Software, Inc. Class A, Paycom Software, Inc. and Covisint Corp. (AMSWA-US, DSGX-US, MSFT-US, PEGA-US, IBM-US, AMBR-US, DATA-US, PAYC-US and COVS-US).

Investment Outlook

Manhattan Associates, Inc. has a fundamental score of 72 and has a relative valuation of OVERVALUED.

Fundamental Score

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Company Overview

  • Considering peers, relative underperformance over the last year and the last month suggest a lagging position.
  • It currently trades at a Price/Book ratio of (22.35).
  • We classify MANH-US as Harvesting because of the market’s relatively low growth expectations despite its relatively high returns.
  • MANH-US has a successful operating model with relatively high net profit margins and asset turns.
  • Changes in the company’s annual revenue and earnings are around the median among its peers.
  • 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.
  • While MANH-US‘s revenue growth in recent years has been above the peer median, the stock’s P/E ratio is less than the peer median suggesting that the company’s earnings may be peaking and the market expects a decline in its growth expectations.
  • 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 0.01%.
  • 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, DATA-US and COVS-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 2.43 No interest exp 999
Descartes Systems Group Inc. 0.01 1.7 51.43 31544.31
Microsoft Corporation 18.32 2.81 11.21 41.61
Pegasystems Inc. 0 1.58 No interest exp 999
International Business Machines Corporation 21.85 1.18 16.22 36.2
Amber Road, Inc. 10.76 0.64 -17.67 -16.75
Tableau Software, Inc. Class A 0 2.8 No interest exp 999
Paycom Software, Inc. 0.97 1.05 62.78 287.3
Covisint Corp. 0 2.22 No interest exp 999
Manhattan Associates, Inc. 0 1.54 No interest exp 999
Peer Median 0.01 1.64 530.89 999
Best In Class 0.01 2.81 No interest exp 31544.31

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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 operates through three geographically segmented areas which include The Americas, Europe, Middle East and Africa and Asia Pacific. Its 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. The company was founded by Deepak Raghavan in October 1990 and is headquartered in Atlanta, GA.

Disclaimer

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