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MANH

Manhattan Associates NasdaqGS:MANH Stock Report

Last Price

US$155.00

Market Cap

US$9.6b

7D

6.9%

1Y

-1.3%

Updated

16 Aug, 2022

Data

Company Financials +
MANH fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance5/6
Financial Health6/6
Dividends0/6

MANH Stock Overview

Manhattan Associates, Inc. develops, sells, deploys, services, and maintains software solutions to manage supply chains, inventory, and omni-channel operations.

Manhattan Associates Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Manhattan Associates
Historical stock prices
Current Share PriceUS$155.00
52 Week HighUS$188.52
52 Week LowUS$106.02
Beta1.87
1 Month Change38.04%
3 Month Change37.58%
1 Year Change-1.26%
3 Year Change83.87%
5 Year Change273.58%
Change since IPO2,734.29%

Recent News & Updates

Aug 12

Manhattan Associates: Great Guidance And Repurchase Of Shares

Manhattan Associates offers software solutions to run unified omnichannel commerce and digital supply chain operations to a variety of well-known clients. Even considering the current global macro environment, it is beneficial that cloud-native solutions’ demand continues to trend higher. I believe that new acquisitions, more successful research and development, and geographic expansion could push the stock price north. Manhattan Associates, Inc. (MANH) reported beneficial guidance and double-digit sales growth. Management is also repurchasing its own stock. In my opinion, with further investment in research and development, geographical expansion, and more M&A activities, MANH's stock price will likely reach higher price marks. There are obviously many risks, and the stock is not for very conservative investors. All the rest will likely appreciate Manhattan's business model. Manhattan Associates Manhattan Associates offers software solutions to run unified omnichannel commerce and digital supply chain operations to a variety of well-known clients. It is worth mentioning that MANH operates in very different industries, resultantly offering significant diversification. MANH works for manufacturing clients, wholesale, medical, and pharmaceutical among other sectors. Company's Website In my view, what makes MANH a must-follow stock is the company's network of partners. Keep in mind that large partners in the software industry are offering the company's solutions to their clients. As a result, in my view, MANH may be receiving a lot of visibility and a massive customer base. Company's Website - Partners There is another interesting feature that encouraged me to research MANH. The company recently approved to repurchase its stock from the market. I believe that the Board of Directors usually do not approve repurchase plans when their stock is expensive. During the three months ended June 30, 2022, the Company repurchased 416,558 shares of Manhattan Associates common stock under the share repurchase program authorized by our Board of Directors for a total investment of $50.1 million. In July 2022, our Board of Directors approved raising the Company's remaining share repurchase authority to an aggregate of $75.0 million of our common stock. Source Beneficial Guidance And Robust Demand For The Company's Cloud-Native Solutions In the last quarterly release, MANH delivered a very beneficial guidance, which I want to discuss. According to management, even considering the current global macro environment, it is beneficial that cloud-native solutions' demand continues to trend higher. While we continue to operate in a turbulent global macro environment, our teams are executing very well for our customers, and demand for our cloud-native solutions remains robust. With our business fundamentals strengthening and revenue visibility increasing, we are again raising our 2022 guidance. Source: Press Release The guidance for the year 2022 includes total revenue up to $741 million, an adjusted operating margin around 25.7%, and positive earnings per share. Notice that sales growth could reach even 12%. Press Release Investment analysts are also expecting double digit sales growth in 2022 and 2023 in addition to an EBITDA margin close to 26%. I used some of these numbers in my DCF model. Work From Other Analysts Finally, according to other analysts, the operating margin would stand at close to 25%-26%. The free cash flow would grow from $164 million in 2022 to $205 million in 2023. Work From Other Analysts Balance Sheet As of June 30, 2022, MANH reported $213 million in cash, $514 million in total assets, and an asset/liability ratio of 1.5x-2x. Goodwill stands at $62 million, which means that MANH does have expertise in the M&A markets. In my view, new successful acquisitions could significantly enhance future sales growth. 10-Q It is also quite beneficial that MANH does not report financial debt. The company only reports operating lease liabilities worth $18 million. The most important liability is deferred revenue, which stands at $178 million. It means that customers are financing the operations of MANH. 10-Q With Successful R&D, More Internationalization Efforts, And Predictable Agreements, My DCF Model Implied $158 Per Share Under my base case scenario, I assumed that MANH will successfully invest in research and development, which will likely enhance the company's software portfolio. Considering that MANH has a rich customer base, if management enhances its current offerings, and adapts to new customer needs, revenue growth will likely increase. Keep in mind that existing clients may be willing to pay a bit more for better services. I also believe that MANH's constant connections with different partners in different industries and solution user groups will likely enhance the generation of new innovations. In my view, research and development will likely help MANH because management appears to be increasing the amount of R&D expenses. If research and development was not working, I don't think management would increase R&D expenses. 10-Q In my view, the internationalization of the company's business will likely help the company push revenue growth up. Notice that MANH is already in many countries in Europe, Asia, South Africa, and Asia. It means that management has expertise in going abroad. I would be expecting more offices in new countries in the coming years: We have offices in Australia, Chile, China, France, Germany, India, Italy, Japan, the Netherlands, Singapore, Spain, and the United Kingdom, as well as representatives in Mexico and reseller partnerships in Latin America, Eastern Europe, the Middle East, South Africa, and Asia. Source: 10-k The company's solutions are sold through multi-year cloud subscription arrangements. It means that the company obtains a regular revenue stream that is also predictable. With this in mind, I believe that using a discounted cash flow model to assess the valuation makes sense. Manhattan Active solutions are sold directly in multi-year cloud subscription arrangements, typically for a period of five years or more, providing clients with regular software updates during the contract period to ensure access to the latest product features and benefiting Manhattan with a highly predictable and regular revenue stream. Source: 10-k Under the previous conditions, I included sales growth around 10%-12.5% and an EBITDA margin around 26% and 29%. In my view, in this scenario, my figures are conservative. Also, considering a capex/sales ratio of 1.2% and changes in working capital/sales of 1.8%, 2032 free cash flow would stand at close to $400-$410 million. My DCF Model With a projection of free cash flow for the next ten years, a discount of 4.7% and an exit multiple of 21x EBITDA, the implied enterprise value would equal $9.7 billion. Note that the company appears to be trading right now at 60x EBITDA, but the sector trades at 14.5x EBITDA. With these figures in mind, in my opinion, 21x EBITDA appears conservative.

Jul 26
Is Now An Opportune Moment To Examine Manhattan Associates, Inc. (NASDAQ:MANH)?

Is Now An Opportune Moment To Examine Manhattan Associates, Inc. (NASDAQ:MANH)?

While Manhattan Associates, Inc. ( NASDAQ:MANH ) might not be the most widely known stock at the moment, it saw...

Shareholder Returns

MANHUS SoftwareUS Market
7D6.9%3.0%3.6%
1Y-1.3%-14.7%-9.6%

Return vs Industry: MANH exceeded the US Software industry which returned -14.7% over the past year.

Return vs Market: MANH exceeded the US Market which returned -9.6% over the past year.

Price Volatility

Is MANH's price volatile compared to industry and market?
MANH volatility
MANH Average Weekly Movement7.8%
Software Industry Average Movement10.2%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: MANH is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: MANH's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19903,860Eddie Capelhttps://www.manh.com

Manhattan Associates, Inc. develops, sells, deploys, services, and maintains software solutions to manage supply chains, inventory, and omni-channel operations. It offers Manhattan SCALE, a portfolio of logistics execution solutions that provide trading partner management, yard management, optimization, warehouse management, and transportation execution services; and Manhattan Active, a set of enterprise and store omni-channel solutions. The company also provides inventory optimization, planning, and allocation solutions; maintenance services comprising customer support services and software enhancements; professional services, such as solutions planning and implementation, and related consulting services; and training and change management services.

Manhattan Associates Fundamentals Summary

How do Manhattan Associates's earnings and revenue compare to its market cap?
MANH fundamental statistics
Market CapUS$9.63b
Earnings (TTM)US$118.65m
Revenue (TTM)US$711.56m

81.9x

P/E Ratio

13.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MANH income statement (TTM)
RevenueUS$711.56m
Cost of RevenueUS$325.21m
Gross ProfitUS$386.35m
Other ExpensesUS$267.70m
EarningsUS$118.65m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.89
Gross Margin54.30%
Net Profit Margin16.68%
Debt/Equity Ratio0%

How did MANH perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is MANH undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MANH?

Other financial metrics that can be useful for relative valuation.

MANH key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue13.3x
Enterprise Value/EBITDA63.8x
PEG Ratio8x

Price to Earnings Ratio vs Peers

How does MANH's PE Ratio compare to its peers?

MANH PE Ratio vs Peers
The above table shows the PE ratio for MANH vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average26.7x
OTEX Open Text
26.9x10.9%US$10.7b
BKI Black Knight
20.1x-15.2%US$10.5b
DBX Dropbox
25.7x-9.8%US$8.8b
FICO Fair Isaac
34.4x9.9%US$12.7b
MANH Manhattan Associates
81.9x10.2%US$9.7b

Price-To-Earnings vs Peers: MANH is expensive based on its Price-To-Earnings Ratio (81.9x) compared to the peer average (26.8x).


Price to Earnings Ratio vs Industry

How does MANH's PE Ratio compare vs other companies in the US Software Industry?

Price-To-Earnings vs Industry: MANH is expensive based on its Price-To-Earnings Ratio (81.9x) compared to the US Software industry average (49.8x)


Price to Earnings Ratio vs Fair Ratio

What is MANH's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MANH PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio81.9x
Fair PE Ratio32.4x

Price-To-Earnings vs Fair Ratio: MANH is expensive based on its Price-To-Earnings Ratio (81.9x) compared to the estimated Fair Price-To-Earnings Ratio (32.4x).


Share Price vs Fair Value

What is the Fair Price of MANH when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MANH ($155) is trading above our estimate of fair value ($93.22)

Significantly Below Fair Value: MANH is trading above our estimate of fair value.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.


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Future Growth

How is Manhattan Associates forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


10.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MANH's forecast earnings growth (10.2% per year) is above the savings rate (1.9%).

Earnings vs Market: MANH's earnings (10.2% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: MANH's earnings are forecast to grow, but not significantly.

Revenue vs Market: MANH's revenue (10.4% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: MANH's revenue (10.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MANH's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Manhattan Associates performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-2.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MANH has high quality earnings.

Growing Profit Margin: MANH's current net profit margins (16.7%) are higher than last year (15.9%).


Past Earnings Growth Analysis

Earnings Trend: MANH's earnings have declined by 2.1% per year over the past 5 years.

Accelerating Growth: MANH's earnings growth over the past year (20.2%) exceeds its 5-year average (-2.1% per year).

Earnings vs Industry: MANH earnings growth over the past year (20.2%) exceeded the Software industry 18.7%.


Return on Equity

High ROE: MANH's Return on Equity (56.8%) is considered outstanding.


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Financial Health

How is Manhattan Associates's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MANH's short term assets ($374.6M) exceed its short term liabilities ($271.2M).

Long Term Liabilities: MANH's short term assets ($374.6M) exceed its long term liabilities ($34.3M).


Debt to Equity History and Analysis

Debt Level: MANH is debt free.

Reducing Debt: MANH has not had any debt for past 5 years.

Debt Coverage: MANH has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MANH has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Manhattan Associates's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate MANH's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MANH's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MANH's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MANH's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as MANH has not reported any payouts.


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Management

How experienced are the management team and are they aligned to shareholders interests?

8.3yrs

Average management tenure


CEO

Eddie Capel (61 yo)

10.08yrs

Tenure

US$7,074,692

Compensation

Mr. Eddie Capel has been the Chief Executive Officer of Manhattan Associates, Inc. since January 01, 2013. Mr. Capel has been the President and a Director of Manhattan Associates, Inc. since July 24, 2012....


CEO Compensation Analysis

Compensation vs Market: Eddie's total compensation ($USD7.07M) is below average for companies of similar size in the US market ($USD12.87M).

Compensation vs Earnings: Eddie's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MANH's management team is seasoned and experienced (8.3 years average tenure).


Board Members

Experienced Board: MANH's board of directors are considered experienced (8.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MANH insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Manhattan Associates, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Manhattan Associates, Inc.
  • Ticker: MANH
  • Exchange: NasdaqGS
  • Founded: 1990
  • Industry: Application Software
  • Sector: Software
  • Implied Market Cap: US$9.634b
  • Shares outstanding: 62.72m
  • Website: https://www.manh.com

Number of Employees


Location

  • Manhattan Associates, Inc.
  • 2300 Windy Ridge Parkway
  • 10th Floor
  • Atlanta
  • Georgia
  • 30339
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/16 00:00
End of Day Share Price2022/08/16 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.