Manhattan Associates (NYSE: MANH) is rated at BUY with a grade of A. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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Highlights from the ratings report include:
- MANHATTAN ASSOCIATES INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MANHATTAN ASSOCIATES INC increased its bottom line by earning $2.09 versus $1.25 in the prior year. This year, the market expects an improvement in earnings ($2.78 versus $2.09).
- Net operating cash flow has slightly increased to $17.46 million or 3.47% when compared to the same quarter last year. In addition, MANHATTAN ASSOCIATES INC has also modestly surpassed the industry average cash flow growth rate of -2.33%.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Software industry and the overall market, MANHATTAN ASSOCIATES INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- MANH has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, MANH has a quick ratio of 1.85, which demonstrates the ability of the company to cover short-term liquidity needs.
Manhattan Associates, Inc. develops, sells, deploys, services, and maintains supply chain software solutions for the planning and execution of supply chain activities. It offers Manhattan SCOPE and Manhattan SCALE, which are platform-based supply chain software solutions.You can view the full Manhattan Associates Ratings Report or get investment ideas from our investment research center.