Investment Thesis
Manhattan Associates demonstrates strong financial health with exceptional free cash flow generation (28.3% FCF margin), zero debt, and a substantial cash position ($226.1M). However, the credibility of fundamentals is significantly undermined by a massive claimed revenue growth (+24,538.7% YoY) that contradicts flat net income growth (0.0% YoY), suggesting either data quality issues, unsustainable acquisition-driven growth, or severe margin compression. The missing gross profit/margin data and incomplete liability reporting prevent full assessment.
Strengths
- Exceptional free cash flow generation ($79.9M) with 28.3% FCF margin demonstrates underlying business quality
- fortress balance sheet with zero debt, $226.1M cash position, and strong ROE of 24.0%
- Solid operating margins (23.0%) and net margins (17.5%) indicate profitable core operations
- Minimal capital requirements ($4.1M capex) enable cash generation and flexibility
Risks
- Massive revenue growth claim (+24,538.7%) contradicted by zero net income growth - suggests data error, low-quality acquisition growth, or severe margin compression
- Critical missing financial data: gross profit/margin, total liabilities, long-term debt prevents complete financial assessment
- Tight liquidity ratios (1.10x current and quick ratios) despite large cash balance suggests working capital constraints
- Flat earnings growth despite claimed exponential revenue growth indicates deteriorating profitability trends and questionable growth quality
- 28 insider Form 4 filings in 90 days may indicate uncertainty or significant management activity
Key Metrics to Watch
- Net income and operating income trends to validate revenue growth sustainability
- Gross margin and gross profit to assess actual business profitability quality
- Free cash flow continuation and conversion rate from net income
- Total liabilities and debt levels to complete balance sheet assessment
Financial Metrics
Revenue
282.2M
Net Income
49.3M
EPS (Diluted)
$0.82
Free Cash Flow
79.9M
Total Assets
740.5M
Cash
226.1M
Profitability Ratios
Gross Margin
N/A
Operating Margin
23.0%
Net Margin
17.5%
ROE
24.0%
ROA
6.7%
FCF Margin
28.3%
Balance Sheet & Liquidity
Current Ratio
1.10x
Quick Ratio
1.10x
Debt/Equity
0.00x
Debt/Assets
0.0%
Interest Coverage
N/A
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-04-29T13:26:13.839343 |
Data as of: 2026-03-31 |
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