Manh

Does anyone know anything about his company. Can you give me some of your thoughts on it. Manhattan Associates (Manh)

Here is some information from its last few years. They just had a 4 to 1 stock split. I haven’t looked into them to much yet just want to see if they might be worth it.

**Manh                       2013              2012              2011                   2010                   2009**
              
**Revenue**                    $414,518          $376,248         $369,253               $297,117                $246,667
        
**Cost Of services**           $142,236          $128,686         $107,510               $98,776                 $84,349

**Gross Profit**               $272,282          $247,562         $261,743               $198,341                $162,318

**Gross Margin**                66%              66%              71%                    67%                     66%
                                
**Net Income**                 $67,296           $51,853          $44,907                $28,061                 $16,562

**EPS**                        $.86              $.64             $.52                    $.31                   $.18

**Shares**                     77,932            81,084           85,968                  89,800                 90,232

**Cash**                       $132,956          $103,047         $98,259                 $125,158               $120,217

**Debt**                       $0                $0               $0                      $0                     $0

**Cash Flow**                  $84,647           $67,398          $50,750                 $44,101                $55,945
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Hey Saul,
Just looking at the numbers in the table above could you tell me what you like and don’t like about this company. I just want to see what you think. Also what might you see as a red flag?

Thanks,
Andy

One more thing I need to correct. They had a 1 to 4 stock split not 4 to 1. For every share you received 4 shares. Sorry about that.

Andy

Just looking at the numbers in the table above could you tell me what you like and don’t like about this company.

Andy, It looks like a steady grower of revenue and earnings. However revenue is only growing at an average of 13% compounded and earnings seem to be growing at about 17 or 18 cents a year, which will make less and less of a percentage increase over time. That’s not very fast growth for a 35 times forward PE ratio. That’s the main thing I’d see against it. I usually look for something growing faster.

Saul

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Excellent Saul thanks for the insight.

Andy

Just looking at the numbers in the table above could you tell me what you like and don’t like about this company.

Hi Andy,

In looking back through some old posts, I realized you had asked me about MANH a month or so ago and I said it seemed to be growing too slowly for me. I then saw that it had been recommended twice on Hidden Gems and was currently a Best Buy so I took a small position, but I forgot that it was the same company that I had commented on for you. Sorry.

Saul