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Manhattan Associates Gains High Rating from Growth Model

Manhattan Associates INC (MANH) is spotlighted for its strong rating, reaching 88% under a growth investment model. This positioning suggests positive investor sentiment, given its robust fundamentals and valuation metrics.

Date: 
AI Rating:   8

Investor Overview of Manhattan Associates INC

The report highlights MANH's commendable rating of 88% based on the P/B Growth Investor model, reflecting its alignment with characteristics of sustained future growth as per the strategy developed by Partha Mohanram. Such a high rating indicates a robust interest from the strategy, thus suggesting a positive outlook for investors.

In the context of the criteria provided, several aspects of the company's finances stand out as particularly encouraging:

  • Book/Market Ratio: A strong pass indicates that the company is likely undervalued compared to its intrinsic book value, which can attract growth-focused investors.
  • Return on Assets (ROA): With a favorable pass, this suggests that MANH is effective in generating profit from its assets, a crucial factor for sustained growth.
  • Cash Flow Metrics: The company passed various cash flow tests, indicating a solid cash generation that is critical for financing growth initiatives or returning value to shareholders.
  • Capital Expenditures to Assets: This pass points to a healthy strategy of reinvesting in the business to fuel future growth.

However, there is a failure in the Advertising to Assets ratio, which could be a concern. This suggests that the company may not be sufficiently leveraging its assets for promoting growth through marketing.

Conclusion

Overall, the strategic positioning of Manhattan Associates combined with its financial metrics leads to a positive viewpoint for professional investors. The ratings and underlying fundamentals position it as a strong candidate under growth investment strategies.

Stocks:  MANH