Manhattan Associates (MANH) AI Stock Analysis

• Market Cap: $10.09B
• Dividend Yield: N/A
• Average Volume (3M): 865.82K
• Price to Earnings (P/E): 44.9
• Beta (1Y): 1.45
• Revenue Growth: 12.23%
• EPS Growth: 24.66%
• Country: US
• Employees: 4,690
• Sector: Technology
• Sector Strength: 40
• Industry: Software - Application
• EPS (TTM): 3.51
• Shares Outstanding: 60,714,596
• 10 Day Avg. Volume: 914,517
• 30 Day Avg. Volume: 865,815
• PEG Ratio: 1.82
• Price to Book (P/B): N/A
• Price to Sales (P/S): 10.03
• Price to Cash Flow (P/CF): 25.00
• P/FCF Ratio: 23.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $204.20
• Price Target Upside: 29.54% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

Manhattan Associates scores well due to its robust financial performance, including high revenue growth and strong cash flow management. However, bearish technical indicators and a high valuation relative to peers weigh down the overall score. The positive sentiment from the earnings call and strategic leadership change provide some support, but challenges in services revenue and macroeconomic caution remain concerns.

Positive Factors

Cloud Transition and Revenue Growth

Manhattan has organically developed a cloud native portfolio to address key issues across supply chain execution, planning and management, with the full transition to cloud representing +$3B in revenue in the existing base alone.

Earnings and Financial Performance

The analyst is upgrading shares to Outperform, implying at least a high-teens annualized return over the next several years.

Succession Planning

The company conducted a thorough search over more than two years to find a logical successor to retiring CEO Eddie Capel, setting the business up for sustained momentum as it continues to push forward its cloud model transition.

Negative Factors

CEO Transition and Stock Performance

Shares have continued to sell off since the initial 25% draw-down post-earnings, further exacerbated by the recent CEO transition announcement, and are now down nearly 40%.

Revenue Guidance and Budget Constraints

The company lowered its outlook for 2025 by approximately $70 million, attributable to a combination of both incremental FX headwinds and continued budgetary scrutiny.

Service Business Challenges

Investor debates have centered on NT headwinds in the services biz that drove a $50M cut to the initial ’25 rev guide as a group of large customers pulled back projected implementation scopes for the year tied to budget constraints.

Manhattan Associates Business Overview & Revenue Model

Company Description

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. In addition, it resells computer hardware, radio frequency terminal networks, radio frequency identification chip readers, bar code printers and scanners, and other peripherals. The company offers products through direct sales personnel, as well as through partnership agreements with various organizations. It serves grocery, food and beverage, manufacturing, medical and pharmaceutical, retail, third-party logistics, and wholesale industries. The company operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Manhattan Associates, Inc. was founded in 1990 and is headquartered in Atlanta, Georgia.

How the Company Makes Money

Manhattan Associates generates revenue primarily through the sale and implementation of its software solutions and services. The company offers its products through both cloud-based subscriptions and on-premises licensing models. Key revenue streams include software licensing fees, subscription fees for its cloud-based services, and professional services such as implementation, consulting, and training. Additionally, the company earns from maintenance and support services, providing ongoing updates and technical support to its clients. Strategic partnerships with technology providers and system integrators also play a role in expanding its market reach and enhancing its service offerings.

Manhattan Associates Financial Statement Overview

Summary

Manhattan Associates displays a strong financial position with impressive growth in revenue and profitability. The company's margins are robust, reflecting efficient operations and cost management. The balance sheet is solid, with low debt levels and high returns on equity. Cash flow metrics underscore excellent cash generation and financial flexibility, aligning with the company's growth trajectory in the software industry. Overall, Manhattan Associates is well-positioned for sustainable growth with a strong financial foundation and effective capital management strategies.

Income Statement

Manhattan Associates shows robust revenue growth with a significant increase in revenue from $928.7 million to $1.04 billion, resulting in a revenue growth rate of 12.3% for the latest year. The company maintains a high gross profit margin of 100%, indicating strong cost management and pricing power. Net profit margin has increased to 20.9%, showcasing improved operational efficiency. The EBIT and EBITDA margins are healthy, at 25.1% and 26.2% respectively, reflecting strong core earnings performance.

Balance Sheet

The company's balance sheet demonstrates a strong equity position with a debt-to-equity ratio of 0.16, indicating low financial leverage. Return on Equity (ROE) is impressive at 73.0%, reflecting high profitability relative to shareholder's equity. The equity ratio is moderate at 39.5%, suggesting a balanced approach to asset financing. Overall, the balance sheet reflects financial stability with low-risk leverage.

Cash Flow

Manhattan Associates exhibits excellent cash flow management with a substantial free cash flow growth rate of 18.6%. The operating cash flow to net income ratio is favorable at 1.35, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio of 1.31 demonstrates strong free cash flow generation, supporting ongoing investment and operational flexibility.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.04B	928.73M	767.08M	663.64M	586.37M
	Gross Profit
571.37M	498.11M	408.85M	365.82M	316.49M
	EBIT
261.60M	209.88M	152.70M	134.33M	114.06M
	EBITDA
267.90M	215.63M	159.36M	142.25M	123.01M
	Net Income Common Stockholders
218.36M	176.57M	128.96M	110.47M	87.24M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
266.23M	270.74M	225.46M	263.71M	204.71M
	Total Assets
757.55M	673.35M	570.18M	539.71M	465.41M
	Total Debt
47.79M	17.69M	14.06M	23.16M	27.84M
	Net Debt
-218.44M	-253.05M	-211.40M	-240.55M	-176.86M
	Total Liabilities
458.43M	395.07M	343.38M	289.06M	246.51M
	Stockholders Equity
299.13M	278.28M	226.80M	250.64M	218.90M
Cash Flow		Free Cash Flow
286.33M	241.49M	173.04M	181.17M	138.16M
	Operating Cash Flow
295.00M	246.22M	179.63M	185.18M	140.88M
	Investing Cash Flow
-8.68M	-4.73M	-6.59M	-4.02M	-2.73M
	Financing Cash Flow
-286.37M	-196.05M	-204.46M	-120.42M	-43.56M

Manhattan Associates Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 157.64
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MANH, the sentiment is Negative. The current price of 157.64 is below the 20-day moving average (MA) of 168.75, below the 50-day MA of 177.09, and below the 200-day MA of 246.37, indicating a bearish trend. The MACD of -4.39 indicates Negative momentum. The RSI at 44.27 is Neutral, neither overbought nor oversold. The STOCH value of 46.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MANH.

Manhattan Associates Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSY	78 Outperform	$12.78B	58.23	24.39%	0.59%	10.15%	-28.62%
MANH	72 Outperform	$10.09B	44.86	75.64%	―	12.23%	24.66%
DAY	69 Neutral	$8.90B	481.92	0.73%	―	16.27%	-67.39%
PEGA	68 Neutral	$6.07B	63.88	21.12%	0.17%	4.51%	43.29%
GWRE	63 Neutral	$15.84B	528.94	-1.34%	―	17.16%	67.81%
Sector *	57 Neutral	$20.24B	9.51	-13.28%	2.72%	5.43%	-24.54%
U	53 Neutral	$8.19B	―	-20.84%	―	-17.10%	21.82%

Manhattan Associates Corporate Events

Manhattan Associates Announces New CEO Appointment

On February 10, 2025, Manhattan Associates announced a leadership change with Eric A. Clark succeeding Eddie Capel as President and CEO effective February 12, 2025. Capel, who has been with the company since 2000, will transition to the role of Executive Vice-Chairman of the Board. The transition is seen as strategic for Manhattan Associates, which has been strengthening its global technology position under Capel’s leadership, and the Board anticipates continued success and growth under Clark’s direction.