Manhattan Associates (MANH) AI Stock Analysis

• Market Cap: $12.14B
• Dividend Yield: N/A
• Average Volume (3M): 859.13K
• Price to Earnings (P/E): 57.0
• Beta (1Y): 1.38
• Revenue Growth: 9.18%
• EPS Growth: 14.35%
• Country: US
• Employees: 4,690
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Application
• EPS (TTM): 1.19
• Shares Outstanding: 60,714,990
• 10 Day Avg. Volume: 631,219
• 30 Day Avg. Volume: 859,129
• PEG Ratio: 3.32
• Price to Book (P/B): 33.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 44.04
• Enterprise Value/Market Cap: 0.61
• Enterprise Value/Revenue: 1.80
• Enterprise Value/Gross Profit: 12.68
• Enterprise Value/Ebitda: 7.03
• 1Y Price Target: $196.50
• Price Target Upside: -1.72% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 78 Outperform
• Price Target: $220.00 ▲(10.04%Upside)

Manhattan Associates' strong financial performance and positive earnings call are major strengths, contributing to a high overall score. Technical analysis shows mixed signals, and high P/E suggests overvaluation, which tempers the score.

Positive Factors

AI and Innovation

The compounding value of AI solutions and capabilities layering on top of its end-to-end platform.

Customer Engagement

Sustained customer engagement and pipeline activity pushed the shares 7% higher after hours.

Financial Performance

Manhattan reported a solid start to the year, with total revenue, cloud revenue, and total RPO above expectations, growing 4%, 21%, and 25%, respectively, in constant currency.

Negative Factors

CEO Transition

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%.

Historical Risk Analysis

Our historical analysis of the ’16-’18 period as a historical comp suggests further deterioration in services remains a risk.

Service Business Risks

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 of software licenses, subscriptions, and related services. The company offers both on-premises and cloud-based solutions, with an increasing focus on SaaS (Software-as-a-Service) offerings, which provide recurring revenue through subscription fees. In addition to software sales, Manhattan Associates earns money by providing professional services such as consulting, implementation, and training to help clients successfully deploy and optimize their solutions. Maintenance and support services also contribute to the company's revenue by ensuring ongoing product functionality and customer satisfaction. Key partnerships with technology providers and system integrators further enhance its market reach and potential earnings.

Manhattan Associates Financial Statement Overview

Summary

Manhattan Associates shows strong financial health with impressive revenue growth and profitability. The company has a robust gross profit margin, solid net profit margin, and excellent cash flow generation. The low debt-to-equity ratio and high return on equity further solidify its financial stability. However, there is a slight concern over the decrease in stockholders' equity.

Income Statement

Manhattan Associates demonstrated robust performance with a strong gross profit margin of 66.5% and a solid net profit margin of 20.7% for the TTM (Trailing-Twelve-Months). Revenue growth has been impressive, with a significant increase of 13.3% in 2024 and 21.0% in 2023. The company's EBIT and EBITDA margins are also healthy at 25.4% and 26.1%, respectively, reflecting operational efficiency.

Balance Sheet

The balance sheet is strong, with a low debt-to-equity ratio of 0.19 indicating minimal leverage, and a healthy equity ratio of 34.6%. Return on equity is outstanding at 88.6% for the TTM, showcasing effective management of shareholder funds. However, a decrease in stockholders' equity over the year is a point of concern, indicating potential shareholder buybacks or dividend payments.

Cash Flow

Cash flow generation is excellent, with a 7.7% growth in free cash flow in the TTM. The operating cash flow to net income ratio is robust at 1.45, reflecting strong cash generation relative to net income. The free cash flow to net income ratio is also high at 1.42, underscoring the company's ability to convert profits into cash effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.05B	1.04B	928.73M	767.08M	663.64M	586.37M
Gross Profit	584.33M	571.37M	498.11M	408.85M	365.82M	316.49M
EBITDA	276.42M	267.90M	215.63M	159.36M	142.25M	123.01M
Net Income	217.15M	218.36M	176.57M	128.96M	110.47M	87.24M
Balance Sheet
Total Assets	708.22M	757.55M	673.35M	570.18M	539.71M	465.41M
Cash, Cash Equivalents and Short-Term Investments	205.87M	266.23M	270.74M	225.46M	263.71M	204.71M
Total Debt	47.00M	47.79M	17.69M	14.06M	23.16M	27.84M
Total Liabilities	463.13M	458.43M	395.07M	343.38M	289.06M	246.51M
Stockholders Equity	245.09M	299.13M	278.28M	226.80M	250.64M	218.90M
Cash Flow
Free Cash Flow	308.28M	286.33M	241.49M	173.04M	181.17M	138.16M
Operating Cash Flow	315.52M	295.00M	246.22M	179.63M	185.18M	140.88M
Investing Cash Flow	-7.25M	-8.68M	-4.73M	-6.59M	-4.02M	-2.73M
Financing Cash Flow	-308.98M	-286.37M	-196.05M	-204.46M	-120.42M	-43.56M

Manhattan Associates Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 199.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MANH, the sentiment is Positive. The current price of 199.93 is above the 20-day moving average (MA) of 193.24, above the 50-day MA of 188.71, and below the 200-day MA of 228.20, indicating a neutral trend. The MACD of 2.95 indicates Negative momentum. The RSI at 62.92 is Neutral, neither overbought nor oversold. The STOCH value of 87.27 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MANH.

Manhattan Associates Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PEGA	80 Outperform	$9.25B	52.54	39.29%	0.22%	14.29%	151.35%
MANH	78 Outperform	$12.14B	56.99	89.60%	―	9.18%	14.35%
DAY	75 Outperform	$9.16B	358.16	1.03%	―	14.97%	-51.02%
GWRE	71 Outperform	$19.40B	585.02	2.61%	―	18.61%	―
BSY	69 Neutral	$16.79B	70.36	25.20%	0.51%	10.71%	-27.64%
U	56 Neutral	$10.86B	―	-14.15%	―	-16.74%	49.75%
Sector *	56 Neutral	HK$13.54B	4.87	-5.76%	5.64%	8.06%	-42.52%

Manhattan Associates Corporate Events

Manhattan Associates Concludes Annual Shareholders Meeting

On May 13, 2025, Manhattan Associates held its Annual Meeting of Shareholders in Atlanta, Georgia, with approximately 92% of common stockholders present. During the meeting, shareholders elected Thomas E. Noonan and Kimberly A. Kuryea as Class III Directors, approved the compensation of named executive officers, and ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (MANH) stock is a Buy with a $251.00 price target. To see the full list of analyst forecasts on Manhattan Associates stock, see the MANH Stock Forecast page.

Manhattan Associates Reports Strong Q1 2025 Results

Manhattan Associates announced the election of Ms. Danielle Sheer to its Board of Directors, effective May 13, 2025, following the retirement of co-founder Mr. Deepak Raghavan. Ms. Sheer brings extensive experience in cybersecurity and corporate governance from her role as Chief Trust Officer at Commvault. Additionally, the company reported strong financial results for the first quarter of 2025, with revenue of $262.8 million and an increase in cloud subscription and license revenues. The company also repurchased shares worth $100 million and provided guidance for continued growth in 2025.