Manhattan Associates (MANH) AI Stock Analysis

• Market Cap: $10.61B
• Dividend Yield: N/A
• Average Volume (3M): 516.42K
• Price to Earnings (P/E): 49.4
• Beta (1Y): 1.35
• Revenue Growth: 4.10%
• EPS Growth: -0.21%
• Country: US
• Employees: 4,690
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 1.36
• Shares Outstanding: 60,258,247
• 10 Day Avg. Volume: 659,220
• 30 Day Avg. Volume: 516,419
• PEG Ratio: 3.10
• Price to Book (P/B): 55.38
• Price to Sales (P/S): 15.89
• P/FCF Ratio: 57.86
• Enterprise Value/Market Cap: 1.16
• Enterprise Value/Revenue: 11.51
• Enterprise Value/Gross Profit: 20.57
• Enterprise Value/Ebitda: 43.15
• 1Y Price Target: $224.06
• Price Target Upside: 28.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 4.98
• Revenue Forecast (FY): $1.08B

• Rating: 75 Outperform
• Price Target: $199.00 ▲(14.41% Upside)

Manhattan Associates' strong financial performance and positive earnings call sentiment are the most significant factors driving the score. However, the stock's overvaluation and bearish technical indicators moderate the overall score.

Positive Factors

Cloud Revenue Growth

Strong cloud revenue growth indicates robust demand for SaaS solutions, supporting long-term revenue stability and market competitiveness.

Leadership Expansion

The addition of an experienced COO can strengthen operational efficiency and strategic execution, fostering sustainable growth.

FedRAMP Compliance

Achieving FedRAMP compliance enhances credibility and opens new government market opportunities, supporting long-term growth.

Negative Factors

Services Revenue Decline

A decline in services revenue can impact overall profitability and indicates potential challenges in maintaining service demand.

Challenging Macro Environment

Volatile macroeconomic conditions can lead to cautious customer spending, affecting revenue predictability and growth.

Seasonal Pressures

Seasonal pressures and deal lumpiness can lead to uneven revenue streams, complicating long-term financial planning.

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, subscription fees, and professional services. The company offers its software solutions on a subscription basis, providing a recurring revenue stream that contributes to consistent earnings. Key revenue streams include software licensing fees for on-premise deployments, SaaS (Software as a Service) subscriptions for cloud-based solutions, and revenue from consulting services that assist clients in implementing and optimizing their systems. Additionally, the company benefits from maintenance and support services that ensure ongoing client satisfaction and system performance. Strategic partnerships with major technology firms and integration with various supply chain platforms further enhance its market presence and revenue potential.

Manhattan Associates Financial Statement Overview

Summary

Manhattan Associates demonstrates strong financial performance with impressive revenue growth of 86.2% in the TTM period. The company maintains robust profitability metrics, including a gross profit margin of 55.9% and a net profit margin of 20.2%. The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.15, and cash flow analysis reveals strong free cash flow growth of 8.4%.

Income Statement

Manhattan Associates demonstrates strong financial performance with impressive revenue growth of 86.2% in the TTM period. The company maintains robust profitability metrics, including a gross profit margin of 55.9% and a net profit margin of 20.2%. The EBIT and EBITDA margins are also healthy at 26.1% and 26.7%, respectively, indicating efficient operational management.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.15, indicating conservative leverage. The return on equity is exceptionally high at 76.3%, showcasing effective use of shareholder funds. The equity ratio stands at 40.2%, suggesting a stable capital structure.

Cash Flow

Cash flow analysis reveals strong free cash flow growth of 8.4% in the TTM period. The operating cash flow to net income ratio is 0.87, and the free cash flow to net income ratio is 0.96, indicating efficient cash generation relative to earnings. These metrics highlight the company's ability to generate cash and sustain operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.07B	1.04B	928.73M	767.08M	663.64M	586.37M
Gross Profit	596.80M	565.07M	492.36M	402.18M	357.90M	307.54M
EBITDA	284.55M	267.90M	215.63M	159.36M	142.25M	123.01M
Net Income	216.01M	218.36M	176.57M	128.96M	110.47M	87.24M
Balance Sheet
Total Assets	768.82M	757.55M	673.35M	570.18M	539.71M	465.41M
Cash, Cash Equivalents and Short-Term Investments	263.56M	266.23M	270.74M	225.46M	263.71M	204.71M
Total Debt	47.71M	47.79M	17.69M	14.06M	23.16M	27.84M
Total Liabilities	459.61M	458.43M	395.07M	343.38M	289.06M	246.51M
Stockholders Equity	309.22M	299.13M	278.28M	226.80M	250.64M	218.90M
Cash Flow
Free Cash Flow	333.20M	286.33M	241.49M	173.04M	181.17M	138.16M
Operating Cash Flow	347.12M	295.00M	246.22M	179.63M	185.18M	140.88M
Investing Cash Flow	-13.93M	-8.68M	-4.73M	-6.59M	-4.02M	-2.73M
Financing Cash Flow	-283.40M	-286.37M	-196.05M	-204.46M	-120.42M	-43.56M

Manhattan Associates Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 173.94
• 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 173.94 is below the 20-day moving average (MA) of 175.85, below the 50-day MA of 180.23, and below the 200-day MA of 191.02, indicating a bearish trend. The MACD of -1.32 indicates Negative momentum. The RSI at 44.13 is Neutral, neither overbought nor oversold. The STOCH value of 58.29 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
MANH	75 Outperform	$10.61B	49.41	73.58%	―	4.10%	-0.21%
BSY	71 Outperform	$12.14B	47.30	24.16%	0.72%	11.12%	-26.24%
DAY	67 Neutral	$11.07B	-73.51	-5.71%	―	11.73%	-376.77%
MNDY	66 Neutral	$7.52B	118.33	5.81%	―	28.62%	186.67%
ESTC	65 Neutral	$8.26B	-74.52	-12.84%	―	16.98%	-265.85%
GWRE	63 Neutral	$17.63B	195.49	6.57%	―	22.80%	198.93%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Manhattan Associates Corporate Events

Manhattan Associates Reports Strong Q3 2025 Financial Results

Manhattan Associates announced a transition in its leadership with Mr. Eddie Capel moving to a non-executive chairman role effective January 1, 2026. The company reported strong financial results for the third quarter of 2025, with a 21% growth in cloud revenue and a total revenue of $275.8 million. Despite a slight decrease in GAAP diluted earnings per share compared to the previous year, the company remains optimistic about its market opportunities and is investing in its workforce and solutions to drive further growth.