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Manhattan Associates (MANH)
NASDAQ:MANH
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Manhattan Associates
(NASDAQ:MANH)
71Outperform
Positive Factors
Customer Engagement
Sustained customer engagement and pipeline activity pushed the shares 7% higher after hours.
Financial Performance
Manhattan reported a solid start 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%.
Revenue Outlook
The company lowered its outlook for 2025 by approximately $70 million, attributable to a combination of both incremental FX headwinds and continued budgetary scrutiny.
Manhattan Associates (MANH) vs. S&P 500 (SPY)
Market Cap
$11.72B
Dividend YieldN/A
Average Volume (3M)806.13K
Price to Earnings (P/E)54.7
Beta (1Y)1.38
Revenue Growth9.18%
EPS Growth14.35%
CountryUS
Employees4,690
SectorTechnology
Sector Strength77
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.19
Shares Outstanding60,714,990
10 Day Avg. Volume604,564
30 Day Avg. Volume806,126
Financial Highlights & Ratios
PEG Ratio-183.03
Price to Book (P/B)45.55
Price to Sales (P/S)0.00
P/FCF Ratio36.12
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$189.14Price Target Upside-1.41% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Manhattan Associates Business Overview & Revenue Model
Company DescriptionManhattan 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 MoneyManhattan 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 shows strong financial health with impressive revenue growth, profitability, and cash generation. Low leverage and high return on equity further reinforce its financial stability. However, changes in equity should be carefully monitored.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.92
Very Positive
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.85
Very Positive
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.90
Very Positive
| 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 | EBIT |
| 267.14M | 261.60M | 209.88M | 152.70M | 134.33M | 114.06M | EBITDA |
| 276.42M | 267.90M | 215.63M | 159.36M | 142.25M | 123.01M | Net Income Common Stockholders |
| 217.15M | 218.36M | 176.57M | 128.96M | 110.47M | 87.24M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 205.87M | 266.23M | 270.74M | 225.46M | 263.71M | 204.71M | Total Assets |
| 708.22M | 757.55M | 673.35M | 570.18M | 539.71M | 465.41M | Total Debt |
| 47.00M | 47.79M | 17.69M | 14.06M | 23.16M | 27.84M | Net Debt |
| -158.87M | -218.44M | -253.05M | -211.40M | -240.55M | -176.86M | 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
Neutral
191.85
Price Trends
173.94
Positive
199.80
Negative
237.76
Negative
Market Momentum
6.18
Negative
62.42
Neutral
71.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MANH, the sentiment is Neutral. The current price of 191.85 is above the 20-day moving average (MA) of 184.55, above the 50-day MA of 173.94, and below the 200-day MA of 237.76, indicating a neutral trend. The MACD of 6.18 indicates Negative momentum. The RSI at 62.42 is Neutral, neither overbought nor oversold. The STOCH value of 71.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MANH.
Manhattan Associates Risk Analysis
Manhattan Associates disclosed 41 risk factors in its most recent earnings report. Manhattan Associates reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Manhattan Associates Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $14.59B | 61.15 | 25.20% | 0.52% | 10.71% | -27.64% | |
78 Outperform | $9.52B | 367.92 | 1.03% | ― | 14.97% | -51.02% | |
76 Outperform | $8.42B | 47.86 | 39.29% | 0.12% | 14.29% | 151.38% | |
72 Outperform | $9.25B | ― | -14.15% | ― | -16.74% | 49.75% | |
71 Outperform | $11.72B | 54.69 | 89.60% | ― | 9.18% | 14.35% | |
67 Neutral | $18.07B | 528.94 | -1.34% | ― | 17.16% | 67.81% | |
60 Neutral | $11.59B | 10.34 | -7.15% | 2.94% | 7.49% | -10.88% |
* Technology Sector Average
Performance Comparison
MANH
Manhattan Associates
191.85
-32.13
-14.35%
GWRE
Guidewire
215.30
92.29
75.03%
PEGA
Pegasystems
103.29
41.71
67.73%
DAY
Dayforce Inc
58.83
-4.21
-6.68%
U
Unity Software
22.23
1.78
8.70%
BSY
Bentley Systems
48.06
-4.91
-9.27%
Manhattan Associates Earnings Call Summary
Earnings Call Date:Apr 22, 2025
(Q1-2025)
| % Change Since: 18.24%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a solid start to 2025, with strong cloud revenue growth and an increase in RPO. However, there are concerns regarding Services revenue decline and macroeconomic uncertainties, particularly around tariffs and FX volatility.Q1-2025 Updates
Positive Updates
Strong Cloud Revenue Growth
Cloud revenue increased by 21% year-over-year, contributing significantly to the top line outperformance and earnings leverage.
Significant Increase in RPO
RPO ended the quarter up 25% to approximately $1.9 billion, indicating strong demand for Manhattan's mission-critical solutions.
High Win Rates and New Logo Activity
Competitive win rates remain consistent at about 70%, with approximately 50% of new cloud bookings generated from net new logos.
Google Cloud Partnership Recognition
Manhattan Associates was named Google Cloud's Partner of the Year for Supply Chain and Logistics, highlighting its innovation and leadership in the sector.
Successful Service Delivery
In Q1, the Services team completed over 100 go-lives, indicating robust service delivery capabilities.
Innovation in Product Offerings
Launch of Enterprise Promise and Fulfill, designed to optimize B2B order promising and fulfillment, showcasing ongoing innovation.
Negative Updates
Decline in Services Revenue
Services revenue declined by 8% year-over-year, reflecting customer budgetary constraints and shifting of Services work to future periods.
Macroeconomic Uncertainty
The turbulent global macro environment and the uncertainty around tariffs were highlighted as potential risks impacting future performance.
FX Volatility
FX volatility was noted as a $2 million headwind to Q1 total revenue, though it was a $14 million tailwind to sequential RPO growth.
Company Guidance
During the Manhattan Associates First Quarter 2025 Earnings Conference Call, the company provided guidance indicating strong financial performance and growth prospects despite the challenging macroeconomic environment. In Q1, the company achieved a 21% year-over-year increase in cloud revenue, with total revenue reaching $263 million, up 3% from the previous year. The company reported an adjusted operating margin of 34.7% and an adjusted EPS of $1.19, up 16%. The company also noted a 25% year-over-year increase in remaining performance obligations (RPO), amounting to approximately $1.9 billion. For the full year, Manhattan Associates reiterated its guidance for total revenue between $1.06 billion and $1.07 billion, with a cloud revenue target of $405 million to $410 million and an adjusted operating margin of 33.25%. Additionally, the company increased its full-year adjusted EPS outlook to a range of $4.54 to $4.64. Despite the uncertain macro environment, the company expressed confidence in its growth opportunities, driven by strong demand for its cloud solutions and strategic investments in sales and marketing.Manhattan Associates Corporate Events
Executive/Board ChangesShareholder Meetings
Manhattan Associates Concludes Annual Shareholders Meeting
Neutral
May 14, 2025
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.
Spark’s Take on MANH Stock
According to Spark, TipRanks’ AI Analyst, MANH is a Outperform.
Manhattan Associates exhibits strong financial performance with robust revenue growth and profitability, supporting a healthy overall stock score. However, technical analysis indicates potential short-term weakness, and high valuation poses risks. The earnings call and corporate events provide positive, yet cautious, support for future growth amid macroeconomic uncertainties.
To see Spark’s full report on MANH stock, click here.
Executive/Board ChangesStock BuybackFinancial Disclosures
Manhattan Associates Reports Strong Q1 2025 Results
Positive
Apr 22, 2025
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.
Spark’s Take on MANH Stock
According to Spark, TipRanks’ AI Analyst, MANH is a Outperform.
Manhattan Associates’ strong financial performance, characterized by impressive revenue and profit growth, robust cash flows, and a solid balance sheet, is a primary strength. The positive earnings call highlights growth in cloud revenue and high customer satisfaction, although tempered by challenges in services revenue and macroeconomic factors. Technical analysis suggests a cautious outlook due to downward momentum, while high valuation represents potential risks. The strategic CEO transition is a positive development, supporting expectations of continued growth.
To see Spark’s full report on MANH stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.