Manhattan Associates (MANH) AI Stock Analysis

• Market Cap: $12.99B
• Dividend Yield: N/A
• Average Volume (3M): 610.18K
• Price to Earnings (P/E): 59.9
• Beta (1Y): 1.38
• Revenue Growth: 6.13%
• EPS Growth: 9.17%
• Country: US
• Employees: 4,690
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Application
• EPS (TTM): 1.31
• Shares Outstanding: 60,468,594
• 10 Day Avg. Volume: 483,715
• 30 Day Avg. Volume: 610,185
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.91
• Enterprise Value/Revenue: 11.23
• Enterprise Value/Gross Profit: 20.01
• Enterprise Value/Ebitda: 42.00
• 1Y Price Target: $229.33
• Price Target Upside: 5.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 77 Outperform
• Price Target: $246.00 ▲(13.44% Upside)

Manhattan Associates' strong financial performance and positive earnings call are the most significant factors driving the score. Technical analysis supports a positive trend, although the high valuation presents a risk. The absence of corporate events does not impact the score.

Positive Factors

Customer Acquisition

New customers bookings were particularly strong as they accounted for 70% of bookings in the quarter, well above management's long-term expectation of 33%.

Earnings

Manhattan Associates reported a strong second quarter with total revenue, cloud revenue, and total RPO ahead of expectations, growing 3%, 22%, and 26%, respectively.

Negative Factors

Cloud Revenue

A weaker macro environment has caused cRPO-bookings to slow to -7% YoY, presenting downside risk to cloud revenue estimates.

Valuation

At 39X EV/FCF, a premium to peers and LT average, investors are already pricing in a lot and underappreciate the NT downward estimate revision risk.

Manhattan Associates Business Overview & Revenue Model

Company Description

Manhattan Associates, Inc. (MANH) is a leading provider of supply chain and omnichannel commerce solutions. The company specializes in developing software and technology that facilitates the management of supply chain operations, inventory management, and distribution processes across various sectors, including retail, wholesale, and manufacturing. Its core products encompass Warehouse Management Systems (WMS), Transportation Management Systems (TMS), and other supply chain optimization tools that help businesses enhance efficiency and customer satisfaction.

How the Company Makes Money

Manhattan Associates generates revenue primarily through the sale of software licenses, subscriptions, and professional services. The company operates on a SaaS (Software-as-a-Service) model, which provides recurring revenue from subscription fees for its cloud-based solutions. Key revenue streams include software licensing fees, implementation and consulting services, maintenance and support contracts, and training services. The company also benefits from significant partnerships with technology providers and integration with third-party systems, which help extend its market reach and enhance its service offerings. Additionally, growing demand for supply chain optimization and digital transformation initiatives among businesses contributes positively to its earnings.

Manhattan Associates Financial Statement Overview

Summary

Manhattan Associates shows strong financial health with consistent revenue growth, robust profitability, and efficient cash operations. The company maintains a low debt-to-equity ratio and a high return on equity, indicating prudent financial management and effective use of shareholder capital.

Income Statement

Manhattan Associates shows strong revenue growth with a TTM revenue of $1,057.69M, up from $586.37M in 2020, indicating robustness in revenue generation. The gross profit margin remains healthy at approximately 56.1% TTM, and the net profit margin also shows strength at 20.9% TTM. EBIT and EBITDA margins are solid at 25.8% and 26.7% respectively, reflecting efficient operations.

Balance Sheet

The company's balance sheet is strong, with a low debt-to-equity ratio of 0.17 TTM, showcasing prudent financial management. The equity ratio stands at 37.4% TTM, indicating a stable capital structure. Return on equity is impressive at 79.3% TTM, demonstrating effective use of shareholder capital. However, there is a slight decline in stockholders’ equity compared to the previous year.

Cash Flow

Operating cash flow has consistently grown, reaching $316.31M TTM, which is a positive indicator of cash generation. Free cash flow growth is notable, with a TTM free cash flow of $307.31M. The operating cash flow to net income ratio of 1.43 TTM suggests strong cash conversion efficiency. The free cash flow to net income ratio also supports this strength at 1.39 TTM.

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
EBITDA	267.90M	215.63M	159.36M	142.25M	123.01M
Net Income	218.36M	176.57M	128.96M	110.47M	87.24M
Balance Sheet
Total Assets	757.55M	673.35M	570.18M	539.71M	465.41M
Cash, Cash Equivalents and Short-Term Investments	266.23M	270.74M	225.46M	263.71M	204.71M
Total Debt	47.79M	17.69M	14.06M	23.16M	27.84M
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: Positive
• Last Price: 216.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 216.85 is above the 20-day moving average (MA) of 216.00, above the 50-day MA of 203.94, and above the 200-day MA of 216.71, indicating a bullish trend. The MACD of 2.98 indicates Positive momentum. The RSI at 55.97 is Neutral, neither overbought nor oversold. The STOCH value of 69.48 is Neutral, 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
MANH	77 Outperform	$12.99B	59.86	85.16%	―	6.13%	9.17%
PEGA	71 Outperform	$9.01B	45.55	41.55%	0.14%	12.47%	65.19%
DAY	71 Outperform	$8.44B	174.18	1.89%	―	13.46%	2.06%
Sector *	68 Neutral	¥242.89B	15.23	6.64%	2.42%	9.16%	-0.19%
GWRE	68 Neutral	$17.80B	545.99	2.61%	―	18.61%	―
BSY	65 Neutral	$16.13B	67.90	23.69%	0.48%	10.45%	-32.43%
U	63 Neutral	$16.06B	―	-13.62%	―	-13.74%	48.10%

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.