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Manhattan Associates (MANH)
NASDAQ:MANH

Manhattan Associates (MANH) AI Stock Analysis

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Manhattan Associates

(NASDAQ:MANH)

Rating:78Outperform
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 (MANH) vs. SPDR S&P 500 ETF (SPY)

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 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 Earnings Call Summary

Earnings Call Date:Apr 22, 2025
(Q1-2025)
|
% Change Since: 23.22%|
Next Earnings Date:Jul 22, 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 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
92
Very Positive
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
85
Very Positive
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
90
Very Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.05B1.04B928.73M767.08M663.64M586.37M
Gross Profit584.33M571.37M498.11M408.85M365.82M316.49M
EBITDA276.42M267.90M215.63M159.36M142.25M123.01M
Net Income217.15M218.36M176.57M128.96M110.47M87.24M
Balance Sheet
Total Assets708.22M757.55M673.35M570.18M539.71M465.41M
Cash, Cash Equivalents and Short-Term Investments205.87M266.23M270.74M225.46M263.71M204.71M
Total Debt47.00M47.79M17.69M14.06M23.16M27.84M
Total Liabilities463.13M458.43M395.07M343.38M289.06M246.51M
Stockholders Equity245.09M299.13M278.28M226.80M250.64M218.90M
Cash Flow
Free Cash Flow308.28M286.33M241.49M173.04M181.17M138.16M
Operating Cash Flow315.52M295.00M246.22M179.63M185.18M140.88M
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 Price199.93
Price Trends
50DMA
188.71
Positive
100DMA
180.04
Positive
200DMA
228.20
Negative
Market Momentum
MACD
2.95
Negative
RSI
62.92
Neutral
STOCH
87.27
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 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 2 New Risks
1.
Our use of generative artificial intelligence ("AI") tools may expose us to operational, compliance or other risks, which could adversely impact our business, results of operations, cash flow and financial condition, and subject us to legal liability. Q4, 2024
2.
We can be subject to criminal or civil liability if we fail to comply with anti-corruption and anti-boycott regulations, and that can adversely affect our business, financial condition, and results of operations. Q4, 2024

Manhattan Associates Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$9.25B52.5439.29%0.22%14.29%151.35%
78
Outperform
$12.14B56.9989.60%9.18%14.35%
DADAY
75
Outperform
$9.16B358.161.03%14.97%-51.02%
71
Outperform
$19.40B585.022.61%18.61%
BSBSY
69
Neutral
$16.79B70.3625.20%0.51%10.71%-27.64%
UU
56
Neutral
$10.86B-14.15%-16.74%49.75%
56
Neutral
HK$13.54B4.87-5.76%5.64%8.06%-42.52%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MANH
Manhattan Associates
199.93
-46.29
-18.80%
GWRE
Guidewire
230.38
90.47
64.66%
PEGA
Pegasystems
54.03
24.57
83.40%
DAY
Dayforce Inc
57.27
8.81
18.18%
U
Unity Software
26.13
9.98
61.80%
BSY
Bentley Systems
55.34
6.26
12.75%

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.

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 24, 2025