Manhattan Associates (MANH) AI Stock Analysis

• Market Cap: $13.37B
• Dividend Yield: N/A
• Average Volume (3M): 609.70K
• Price to Earnings (P/E): 60.7
• Beta (1Y): 1.39
• 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: 60,714,990
• 10 Day Avg. Volume: 693,628
• 30 Day Avg. Volume: 609,698
• PEG Ratio: 26.46
• Price to Book (P/B): 47.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 42.99
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 5.83
• Enterprise Value/Gross Profit: 42.33
• Enterprise Value/Ebitda: 19.10
• 1Y Price Target: $221.88
• Price Target Upside: 1.90% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 75 Outperform
• Price Target: $248.00 ▲(13.89%Upside)

Manhattan Associates' robust financial performance and positive earnings call outweigh mixed technical analysis and high valuation concerns. The company's strategic focus on cloud growth and innovation positions it well, though market conditions require careful navigation.

Positive Factors

AI and Innovation

The company is making quick progress in AI, moving beyond GenAI-based chat interfaces into agentic AI use cases, which could drive customers to move to the cloud.

Cloud Solutions

Manhattan is well-positioned with its best-in-class cloud solutions to capture market share in the cloud TAM, which is set to grow at a 16% CAGR through 2028.

Customer Growth

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%.

Negative Factors

Cloud Revenue Risk

A recent slowdown in cloud bookings and exposure to discretionary services work present downside risk to estimates, which is not priced in at a premium valuation.

Macro Environment

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

Valuation Concerns

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. 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 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: 217.75
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 217.75 is above the 20-day moving average (MA) of 202.60, above the 50-day MA of 195.44, and below the 200-day MA of 222.65, indicating a neutral trend. The MACD of 5.60 indicates Negative momentum. The RSI at 69.80 is Neutral, neither overbought nor oversold. The STOCH value of 46.29 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
PEGA	79 Outperform	$9.94B	50.24	41.55%	0.18%	12.47%	65.19%
MANH	75 Outperform	$13.37B	60.68	85.16%	―	6.13%	9.17%
U	75 Outperform	$13.86B	―	-14.15%	―	-16.74%	49.75%
BSY	74 Outperform	$17.70B	74.18	25.20%	0.44%	10.71%	-27.64%
DAY	71 Outperform	$9.50B	375.23	1.03%	―	14.97%	-51.02%
GWRE	70 Outperform	$18.84B	567.24	2.61%	―	18.61%	―
Sector *	63 Neutral	$34.78B	5.17	-11.38%	1.67%	5.54%	-17.15%

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.