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Manhattan Associates (MANH)
NASDAQ:MANH
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Manhattan Associates
(NASDAQ:MANH)
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Rating:72Outperform
Price Target:
$233.00
▲(12.20% Upside)
Manhattan Associates' strong financial performance and positive earnings call sentiment are significant strengths. However, technical indicators suggest potential bearish momentum, and the high P/E ratio indicates overvaluation, balancing the overall score.
Positive Factors
Revenue Growth
The 22% growth in cloud revenue indicates strong demand for Manhattan Associates' solutions, supporting sustained revenue expansion and market leadership in the supply chain software sector.
Strong Financial Health
A low debt-to-equity ratio highlights prudent financial management, providing the company with flexibility to invest in growth opportunities and weather economic uncertainties.
New Customer Acquisitions
High new customer acquisition rates demonstrate effective market penetration and the ability to expand the customer base, ensuring future revenue streams and competitive positioning.
Negative Factors
Services Revenue Decline
A decline in services revenue suggests potential challenges in maintaining service-related income, which could impact overall profitability if not addressed.
Cautious Outlook on Services Revenue
Cautious outlook on services revenue growth reflects potential vulnerability to economic fluctuations, which may affect the company's ability to sustain service-related income.
FX Volatility Impact
FX volatility introduces uncertainty in financial performance, potentially impacting revenue and profitability, especially in international operations.
Manhattan Associates (MANH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.56B
Dividend YieldN/A
Average Volume (3M)510.69K
Price to Earnings (P/E)57.9
Beta (1Y)1.39
Revenue Growth6.13%
EPS Growth9.17%
CountryUS
Employees4,690
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.31
Shares Outstanding60,468,594
10 Day Avg. Volume583,235
30 Day Avg. Volume510,693
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue11.23
Enterprise Value/Gross Profit20.17
Enterprise Value/Ebitda42.24
Forecast
1Y Price Target
$230.86Price Target Upside11.17% Upside
Rating ConsensusModerate 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 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 Earnings Call Summary
Earnings Call Date:Jul 22, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance in Q2 with record results and significant growth in cloud revenue and RPO. There were successful new customer acquisitions and investments in sales and marketing, as well as advancements in AI capabilities. However, there were declines in services revenue and caution due to macroeconomic uncertainties, along with FX volatility impacts.Q2-2025 Updates
Positive Updates
Record Second Quarter Results
Q2 results were better-than-expected with 22% cloud revenue growth driving top-line outperformance and earnings leverage.
RPO Growth
RPO increased 26% year-over-year and surpassed the $2 billion milestone by the end of the quarter.
New Customer Acquisitions
More than 70% of new cloud bookings were generated from net new logos, with new logos representing approximately 35% of the current pipeline.
Investment in Sales and Marketing
Promoted Bob Howell to Chief Sales Officer and hired new sales leaders, expanding go-to-market partnerships with Google and Shopify.
Agentic AI Advancements
Announced new capabilities with AI, including purpose-built agents for platform applications and the Manhattan Active Agent Foundry for custom agent creation.
Operating Margin and EPS Growth
Adjusted operating margin was 37.1%, up 210 basis points year-over-year, with adjusted EPS of $1.31, up 11%.
Negative Updates
Services Revenue Decline
Services revenue declined 6% due to customer budgetary constraints, shifting services work to future periods.
Cautious Outlook on Services Revenue
Given the uncertain macro environment and inherent flexibility of time and material contracts, there is caution on services revenue growth.
FX Volatility
FX volatility was a factor, with a $29 million tailwind to sequential RPO growth and a $28 million tailwind to year-over-year RPO growth.
Company Guidance
During the Manhattan Associates Q2 2025 earnings call, the company provided optimistic guidance for the remainder of the year, highlighting several key metrics. The company's cloud revenue grew by 22%, driving top-line outperformance, while RPO increased by 26% year-over-year, surpassing the $2 billion milestone. Moreover, win rates against the top five competitors remained above 70%, with over 70% of new cloud bookings from net new logos. The company also noted a 3% increase in total revenue to $272 million, with an adjusted operating margin of 37.1%, up 210 basis points from the previous year. The guidance reflected an increase in the full-year total revenue projection to a midpoint of $1.073 billion and an adjusted earnings per share forecast increased to $4.80, up from the prior midpoint of $4.59. Operating cash flow for the quarter was solid at $74 million, with a 26% free cash flow margin.Manhattan Associates Financial Statement Overview
Summary
Manhattan Associates demonstrates strong financial health with consistent revenue growth, robust profitability, low leverage, and high return on equity. Cash flow metrics indicate efficient cash operations, positioning the company well financially within its industry.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.88
Very Positive
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.82
Very Positive
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.85
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.06B | 1.04B | 928.73M | 767.08M | 663.64M | 586.37M |
| Gross Profit | 588.81M | 565.07M | 492.36M | 402.18M | 357.90M | 307.54M |
| EBITDA | 281.23M | 267.90M | 215.63M | 159.36M | 142.25M | 123.01M |
| Net Income | 221.16M | 218.36M | 176.57M | 128.96M | 110.47M | 87.24M |
Balance Sheet | ||||||
| Total Assets | 744.68M | 757.55M | 673.35M | 570.18M | 539.71M | 465.41M |
| Cash, Cash Equivalents and Short-Term Investments | 230.59M | 266.23M | 270.74M | 225.46M | 263.71M | 204.71M |
| Total Debt | 48.59M | 47.79M | 17.69M | 14.06M | 23.16M | 27.84M |
| Total Liabilities | 465.93M | 458.43M | 395.07M | 343.38M | 289.06M | 246.51M |
| Stockholders Equity | 278.76M | 299.13M | 278.28M | 226.80M | 250.64M | 218.90M |
Cash Flow | ||||||
| Free Cash Flow | 307.31M | 286.33M | 241.49M | 173.04M | 181.17M | 138.16M |
| Operating Cash Flow | 316.31M | 295.00M | 246.22M | 179.63M | 185.18M | 140.88M |
| Investing Cash Flow | -9.01M | -8.68M | -4.73M | -6.59M | -4.02M | -2.73M |
| Financing Cash Flow | -283.46M | -286.37M | -196.05M | -204.46M | -120.42M | -43.56M |
Manhattan Associates Technical Analysis
Negative
207.67
Price Trends
214.61
Negative
203.91
Positive
206.92
Positive
Market Momentum
-0.64
Positive
42.26
Neutral
20.35
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 207.67 is below the 20-day moving average (MA) of 213.60, below the 50-day MA of 214.61, and above the 200-day MA of 206.92, indicating a neutral trend. The MACD of -0.64 indicates Positive momentum. The RSI at 42.26 is Neutral, neither overbought nor oversold. The STOCH value of 20.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $10.87B | 226.81 | 0.71% | ― | 13.46% | 2.06% | |
72 Outperform | $12.56B | 57.88 | 85.16% | ― | 6.13% | 9.17% | |
69 Neutral | $9.25B | -108.98 | -8.60% | ― | 17.42% | -228.98% | |
68 Neutral | $19.47B | 288.46 | 4.79% | ― | 22.64% | ― | |
68 Neutral | $10.49B | 278.72 | 3.35% | ― | 30.24% | -6.69% | |
65 Neutral | $15.90B | 66.89 | 21.88% | 0.52% | 10.45% | -32.43% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
MANH
Manhattan Associates
207.67
-67.08
-24.41%
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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.