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Manhattan Associates (MANH)
NASDAQ:MANH
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Manhattan Associates
(NASDAQ:MANH)
72Outperform
Positive Factors
Financial Performance
Subscription revenue guidance for 2025 was reiterated with a 23% year-over-year increase, indicative of an overall resilient software demand environment.
Leadership Transition
The company conducted a thorough search over more than two years to find a logical successor to retiring CEO Eddie Capel, setting the business up for sustained momentum as it continues to push forward its cloud model transition.
Negative Factors
Financial 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
$10.12B
Dividend YieldN/A
Average Volume (3M)1.16M
Price to Earnings (P/E)47.1
Beta (1Y)1.55
Revenue Growth12.23%
EPS Growth24.66%
CountryUS
Employees4,690
SectorTechnology
Sector Strength45
IndustrySoftware
Share Statistics
EPS (TTM)3.51
Shares Outstanding61,124,050
10 Day Avg. Volume790,052
30 Day Avg. Volume1,155,335
Financial Highlights & Ratios
PEG Ratio1.91
Price to Book (P/B)N/A
Price to Sales (P/S)10.01
Price to Cash Flow (P/CF)24.90
P/FCF Ratio23.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$267.80Price Target Upside59.86% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Manhattan Associates Business Overview & Revenue Model
Company DescriptionManhattan Associates, Inc. engages in designing, building and delivering supply chain commerce solutions by converging front-end sales with back-end supply chain. It operates through the following geographical segment: The Americas; Europe, Middle East, and Africa; and Asia Pacific. The company was founded by Deepak Raghavan in October 1990 and is headquartered in Atlanta, GA.
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 displays a strong financial position with impressive growth in revenue and profitability. The company's margins are robust, reflecting efficient operations and cost management. The balance sheet is solid, with low debt levels and high returns on equity. Cash flow metrics underscore excellent cash generation and financial flexibility, aligning with the company's growth trajectory in the software industry. Overall, Manhattan Associates is well-positioned for sustainable growth with a strong financial foundation and effective capital management strategies.Income Statement
Manhattan Associates shows robust revenue growth with a significant increase in revenue from $928.7 million to $1.04 billion, resulting in a revenue growth rate of 12.3% for the latest year. The company maintains a high gross profit margin of 100%, indicating strong cost management and pricing power. Net profit margin has increased to 20.9%, showcasing improved operational efficiency. The EBIT and EBITDA margins are healthy, at 25.1% and 26.2% respectively, reflecting strong core earnings performance.89
Very Positive
Balance Sheet
The company's balance sheet demonstrates a strong equity position with a debt-to-equity ratio of 0.16, indicating low financial leverage. Return on Equity (ROE) is impressive at 73.0%, reflecting high profitability relative to shareholder's equity. The equity ratio is moderate at 39.5%, suggesting a balanced approach to asset financing. Overall, the balance sheet reflects financial stability with low-risk leverage.85
Very Positive
Cash Flow
Manhattan Associates exhibits excellent cash flow management with a substantial free cash flow growth rate of 18.6%. The operating cash flow to net income ratio is favorable at 1.35, indicating efficient cash generation relative to earnings. The free cash flow to net income ratio of 1.31 demonstrates strong free cash flow generation, supporting ongoing investment and operational flexibility.92
Very Positive
| 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 | EBIT |
| 261.60M | 209.88M | 152.70M | 134.33M | 114.06M | EBITDA |
| 267.90M | 215.63M | 159.36M | 142.25M | 123.01M | Net Income Common Stockholders |
| 218.36M | 176.57M | 128.96M | 110.47M | 87.24M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 266.23M | 270.74M | 225.46M | 263.71M | 204.71M | Total Assets |
| 757.55M | 673.35M | 570.18M | 539.71M | 465.41M | Total Debt |
| 47.79M | 17.69M | 14.06M | 23.16M | 27.84M | Net Debt |
| -218.44M | -253.05M | -211.40M | -240.55M | -176.86M | 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
Negative
167.52
Price Trends
223.37
Negative
254.38
Negative
252.70
Negative
Market Momentum
-15.12
Negative
28.26
Positive
18.43
Positive
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 167.52 is below the 20-day moving average (MA) of 177.63, below the 50-day MA of 223.37, and below the 200-day MA of 252.70, indicating a bearish trend. The MACD of -15.12 indicates Negative momentum. The RSI at 28.26 is Positive, neither overbought nor oversold. The STOCH value of 18.43 is Positive, 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
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $2.83T | 30.62 | 34.29% | 0.83% | 15.04% | 12.38% | |
77 Outperform | $303.77B | 90.17 | 7.12% | 0.66% | 9.55% | -2.28% | |
75 Outperform | $188.60B | 34.95 | 36.31% | ― | 11.02% | 4.96% | |
73 Outperform | $266.25B | 42.89 | 10.26% | 0.59% | 8.72% | 51.47% | |
72 Outperform | $10.12B | 47.13 | 75.64% | ― | 12.23% | 24.66% | |
67 Neutral | $403.27B | 34.97 | 106.27% | 1.07% | 6.23% | 12.37% | |
58 Neutral | $21.35B | 10.05 | -19.26% | 2.35% | 5.02% | -22.63% |
* Technology Sector Average
Performance Comparison
MANH
Manhattan Associates
167.52
-88.67
-34.61%
ADBE
Adobe
433.66
-145.48
-25.12%
MSFT
Microsoft
380.45
-31.68
-7.69%
ORCL
Oracle
144.18
18.00
14.27%
CRM
Salesforce
277.05
-27.87
-9.14%
SAP
SAP AG
260.67
68.58
35.70%
Manhattan Associates Earnings Call Summary
Earnings Call Date: Jan 28, 2025 | % Change Since: -43.23% | Next Earnings Date: Apr 29, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive outlook with significant achievements in revenue and cloud growth, strong customer satisfaction, and notable successes in product offerings. However, there are challenges with services revenue and economic uncertainties that slightly temper the overall sentiment.Highlights
Record-Breaking Revenue and Growth
Manhattan Associates surpassed the $1 billion total revenue milestone and set new records in RPO, total revenue, operating profit, free cash flow, and earnings per share in 2024.
Strong Cloud Revenue Growth
Cloud revenue increased by 26% in Q4, with full-year revenue totaling $337 million, up 32%.
High Customer Satisfaction and Win Rates
Customer satisfaction levels remained high with win rates at around 70%.
Strong RPO Growth
RPO increased 25% year-over-year to $1.8 billion, with a 6% sequential growth.
Point of Sale and Supply Chain Planning Success
Manhattan Associates achieved a leadership position in Forrester's Point of Sale and omnichannel order management waves and signed its first Manhattan Active Supply Chain Planning customer.
Lowlights
Services Revenue Challenges
10% of customers with in-flight implementations reduced planned services work, causing services revenue to decline and affecting the overall 2025 outlook.
FX Headwinds
Foreign exchange volatility resulted in a $23 million headwind to full-year RPO growth and a $33 million headwind to sequential RPO growth.
Macro Economic Caution
The company remains cautious on the global economy, with near-term headwinds impacting services.
Company Guidance
During the Manhattan Associates Q4 2024 earnings call, the company provided guidance for 2025, emphasizing strong business fundamentals despite some near-term challenges. They achieved record metrics in 2024, including surpassing $1 billion in total revenue, with Q4 revenue increasing 7% to $256 million. The company anticipates 20% or more growth in cloud subscription revenue over the next several years, driven by strategic growth drivers such as new customer acquisitions and conversions from on-premise to cloud solutions. However, they also noted that services revenue will experience a trough in Q1 2025 due to some customers reducing planned services work, resulting in a revised services revenue outlook. Manhattan Associates plans continued investment in innovation, with $138 million spent on research and development in 2024, and expects total revenue of $1.06 billion to $1.07 billion in 2025.Manhattan Associates Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Manhattan Associates Announces New CEO Appointment
Positive
Feb 10, 2025
On February 10, 2025, Manhattan Associates announced a leadership change with Eric A. Clark succeeding Eddie Capel as President and CEO effective February 12, 2025. Capel, who has been with the company since 2000, will transition to the role of Executive Vice-Chairman of the Board. The transition is seen as strategic for Manhattan Associates, which has been strengthening its global technology position under Capel’s leadership, and the Board anticipates continued success and growth under Clark’s direction.
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.