One-glance verdict
Within fair range
$257.79 our estimate vs market $204.89
Wall Street consensus: $220.70 (-14.4% lower than our fair-value estimate)
21% below our estimate
Fundamentals snapshot
Manhattan Associates, Inc.
MANH · NMS · Technology · Software - Application
Current price
$204.89
52-week range
$119.06 - $227.03
Market cap
$11.95B
Balance sheet
Healthy
64.42x Strong cushion
Net cash $132.23M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 4.1% last year.
- Reward Returns 96.4% on equity, ahead of 80% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Insider ownership is only 1.4% (peer median: 1.5%).
What this company does
Manhattan Associates, Inc.
Manhattan Associates creates software that helps businesses manage their warehouses and deliver goods efficiently. The company makes most of its money from selling these software solutions, which is important because it means they can generate steady income as clients renew their contracts, often referred to as recurring revenue (money that comes in regularly). This software is crucial for businesses dealing with complex supply chains (the entire process of getting a product from its origin to the customer), helping them keep track of inventory and fulfill orders smoothly.
How the company got here
Manhattan Associates was founded in 1990 by five technology experts who noticed inefficiencies in how clothing retailer Jockey shipped goods. They started the company to create better warehouse management software, initially focusing on helping manufacturers meet the complex shipping and labeling requirements of large retailers. The company went public in 1998 and has since expanded its offerings beyond warehouse management to include transportation, order management, and omnichannel solutions. Manhattan Associates has consistently focused on innovation, relocating to Atlanta in 1995 to be in a technology hub and later launching its cloud-native Manhattan Active platform to offer continuous updates and broader solutions.
What it actually does
Manhattan Associates provides software and services that help businesses manage their supply chains, which is the entire process of getting a product from its creation to the customer. Think of it as the behind-the-scenes technology that makes sure stores have products on their shelves, online orders are fulfilled accurately, and deliveries happen on time and at the lowest possible cost. Their solutions are used by companies in retail, consumer goods, and logistics to make their operations more efficient and reliable.
Warehouse Management
This is Manhattan Associates' original area of expertise. Their warehouse management solutions help companies organize and run their distribution centers, which are like giant warehouses where products are stored before being shipped out. This includes managing everything from receiving goods, organizing inventory (the stock of products), picking and packing orders, and getting them ready for shipment. Essentially, it's about making sure the right products are in the right place within the warehouse and are processed efficiently.
Transportation Management
This part of Manhattan Associates' business focuses on optimizing how goods are moved from one place to another. It helps companies manage their shipping, whether they use their own trucks or hire outside carriers. The goal is to ensure products reach their destinations quickly and cost-effectively, navigating the complexities of different shipping methods and routes. This is crucial for businesses that need to get products to stores or directly to customers.
Order Management and Omnichannel Solutions
In today's world, customers buy products through many channels – online, in stores, or through call centers. Manhattan Associates' order management and omnichannel solutions help businesses manage all these different ways customers can place orders. This includes tracking inventory across all locations (like warehouses and stores), fulfilling orders from the most convenient place (like shipping an online order from a nearby store), and ensuring a consistent customer experience no matter how they shop. This helps businesses keep up with customer demand and provide seamless service.
What management is betting on now
Manhattan Associates is heavily focused on its cloud-native platform, called Manhattan Active. The company is encouraging both new and existing customers to move to this cloud-based system, which allows for continuous updates and improvements without major disruptions. This strategy aims to increase recurring revenue, meaning income that the company can expect on an ongoing basis from subscriptions. By offering a unified platform that integrates various supply chain functions, they aim to become the central operating system for their clients' commerce and supply chain operations.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$61.29M
FY2024 Q4
$101.58M
FY2025 Q1
$74.37M
FY2025 Q2
$70.07M
FY2025 Q3
$87.18M
FY2025 Q4
$142.39M
FY2026 Q1
$79.94M
FY2026 Q2
$89.67M
Revenue
$297.79M
Net income
$50.35M
Diluted EPS
0.85
Operating cash flow
$90.68M
Free cash flow
$89.67M
Fetching…
Sources
Revenue
$282.21M
Net income
$49.30M
Diluted EPS
0.82
Operating cash flow
$84.05M
Free cash flow
$79.94M
Fetching…
Sources
Revenue
$270.39M
Net income
$51.95M
Diluted EPS
0.86
Operating cash flow
$147.05M
Free cash flow
$142.39M
Fetching…
Sources
Revenue
$275.80M
Net income
$58.63M
Diluted EPS
0.96
Operating cash flow
$93.11M
Free cash flow
$87.18M
Fetching…
Sources
Revenue
$272.42M
Net income
$56.78M
Diluted EPS
0.93
Operating cash flow
$74.05M
Free cash flow
$70.07M
Fetching…
Sources
Revenue
$262.79M
Net income
$52.58M
Diluted EPS
0.85
Operating cash flow
$75.26M
Free cash flow
$74.37M
Fetching…
Sources
Revenue
$255.80M
Net income
$48.02M
Diluted EPS
0.77
Operating cash flow
$104.70M
Free cash flow
$101.58M
Fetching…
Sources
Revenue
$266.68M
Net income
$63.78M
Diluted EPS
1.03
Operating cash flow
$62.30M
Free cash flow
$61.29M
Fetching…
Sources
Is it cheap or expensive?
Fair value $257.79 vs current price $204.89
Wall Street consensus is the average analyst price target: $220.70 (-14.4% lower than our fair-value estimate).
Our most-likely fair value is $257.79 a share — about 25.8% away from today's price of $204.89, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $132.2M - more cash than debt. Interest coverage 64.4x.
Net debt
$-132.23M
Interest coverage
64.42x
Manhattan Associates, Inc.'s profit covers its interest bill about 64.4 times over. which is stronger than every peer shown here.
Healthy
Worse cushion
Baseline
Better cushion
MANH
BASELINE
Manhattan Associates, Inc.
Total debt $53.88M Interest coverage 64.42x This is the baseline the peer rows are being compared against.
Total debt $169.14B Interest coverage 4.88x -92% vs MANH Carries about 13.2x less debt cushion than MANH.
Total debt $11.14B Interest coverage 19.55x -70% vs MANH Carries about 3.3x less debt cushion than MANH.
Total debt $128.81B Interest coverage 50.88x -21% vs MANH Carries about 1.3x less debt cushion than MANH.
What you should know
The case for and against MANH
3 Rewards
1 Risk
Rewards
-
Revenue grew 4.1% last year.
-
Returns 96.4% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Insider ownership is only 1.4% (peer median: 1.5%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
59.39x
Forward P/E
33.35x
P/B
75.83x
P/S
10.61x
EV/EBITDA
40.89x
PEG ratio
2.57x
Profitability
How much profit each dollar creates
Gross margin
55.8%
Operating margin
25.0%
Net margin
18.7%
ROE
96.4%
ROA
24.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.34x
Current ratio
0.98x
Quick ratio
0.85x
Total debt
$53.88M
Total cash
$186.11M
Growth
How the business has been compounding
Revenue TTM
$1.13B
Revenue 5Y CAGR
13.0%
EPS TTM
3.45
EPS 5Y CAGR
21.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$414.88M
Free CF TTM
$374.01M
FCF margin
33.2%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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