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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on MANH

Manhattan Associates' recent performance faced challenges due to cautious investor sentiment, despite beating Q3 earnings and revenue estimates with $1.36 per share. DekaBank Deutsche Girozentrale reduced its stake by 24.3%, selling 3,968 shares. While the company achieved FedRAMP authorization with FEMA, expanding secure cloud offerings, some investors remain cautious due to macroeconomic uncertainty and potential spending delays from customers. Additionally, the Q3 earnings call highlighted ongoing global uncertainty as a challenging factor.

1.c. Company Highlights

2. Manhattan Associates' Q3 2025 Results Exceed Expectations

Manhattan Associates reported total revenue of $276 million, up 3% year-over-year, and up 7% excluding license and maintenance revenue. Cloud revenue grew 21% to $105 million, driven by strong demand for the company's cloud-based solutions. Adjusted operating profit was $103 million, with an adjusted operating margin of 37.5%. EPS was $1.36, up 1% year-over-year, beating analyst estimates of $1.18. The company's operating cash flow increased 9% to $93 million, and free cash flow margin was 32%. The strong financial performance was driven by the company's growing cloud business and improving services segment.

Publication Date: Oct -22

📋 Highlights
  • Cloud Revenue Growth:: 21% increase to $105 million, driving overall revenue growth and RPO expansion.
  • 2025 RPO Guidance:: Raised to $2.11-2.15 billion, with 23% YoY growth to $2.1 billion and 70% win rates.
  • Adjusted Operating Margin:: 37.5% with $103 million in adjusted operating profit, signaling operational efficiency.
  • 2026 Cloud Growth:: 20% projected cloud revenue growth and services expansion, supported by a strong renewal cycle and conversion strategy.
  • Point-of-Sale Growth:: 80% YoY increase in POS transactions, driven by new store additions and transaction growth.

Revenue Growth and Mix

The company's revenue growth was driven by its cloud and services segments. Cloud revenue grew 21% to $105 million, while services revenue outperformed expectations. Total RPO increased 23% year-over-year to $2.1 billion, with win rates at 70%. The company expects to achieve the high end of its 2025 RPO outlook of $2.11-2.15 billion. The strong RPO growth provides visibility and optimism for RPO growth in 2026, driven by a major renewal cycle expected over the next 18 months.

Operational Highlights

The company is taking a more proactive and consultative approach to converting on-premise customers to the cloud, with early success in its conversion strategy. The services pipeline continues to strengthen, with a growing backlog, positioning the company well for 2026. The company is investing in its sales and marketing efforts, with a mix of leveraging Manhattan veterans and bringing in outside expertise. The company's focus on building its partner ecosystem is also yielding positive results, with conversations underway with system integrator partners to scale the ecosystem and match capacity with demand.

Valuation and Outlook

With a P/E Ratio of 57.21 and an EV/EBITDA of 42.73, the company's valuation multiples are high, indicating that the market has already priced in significant growth expectations. Analysts estimate next year's revenue growth at 6.7%, which may not be sufficient to justify the current valuation multiples. However, the company's strong track record of execution, growing cloud business, and improving services segment provide a solid foundation for future growth.

Growth Initiatives

The company is optimistic about its 2026 outlook, with expectations to achieve high-end RPO goals in 2025 and grow cloud revenue 20% in 2026. The company's Agentic AI solutions are also expected to drive growth, with early access customers providing positive feedback. The company's focus on accelerating deployments and achieving ROI for customers is expected to drive future growth.

3. NewsRoom

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Fisher Asset Management LLC Has $14.83 Million Stake in Manhattan Associates, Inc. $MANH

Dec -04

Source: defenseworld.net

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Hsbc Holdings PLC Purchases 77,178 Shares of Manhattan Associates, Inc. $MANH

Dec -03

Source: defenseworld.net

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Capital Fund Management S.A. Has $25.09 Million Holdings in Manhattan Associates, Inc. $MANH

Nov -28

Source: defenseworld.net

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Bell Asset Management Ltd Sells 6,527 Shares of Manhattan Associates, Inc. $MANH

Nov -27

Source: defenseworld.net

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AXQ Capital LP Buys Shares of 4,996 Manhattan Associates, Inc. $MANH

Nov -22

Source: defenseworld.net

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Bank Julius Baer & Co. Ltd Zurich Sells 28,320 Shares of Manhattan Associates, Inc. $MANH

Nov -22

Source: defenseworld.net

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Reviewing Manhattan Associates (NASDAQ:MANH) and Microsoft (NASDAQ:MSFT)

Nov -21

Source: defenseworld.net

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Pacsun Successfully Implements Manhattan Active® Point of Sale, Unifying Commerce and Cutting Checkout Times

Nov -19

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.03%)

6. Segments

Services

Expected Growth: 12%

Manhattan Associates' 12% growth driven by increasing adoption of omnichannel commerce, rising demand for supply chain optimization, and growing need for inventory management solutions. Additionally, the company's investments in artificial intelligence, machine learning, and cloud-based technologies have enhanced its offerings, attracting new customers and expanding existing relationships.

Cloud Subscriptions

Expected Growth: 15%

Manhattan Associates' Cloud Subscriptions growth is driven by increasing adoption of omnichannel commerce, rising demand for supply chain visibility, and growing need for warehouse management efficiency. Additionally, the company's investments in artificial intelligence, machine learning, and IoT capabilities are enhancing its cloud-based offerings, further fueling growth.

Maintenance

Expected Growth: 8%

Manhattan Associates' Maintenance segment growth is driven by increasing adoption of cloud-based supply chain management solutions, rising demand for omnichannel fulfillment, and growing need for predictive analytics to optimize logistics operations. Additionally, the company's focus on innovation, strategic partnerships, and expanding global presence contribute to its 8% growth.

Hardware

Expected Growth: 6%

Manhattan Associates' Hardware segment growth is driven by increasing adoption of omnichannel commerce, rising demand for warehouse management systems, and growing need for supply chain visibility. Additionally, the company's focus on cloud-based solutions, artificial intelligence, and IoT integration is fueling growth.

Software License

Expected Growth: 11%

Manhattan Associates' software license growth is driven by increasing adoption of omnichannel commerce, rising demand for supply chain visibility, and growing need for warehouse management efficiency. Additionally, the company's focus on cloud-based solutions, strategic partnerships, and geographic expansion contribute to its 11% growth.

7. Detailed Products

Warehouse Management

A comprehensive solution that manages and optimizes warehouse operations, including inventory management, order fulfillment, and labor management.

Transportation Management

A solution that optimizes transportation operations, including route optimization, carrier management, and freight audit and payment.

Order Management

A solution that manages the entire order lifecycle, including order capture, inventory allocation, and fulfillment.

Inventory Optimization

A solution that uses advanced analytics to optimize inventory levels, reducing stockouts and overstocking.

Supply Chain Visibility

A solution that provides real-time visibility into supply chain operations, enabling proactive decision-making and improved collaboration.

Omni-Channel Fulfillment

A solution that enables retailers to fulfill orders from any channel, including online, in-store, and mobile.

8. Manhattan Associates, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Manhattan Associates, Inc. is medium due to the presence of alternative supply chain management solutions.

Bargaining Power Of Customers

The bargaining power of customers is high due to the concentration of major retailers and manufacturers, giving them significant negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the availability of multiple suppliers and the company's strong negotiating position.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry, including significant capital requirements and the need for specialized expertise.

Intensity Of Rivalry

The intensity of rivalry is medium due to the presence of several established competitors, but the company's strong market position and differentiated products mitigate the competitive pressure.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 6.93%
Debt Cost 3.95%
Equity Weight 93.07%
Equity Cost 11.22%
WACC 10.71%
Leverage 7.45%

11. Quality Control: Manhattan Associates, Inc. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Aspen Technology

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Growth: 5.2

Quality: 5.6

Yield: 0.0

Momentum: 7.0

Volatility: 6.0

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Tyler Technologies

A-Score: 4.4/10

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Growth: 7.2

Quality: 7.6

Yield: 0.0

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Elastic

A-Score: 4.2/10

Value: 2.5

Growth: 8.0

Quality: 4.9

Yield: 0.0

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Volatility: 4.0

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Progress Software

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Value: 4.4

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Quality: 6.0

Yield: 1.0

Momentum: 1.0

Volatility: 6.3

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Manhattan Associates

A-Score: 4.0/10

Value: 0.6

Growth: 7.9

Quality: 8.6

Yield: 0.0

Momentum: 1.0

Volatility: 5.7

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A-Score: 3.5/10

Value: 0.0

Growth: 7.9

Quality: 7.5

Yield: 0.0

Momentum: 2.5

Volatility: 3.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

181.22$

Current Price

181.22$

Potential

-0.00%

Expected Cash-Flows