MANHATTAN ASSOCIATES INC (MANH)

Manhattan Associates Inc. creates and maintains software that helps businesses manage their supply chains, keep track of inventory, and handle sales across multiple channels like online stores and physical locations. Their clients include some of the biggest and most successful companies in the world.

Their Manhattan Active® software is cloud-based and offered as a subscription service, meaning companies pay them to use it online rather than installing it on their systems. It stands out because it’s always up-to-date without needing big version upgrades.

Manhattan rolls out features every three months, and all their customers get the latest improvements automatically. Plus, updates happen smoothly without any system downtime, so businesses can keep running without any interruptions.

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Financial Snapshot

Income Statement (*values are displayed in millions)

How do they make money?

• Licensing and Subscriptions of Software Solutions: Manhattan Associates has 3 core software solutions:

  1. Supply Chain Solutions: supports Distribution and Transportation Management

  2. Omnichannel Solutions: supports the ability to leverage inventory across the entire network to meet any demand, to providing associates and call center representatives the means to take advantage of the available inventory.

  3. Inventory Solutions: supports the ability to accurately forecast demand and project inventory needs.

• Professional Services: to ensure long-term customer relationships, MANH consultants assist customers with the initial deployment of their systems, the conversion and transfer of the customer’s historical data onto their systems, and ongoing training, education and system upgrades.

• Hardware Sales: as a convenience to their customers, MANH resells a variety of hardware developed and manufactured by others, including computer hardware, radio frequency terminal networks, radio frequency identification (RFID) chip readers, bar code printers and scanners, and other peripherals.

Good Time to Buy?

At the time of writing, MANH is down 43% since it’s November 2024 52 Week High of 312.60/share. The majority of that drop in price came on January 28th 2025 when they released their earnings. Wall Street punished the stock because MANH released forward looking statements that suggested a 4-6% decrease in their earnings per share and that their revenue was expected to grow by only 2-3% reaching approximately $1.06 - $1.07 billion.

We believe that MANH deserves a spot on your watchlist because a 43% discount is very hard to ignore. We looked at their total revenue results since 2018 and, with the exception of 2020, their revenue has consistently increased year over year. Furthermore, take a look at Manhattan Associates’ strong stock performance below.

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