# Manhattan Associates (MANH.US)

Canonical: https://gigainvestors.com/s/MANH

Analysis as of: 2026-10-16T07:30:03.316Z. Financial observations: FY1997–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $226.96 per share; close as of 2026-10-15.

Estimated value: low $54.96 per share, central $76.81 per share, high $89.69 per share. Buy at or below the central value $76.81 per share. Valuation as of 2026-10-16T07:30:03.316Z; scenarios are not confidence intervals.

Expected annual return: 5.4% at the stated quote. About 5.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.16×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.31×

- FY2018: 0.24×

- FY2019: 0.19×

- FY2020: 0.19×

- FY2021: 0.20×

- FY2022: 0.20×

- FY2023: 0.23×

- FY2024: 0.25×

- FY2025: 0.26×

- LTM to Jun 2026: 0.24×

### moat: pass

- Years with nonpositive invested capital use equity plus debt and leases; positive earnings with no positive capital are shown above 100%.

- ROIC, median of available years: 69.4%

- ROIC, second-lowest year: 40.4%

- Typical minus recent gross margin: -0.6 pp

- Typical gross margin (annual median): 54.1%

- Recent gross margin (lower of latest and 3-year median): 54.6%

- Years with nonpositive capital: 7

- Capital spending / revenue: 1.0%

- ROIC including acquisitions, ten-year median: >100%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 69.0%

- FY2018: 69.9%

- FY2019: >100%

- FY2020: 35.4%

- FY2021: 40.4%

- FY2022: 51.7%

- FY2023: 58.6%

- FY2024: >100%

- FY2025: >100%

- LTM to Jun 2026: 96.2%

### economics: pass

- Owner earnings / net income, 5-yr: 1.00×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $852M

- Net income, five-year total: $854M

- Return on incremental invested capital: 115.8%

- Working capital / revenue, annual change: 0.6 pp

- Working capital / revenue, change between three-year averages: 4.1 pp

- Working capital / revenue, final three-year average: 18.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.04×

- FY2022: 1.00×

- FY2023: 1.01×

- FY2024: 1.00×

- FY2025: 0.97×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 69.9% vs 602.0%

- Per-share earnings: 1.68 to 3.51 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.9%

- Ordinary dilution, 5-year annual growth: -1.0%

- Market cap gain: $6.6B

- Cumulative retained earnings: $161M

- Diluted shares, 10-year annual growth: -1.9%

- Diluted shares, 5-year annual growth: -1.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 9.7%

- Per-share value change: $1.83

- Per-share value, starting three-year median: $1.68

- Per-share value, ending three-year median: $3.51

- Buybacks concentrated in cheaper years (correlation): 0.96

- Average buyback yield: 2.7%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $78K

- Cumulative net income, 10 years: $1.4B

- ROIC, first three-year median: 69.9%

- ROIC, last three-year median: >100%

Chart: Earnings per share; fiscal year observations.

- FY2016: $1.72

- FY2017: $1.68

- FY2018: $1.58

- FY2019: $1.32

- FY2020: $1.36

- FY2021: $1.72

- FY2022: $2.03

- FY2023: $2.82

- FY2024: $3.51

- FY2025: $3.60

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -20.2%

- Receivables to sales index (DSRI): 0.98×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 28.6%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.77×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.20×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.1%

- FY2017: -15.1%

- FY2018: -10.6%

- FY2019: -16.4%

- FY2020: -11.5%

- FY2021: -13.8%

- FY2022: -8.9%

- FY2023: -10.3%

- FY2024: -10.1%

- FY2025: -20.2%

## Holders

- [Terry Smith](https://gigainvestors.com/FS): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Allen Bond](https://gigainvestors.com/JIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 20% since Nov 2024 · "Manhattan Associates' Slowing Cloud Bookings, Discretionary Revenue Pose Risks, Morgan Stanley Says" (finance.yahoo.com, Jul 2025) · sales +4.1%

Story as of 2026-10-16T09:59:07.550Z; price observation 2026-10-15.

Price needs cash profits to grow 20.9% a year for ten years

- 2025-07-25: MANH Q2 Deep Dive: Cloud Momentum and Product Innovation Drive Guidance Increase ([finance.yahoo.com](https://finance.yahoo.com/news/manh-q2-deep-dive-cloud-132613106.html))

- 2025-10-14: Manhattan Associates, SPS Commerce 'Reset Growth Expectations,' Morgan Stanley Says ([finance.yahoo.com](https://finance.yahoo.com/news/manhattan-associates-sps-commerce-apos-154324839.html))

- 2026-04-22: MANH Q1 Deep Dive: Cloud Momentum and AI Adoption Drive Guidance Raise ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/manh-q1-deep-dive-cloud-103723675.html))

- 2026-07-29: MANH Q2 Earnings Beat Estimates, Cloud Growth Fuels Revenues ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/manh-q2-earnings-beat-estimates-123000263.html))

### Sales · FY2025–2026

sales +4.1%; source https://www.sec.gov/Archives/edgar/data/1056696/000119312526037138/manh-20251231.htm; observed 2026-02-04.

- FY2017: $595M 

- FY2018: $559M 

- FY2019: $618M 

- FY2020: $586M 

- FY2021: $664M 

- FY2022: $767M 

- FY2023: $929M 

- FY2024: $1.0B 

- FY2025: $1.1B 

- FY2026: $1.1B 

### Gross margin · FY2026

gross margin 54.6%; source https://www.sec.gov/Archives/edgar/data/1056696/000119312526037138/manh-20251231.htm; observed 2026-02-04.

- FY2017: 57.1% 

- FY2018: 55.4% 

- FY2019: 52.6% 

- FY2020: 52.4% 

- FY2021: 53.9% 

- FY2022: 52.4% 

- FY2023: 53.0% 

- FY2024: 54.2% 

- FY2025: 55.7% 

- FY2026: 54.6% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in software application; annual sales are USD 1.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1056696/000119312526037138/manh-20251231.htm (filed 2026-02-04); FY2025: revenue 1081392000; grossProfit 602736000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MANH.US: Manhattan Associates, Inc. develops, sells, deploys, services, and maintains software solutions to manage supply chains, inventory, and omni-channel operations. It offers warehouse management solution for managing goods and information across the distribution centers; Manhattan Active Warehouse Management, a cloud native and version less application for the associate; and transportation management solution for helping shippers navigate their way through the demands and meet customer service expectations at the lowest possible freight costs; Manhattan SCALE, a portfolio of logistics execution solution; and Manhattan Active Omni, which offers order management, store inventory and fulfillment, call center, POS, and customer engagement tools for enterprises and stores. The company also provides demand forecasting and replenishment, allocation, and unified business planning; technology platform including Manhattan Active Platform solutions, a cloud-native product designed to provide version-less product access; maintenance services, which offers on-premises software licensees with software upgrades for additional or improved functionality and technological advances; and professional services, such as solutions planning and implementation, and related consulting services. In addition, it provides training and change management services; and 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 and partnership agreements with various organizations. It serves retail, consumer goods, food and grocery, logistics service providers, industrial and wholesale, high technology and electronics, life sciences, and government 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.

### Why customers stay

Margins ranged from 53% to 55.7% during 2023–25; it earns 69.4% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2023: grossProfit / revenue = 53%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2024: grossProfit / revenue = 54.2%.

- Source: https://www.sec.gov/Archives/edgar/data/1056696/000119312526037138/manh-20251231.htm (filed 2026-02-04); FY2025: grossProfit / revenue = 55.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); 10-year return on capital observations [[2017,0.6897119847275887],[2018,0.699223882414079],[2019,48.14443952550096],[2020,0.35445622676130434],[2021,0.4042609688106757],[2022,0.5170439302194193],[2023,0.5859882566920305],[2024,11.595186409725265],[2025,6.019793332636159],[2026,0.9616740032293652]]; median 0.6944679335708338. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 52% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1056696/000119312526037138/manh-20251231.htm (filed 2026-02-04); Gross margin observations: [[2021,0.5392989905717381],[2022,0.5243024232026741],[2023,0.5301450913887319]]; range within 2 percentage points.

### Where the cash goes

Spends 1% of cash earnings on expansion; paid no dividends in 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2016: growth capex 0; upkeep 6843000; owner earnings 126481000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2017: growth capex 0; upkeep 6199000; owner earnings 119342000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2018: growth capex 0; upkeep 7306000; owner earnings 105997000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2019: growth capex 2540364.3279457856; upkeep 12652635.672054214; owner earnings 81096364.32794578. Growth capex / owner earnings = 0.03132525544144988.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2020: growth capex 0; upkeep 2730000; owner earnings 93456000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2021: growth capex 0; upkeep 4016000; owner earnings 114370000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2022: growth capex 0; upkeep 6587000; owner earnings 129035000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2023: growth capex 0; upkeep 4730000; owner earnings 177590000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); FY2024: growth capex 2374000; upkeep 6301000; owner earnings 218364000. Growth capex / owner earnings = 0.010871755417559671.

- Source: https://www.sec.gov/Archives/edgar/data/1056696/000119312526037138/manh-20251231.htm (filed 2026-02-04); FY2025: growth capex 2071633.8554562032; upkeep 13385366.144543797; owner earnings 212879633.8554562. Growth capex / owner earnings = 0.009731479794177156.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,0],[2020,0],[2021,0],[2022,0],[2023,0],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1056696/000119312526037138/manh-20251231.htm (filed 2026-02-04); FY2025: cash repurchases 315162000 USD.

### Are managers owners

Insiders own 1.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MANH.US SharesStats.PercentInsiders = 1.352 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 20.9% yearly over ten years; actual growth was 9.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-04); Ten-year compound average after fade. Initial solved rate 0.39898096402299676. Price 226.96; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 1.3801904610661704 → FY2025 3.4867434378657616. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $50.64 per share

- 2016-11: $52.40 per share

- 2016-12: $53.03 per share

- 2017-01: $51.26 per share

- 2017-02: $50.15 per share

- 2017-03: $52.05 per share

- 2017-04: $46.69 per share

- 2017-05: $46.84 per share

- 2017-06: $48.06 per share

- 2017-07: $44.20 per share

- 2017-08: $42.05 per share

- 2017-09: $41.57 per share

- 2017-10: $41.86 per share

- 2017-11: $44.35 per share

- 2017-12: $49.54 per share

- 2018-01: $52.82 per share

- 2018-02: $42.10 per share

- 2018-03: $41.88 per share

- 2018-04: $43.06 per share

- 2018-05: $43.52 per share

- 2018-06: $47.01 per share

- 2018-07: $48.12 per share

- 2018-08: $57.99 per share

- 2018-09: $54.60 per share

- 2018-10: $47.74 per share

- 2018-11: $49.53 per share

- 2018-12: $42.37 per share

- 2019-01: $48.77 per share

- 2019-02: $54.75 per share

- 2019-03: $55.11 per share

- 2019-04: $67.45 per share

- 2019-05: $65.47 per share

- 2019-06: $69.33 per share

- 2019-07: $84.99 per share

- 2019-08: $82.63 per share

- 2019-09: $80.67 per share

- 2019-10: $74.95 per share

- 2019-11: $83.51 per share

- 2019-12: $79.75 per share

- 2020-01: $85.46 per share

- 2020-02: $67.36 per share

- 2020-03: $49.82 per share

- 2020-04: $70.94 per share

- 2020-05: $88.40 per share

- 2020-06: $94.20 per share

- 2020-07: $95.79 per share

- 2020-08: $97.25 per share

- 2020-09: $95.49 per share

- 2020-10: $85.50 per share

- 2020-11: $102.24 per share

- 2020-12: $105.18 per share

- 2021-01: $113.23 per share

- 2021-02: $122.95 per share

- 2021-03: $117.38 per share

- 2021-04: $137.24 per share

- 2021-05: $135.98 per share

- 2021-06: $144.84 per share

- 2021-07: $159.63 per share

- 2021-08: $162.99 per share

- 2021-09: $153.03 per share

- 2021-10: $181.54 per share

- 2021-11: $156.16 per share

- 2021-12: $155.49 per share

- 2022-01: $133.87 per share

- 2022-02: $133.68 per share

- 2022-03: $138.71 per share

- 2022-04: $130.55 per share

- 2022-05: $120.93 per share

- 2022-06: $114.60 per share

- 2022-07: $140.67 per share

- 2022-08: $141.26 per share

- 2022-09: $133.03 per share

- 2022-10: $121.67 per share

- 2022-11: $125.94 per share

- 2022-12: $121.40 per share

- 2023-01: $130.36 per share

- 2023-02: $143.75 per share

- 2023-03: $154.85 per share

- 2023-04: $165.68 per share

- 2023-05: $181.42 per share

- 2023-06: $199.88 per share

- 2023-07: $190.62 per share

- 2023-08: $202.62 per share

- 2023-09: $197.66 per share

- 2023-10: $194.98 per share

- 2023-11: $223.05 per share

- 2023-12: $215.32 per share

- 2024-01: $242.56 per share

- 2024-02: $253.33 per share

- 2024-03: $250.23 per share

- 2024-04: $206.06 per share

- 2024-05: $219.54 per share

- 2024-06: $246.68 per share

- 2024-07: $255.38 per share

- 2024-08: $264.43 per share

- 2024-09: $281.38 per share

- 2024-10: $263.36 per share

- 2024-11: $285.44 per share

- 2024-12: $270.24 per share

- 2025-01: $208.59 per share

- 2025-02: $176.88 per share

- 2025-03: $173.04 per share

- 2025-04: $177.39 per share

- 2025-05: $188.78 per share

- 2025-06: $197.47 per share

- 2025-07: $219.66 per share

- 2025-08: $215.44 per share

- 2025-09: $204.98 per share

- 2025-10: $182.07 per share

- 2025-11: $176.45 per share

- 2025-12: $173.31 per share

- 2026-01: $151.01 per share

- 2026-02: $135.43 per share

- 2026-03: $133.12 per share

- 2026-04: $137.89 per share

- 2026-05: $150.05 per share

- 2026-06: $139.25 per share

- 2026-07: $191.36 per share

- 2026-08: $223.19 per share

- 2026-09: $198.70 per share

- 2026-10: $226.96 per share

## Annual estimated value (USD per share)

- FY2016: low $18.10 per share, central $22.65 per share, high $26.26 per share

- FY2017: low $18.83 per share, central $21.20 per share, high $24.36 per share

- FY2018: low $24.51 per share, central $35.14 per share, high $41.07 per share

- FY2019: low $25.97 per share, central $36.45 per share, high $42.56 per share

- FY2020: low $22.70 per share, central $25.46 per share, high $29.12 per share

- FY2021: low $29.71 per share, central $41.56 per share, high $48.16 per share

- FY2022: low $32.86 per share, central $46.42 per share, high $53.98 per share

- FY2023: low $40.26 per share, central $56.88 per share, high $66.16 per share

- FY2024: low $45.89 per share, central $65.14 per share, high $75.87 per share

- FY2025: low $52.86 per share, central $72.89 per share, high $84.71 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1056696/000119312526037138/manh-20251231.htm); period 2025-12-31, filed 2026-02-04.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.