Manhattan’s Wide Moat Is Supported by Its Leadership in Supply Chain Software

Manhattan Associates is the clear leader in the warehouse management systems (WMS) software niche, in our view. Supply chains are complex and any disruption to warehouse operations could have a significant ripple effect among all nodes in the chain, which is captured in sticky customer relationships. When normalized for covid, we view the company as capable of driving low-double-digit revenue growth annually over the next five years, with even better earnings growth. Manhattan Associates is building on its lead with cloud versions of its software solutions, which has also brought about margin expansion and accelerating growth, which we think will lead to improving returns.