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Manhattan Associates Inc MANH

Morningstar Rating
$228.84 −0.30 (0.13%)
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Company Report

Manhattan Associates: Upgrading Moat to Wide Based on Smooth Model Transition

We are upgrading our moat rating for Manhattan Associates to wide from narrow as the model transition to the cloud has been fairly smooth and did not crush returns as often happens. We now believe the company will probably deliver excess returns beyond its cost of capital for the next 20 years based primarily on switching costs in its subscription business, with a secondary moat source from intangible assets arising from its vertical specialization in supply chain and logistics-related software. Based on increased confidence in the longer-term outlook for Manhattan, we are raising our fair value estimate to $225 per share from $205 previously in connection with our moat upgrade. With recent pressure on the stock, we view shares as approximately fairly valued.

Price vs Fair Value

MANH is trading at a 73% premium.
Price
$228.84
Fair Value
$742.00
Uncertainty
High
1-Star Price
$677.78
5-Star Price
$988.00
Economic Moat
Ycx
Capital Allocation
Ndtymwwjlj

Bulls Say, Bears Say

Bulls

Manhattan Associates is a longtime leader in WMS and omnichannel order management, particularly in more complex and higher-end installations. It is undergoing a model transition to the cloud, which will improve visibility.

Bears

Manhattan enjoys less visibility relative to other software companies as a result of high services mix.

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News

Trading Information

Previous Close Price
$229.14
Day Range
$226.62229.90
52-Week Range
$182.97266.94
Bid/Ask
$205.00 / $250.00
Market Cap
$14.09 Bil
Volume/Avg
152,222 / 416,339

Key Statistics

Price/Earnings (Normalized)
57.26
Price/Sales
14.87
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
1.48%

Company Profile

Manhattan Associates provides software that helps users manage their supply chains, inventory, and omnichannel operations. Customers are generally retailers, wholesalers, manufacturers, and logistics providers. The company was founded in 1990 and serves more than 1,200 customers around the world.
Sector
Technology
Industry
Software - Application
Stock Style Box
Mid Growth
Total Number of Employees
4,700

Competitors

Valuation

Metric
MANH
ORCL
DSG
Price/Earnings (Normalized)
57.2624.6259.81
Price/Book Value
58.8043.746.37
Price/Sales
14.877.3614.15
Price/Cash Flow
58.4920.3542.12
Price/Earnings
MANH
ORCL
DSG

Financial Strength

Metric
MANH
ORCL
DSG
Quick Ratio
1.110.691.33
Current Ratio
1.200.851.49
Interest Coverage
3.95123.82
Quick Ratio
MANH
ORCL
DSG

Profitability

Metric
MANH
ORCL
DSG
Return on Assets (Normalized)
41.68%11.69%10.32%
Return on Equity (Normalized)
115.01%749.60%12.45%
Return on Invested Capital (Normalized)
104.27%20.33%12.47%
Return on Assets
MANH
ORCL
DSG
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