Manhattan Associates Inc (MANH) stock analysis
Close on Nov 12, 2026Market cap $14.89BP/E 71.8Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Solid16 of 30 checks passed
Manhattan Associates passes 16 of the 30 checks behind our score; 5 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 2/6
- Growth
- 3/6
- Past performance
- 5/6
- Financial health
- 6/6
- Dividend
- 0/6
What stands out
Return on equity over 15%
Return on equity was 83.5% over the last twelve months and averaged 63.7% over five years.
Return on capital over 10%
Return on invested capital was 880%, above the 10% that usually covers the cost of capital.
No debt
Manhattan Associates has no borrowings on its latest balance sheet.
Earnings grew over 5 years
Net income grew 20.3% a year on average over the last five fiscal years.
What to watch
Margin of safety under 20%
The price is 65.7% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $258.86 is above our fair value estimate of $156.22.
Earnings growth not accelerating
Net income grew -1.4% over the last twelve months, against a 5-year average of 20.3% a year.
P/E above the industry
Manhattan Associates's P/E of 72.5 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.
Valuation2/6
P/E below its 5-year median
Manhattan Associates's P/E of 72.5 is below its own 5-year median of 72.6.
P/E above the industry
Manhattan Associates's P/E of 72.5 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.
EV/EBITDA below its 5-year median
Manhattan Associates's EV/EBITDA of 51.9 is below its 5-year median of 55.2.
P/B above the industry
Manhattan Associates's price-to-book of 74.87 is above the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.
Trading above fair value
The share price of $258.86 is above our fair value estimate of $156.22.
Margin of safety under 20%
The price is 65.7% above fair value, so there is no margin of safety.
Growth3/6
Revenue growing 10%+ a year
Revenue grew 12.1% a year over the last three fiscal years.
EPS growing 10%+ a year
Diluted EPS grew 21.0% a year over the last three fiscal years.
Earnings growth not accelerating
Net income grew -1.4% over the last twelve months, against a 5-year average of 20.3% a year.
Growing slower than the industry
Revenue grew 8.4% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.
Guidance raised
Manhattan Associates raised its 2026 Full Year Total revenue outlook on Jul 28, 2026.
Gross margin slipping
Gross margin was 55.9% over the last twelve months, against 56.5% a year earlier.
Past performance5/6
Return on equity over 15%
Return on equity was 83.5% over the last twelve months and averaged 63.7% over five years.
Return on capital over 10%
Return on invested capital was 880%, above the 10% that usually covers the cost of capital.
Return on equity above the industry
Manhattan Associates's return on equity of 83.5% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -1.2%.
Earnings grew over 5 years
Net income grew 20.3% a year on average over the last five fiscal years.
Net margin below its 5-year average
Net margin was 18.4% over the last twelve months, against a 5-year average of 18.8%.
Net margin above the industry
Manhattan Associates's net margin of 18.4% is above the Computer Programming, Data Processing, and Other Computer Related Services median of -4.8%.
Financial health6/6
No debt
Manhattan Associates has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
No meaningful interest expense to cover.
Short-term assets cover short-term debts
Current assets are 1.07 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 19.66; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Manhattan Associates has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$156.22
The share price is 66% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 45.0× | 72.6× | 27.6× | $160.65 | 53% |
| EV/EBITDA | 30.0× | 55.2× | 18.8× | $151.15 | 47% |
| Earnings powerleft out, too far from the others | 11.0% cost of equity | – | – | $47.78 | – |
| Fair value | $156.22 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 72.6
- Computer Programming, Data Processing, and Other Computer Related Services median 27.6
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $192.95M
- Value traded per 1% price move
- $89.35M
Downside
Medium risk
- Typical loss in a bad month
- 20.0%
- Volatility (annualized)
- 47%
- Sharpe ratio, 1 year
- 0.90
- Beta to the S&P 500 (5Y)
- 1.22
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2011 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +3.7% | +12.1% | +13.0% | +6.9% | |
| Gross profit | +6.6% | +14.2% | +14.0% | +6.6% | |
| Operating income | +7.0% | +22.4% | +19.7% | +5.7% | |
| Net income | +0.7% | +19.5% | +20.3% | +7.8% | |
| EPS, diluted | +2.6% | +21.0% | +21.5% | +9.9% | |
| Free cash flow | +30.6% | +29.3% | +22.0% | +13.2% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | 68.1% | 48.3% | 71.7% | |
| Return on assets | 39.5% | 20.8% | 27.5% | |
| Current ratio | 1.76 | 1.70 | 1.28 | |
| Capex to revenue | 1.1% | 0.5% | 1.4% | |
| Diluted shares | 72M | 64M | 61M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Manhattan Associates generated $1.30B from operations and spent $1.16B on capital expenditure, dividends and share buybacks. 3% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 20.3% | 1.35× | 2.60× | 71.7% |
| FY2024 | 20.9% | 1.46× | 2.48× | 75.6% |
| FY2023 | 19.0% | 1.49× | 2.46× | 69.9% |
| FY2022 | 16.8% | 1.38× | 2.32× | 54.0% |
| FY2021 | 16.6% | 1.32× | 2.14× | 47.1% |
| FY2020 | 14.9% | 1.40× | 2.32× | 48.3% |
| FY2019 | 13.9% | 1.82× | 2.35× | 59.3% |
| FY2018 | 18.7% | 1.80× | 1.93× | 65.0% |
| FY2017 | 19.6% | 1.94× | 1.78× | 67.7% |
| FY2016 | 20.5% | 1.92× | 1.73× | 68.1% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$219.95M
- Cash generatingOperating cash flow above zero$389.47M
- Return on assets improvedROA up on the prior year32.4% → 29.0%
- Earnings backed by cashOperating cash flow above net income$389.47M vs $219.95M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose1.26 → 1.28
- No dilutionShare count did not rise62M → 61M
- Gross margin improvedGross margin up on the prior year54.82% → 56.32%
- More efficientAsset turnover rose1.55 → 1.43
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