Manhattan Associates (MANH)
Key Statistics
EV/EBIT = 40.3x
ROE = 75.6%
Debt/Equity = 17%
FCF Yield = 2.7%
Dividend Yield = 0%
Market Cap = $11.19 billion
The Company
Manhattan Associates (MANH) is a software company that helps large businesses manage their supply chains more efficiently.
Their software tools help organizations track inventory, shipping, warehouse operations, and customer orders. Manhattan earns revenue in several ways: through cloud-based subscriptions, software licenses, support and maintenance fees, and consulting services that help businesses improve performance and operations.
While the company operates around the world, most of its business is centered in North America, which accounts for 76.9% of total revenue. Europe, the Middle East, and Africa (EMEA) make up 18.3%, while the Asia-Pacific (APAC) region contributes 4.8%. Despite its global presence, Manhattan’s strongest customer base remains in the Americas.
The company's main product is called Manhattan Active, a cloud-based platform that is sold as a subscription service. This software updates regularly, giving all users access to the latest version without any downtime. Customers benefit from continuous improvements, and businesses don’t need to worry about maintaining different versions of the software. This also allows Manhattan to keep its platform simple, scalable, and easy to manage across different areas of supply chain operations.
Manhattan Associates focuses on three core business areas: supply chain execution, omnichannel commerce, and supply chain planning. In supply chain execution, their software helps warehouses and shipping processes run more smoothly, which reduces transportation costs and speeds up delivery. In omnichannel commerce, their solutions connect online and in-store retail operations, helping manage orders, inventory, point-of-sale systems, and customer service tools. For supply chain planning, the software helps businesses predict what products they will need, when they’ll need them, and where to send them, using data and advanced analytics to improve efficiency and lower costs.
As of 2024, Manhattan earned $337.2 million from cloud subscriptions, making up 32% of the company’s total revenue. License revenue, which comes from customers who purchase and install software permanently, totaled only $15.1 million. Most of Manhattan’s cloud revenue comes from existing customers and is earned over multi-year contracts, usually five years or more. Maintenance revenue, tied to older software licenses, was $138.3 million but is expected to decrease as more customers switch to cloud subscriptions. Services made up the largest share, totaling $525.5 million, while hardware sales added $26.3 million. Most customers rely on Manhattan’s professional services team to help with software setup, support, and upgrades.
