Manhattan Associates Inc (MANH, Financial) has recently demonstrated a remarkable performance in the stock market, with its price surging by 11.67% over the past week and an impressive 21.17% over the last three months. As of today, the company boasts a market capitalization of $15.3 billion and a current stock price of $248.57. This recent price increase has adjusted the company's valuation from being modestly overvalued three months ago, with a past GF Value of $210.79, to being fairly valued today at a GF Value of $225.61.
Overview of Manhattan Associates Inc
Founded in 1990, Manhattan Associates Inc operates within the software industry, specializing in solutions that enhance supply chain, inventory, and omnichannel operations efficiency. The company serves a diverse clientele, including retailers, wholesalers, manufacturers, and logistics providers, with over 1,200 customers globally. This broad customer base underscores the company's pivotal role in modern commerce, where efficient supply chain operations are crucial.
Assessing Profitability
Manhattan Associates' financial health is robust, reflected in its high Profitability Rank of 9/10. The company's Operating Margin stands at 22.91%, which is superior to 91.63% of 2,737 companies in the same sector. Additionally, its Return on Equity (ROE) of 88.73% and Return on Assets (ROA) of 32.16% rank better than 97.83% and 98.32% of their industry peers, respectively. The Return on Invested Capital (ROIC) at 39.49% also highlights the company's efficiency in turning capital into profits. These metrics not only demonstrate strong current profitability but also suggest a sustainable competitive advantage.
Growth Trajectory
Manhattan Associates is not just profitable but also growing at a commendable rate. The company's Growth Rank is a perfect 10/10. Over the past three years, its revenue per share grew by 17.60%, outperforming 69.36% of 2,461 companies in the global software industry. Its EPS (Earnings Per Share) growth without NRI (Non-Recurring Items) over the same period was even more impressive at 40.10%, surpassing 82.45% of its peers. Looking ahead, analysts estimate a future EPS growth rate of 16.01% over the next three to five years, which, while lower than the historical rate, still positions the company favorably against 39.95% of the industry.
Notable Shareholders
Manhattan Associates' stock is held by several prominent investors, which adds an extra layer of credibility to its market standing. Jim Simons holds 591,560 shares, representing 0.96% of the company, while Ken Fisher (Trades, Portfolio) and Ron Baron (Trades, Portfolio) hold smaller stakes of 0.07% and 0.04%, respectively. These investments reflect confidence from some of the market's most respected figures.
Competitive Landscape
In comparison to its competitors, Manhattan Associates holds a strong position. SS&C Technologies Holdings Inc (SSNC, Financial) with a market cap of $16.72 billion, Bentley Systems Inc (BSY, Financial) at $14.74 billion, and Grab Holdings Inc (GRAB, Financial) at $13.28 billion are its closest competitors. Each of these companies shares a similar market cap range, highlighting the competitive environment in which Manhattan Associates operates.
Conclusion
Manhattan Associates Inc stands out as a robust entity in the software industry, backed by strong profitability metrics, consistent growth, and strategic shareholder confidence. The company's recent stock price rally is well-supported by its financial health and growth prospects, making it a noteworthy contender in the competitive technology sector. With a fair valuation and positive market trends, Manhattan Associates continues to be an attractive option for investors looking for stability and growth in the tech space.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
