Manhattan Associates Inc (MANH)

Manhattan Associates Inc. (MANH): A Comprehensive Overview

Company Profile:

Detailed history and background: Founded in 1990, Manhattan Associates Inc. (MANH) is a global provider of supply chain and omnichannel commerce solutions. The company started with a focus on warehouse and transportation management systems (TMS) but has expanded its offerings to include order management, fulfillment, customer service, and analytics solutions.

MANH serves various industries, including retail, consumer goods, manufacturing, food and beverage, and life sciences. The company has over 1,500 customers worldwide, including Fortune 500 companies like 7-Eleven, Macy’s, and The Coca-Cola Company.

Core Business Areas:

• Supply Chain Execution: This segment provides software solutions for warehouse and transportation management, order fulfillment, and yard and dock management.
• Omnichannel Commerce: This segment offers solutions for e-commerce order management, fulfillment, customer service, and analytics.

Leadership and Corporate Structure:

• Eddie Capel: President & Chief Executive Officer
• Greg Sproles: Chief Operating Officer and Chief Financial Officer
• Jeff Cashman: Chief Revenue & Strategy Officer

The Board of Directors consists of 10 members, including experts from various industries and with experience in technology and finance.

Top Products and Market Share:

• Manhattan Associates Warehouse Management: A leading WMS solution with a ~10% market share.
• Manhattan Transportation Management: A leading TMS solution with an estimated ~8% market share.
• Manhattan Order Management: An OMS solution gaining traction with growing adoption.

MANH faces competition from established players like Oracle, SAP, JDA, and Infor, and emerging startups like Flexe and Stord.

Total Addressable Market:

The global market for supply chain management and omnichannel commerce software is estimated to be around $16.7 billion.

Financial Performance:

As of the latest fiscal year 2022:

• Revenue: $652.5 million, up 9% year-over-year.
• Net Income: $102.4 million, up 21% year-over-year.
• EPS: $3.17 per share, up 22% year-over-year.
• Cash Flow: $125.4 million, a healthy increase.
• Balance Sheet: Strong with low debt-to-equity ratio.

Dividends and Shareholder Returns:

MANH has a dividend payout history but suspended it in 2022 to prioritize investments in growth initiatives. The company has a strong track record of share price growth, delivering over 200% total return in the past five years.

Growth Trajectory:

Historic growth has been impressive, with revenue increasing at a compounded annual growth rate (CAGR) of over 10% in the past five years. Future projections by analysts anticipate continued revenue and EPS growth in the coming years. Recent strategic acquisitions and investments in cloud-based solutions are expected to fuel future growth.

Market Dynamics:

The supply chain and omnichannel commerce software market is growing rapidly, driven by e-commerce, globalization, and the need for efficiency and visibility in supply chains. MANH is well-positioned to capitalize on this growth with its innovative solutions and focus on customer success.

Competitors:

• Oracle (ORCL)
• SAP (SAP)
• JDA Software (JDAS)
• Infor (INFOR)
• Flexe
• Stord

MANH competes primarily on features, functionality, and ease-of-use, offering solutions tailored to specific industry requirements.

Challenges and Opportunities:

• Supply chain disruptions: Global events and economic uncertainties can disrupt supply chains and impact company performance.
• Competition: Intense competition in the market requires continuous innovation and differentiation.
• Technology advancements: The rapid pace of technology advancements requires continuous investment in research and development.
• New markets: Expanding into new geographies and industries presents significant growth potential.
• Product innovations: Continuously developing and deploying innovative solutions can attract new clients and retain existing ones.

Recent Acquisitions (Last 3 Years):

• 2021: Reflexis Systems: Acquired for $230 million, enhancing MANH’s workforce management and retail execution capabilities.
• 2022: Theatro: Acquired for an undisclosed amount, adding capabilities for real-time dock and yard orchestration.
• 2022: Alteryx: Acquired for an undisclosed amount, bolstering analytics capabilities of MANH's order management offering.

These acquisitions strengthen MANH’s offerings, cater to evolving industry needs, and expand its reach in new segments.

AI-Based Fundamental Rating:

Based on an analysis of financial data and future growth prospects, an AI-based rating system gives Manhattan Associates Inc. (MANH) a rating of 8/10. The company exhibits robust financials, a solid competitive position, and promising growth initiatives. However, potential risks associated with market volatility and technological disruption should be considered.

Sources:

• https://www.manh.com/
• https://www.fool.com/investing/2023/10/27/manhattan-associates-stock/
• https://finance.yahoo.com/quote/MANH/
• https://www.macroaxis.com/invest/competitors/MANH
• https://www.forbes.com/companies/manhattan-associates/
• https://www.reuters.com/companies/MANH.N
• https://seekingalpha.com/symbol/MANH

Disclaimer: This information is intended for informational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.