Latest news with #MANH
Yahoo
27-05-2025
- Business
- Yahoo
1 Cash-Producing Stock with Exciting Potential and 2 to Be Wary Of
Generating cash is essential for any business, but not all cash-rich companies are great investments. Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities. Luckily for you, we built StockStory to help you separate the good from the bad. That said, here is one cash-producing company that excels at turning cash into shareholder value and two that may face some trouble. Trailing 12-Month Free Cash Flow Margin: 29.3% Boasting major consumer staples and pharmaceutical companies as clients, Manhattan Associates (NASDAQ:MANH) offers a software-as-service platform that helps customers manage their supply chains. Why Do We Pass on MANH? Average billings growth of 3.6% over the last year was subpar, suggesting it struggled to push its software and might have to lower prices to stimulate demand Estimated sales growth of 1.9% for the next 12 months implies demand will slow from its three-year trend Gross margin of 55.6% is way below its competitors, leaving less money to invest in areas like marketing and R&D At $185.23 per share, Manhattan Associates trades at 10.6x forward price-to-sales. Check out our free in-depth research report to learn more about why MANH doesn't pass our bar. Trailing 12-Month Free Cash Flow Margin: 15.5% Originally founded as Carlisle Tire and Rubber Company, Carlisle Companies (NYSE:CSL) is a multi-industry product manufacturer focusing on construction materials and weatherproofing technologies. Why Does CSL Worry Us? Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth Anticipated sales growth of 5.1% for the next year implies demand will be shaky Earnings growth underperformed the sector average over the last two years as its EPS grew by just 4.8% annually Carlisle's stock price of $386.84 implies a valuation ratio of 17.1x forward P/E. If you're considering CSL for your portfolio, see our FREE research report to learn more. Trailing 12-Month Free Cash Flow Margin: 25.7% Short for microcomputer software, Microsoft (NASDAQ:MSFT) is the largest software vendor in the world with its Windows operating system, Office suite, and cloud computing services. Why Are We Backing MSFT? Microsoft is one of the great brands not just in tech but all of business. It produces mission-critical software and bundles it together, resulting in cream-of-the-crop gross margins. The company's elite unit economics lead to robust profit margins that improve over time. This speaks to the scale advantages and operating efficiency across its diverse portfolio, which spans everything from Office and Azure to Minecraft. Microsoft has a virtuous cycle of returns. Its dominant market position enables it to generate strong free cash flow, and it reinvests these funds into promising ventures that further strengthen its competitive moat. Microsoft is trading at $450.33 per share, or 31.7x forward price-to-earnings. Is now a good time to buy? Find out in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today for free.
Yahoo
23-05-2025
- Business
- Yahoo
3 Software Stocks Walking a Fine Line
Software is eating the world, and virtually no business is left untouched by it. Companies bringing it to life have been rewarded with high valuation multiples that make fundraising easier, but they have weighed on the returns lately as the industry has pulled back by 10.3% over the past six months. This drop was worse than the S&P 500's 2.4% loss. A cautious approach is imperative when dabbling in these businesses as their valuations could plummet if AI disrupts their earnings potential. Taking that into account, here are three software stocks best left ignored. Market Cap: $258 million Created from the merger of two small workforce management companies in 2007, Asure (NASDAQ:ASUR) provides cloud based payroll and HR software for small and medium-sized businesses (SMBs). Why Do We Think Twice About ASUR? Annual revenue growth of 15.1% over the last three years was below our standards for the software sector Customers had second thoughts about committing to its platform over the last year as its average billings growth of 7.9% underwhelmed Expenses have increased as a percentage of revenue over the last year as its operating margin fell by 5.4 percentage points At $9.50 per share, Asure trades at 1.9x forward price-to-sales. Check out our free in-depth research report to learn more about why ASUR doesn't pass our bar. Market Cap: $11.38 billion Boasting major consumer staples and pharmaceutical companies as clients, Manhattan Associates (NASDAQ:MANH) offers a software-as-service platform that helps customers manage their supply chains. Why Do We Pass on MANH? Offerings struggled to generate meaningful interest as its average billings growth of 3.6% over the last year did not impress Estimated sales growth of 1.9% for the next 12 months implies demand will slow from its three-year trend Gross margin of 55.6% is way below its competitors, leaving less money to invest in areas like marketing and R&D Manhattan Associates is trading at $188.50 per share, or 10.8x forward price-to-sales. If you're considering MANH for your portfolio, see our FREE research report to learn more. Market Cap: $17.45 billion Founded by two individuals involved in the development of leading procurement software Ariba, Guidewire (NYSE:GWRE) offers insurance companies a software-as-a-service platform to help sell their products and manage their workflows. Why Are We Cautious About GWRE? Annual revenue growth of 12.4% over the last three years was below our standards for the software sector High servicing costs result in a relatively inferior gross margin of 61.4% that must be offset through increased usage Long payback periods on sales and marketing expenses limit customer growth and signal the company operates in a highly competitive environment Guidewire's stock price of $208 implies a valuation ratio of 13.9x forward price-to-sales. Dive into our free research report to see why there are better opportunities than GWRE. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free.
Yahoo
24-04-2025
- Business
- Yahoo
MANH Q1 Earnings Call: Cloud Growth and New CEO Transition Drive Outperformance
Supply chain optimization software maker Manhattan Associates (NASDAQ:MANH) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 3.2% year on year to $262.8 million. The company's full-year revenue guidance of $1.07 billion at the midpoint came in 0.7% above analysts' estimates. Its non-GAAP profit of $1.19 per share was 15.4% above analysts' consensus estimates. Is now the time to buy MANH? Find out in our full research report (it's free). Revenue: $262.8 million vs analyst estimates of $256.8 million (3.2% year-on-year growth, 2.3% beat) Adjusted EPS: $1.19 vs analyst estimates of $1.03 (15.4% beat) Adjusted Operating Income: $91.27 million vs analyst estimates of $79.27 million (34.7% margin, 15.1% beat) The company reconfirmed its revenue guidance for the full year of $1.07 billion at the midpoint Management raised its full-year Adjusted EPS guidance to $4.59 at the midpoint, a 2% increase Operating Margin: 24%, up from 22.6% in the same quarter last year Free Cash Flow Margin: 28.3%, down from 39.7% in the previous quarter Billings: $279.9 million at quarter end, in line with the same quarter last year Market Capitalization: $10.44 billion Manhattan Associates' Q1 results were shaped by continued momentum in its cloud-based supply chain solutions and a smooth leadership transition, with Eric Clark stepping in as CEO. Management highlighted robust demand for cloud products, particularly through new customer wins and expanded cross-selling, while also noting that services revenue held up despite cautious customer spending in a challenging macro environment. Looking ahead, the company maintained its full-year revenue guidance and increased its adjusted EPS outlook. Management cited ongoing investments in sales and marketing, as well as product simplification initiatives, as key drivers for future growth. CEO Eric Clark emphasized, 'We are investing in sales specialists around many of our new products' to capture additional market share and drive adoption, even as the industry navigates external uncertainties like tariffs. Manhattan Associates attributed its Q1 performance to strong growth in cloud subscription revenue and steady demand across diverse industry verticals. Management focused on expanding its customer base and introducing new products to address evolving market needs. Cloud Revenue Expansion: The company experienced 21% growth in cloud revenue, driven by demand from both new and existing customers, with about half of new cloud bookings attributed to net-new clients. Diverse Industry Penetration: Manhattan's customer wins in the quarter spanned retail, grocery, life sciences, and logistics, supporting a balanced performance and reducing reliance on any single sector. New Product Launch: The introduction of Enterprise Promise and Fulfill (EPF) targeted B2B order optimization, addressing customer demand for more direct-to-consumer-like fulfillment capabilities in complex supply chains. AI and Automation Initiatives: The company expanded its Agentic AI offerings, notably Manhattan Active Maven and Manhattan Assist, to automate customer service tasks and simplify supply chain management, with new features enabling broader deployment across client operations. Leadership Transition: The CEO transition from Eddie Capel to Eric Clark was described as smooth, with both leaders focusing on continuity and ongoing product innovation, positioning the company for long-term growth. Management's outlook for the remainder of the year is anchored in further scaling cloud solutions, increasing sales and marketing investments, and ongoing product innovation, while remaining vigilant about macroeconomic uncertainty and potential impacts from tariffs. Sales and Marketing Investment: The company is prioritizing hiring and deploying sales specialists to drive adoption of new cloud products and expand its customer base. Product Simplification Efforts: Continued investment in simplifying deployment processes is expected to accelerate customer onboarding and shorten time-to-value for clients. Macro Environment Risks: Management remains cautious about near-term services revenue due to customer budget shifts, the flexibility of time-and-materials contracts, and the evolving tariff landscape, which could influence sales cycles and project implementations. Terry Tillman (Truist Securities): Asked how tariffs and macro uncertainty might affect sales cycles; management said Q2 and Q3 could see some impact but maintained confidence in the current pipeline. Brian Peterson (Raymond James): Inquired about the stability of the sales pipeline and new business linearity; management reported balanced deal flow across industries and regions, with strong early-quarter activity. Joe Vruwink (Baird): Questioned the resilience of new logo wins versus migrations and cross-sells; management noted all channels are performing well, with no single area significantly more resilient. Dylan Becker (William Blair): Asked how customers are prioritizing supply chain investments; management believes precise execution and inventory management remain critical regardless of macro challenges. George Kurosawa (Citi): Requested detail on customer feedback informing guidance; management cited ongoing direct engagement and service project reviews as supporting their outlook. In the coming quarters, the StockStory team will be monitoring (1) the pace of new cloud customer acquisitions and whether new logo momentum sustains, (2) the effectiveness of sales and marketing investments in driving product adoption, and (3) customer uptake of Agentic AI and automation features across Manhattan's unified platform. We will also track how macroeconomic pressures, particularly tariffs and shifting customer budgets, affect deal closure rates and services revenue. Should you load up on MANH, sell, or stay put? The answer lies in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today.
Yahoo
23-04-2025
- Business
- Yahoo
Why Is Manhattan Associates (MANH) Stock Rocketing Higher Today
Shares of supply chain optimization software maker Manhattan Associates (NASDAQ:MANH) jumped 11.4% in the morning session after the company reported first-quarter 2025 results that significantly exceeded analysts' expectations across revenue, EPS, and EBITDA. The key highlight for the quarter was a 25% increase in remaining performance obligations, a forward-looking measure that signals sustained demand for its cloud products. Looking ahead, Manhattan Associates also raised its full-year EPS guidance, which was encouraging. Overall, we think this was a solid quarter with some key areas of upside. Is now the time to buy Manhattan Associates? Access our full analysis report here, it's free. Manhattan Associates's shares are somewhat volatile and have had 12 moves greater than 5% over the last year. But moves this big are rare even for Manhattan Associates and indicate this news significantly impacted the market's perception of the business. The biggest move we wrote about over the last year was 3 months ago when the stock dropped 25.6% on the news that the company reported weak fourth-quarter results: Its revenue guidance for next year suggests a significant slowdown in demand, and its full-year revenue guidance fell short of Wall Street's estimates. Moving down the income statement, full-year EPS guidance also came in below expectations. On the other hand, MANH beat EPS expectations on revenue, which came in slightly ahead of Wall Street's estimates. Overall, this was a weaker quarter, with the outlook weighing on shares. Manhattan Associates is down 34.1% since the beginning of the year, and at $177.24 per share, it is trading 42.8% below its 52-week high of $309.78 from December 2024. Investors who bought $1,000 worth of Manhattan Associates's shares 5 years ago would now be looking at an investment worth $3,159. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. We prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. Sign in to access your portfolio
Yahoo
02-04-2025
- Business
- Yahoo
Manhattan Associates, Inc. (NASDAQ:MANH) Stock Has Shown Weakness Lately But Financials Look Strong: Should Prospective Shareholders Make The Leap?
Manhattan Associates (NASDAQ:MANH) has had a rough three months with its share price down 35%. But if you pay close attention, you might gather that its strong financials could mean that the stock could potentially see an increase in value in the long-term, given how markets usually reward companies with good financial health. Particularly, we will be paying attention to Manhattan Associates' ROE today. Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Manhattan Associates is: 73% = US$218m ÷ US$299m (Based on the trailing twelve months to December 2024). The 'return' is the amount earned after tax over the last twelve months. That means that for every $1 worth of shareholders' equity, the company generated $0.73 in profit. View our latest analysis for Manhattan Associates We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. Firstly, we acknowledge that Manhattan Associates has a significantly high ROE. Secondly, even when compared to the industry average of 14% the company's ROE is quite impressive. Under the circumstances, Manhattan Associates' considerable five year net income growth of 21% was to be expected. As a next step, we compared Manhattan Associates' net income growth with the industry and found that the company has a similar growth figure when compared with the industry average growth rate of 20% in the same period. Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. Doing so will help them establish if the stock's future looks promising or ominous. What is MANH worth today? The intrinsic value infographic in our free research report helps visualize whether MANH is currently mispriced by the market. Given that Manhattan Associates doesn't pay any regular dividends to its shareholders, we infer that the company has been reinvesting all of its profits to grow its business. Overall, we are quite pleased with Manhattan Associates' performance. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see substantial growth in its earnings. That being so, a study of the latest analyst forecasts show that the company is expected to see a slowdown in its future earnings growth. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
