On this episode of Stock Spotlight, Michael breaks down Manhattan Associates ($MANH), a quiet powerhouse in supply chain software that’s been helping global retailers like Home Depot and CVS orchestrate complex omnichannel operations. With a versionless cloud platform and nearly 30% annual growth in cloud revenue, Manhattan is transitioning from a legacy services-heavy model to a high-margin SaaS business.
But is it already priced for perfection? Despite best-in-class capital discipline, strong ROIC, and a sticky product suite, the stock trades at a premium on most valuation metrics and faces decelerating growth alongside a recent CEO transition. Michael shares why he’s moving $MANH to his watchlist for now — and what would need to change to make this a buy.
Update: Morningstar has actually given Manhattan a Wide Moat rating (I said Narrow), though I’d personally place it somewhere between a solid Narrow and a true Wide.
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00:00 Intro
00:39 Investment Checklist & Database
02:03 Business Overview
12:45 Industry Overview
16:56 Quality Growth Profile
23:00 Financial Statement Overview
29:56 Management & Ownership Structure
35:56 KPIs to Track
37:51 Valuation & Technical Analysis
43:19 Bulls vs. Bears & Verdict
45:47 Outro
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Intro Music: Andrey Rossi – Seize the Day
Outro Music: Ra – Prospect
*Music provided by Uppbeat Premium
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Disclosure: The host of Stock Spotlight is not a licensed financial advisor. The information and opinions shared during the show are for entertainment purposes only.
