Buffett Brain · Research note
Score updated 26 Sept 2026 · analysis from 27 Jul 2026
MANH· Technology
Manhattan Associates
Manhattan Associates boasts a high ROIC of 76.8% but faces valuation concerns with a P/E of 36.2 and an owner earnings yield of only 4.81%.
Buffett fit
Partial fit
Owner
91
Durability
98
Management
68
Price
17
Score updated 26 Sept 2026 · analysis from 27 Jul 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Technology stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned 100% of Manhattan Associates, I would focus on leveraging their 12.98% revenue CAGR and 20.26% EPS CAGR to expand market share.
The full reasoning comes with a free account.
The business has shown resilience, being profitable in all of the last five years.
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Management has reduced share count by -1.19% over the last five years, indicating a commitment to returning value to shareholders.
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With an yield of 4.81%, this does not meet the 8-10% threshold we look for.
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- The full reasoning behind all four pillars
- The 5-year price target and the return it implies
- What would change the call
- Graham, Lynch and Greenblatt on the same stock
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 76.8% is in the top quintile for the technology sector, indicating exceptional capital efficiency.
- 2Revenue CAGR of 12.98% shows strong growth potential in a competitive market.
- 3 of 25.6% exceeds the sector's top-quintile cutoff of 18%, showcasing effective cost management.
- 4All five years of profitability signal a stable business model and reliable cash flow.
Concerns
5- 1 of 36.2 prices in significant future growth, while the 5-year EPS CAGR is 20.26%, suggesting potential multiple compression.
- 2 yield of 4.81% is below the acceptable threshold of 8-10%, indicating limited .
- 3Current ratio of 1.10 is below the ideal threshold of 1.5, raising concerns about short-term liquidity.
- 4 of 55.6% is below the sector's top-quintile cutoff of 60.9%, indicating potential pricing pressure.
Price history
$236+39.8%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Manhattan Associates develops software solutions for supply chain and inventory management, generating $1.08B in revenue. Their services include logistics execution and inventory optimization, with a notable 25.6% . This business model is resilient, supported by recurring software services and consulting.
What other investors would say
The same company, judged by three other documented playbooks.
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