Manhattan AssociatesSTU:MHT -1.38%83 Operating Margin % is 23.01% as of Mar. 2026, which is 1% below its 10-year median of 23.27. GuruFocus rates STU:MHT with a GF Score™ of 83/100 and a GF Value™ of €227.51 (Significantly Undervalued). The stock has 2 warning signs investors should review. Among 2,818 Software companies, Manhattan Associates ranks better than 92.55% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Manhattan Associates Operating Margin % Related Terms
Manhattan Associates Operating Margin % Historical Data
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The historical data trend for Manhattan Associates's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:MHT vs FROG, BSY, DOCU: Operating Margin % Comparison
For the Software - Application subindustry, Manhattan Associates's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Manhattan Associates Operating Margin % vs Software Industry
For the Software industry and Technology sector, Manhattan Associates's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Manhattan Associates's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Manhattan Associates's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Manhattan Associates (STU:MHT) has a Operating Margin % of 23.01% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Manhattan Associates and its competitors. This is near median its historical median of 23.27. Over the past decade, Manhattan Associates' Operating Margin % has ranged from 18.76 to 32.14. According to the industry distribution chart, Manhattan Associates ranks #210 out of 2818 companies in the Software industry, placing it in the top 7.5%.
Is Manhattan Associates' Operating Margin % too high?
Manhattan Associates' current Operating Margin % of 23.01% is near median its 10-year median of 23.27. Over the past 10 years, this metric has ranged from a low of 18.76 to a high of 32.14. The Software industry median Operating Margin % is 3.88. Manhattan Associates' value of 23.01% is 493.8% above this industry median. Based on the distribution chart, Manhattan Associates ranks #210 out of 2818 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Manhattan Associates has a GF Score™ of 83/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Manhattan Associates' Operating Margin % compare to FROG and BSY?
According to the Software industry distribution chart, Manhattan Associates ranks #210 out of 2818 companies for Operating Margin %. This places Manhattan Associates in the top 8% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.88. Manhattan Associates' value of 23.01% is 493.8% above this benchmark. Historically, Manhattan Associates' own Operating Margin % has ranged from 18.76 to 32.14 over the past decade. While the company's 10-year median is 23.27 vs. the industry median of 3.88, Manhattan Associates has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Software company?
The median Operating Margin % among Software companies is 3.88, based on 2,818 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Manhattan Associates's current Operating Margin % of 23.01% is 493.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Manhattan Associates and its competitors. For the Software industry, the median Operating Margin % is 3.88 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Manhattan Associates's current Operating Margin % is 23.01%, which is near median its own 10-year median of 23.27. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Manhattan Associates stock overvalued right now?
Based on GuruFocus' analysis, Manhattan Associates (STU:MHT) is currently considered Significantly Undervalued. The stock's GF Value™ is €227.51, compared to a current price of €110.95 — trading 51.2% below its estimated fair value. The current Operating Margin % is 23.01%, which is near median its 10-year median of 23.27 and 493.8% above the Software industry median of 3.88. Manhattan Associates' overall GF Score™ is 83/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Manhattan Associates (STU:MHT), the current Operating Margin % is 23.01% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Manhattan Associates (STU:MHT) Overvalued in 2026?
Based on GuruFocus' analysis, Manhattan Associates stock appears to be undervalued.
The current stock price of €110.95 is trading 51.2% below its estimated GF Value™ of €227.51.
GuruFocus considers Manhattan Associates to be Significantly Undervalued.
Key valuation signals for STU:MHT:
Operating Margin %: 23.01% (near median its 10-year median of 23.27)
GF Value™: €227.51 vs. price of €110.95 (51.2% below fair value)
Industry Position: 493.8% above the Software median (#210 of 2818)
No single metric tells the full story. See the STU:MHT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Manhattan Associates provides software that helps users manage their supply chains, inventory, and omnichannel operations. Customers are generally retailers, wholesalers, manufacturers, and logistics providers. The company was founded in 1990 and serves more than 1,200 customers worldwide.
83GF Score
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