E2OPEN PARENT HOLDINGS INC (ETWO) Stock Fundamental Analysis
NYSE:ETWO - New York Stock Exchange, Inc. - US29788T1034 - Common Stock - Currency: USD
ETWO gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 283 industry peers in the Software industry. ETWO may be in some trouble as it scores bad on both profitability and health. ETWO is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year ETWO was profitable.
ETWO had a positive operating cash flow in the past year.
In the past 5 years ETWO always reported negative net income.
Each year in the past 5 years ETWO had a positive operating cash flow.
1.2 Ratios
ETWO's Return On Assets of -27.83% is on the low side compared to the rest of the industry. ETWO is outperformed by 71.02% of its industry peers.
ETWO has a Return On Equity of -78.11%. This is in the lower half of the industry: ETWO underperforms 73.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -27.83% | ||
| ROE | -78.11% | ||
| ROIC | N/A |
ROA(3y)-25.54%
ROA(5y)-16.13%
ROE(3y)-58.69%
ROE(5y)-36.61%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Gross Margin, with a value of 49.32%, ETWO is doing worse than 68.90% of the companies in the same industry.
ETWO's Gross Margin has declined in the last couple of years.
ETWO does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 49.32% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.18%
GM growth 5Y-3.94%
2. Health
2.1 Basic Checks
ETWO does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for ETWO has been increased compared to 1 year ago.
Compared to 5 years ago, ETWO has more shares outstanding
Compared to 1 year ago, ETWO has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -0.84, we must say that ETWO is in the distress zone and has some risk of bankruptcy.
ETWO's Altman-Z score of -0.84 is on the low side compared to the rest of the industry. ETWO is outperformed by 73.14% of its industry peers.
ETWO has a debt to FCF ratio of 14.17. This is a negative value and a sign of low solvency as ETWO would need 14.17 years to pay back of all of its debts.
ETWO's Debt to FCF ratio of 14.17 is in line compared to the rest of the industry. ETWO outperforms 49.47% of its industry peers.
ETWO has a Debt/Equity ratio of 1.22. This is a high value indicating a heavy dependency on external financing.
ETWO has a Debt to Equity ratio of 1.22. This is in the lower half of the industry: ETWO underperforms 75.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 14.17 | ||
| Altman-Z | -0.84 |
ROIC/WACCN/A
WACC11.41%
2.3 Liquidity
ETWO has a Current Ratio of 1.14. This is a normal value and indicates that ETWO is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of ETWO (1.14) is worse than 67.49% of its industry peers.
ETWO has a Quick Ratio of 1.14. This is a normal value and indicates that ETWO is financially healthy and should not expect problems in meeting its short term obligations.
ETWO has a Quick ratio of 1.14. This is in the lower half of the industry: ETWO underperforms 67.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
ETWO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.11%, which is quite good.
Measured over the past 5 years, ETWO shows a small growth in Earnings Per Share. The EPS has been growing by 5.57% on average per year.
Looking at the last year, ETWO shows a decrease in Revenue. The Revenue has decreased by -4.23% in the last year.
The Revenue has been growing by 14.78% on average over the past years. This is quite good.
EPS 1Y (TTM)11.11%
EPS 3Y5.57%
EPS 5YN/A
EPS Q2Q%20%
Revenue 1Y (TTM)-4.23%
Revenue growth 3Y12.61%
Revenue growth 5Y14.78%
Sales Q2Q%-3.64%
3.2 Future
The Earnings Per Share is expected to grow by 6.97% on average over the next years.
Based on estimates for the next years, ETWO will show a small growth in Revenue. The Revenue will grow by 1.85% on average per year.
EPS Next Y-0.55%
EPS Next 2Y7.71%
EPS Next 3Y6.97%
EPS Next 5YN/A
Revenue Next Year-0.74%
Revenue Next 2Y0.97%
Revenue Next 3Y1.85%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 16.15, the valuation of ETWO can be described as correct.
ETWO's Price/Earnings ratio is rather cheap when compared to the industry. ETWO is cheaper than 84.81% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.43. ETWO is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.24, which indicates a correct valuation of ETWO.
80.92% of the companies in the same industry are more expensive than ETWO, based on the Price/Forward Earnings ratio.
ETWO's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.17.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.15 | ||
| Fwd PE | 16.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ETWO is valued cheaper than 89.75% of the companies in the same industry.
91.52% of the companies in the same industry are more expensive than ETWO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.55 | ||
| EV/EBITDA | 11.11 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.71%
EPS Next 3Y6.97%
5. Dividend
5.1 Amount
No dividends for ETWO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.23
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners95.5%
Inst Owner Change-0.85%
Ins Owners0.96%
Ins Owner Change46.68%
Market Cap1.00B
Analysts47.27
Price Target2.58 (-20.12%)
Short Float %2.5%
Short Ratio0.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.84%
Min EPS beat(2)-1.96%
Max EPS beat(2)17.65%
EPS beat(4)2
Avg EPS beat(4)2.79%
Min EPS beat(4)-7.73%
Max EPS beat(4)17.65%
EPS beat(8)3
Avg EPS beat(8)-1.47%
EPS beat(12)4
Avg EPS beat(12)-1.63%
EPS beat(16)6
Avg EPS beat(16)-247.37%
Revenue beat(2)0
Avg Revenue beat(2)-2.38%
Min Revenue beat(2)-2.59%
Max Revenue beat(2)-2.17%
Revenue beat(4)0
Avg Revenue beat(4)-3.2%
Min Revenue beat(4)-4.41%
Max Revenue beat(4)-2.17%
Revenue beat(8)1
Avg Revenue beat(8)-2.21%
Revenue beat(12)1
Avg Revenue beat(12)-2.65%
Revenue beat(16)1
Avg Revenue beat(16)-5.08%
PT rev (1m)-11.89%
PT rev (3m)-20.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.56%
EPS NY rev (1m)-5.34%
EPS NY rev (3m)0.86%
Revenue NQ rev (1m)-0.28%
Revenue NQ rev (3m)0.98%
Revenue NY rev (1m)-2.4%
Revenue NY rev (3m)-1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.15 | ||
| Fwd PE | 16.24 | ||
| P/S | 1.65 | ||
| P/FCF | 13.55 | ||
| P/OCF | 10.11 | ||
| P/B | 1.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.11 |
EPS(TTM)0.2
EY6.19%
EPS(NY)0.2
Fwd EY6.16%
FCF(TTM)0.24
FCFY7.38%
OCF(TTM)0.32
OCFY9.9%
SpS1.96
BVpS2.72
TBVpS-3.36
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -27.83% | ||
| ROE | -78.11% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 49.32% | ||
| FCFM | 12.17% |
ROA(3y)-25.54%
ROA(5y)-16.13%
ROE(3y)-58.69%
ROE(5y)-36.61%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.18%
GM growth 5Y-3.94%
F-Score5
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.22 | ||
| Debt/FCF | 14.17 | ||
| Debt/EBITDA | 6.2 | ||
| Cap/Depr | 13.85% | ||
| Cap/Sales | 4.15% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 59.45% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | -0.84 |
F-Score5
WACC11.41%
ROIC/WACCN/A
Cap/Depr(3y)16.67%
Cap/Depr(5y)18.9%
Cap/Sales(3y)5.38%
Cap/Sales(5y)5.66%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.11%
EPS 3Y5.57%
EPS 5YN/A
EPS Q2Q%20%
EPS Next Y-0.55%
EPS Next 2Y7.71%
EPS Next 3Y6.97%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.23%
Revenue growth 3Y12.61%
Revenue growth 5Y14.78%
Sales Q2Q%-3.64%
Revenue Next Year-0.74%
Revenue Next 2Y0.97%
Revenue Next 3Y1.85%
Revenue Next 5YN/A
EBIT growth 1Y76.17%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year6.95%
EBIT Next 3Y4.71%
EBIT Next 5YN/A
FCF growth 1Y32.93%
FCF growth 3Y56.28%
FCF growth 5YN/A
OCF growth 1Y16.81%
OCF growth 3Y24.68%
OCF growth 5YN/A