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 3 out of 10. The analysis compared the fundamentals against 283 industry peers in the Software industry. ETWO has a bad profitability rating. Also its financial health evaluation is rather negative. 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.
ETWO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ETWO has a Return On Assets of -26.71%. This is in the lower half of the industry: ETWO underperforms 71.48% of its industry peers.
With a Return On Equity value of -73.01%, ETWO is not doing good in the industry: 74.30% of the companies in the same industry are doing better.
ETWO has a Return On Invested Capital of 0.17%. This is in the better half of the industry: ETWO outperforms 60.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -26.71% | ||
| ROE | -73.01% | ||
| ROIC | 0.17% |
ROA(3y)-25.54%
ROA(5y)-16.13%
ROE(3y)-58.69%
ROE(5y)-36.61%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ETWO has a better Operating Margin (0.72%) than 61.62% of its industry peers.
With a Gross Margin value of 49.35%, ETWO is not doing good in the industry: 69.01% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of ETWO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.72% | ||
| PM (TTM) | N/A | ||
| GM | 49.35% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ETWO is destroying value.
ETWO has more shares outstanding than it did 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 -0.82, we must say that ETWO is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.82, ETWO is doing worse than 73.59% of the companies in the same industry.
The Debt to FCF ratio of ETWO is 13.31, which is on the high side as it means it would take ETWO, 13.31 years of fcf income to pay off all of its debts.
ETWO has a Debt to FCF ratio (13.31) which is comparable to the rest of the industry.
ETWO has a Debt/Equity ratio of 1.19. This is a high value indicating a heavy dependency on external financing.
ETWO's Debt to Equity ratio of 1.19 is on the low side compared to the rest of the industry. ETWO is outperformed by 76.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 13.31 | ||
| Altman-Z | -0.82 |
ROIC/WACC0.02
WACC11.35%
2.3 Liquidity
ETWO has a Current Ratio of 1.05. 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 Current ratio of 1.05. This is in the lower half of the industry: ETWO underperforms 71.13% of its industry peers.
A Quick Ratio of 1.05 indicates that ETWO should not have too much problems paying its short term obligations.
ETWO has a worse Quick ratio (1.05) than 69.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
ETWO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.53%, which is quite impressive.
The Earnings Per Share has been growing slightly by 5.57% on average over the past years.
The Revenue has decreased by -2.63% in the past year.
The Revenue has been growing by 14.78% on average over the past years. This is quite good.
EPS 1Y (TTM)23.53%
EPS 3Y5.57%
EPS 5YN/A
EPS Q2Q%25%
Revenue 1Y (TTM)-2.63%
Revenue growth 3Y12.61%
Revenue growth 5Y14.78%
Sales Q2Q%0.96%
3.2 Future
The Earnings Per Share is expected to grow by 7.46% on average over the next years.
ETWO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.03% yearly.
EPS Next Y-3.1%
EPS Next 2Y5.12%
EPS Next 3Y7.46%
EPS Next 5YN/A
Revenue Next Year-0.24%
Revenue Next 2Y1.02%
Revenue Next 3Y2.03%
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
The Price/Earnings ratio is 15.71, which indicates a correct valuation of ETWO.
Based on the Price/Earnings ratio, ETWO is valued cheaply inside the industry as 83.10% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.84. ETWO is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 14.93 indicates a correct valuation of ETWO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ETWO indicates a rather cheap valuation: ETWO is cheaper than 85.21% of the companies listed in the same industry.
ETWO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.71 | ||
| Fwd PE | 14.93 |
4.2 Price Multiples
ETWO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. ETWO is cheaper than 89.08% of the companies in the same industry.
90.85% 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 | 13.14 | ||
| EV/EBITDA | 10.91 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.12%
EPS Next 3Y7.46%
5. Dividend
5.1 Amount
No dividends for ETWO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.3
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners76.6%
Inst Owner Change-2.03%
Ins Owners4.15%
Ins Owner Change-225.64%
Market Cap1.03B
Analysts47.5
Price Target3.54 (7.27%)
Short Float %2.56%
Short Ratio0.69
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)2
Avg EPS beat(2)20.1%
Min EPS beat(2)17.65%
Max EPS beat(2)22.55%
EPS beat(4)3
Avg EPS beat(4)10.36%
Min EPS beat(4)-1.96%
Max EPS beat(4)22.55%
EPS beat(8)4
Avg EPS beat(8)1.98%
EPS beat(12)4
Avg EPS beat(12)-2.86%
EPS beat(16)6
Avg EPS beat(16)-294.84%
Revenue beat(2)1
Avg Revenue beat(2)-0.85%
Min Revenue beat(2)-2.17%
Max Revenue beat(2)0.47%
Revenue beat(4)1
Avg Revenue beat(4)-1.98%
Min Revenue beat(4)-3.62%
Max Revenue beat(4)0.47%
Revenue beat(8)2
Avg Revenue beat(8)-1.87%
Revenue beat(12)2
Avg Revenue beat(12)-2.45%
Revenue beat(16)2
Avg Revenue beat(16)-3.4%
PT rev (1m)11.38%
PT rev (3m)37.17%
EPS NQ rev (1m)-10%
EPS NQ rev (3m)-10%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.77%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)0.65%
Revenue NY rev (3m)0.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.71 | ||
| Fwd PE | 14.93 | ||
| P/S | 1.69 | ||
| P/FCF | 13.14 | ||
| P/OCF | 9.83 | ||
| P/B | 1.19 | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.91 |
EPS(TTM)0.21
EY6.36%
EPS(NY)0.22
Fwd EY6.7%
FCF(TTM)0.25
FCFY7.61%
OCF(TTM)0.34
OCFY10.17%
SpS1.95
BVpS2.78
TBVpS-3.27
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -26.71% | ||
| ROE | -73.01% | ||
| ROCE | 0.22% | ||
| ROIC | 0.17% | ||
| ROICexc | 0.19% | ||
| ROICexgc | N/A | ||
| OM | 0.72% | ||
| PM (TTM) | N/A | ||
| GM | 49.35% | ||
| FCFM | 12.9% |
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-Score4
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.19 | ||
| Debt/FCF | 13.31 | ||
| Debt/EBITDA | 6.09 | ||
| Cap/Depr | 16.02% | ||
| Cap/Sales | 4.34% | ||
| Interest Coverage | 0.05 | ||
| Cash Conversion | 61.98% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | -0.82 |
F-Score4
WACC11.35%
ROIC/WACC0.02
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)23.53%
EPS 3Y5.57%
EPS 5YN/A
EPS Q2Q%25%
EPS Next Y-3.1%
EPS Next 2Y5.12%
EPS Next 3Y7.46%
EPS Next 5YN/A
Revenue 1Y (TTM)-2.63%
Revenue growth 3Y12.61%
Revenue growth 5Y14.78%
Sales Q2Q%0.96%
Revenue Next Year-0.24%
Revenue Next 2Y1.02%
Revenue Next 3Y2.03%
Revenue Next 5YN/A
EBIT growth 1Y106.43%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year7.56%
EBIT Next 3Y5.21%
EBIT Next 5YN/A
FCF growth 1Y77.17%
FCF growth 3Y56.28%
FCF growth 5YN/A
OCF growth 1Y31.8%
OCF growth 3Y24.68%
OCF growth 5YN/A