E2OPEN PARENT HOLDINGS INC (ETWO) Stock Fundamental Analysis
USA - NYSE:ETWO - US29788T1034 - Common Stock
3.3 USD
0 (0%)
3.3 USD
0 (0%)
Taking everything into account, ETWO scores 3 out of 10 in our fundamental rating. ETWO was compared to 280 industry peers in the Software industry. ETWO has a bad profitability rating. Also its financial health evaluation is rather negative. ETWO has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year ETWO was profitable.
In the past year ETWO had a positive cash flow from operations.
ETWO had negative earnings in each of the past 5 years.
Each year in the past 5 years ETWO had a positive operating cash flow.
1.2 Ratios
With a Return On Assets value of -26.71%, ETWO is not doing good in the industry: 71.48% of the companies in the same industry are doing better.
ETWO has a Return On Equity of -73.01%. This is in the lower half of the industry: ETWO underperforms 74.30% of its industry peers.
The Return On Invested Capital of ETWO (0.17%) is better than 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
With a decent Operating Margin value of 0.72%, ETWO is doing good in the industry, outperforming 61.62% of the companies in the same industry.
Looking at the Gross Margin, with a value of 49.35%, ETWO is doing worse than 69.01% of the companies in the same industry.
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.
ETWO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for ETWO is higher compared to a year ago.
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.
The Altman-Z score of ETWO (-0.82) is worse than 73.59% of its industry peers.
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 in line with its industry peers.
ETWO has a Debt/Equity ratio of 1.19. This is a high value indicating a heavy dependency on external financing.
ETWO has a worse Debt to Equity ratio (1.19) than 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.
With a Current ratio value of 1.05, ETWO is not doing good in the industry: 71.13% of the companies in the same industry are doing better.
ETWO has a Quick 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 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
The Earnings Per Share has grown by an impressive 23.53% over the past year.
ETWO shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.57% yearly.
ETWO shows a decrease in Revenue. In the last year, the revenue decreased by -2.63%.
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
ETWO is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.46% yearly.
Based on estimates for the next years, ETWO will show a small growth in Revenue. The Revenue will grow by 2.03% on average per year.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 15.71, ETWO is valued correctly.
ETWO's Price/Earnings ratio is rather cheap when compared to the industry. ETWO is cheaper than 83.10% of the companies in the same industry.
ETWO is valuated rather cheaply when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
ETWO is valuated correctly with a Price/Forward Earnings ratio of 14.93.
85.21% of the companies in the same industry are more expensive than ETWO, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.71. ETWO is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.71 | ||
| Fwd PE | 14.93 |
4.2 Price Multiples
89.08% of the companies in the same industry are more expensive than ETWO, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ETWO indicates a rather cheap valuation: ETWO is cheaper than 90.85% of the companies listed in the same industry.
| 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
ETWO does not give a dividend.
| 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-226.8%
Market Cap1.03B
Analysts47.5
Price Target3.54 (7.27%)
Short Float %N/A
Short RatioN/A
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