E2open Parent Holdings (ETWO) AI Stock Analysis

• Market Cap: $727.68M
• Dividend Yield: N/A
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.34
• Revenue Growth: -4.50%
• EPS Growth: 65.41%
• Country: US
• Employees: 3,916
• Sector: Technology
• Sector Strength: 62
• Industry: Software - Application
• EPS (TTM): -1.48
• Shares Outstanding: 309,346,100
• 10 Day Avg. Volume: 976,103
• 30 Day Avg. Volume: 1,118,034
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.13
• Price to Cash Flow (P/CF): 9.80
• P/FCF Ratio: 9.70
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2.48
• Price Target Upside: 15.89% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 2

E2open Parent Holdings faces significant profitability and operational challenges, as reflected in its financial performance score. The technical analysis indicates mixed signals with short-term stability but longer-term weakness. Valuation remains a concern due to negative earnings and no dividend yield. While the earnings call highlighted some positive retention trends, ongoing revenue decline and external headwinds suggest a cautious outlook.

Positive Factors

Client Interest

Greater uncertainty around US trade policy has driven an uptick in client interest in E2open’s Global Trade Management and Logistics applications according to management.

Management Execution

Another quarter of improving retention, bookings, and growth indicate better execution from the new management team.

Negative Factors

Leverage and Debt

E2open's elevated leverage in a high-interest rate environment limits the company's ability to pay down debt to meet its leverage targets, further restricting its ability to acquire and cross-sell additional supply chain software assets.

Revenue Guidance

The midpoint of 4Q SaaS revenue guidance was below consensus and implies continued modest year-over-year declines.

Sales Challenges

The operating environment continues to be impacted by higher levels of buyer scrutiny, extended sales cycles, and share shift to faster growth peers.

E2open Parent Holdings Business Overview & Revenue Model

Company Description

E2open Parent Holdings (ETWO) is a leading provider of cloud-based, end-to-end supply chain management solutions. The company operates within the technology and software sectors, offering a comprehensive suite of intelligent applications that enable businesses to manage their supply chain activities more efficiently. E2open's platform covers various areas such as demand sensing, supply planning, logistics, and global trade management, designed to integrate seamlessly with clients' existing systems to optimize their supply chain operations.

How the Company Makes Money

E2open makes money primarily through a subscription-based revenue model, where clients pay recurring fees to access their cloud-based software solutions. The company capitalizes on its extensive portfolio of applications by offering different subscription tiers that cater to various business sizes and needs. Additionally, E2open generates revenue from professional services, which include implementation, training, and consulting services to help clients effectively utilize their solutions. Key revenue streams also include strategic partnerships and alliances with major industry players, which enhance the platform's capabilities and expand its market reach, contributing significantly to the company's earnings.

E2open Parent Holdings Financial Statement Overview

Summary

E2open Parent Holdings faces significant profitability challenges, with ongoing net losses impacting income statement metrics. The balance sheet remains relatively stable, with moderate leverage and substantial equity financing. Cash flow generation is a positive highlight, although free cash flow growth remains a concern. Overall, financial health is below industry standards, driven by persistent losses and operational inefficiencies.

Income Statement

The company has shown a decrease in revenue over the TTM period compared to the previous annual report. Gross profit margin remains moderate, but net profit margin is heavily negative due to substantial losses. EBIT and EBITDA margins are also negative, indicating operational challenges and high costs relative to revenue.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio, reflecting manageable leverage. However, the return on equity is negative due to net losses, indicating profitability issues. The equity ratio is satisfactory, suggesting a decent proportion of assets financed by equity.

Cash Flow

The cash flow statement shows positive operating cash flow, but the free cash flow growth is negative, indicating potential cash flow constraints. The operating cash flow to net income ratio is positive, suggesting better cash generation than accounting profit.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Dec 2020	Mar 2020
Income Statement		Total Revenue
613.46M	634.55M	652.22M	425.56M	305.10M	305.10M
	Gross Profit
283.49M	317.69M	330.28M	202.59M	184.04M	184.04M
	EBIT
-420.06M	-1.19B	-29.43M	-53.81M	-3.89M	-14.38M
	EBITDA
-193.33M	164.55M	191.47M	104.44M	-3.89M	46.04M
	Net Income Common Stockholders
-457.84M	-1.07B	-720.20M	-189.91M	-72.70M	-101.37M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
151.21M	134.48M	93.03M	155.48M	194.72M	19.49M
	Total Assets
2.62B	3.14B	4.40B	5.41B	3.84B	1.44B
	Total Debt
1.07B	1.08B	1.08B	985.78M	518.62M	951.71M
	Net Debt
917.63M	944.24M	988.38M	830.30M	323.90M	932.21M
	Total Liabilities
1.48B	1.56B	1.67B	1.92B	1.36B	1.23B
	Stockholders Equity
1.09B	1.48B	2.50B	3.19B	2.08B	214.59M
Cash Flow		Free Cash Flow
48.95M	55.62M	20.04M	19.38M	-12.79M	-67.41M
	Operating Cash Flow
74.36M	84.87M	68.10M	51.15M	-1.23M	-55.85M
	Investing Cash Flow
-25.42M	-29.25M	-228.73M	-808.51M	-414.00M	-442.96M
	Financing Cash Flow
-12.86M	-14.02M	90.44M	710.71M	415.69M	467.62M

E2open Parent Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETWO, the sentiment is Neutral. The current price of 2.14 is above the 20-day moving average (MA) of 2.00, below the 50-day MA of 2.18, and below the 200-day MA of 3.19, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 53.50 is Neutral, neither overbought nor oversold. The STOCH value of 92.22 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ETWO.

E2open Parent Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSFT	83 Outperform	$2.91T	31.19	34.29%	0.81%	15.04%	12.38%
SAP	79 Outperform	$298.72B	89.42	12.81%	0.62%	9.39%	201.10%
ADBE	76 Outperform	$149.56B	23.11	47.28%	―	10.65%	44.84%
CRM	76 Outperform	$257.40B	41.60	10.26%	0.60%	8.72%	51.47%
ORCL	75 Outperform	$388.36B	32.31	108.79%	1.16%	6.23%	12.37%
Sector *	59 Neutral	$10.72B	10.22	-6.67%	3.02%	7.42%	-11.38%
ETWO	54 Neutral	$727.68M	―	-35.18%	―	-4.50%	65.41%

E2open Parent Holdings Corporate Events

E2open Parent Holdings Announces Key Leadership Changes

E2open has announced significant leadership changes with the promotion of Pawan Joshi to Chief Strategy Officer and the appointment of Rachit Lohani as Chief Product and Technology Officer. These strategic roles aim to drive corporate growth, enhance client engagement, and foster innovation in E2open’s supply chain solutions. Joshi’s vast experience and leadership will help deepen the market understanding of E2open’s capabilities, while Lohani’s technical expertise will guide the evolution of the company’s SaaS platform to support client-centric growth and innovation.