Last Updated: 12 Oct 2024
Executive Summary
E2open Parent Holdings Inc. (ETWO) is a provider of cloud-based supply chain management software as a service (SaaS) solutions. The company's platform enables customers to manage their supply chains more efficiently and effectively. ETWO has a strong track record of growth, with revenue increasing by 20% in the past year. However, the company is currently unprofitable, and its stock price has declined by 30% in the past year.
Company Overview
ETWO was founded in 2000 and is headquartered in Austin, Texas. The company's platform is used by over 1,000 customers in a variety of industries, including manufacturing, retail, and healthcare. ETWO's platform provides a range of features, including inventory management, order management, and transportation management.
Fundamental Analysis
ETWO's financial performance has been mixed in recent years. The company's revenue has grown steadily, but its profitability has declined. In the past year, ETWO's net loss widened to $42.7 million. The company's gross margin has also declined, from 68.9% in 2021 to 65.9% in 2022.
ETWO's balance sheet is relatively strong. The company has $181.6 million in cash and equivalents and no long-term debt. However, ETWO's current ratio is only 1.1, which is below the industry average.
Technical Analysis
ETWO's stock price has been in a downtrend since early 2022. The stock price is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is also below 30, which indicates that the stock is oversold.
Short Term Outlook
ETWO's short-term outlook is uncertain. The company's stock price is likely to continue to trade in a range until there is a clear catalyst for a breakout. The company's next earnings report is due out in August, and investors will be looking for signs of improvement in profitability.
Long Term Outlook
ETWO's long-term outlook is more positive. The company's platform is a valuable tool for businesses that are looking to improve their supply chain efficiency. ETWO has a strong track record of growth, and the company is well-positioned to continue to grow in the future.
Analyst Recommendations
The majority of analysts have a "hold" rating on ETWO. The average analyst price target is $3.88, which is 26% above the current stock price.
