The term "asset utilization" typically refers to the revenue generated for every dollar of assets a company currently possesses. The recent return on assets for E2open Parent Holdings indicates less than optimal asset utilization in October. The company has a Profit Margin (PM) of -1.48%, which may suggest that it is not effectively implementing its current pricing strategies or is unable to manage all of its operational costs. This is significantly below average. Similarly, it has an Operating Margin (OM) of -0.03%, which implies that for every $100 of sales, it incurred a net operating loss of $0.03.
Supplemental assessment
As a player in the Software - Application industry, E2open Parent Holdings (ETWO) has shown a notable Price Change of 0.09, indicating a potential upside of 2.85. This suggests that there is a promising opportunity for investors who are looking to hold onto a stock that could deliver substantial returns. The company's
financial performance, however, has been less than stellar, with a Jensen Alpha of -0.28 and a Total Risk Alpha of -0.19. These figures represent a loss, which may be a cause for concern for some investors. Despite these losses, the company's Mean Deviation stands at 1.78, which is relatively low, indicating that the company's stock price has been relatively stable. This stability could make E2open Parent Holdings a compelling hold in your investment portfolio, especially if you're looking for a stock with less volatility. Furthermore, the company's stock is currently trading at a low price of
4.13, which could provide a great entry point for investors looking to capitalize on the company's potential upside. However, it's important to note that the company's Treynor Ratio stands at -0.26, indicating that the company's returns have not been sufficient to compensate for the risks it has taken on. This is further underscored by the company's Maximum Drawdown of
12.61, which represents the largest loss an investor could have experienced if they bought the stock at its highest price and sold it at its lowest. This figure is a stark reminder of the risks involved in investing in the stock market, and investors should carefully consider these risks before deciding to hold onto E2open Parent Holdings' stock. In conclusion, while E2open Parent Holdings' stock presents a potential upside, its financial performance and risk profile suggest that it may not be a compelling hold for all investors. Those who are willing to tolerate higher levels of risk and are looking for potential high returns may find the stock an attractive option. However, more conservative investors may want to look elsewhere for more stable and less risky investment opportunities.
The successful prediction of E2open Parent
stock price could yield a significant profit to investors. But is it possible? The efficient-market hypothesis suggests that all published
stock prices of traded companies, such as E2open Parent Holdings, already reflect all publicly available information. This academic statement is a fundamental principle of many financial and investing theories used today. However, the typical investor usually disagrees with a 'textbook' version of this hypothesis and continually tries to find mispriced stocks to increase returns. We use internally-developed statistical techniques to arrive at
the intrinsic value of E2open Parent based on E2open Parent hews, social hype, general headline patterns, and widely used
predictive technical indicators. We also calculate exposure to E2open Parent's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to E2open Parent's related companies.
Use Technical Analysis to project E2open expected Price
E2open Parent technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.
A focus of E2open Parent technical analysis is to determine if market prices reflect all relevant information impacting that market. A technical analyst looks at the history of E2open Parent trading pattern rather than external drivers such as economic, fundamental, or social events. It is believed that price action tends to repeat itself due to investors' collective, patterned behavior. Hence technical analysis focuses on identifiable price trends and conditions.
More Info...E2open Parent Gross Profit
E2open Parent Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing E2open Parent previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show E2open Parent Gross Profit growth over the last 10 years. Please check E2open Parent's
gross profit and other
fundamental indicators for more details.
Another Outlook On E2open Parent
The big decline in price over the last few months for E2open Parent Holdings could raise concerns from insiders as the entity is trading at a share price of
4.27 on very low momentum in volume. The company directors and management failed to add value to investors and position the entity supply of money to exploit
market volatility in
September. However, diversifying your holdings with E2open Parent Holdings or similar stocks can still protect your portfolios during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.36. The current volatility is consistent with the ongoing market swings in
September 2023 as well as with E2open Parent unsystematic, company-specific events.
Deferred Revenue Breakdown
E2open Parent Deferred Revenue yearly trend continues to be very stable with very little volatility. Deferred Revenue is likely to drop to about 184.7
M. Deferred Revenue usually refers to a component of Total Liabilities representing the carrying amount of consideration received or receivable on potential earnings that were not recognized as revenue; including sales; license fees; and royalties; but excluding interest income. Where this item is not contained on the company consolidated financial statements and cannot otherwise be imputed the value of 0 is used. At this time, E2open Parent's Deferred Revenue is very stable as compared to the past year.
| 2010 | 76.78 Million |
| 2019 | 192.13 Million |
| 2022 | 206.33 Million |
| 2023 | 184.74 Million |
E2open Parent Holdings (ETWO) is a considerable player in the Software - Application industry, with a market capitalization of approximately
$1.47 billion and a workforce of over 4,000 employees. The company's
financial health, as indicated by a current ratio of 0.77X and a book value per share of 7.22X, is reasonably stable. However, its price to book ratio of 0.63X, compared to the industry average, suggests the stock may be undervalued. On the risk side, the company has a high probability of bankruptcy at 69.46%, which may deter potential investors. Additionally, its total debt stands at a substantial
$1.08 billion, which could be a cause for concern. Despite these risks, the company's short ratio of 13.47X indicates a potential for a short squeeze, which could drive the stock price higher. The company's EBITDA stands at $191.47 million, with a gross profit of $431.27 million, indicating strong operational performance. However, the negative return on assets and return on equity figures (-0.0027 and -0.37 respectively) suggest that the company may not be effectively converting these profits into shareholder value. Given these factors, ETWO could be a compelling hold in your portfolio if you're seeking undervalued opportunities and are willing to take on a higher degree of risk. However, careful consideration of the company's debt levels and bankruptcy risk is advised.
E2open Parent implied volatility may change after the roll up
E2open Parent Holdings, Inc. (NYSE: ETWO) recently reported a Jensen's Alpha of -0.28, indicating a negative risk-adjusted performance. This suggests that the stock may not be providing a satisfactory return relative to the risk it carries. The company's implied volatility could potentially change following the roll-up, which may cause fluctuations in the stock's price. Depending on the direction of this volatility shift, it could present a buying opportunity or necessitate a strategic exit. As always, investors should closely monitor the situation and make decisions based on their risk tolerance and investment objectives. E2open Parent Holdings exhibits very low volatility, with a skewness of -1.05 and a kurtosis of 2.01. However, we recommend that investors further study E2open Parent Holdings' technical indicators to ensure all market information is available and reliable. Understanding different
market volatility trends can often help investors time the market. Proper use of volatility indicators can enable traders to measure E2open Parent's stock risk against market volatility during both bullish and bearish trends. The heightened level of volatility that accompanies bear markets can directly impact
E2open Parent's stock price, adding stress for investors as they watch the value of their shares decrease. This often prompts investors to rebalance their portfolios by purchasing different stocks as prices fall.
Our Final Take On E2open Parent
Although some companies in the software—application industry are either recovering or due for a correction, E2open may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither take up nor drop any shares of E2open Parent at this time. The E2open Parent Holdings risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to E2open Parent.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of E2open Parent Holdings. Please refer to our
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