ETWO is now undervalued and could go up 400%
May 25, 2025, 12:00 PM
25.88%
What does ETWO do
E2open Parent Holdings, headquartered in Austin, Texas, provides supply chain management software and went public on April 24, 2020. Its platform integrates networks, data, and applications for optimized supply chain performance.
Based on our analysis, E2open Parent Holdings has received an undervalued rating of 5 out of 5 stars from Cashu, primarily due to its key financial ratios that suggest significant market undervaluation.
The price-to-book (PB) ratio for E2open stands at 0.84, compared to the sector average of 3.24. A lower PB ratio indicates that the company's market valuation is significantly less than its book value, suggesting it may be trading at an attractive price relative to its assets.
In terms of profitability, E2open's net profit margin is -108.58, markedly worse than the sector's -15.35. While this negative margin reflects current operational challenges, it also hints at potential for improvement, as operational efficiency can be enhanced over time, potentially transforming losses into profits.
The return on equity (ROE) for E2open is -78.11, versus the sector average of -24.75. Negative ROE indicates that the company is not generating profit from shareholder equity, but this also presents an opportunity for turnaround as management seeks to improve returns.
Additionally, the return on assets (ROA) ratio stands at -27.83 compared to -12.89 for the sector. This negative figure suggests inefficiencies in asset utilization, yet again, it underscores the potential for future operational improvements.
In summary, E2open Parent Holdings appears undervalued based on its financial metrics, indicating that market sentiment may not fully reflect its asset value and future recovery potential.
This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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