GROUPON INC (GRPN) Stock Fundamental Analysis
NASDAQ:GRPN - US3994732069 - Common Stock
26.25 USD
+0.09 (+0.34%)
26.25 USD
0 (0%)
GRPN gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 28 industry peers in the Broadline Retail industry. Both the profitability and financial health of GRPN have multiple concerns. GRPN has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
GRPN had negative earnings in the past year.
GRPN had a positive operating cash flow in the past year.
In the past 5 years GRPN reported 4 times negative net income.
GRPN had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
GRPN's Return On Assets of -1.42% is in line compared to the rest of the industry. GRPN outperforms 42.86% of its industry peers.
Looking at the Return On Equity, with a value of -17.99%, GRPN is doing worse than 71.43% of the companies in the same industry.
The Return On Invested Capital of GRPN (0.77%) is worse than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.42% | ||
| ROE | -17.99% | ||
| ROIC | 0.77% |
ROA(3y)-16.43%
ROA(5y)-11.89%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
GRPN's Operating Margin of 0.57% is on the low side compared to the rest of the industry. GRPN is outperformed by 64.29% of its industry peers.
In the last couple of years the Operating Margin of GRPN has declined.
GRPN has a better Gross Margin (90.58%) than 100.00% of its industry peers.
GRPN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.57% | ||
| PM (TTM) | N/A | ||
| GM | 90.58% |
OM growth 3Y-37.22%
OM growth 5Y-11.86%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.78%
GM growth 5Y11.03%
2. Health
2.1 Basic Checks
GRPN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for GRPN has been increased compared to 1 year ago.
The number of shares outstanding for GRPN has been increased compared to 5 years ago.
Compared to 1 year ago, GRPN has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -1.40, we must say that GRPN is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -1.40, GRPN is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
The Debt to FCF ratio of GRPN is 3.80, which is a good value as it means it would take GRPN, 3.80 years of fcf income to pay off all of its debts.
GRPN has a better Debt to FCF ratio (3.80) than 60.71% of its industry peers.
A Debt/Equity ratio of 4.17 is on the high side and indicates that GRPN has dependencies on debt financing.
With a Debt to Equity ratio value of 4.17, GRPN is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.17 | ||
| Debt/FCF | 3.8 | ||
| Altman-Z | -1.4 |
ROIC/WACC0.09
WACC8.18%
2.3 Liquidity
GRPN has a Current Ratio of 0.96. This is a bad value and indicates that GRPN is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of GRPN (0.96) is worse than 89.29% of its industry peers.
A Quick Ratio of 0.96 indicates that GRPN may have some problems paying its short term obligations.
The Quick ratio of GRPN (0.96) is worse than 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 |
3. Growth
3.1 Past
The earnings per share for GRPN have decreased strongly by -117.65% in the last year.
Looking at the last year, GRPN shows a decrease in Revenue. The Revenue has decreased by -4.72% in the last year.
GRPN shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -25.99% yearly.
EPS 1Y (TTM)-117.65%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1700%
Revenue 1Y (TTM)-4.72%
Revenue growth 3Y-20.14%
Revenue growth 5Y-25.99%
Sales Q2Q%0.87%
3.2 Future
Based on estimates for the next years, GRPN will show a very strong growth in Earnings Per Share. The EPS will grow by 46.06% on average per year.
The Revenue is expected to grow by 12.84% on average over the next years. This is quite good.
EPS Next Y132.19%
EPS Next 2Y62.77%
EPS Next 3Y46.06%
EPS Next 5YN/A
Revenue Next Year3.27%
Revenue Next 2Y6.81%
Revenue Next 3Y9.35%
Revenue Next 5Y12.84%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
GRPN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Based on the Price/Forward Earnings ratio of 33.14, the valuation of GRPN can be described as expensive.
GRPN's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of GRPN to the average of the S&P500 Index (22.67), we can say GRPN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 33.14 |
4.2 Price Multiples
GRPN's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. GRPN is more expensive than 67.86% of the companies in the same industry.
67.86% of the companies in the same industry are more expensive than GRPN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.34 | ||
| EV/EBITDA | 40.05 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as GRPN's earnings are expected to grow with 46.06% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y62.77%
EPS Next 3Y46.06%
5. Dividend
5.1 Amount
GRPN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.25
+0.09 (+0.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners57.57%
Inst Owner Change16.08%
Ins Owners2.68%
Ins Owner Change4.98%
Market Cap1.06B
Analysts78
Price Target34.17 (30.17%)
Short Float %40.68%
Short Ratio6.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2534.48%
Min EPS beat(2)265.44%
Max EPS beat(2)4803.53%
EPS beat(4)3
Avg EPS beat(4)632.5%
Min EPS beat(4)-2841.18%
Max EPS beat(4)4803.53%
EPS beat(8)4
Avg EPS beat(8)190.36%
EPS beat(12)7
Avg EPS beat(12)133.3%
EPS beat(16)9
Avg EPS beat(16)125.86%
Revenue beat(2)1
Avg Revenue beat(2)0.05%
Min Revenue beat(2)-0.53%
Max Revenue beat(2)0.63%
Revenue beat(4)2
Avg Revenue beat(4)-1.16%
Min Revenue beat(4)-4.79%
Max Revenue beat(4)0.63%
Revenue beat(8)4
Avg Revenue beat(8)-0.89%
Revenue beat(12)5
Avg Revenue beat(12)-2.95%
Revenue beat(16)5
Avg Revenue beat(16)-3.31%
PT rev (1m)11.67%
PT rev (3m)81.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-63.65%
EPS NY rev (1m)-3.75%
EPS NY rev (3m)-20.34%
Revenue NQ rev (1m)0.56%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)1.25%
Revenue NY rev (3m)1.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 33.14 | ||
| P/S | 2.18 | ||
| P/FCF | 16.34 | ||
| P/OCF | 13.42 | ||
| P/B | 20.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 40.05 |
EPS(TTM)-0.37
EYN/A
EPS(NY)0.79
Fwd EY3.02%
FCF(TTM)1.61
FCFY6.12%
OCF(TTM)1.96
OCFY7.45%
SpS12.06
BVpS1.27
TBVpS-3.25
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.42% | ||
| ROE | -17.99% | ||
| ROCE | 0.97% | ||
| ROIC | 0.77% | ||
| ROICexc | 8.72% | ||
| ROICexgc | N/A | ||
| OM | 0.57% | ||
| PM (TTM) | N/A | ||
| GM | 90.58% | ||
| FCFM | 13.32% |
ROA(3y)-16.43%
ROA(5y)-11.89%
ROE(3y)N/A
ROE(5y)N/A
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 3Y-40.94%
ROICexc growth 5Y-53.59%
OM growth 3Y-37.22%
OM growth 5Y-11.86%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y5.78%
GM growth 5Y11.03%
F-Score6
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 4.17 | ||
| Debt/FCF | 3.8 | ||
| Debt/EBITDA | 8.17 | ||
| Cap/Depr | 60.69% | ||
| Cap/Sales | 2.9% | ||
| Interest Coverage | 0.47 | ||
| Cash Conversion | 302.95% | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.96 | ||
| Quick Ratio | 0.96 | ||
| Altman-Z | -1.4 |
F-Score6
WACC8.18%
ROIC/WACC0.09
Cap/Depr(3y)52%
Cap/Depr(5y)57.82%
Cap/Sales(3y)4.65%
Cap/Sales(5y)4.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-117.65%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%1700%
EPS Next Y132.19%
EPS Next 2Y62.77%
EPS Next 3Y46.06%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.72%
Revenue growth 3Y-20.14%
Revenue growth 5Y-25.99%
Sales Q2Q%0.87%
Revenue Next Year3.27%
Revenue Next 2Y6.81%
Revenue Next 3Y9.35%
Revenue Next 5Y12.84%
EBIT growth 1Y-88.07%
EBIT growth 3Y-49.87%
EBIT growth 5Y-34.77%
EBIT Next Year895.54%
EBIT Next 3Y158.56%
EBIT Next 5Y131.3%
FCF growth 1Y137.26%
FCF growth 3YN/A
FCF growth 5Y188.49%
OCF growth 1Y154.1%
OCF growth 3YN/A
OCF growth 5Y-4.75%