GROUPON INC (GRPN)
US3994732069 - Common Stock
Taking everything into account, GRPN scores 2 out of 10 in our fundamental rating. GRPN was compared to 32 industry peers in the Broadline Retail industry. GRPN may be in some trouble as it scores bad on both profitability and health. GRPN has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
GRPN had positive 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 has a Return On Assets of -6.29%. This is in the lower half of the industry: GRPN underperforms 68.75% of its industry peers.
GRPN has a worse Return On Equity (-89.49%) than 81.25% of its industry peers.
GRPN has a Return On Invested Capital of 6.54%. This is comparable to the rest of the industry: GRPN outperforms 43.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.29% | ||
| ROE | -89.49% | ||
| ROIC | 6.54% |
ROA(3y)-9.8%
ROA(5y)-10.24%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
GRPN has a Operating Margin of 4.58%. This is comparable to the rest of the industry: GRPN outperforms 50.00% of its industry peers.
GRPN has a better Gross Margin (89.12%) than 100.00% of its industry peers.
In the last couple of years the Gross Margin of GRPN has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.58% | ||
| PM (TTM) | N/A | ||
| GM | 89.12% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y22.34%
GM growth 5Y11.81%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so GRPN is destroying value.
The number of shares outstanding for GRPN has been increased compared to 1 year ago.
Compared to 5 years ago, GRPN has more shares outstanding
The debt/assets ratio for GRPN is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -2.10, we must say that GRPN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of GRPN (-2.10) is worse than 81.25% of its industry peers.
The Debt to FCF ratio of GRPN is 8.04, which is on the high side as it means it would take GRPN, 8.04 years of fcf income to pay off all of its debts.
GRPN has a Debt to FCF ratio of 8.04. This is comparable to the rest of the industry: GRPN outperforms 50.00% of its industry peers.
GRPN has a Debt/Equity ratio of 5.65. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of GRPN (5.65) is worse than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.65 | ||
| Debt/FCF | 8.04 | ||
| Altman-Z | -2.1 |
ROIC/WACC0.87
WACC7.49%
2.3 Liquidity
GRPN has a Current Ratio of 0.94. This is a bad value and indicates that GRPN is not financially healthy enough and could expect problems in meeting its short term obligations.
GRPN's Current ratio of 0.94 is on the low side compared to the rest of the industry. GRPN is outperformed by 93.75% of its industry peers.
GRPN has a Quick Ratio of 0.94. This is a bad value and indicates that GRPN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.94, GRPN is in line with its industry, outperforming 43.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
GRPN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 122.40%, which is quite impressive.
The Revenue for GRPN has decreased by -14.05% in the past year. This is quite bad
Measured over the past years, GRPN shows a very negative growth in Revenue. The Revenue has been decreasing by -27.87% on average per year.
EPS 1Y (TTM)122.4%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%375%
Revenue 1Y (TTM)-14.05%
Revenue growth 3Y-28.64%
Revenue growth 5Y-27.87%
Sales Q2Q%-9.48%
3.2 Future
GRPN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 65.92% yearly.
The Revenue is expected to grow by 5.38% on average over the next years.
EPS Next Y33.79%
EPS Next 2Y74.47%
EPS Next 3Y65.92%
EPS Next 5YN/A
Revenue Next Year-0.74%
Revenue Next 2Y2.97%
Revenue Next 3Y5.12%
Revenue Next 5Y5.38%
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
Based on the Price/Earnings ratio of 29.50, the valuation of GRPN can be described as expensive.
GRPN's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of GRPN to the average of the S&P500 Index (29.10), we can say GRPN is valued inline with the index average.
A Price/Forward Earnings ratio of 13.88 indicates a correct valuation of GRPN.
The rest of the industry has a similar Price/Forward Earnings ratio as GRPN.
GRPN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.5 | ||
| Fwd PE | 13.88 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GRPN is valued a bit cheaper than the industry average as 65.63% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, GRPN is valued a bit cheaper than the industry average as 65.63% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.62 | ||
| EV/EBITDA | 7.74 |
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 65.92% in the coming years.
PEG (NY)0.87
PEG (5Y)N/A
EPS Next 2Y74.47%
EPS Next 3Y65.92%
5. Dividend
5.1 Amount
GRPN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GROUPON INC
NASDAQ:GRPN (11/13/2024, 8:00:01 PM)
Premarket: 8.42 +0.16 (+1.94%)8.26
-3.06 (-27.03%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap328.25M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.5 | ||
| Fwd PE | 13.88 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.87
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -6.29% | ||
| ROE | -89.49% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.58% | ||
| PM (TTM) | N/A | ||
| GM | 89.12% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.65 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)122.4%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y33.79%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-14.05%
Revenue growth 3Y-28.64%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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