GROUPON INC (GRPN)
US3994732069 - Common Stock
GRPN gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 32 industry peers in the Broadline Retail industry. While GRPN is still in line with the averages on profitability rating, there are concerns on its financial health. GRPN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year GRPN was profitable.
GRPN had a positive operating cash flow in the past year.
GRPN had negative earnings in 4 of the past 5 years.
GRPN had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
GRPN has a Return On Assets (3.53%) which is comparable to the rest of the industry.
GRPN's Return On Equity of 48.32% is amongst the best of the industry. GRPN outperforms 100.00% of its industry peers.
With a Return On Invested Capital value of 4.74%, GRPN is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.53% | ||
| ROE | 48.32% | ||
| ROIC | 4.74% |
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 Profit Margin of 3.87%. This is in the better half of the industry: GRPN outperforms 62.50% of its industry peers.
Looking at the Operating Margin, with a value of 3.41%, GRPN is in line with its industry, outperforming 43.75% of the companies in the same industry.
GRPN has a better Gross Margin (89.70%) than 100.00% of its industry peers.
GRPN's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.41% | ||
| PM (TTM) | 3.87% | ||
| GM | 89.7% |
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.
Compared to 1 year ago, GRPN has more shares outstanding
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 -2.31, we must say that GRPN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of GRPN (-2.31) is worse than 81.25% of its industry peers.
The Debt to FCF ratio of GRPN is 8.17, which is on the high side as it means it would take GRPN, 8.17 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 8.17, GRPN is in line with its industry, outperforming 53.13% of the companies in the same industry.
A Debt/Equity ratio of 5.69 is on the high side and indicates that GRPN has dependencies on debt financing.
GRPN has a Debt to Equity ratio of 5.69. This is amonst the worse of the industry: GRPN underperforms 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.69 | ||
| Debt/FCF | 8.17 | ||
| Altman-Z | -2.31 |
ROIC/WACC0.65
WACC7.29%
2.3 Liquidity
A Current Ratio of 0.93 indicates that GRPN may have some problems paying its short term obligations.
GRPN's Current ratio of 0.93 is on the low side compared to the rest of the industry. GRPN is outperformed by 93.75% of its industry peers.
A Quick Ratio of 0.93 indicates that GRPN may have some problems paying its short term obligations.
With a Quick ratio value of 0.93, GRPN perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.93 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 122.40% over the past year.
The Revenue has decreased by -4.85% in the past year.
GRPN shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -27.87% yearly.
EPS 1Y (TTM)122.4%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%375%
Revenue 1Y (TTM)-4.85%
Revenue growth 3Y-28.64%
Revenue growth 5Y-27.87%
Sales Q2Q%-9.48%
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 65.92% on average per year.
GRPN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.38% yearly.
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
With a Price/Earnings ratio of 33.29, GRPN can be considered very expensive at the moment.
GRPN's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of GRPN to the average of the S&P500 Index (29.20), we can say GRPN is valued inline with the index average.
GRPN is valuated correctly with a Price/Forward Earnings ratio of 15.66.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GRPN is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of GRPN to the average of the S&P500 Index (24.00), we can say GRPN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.29 | ||
| Fwd PE | 15.66 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GRPN indicates a somewhat cheap valuation: GRPN is cheaper than 65.63% of the companies listed in the same industry.
78.13% 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 | 13.31 | ||
| EV/EBITDA | 8.36 |
4.3 Compensation for Growth
GRPN's 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)0.99
PEG (5Y)N/A
EPS Next 2Y74.47%
EPS Next 3Y65.92%
5. Dividend
5.1 Amount
No dividends for GRPN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
GROUPON INC
NASDAQ:GRPN (11/22/2024, 8:00:00 PM)
After market: 9.41 +0.09 (+0.97%)9.32
+0.12 (+1.3%)
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 Cap370.66M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.29 | ||
| Fwd PE | 15.66 | ||
| 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)0.99
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.53% | ||
| ROE | 48.32% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.41% | ||
| PM (TTM) | 3.87% | ||
| GM | 89.7% | ||
| 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 Turnover0.91
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 5.69 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.93 | ||
| Quick Ratio | 0.93 | ||
| 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)-4.85%
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
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y