NYSE:GDOT

Stock Analysis Report

Executive Summary

Green Dot Corporation operates as a financial technology and bank holding company in the United States.


Snowflake Analysis

Questionable track record and overvalued.


Similar Companies

Share Price & News

How has Green Dot's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GDOT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.6%

GDOT

-1.4%

US Consumer Finance

-1.1%

US Market


1 Year Return

-46.4%

GDOT

12.8%

US Consumer Finance

17.9%

US Market

Return vs Industry: GDOT underperformed the US Consumer Finance industry which returned 12.8% over the past year.

Return vs Market: GDOT underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

GDOTIndustryMarket
7 Day6.6%-1.4%-1.1%
30 Day24.8%-1.5%1.4%
90 Day51.8%3.1%6.9%
1 Year-46.4%-46.4%14.6%12.8%20.3%17.9%
3 Year22.8%22.8%39.4%32.7%47.8%38.3%
5 Year133.4%133.4%45.4%35.1%71.9%53.0%

Price Volatility Vs. Market

How volatile is Green Dot's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Green Dot undervalued compared to its fair value and its price relative to the market?

1.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GDOT ($36.2) is trading below our estimate of fair value ($36.78)

Significantly Below Fair Value: GDOT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GDOT is poor value based on its PE Ratio (18.9x) compared to the Consumer Finance industry average (8.7x).

PE vs Market: GDOT is poor value based on its PE Ratio (18.9x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: GDOT's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: GDOT is overvalued based on its PB Ratio (2x) compared to the US Consumer Finance industry average (1.1x).


Next Steps

Future Growth

How is Green Dot forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

-2.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GDOT's earnings are forecast to decline over the next 3 years (-2.8% per year).

Earnings vs Market: GDOT's earnings are forecast to decline over the next 3 years (-2.8% per year).

High Growth Earnings: GDOT's earnings are forecast to decline over the next 3 years.

Revenue vs Market: GDOT's revenue (2.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: GDOT's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GDOT's Return on Equity is forecast to be low in 3 years time (11.9%).


Next Steps

Past Performance

How has Green Dot performed over the past 5 years?

25.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GDOT has high quality earnings.

Growing Profit Margin: GDOT's current net profit margins (9%) are lower than last year (11.4%).


Past Earnings Growth Analysis

Earnings Trend: GDOT's earnings have grown significantly by 25.7% per year over the past 5 years.

Accelerating Growth: GDOT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GDOT had negative earnings growth (-15.8%) over the past year, making it difficult to compare to the Consumer Finance industry average (8.6%).


Return on Equity

High ROE: GDOT's Return on Equity (10.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Green Dot's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: GDOT has a low level of unsold assets or inventory.

Debt Coverage by Assets: GDOT's debt is covered by short term assets (assets are 40.8x debt).


Financial Institutions Analysis

Asset Level: GDOT's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if GDOT has a sufficient allowance for bad loans.

Low Risk Liabilities: GDOT reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if GDOT has an acceptable proportion of non-loan assets held.

Low Risk Deposits: GDOT has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if GDOT has an appropriate level of bad loans.


Next Steps

Dividend

What is Green Dot's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate GDOT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate GDOT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GDOT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GDOT's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GDOT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.0yrs

Average management tenure


CEO

Bill Jacobs (77yo)

0.2yrs

Tenure

US$487,450

Compensation

Mr. William I. Jacobs, also known as Bill, J.D., serves as Interim Chief Executive Officer at at Green Dot Corporation since December 31, 2019. He is an Operating Partner of Corsair Capital LLC, where he f ...


Leadership Team

NamePositionTenureCompensationOwnership
William Jacobs
Chairman0.2yrsUS$487.45k0.025% $469.4k
J. Brewster
Interim President & Director3.8yrsUS$467.45k0.025% $469.4k
Kuan Archer
President & Chief Product and Technology Officer1yrsUS$2.09m0.39% $7.4m
Steven Streit
Founder & Chief Innovation Officer20.3yrsUS$5.50m6.16% $115.6m
John Ricci
General Counsel & Secretary15.7yrsUS$1.62m0.20% $3.8m
Jess Unruh
Interim CFO0.2yrsno data0.040% $753.5k
Robert Strub
Chief Operating Officer1yrsno datano data
Dara Dierks
Investor Relations0yrsno datano data
Jason Bibelheimer
Chief Human Resources Officer2.4yrsno data0.022% $410.9k
Lee Ross
Senior VP and BSA/AML/OFAC Officer11.6yrsno datano data

1.0yrs

Average Tenure

55yo

Average Age

Experienced Management: GDOT's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
William Jacobs
Chairman0.2yrsUS$487.45k0.025% $469.4k
J. Brewster
Interim President & Director3.8yrsUS$467.45k0.025% $469.4k
Steven Streit
Founder & Chief Innovation Officer20.3yrsUS$5.50m6.16% $115.6m
Jeffrey Osher
Advisor & Observer2.9yrsno datano data
George Shaheen
Independent Director6.4yrsUS$446.95k0.044% $826.5k
Kenneth Aldrich
Independent Director19.1yrsUS$204.98k0.24% $4.4m
George Gresham
Independent Director3.8yrsUS$414.47kno data
Saturnino Fanlo
Independent Director3.8yrsUS$414.95k0.033% $617.4k
Rajeev Date
Independent Director3.8yrsUS$219.98kno data
Glinda Bridgforth Hodges
Independent Director5.2yrsUS$427.38k0.0070% $131.1k

3.8yrs

Average Tenure

66yo

Average Age

Experienced Board: GDOT's board of directors are considered experienced (3.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Green Dot Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Green Dot Corporation
  • Ticker: GDOT
  • Exchange: NYSE
  • Founded: 1999
  • Industry: Consumer Finance
  • Sector: Diversified Financials
  • Market Cap: US$1.875b
  • Shares outstanding: 51.81m
  • Website: https://www.greendot.com

Number of Employees


Location

  • Green Dot Corporation
  • 3465 East Foothill Boulevard
  • Pasadena
  • California
  • 91107
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GDOTNYSE (New York Stock Exchange)YesClass A Common StockUSUSDJul 2010
5GNDB (Deutsche Boerse AG)YesClass A Common StockDEEURJul 2010
0J0NLSE (London Stock Exchange)YesClass A Common StockGBUSDJul 2010
5GNBRSE (Berne Stock Exchange)YesClass A Common StockCHCHFJul 2010

Biography

Green Dot Corporation operates as a financial technology and bank holding company in the United States. It operates in two segments, Account Services, and Processing and Settlement Services. The company offers deposit account programs, such network-branded reloadable prepaid debit cards under the consumer brand names of GPR cards, consumer and small business checking accounts, network-branded gift cards, secured credit cards, and other financial services. It also provides swipe reload system for crediting cash onto an enabled payment card by swiping the payment card at the point-of-sale through Green Dot Network participating retailer; MoneyPak, a product that allows a consumer to add funds to accounts; and e-cash remittance, a service that allows a consumer to transfer funds to a smartphone, as well as offers disbursement services through Simply Paid platform. In addition, the company offers prepaid cards, debit cards, payroll debit cards, consumer cash processing services, wage disbursements, and tax refund processing services, as well as issuing, settlement, and capital management services. Further, it provides mobile banking, loan disbursement accounts, mobile P2P, money transfer, instant payment, and processing and settlement services. The company markets its products under the brand names of Green Dot, GoBank, MoneyPak, AccountNow, RushCard, and RapidPay. Green Dot Corporation markets and sells its products and services through retail stores, various direct-to-consumer Websites, corporate distribution partnerships, tax preparation companies and individual tax preparers, and apps, as well as distributes through ‘Banking as a Service’ platform. The company was formerly known as Next Estate Communications, Inc. and changed its name to Green Dot Corporation in October 2005. Green Dot Corporation was incorporated in 1999 and is headquartered in Pasadena, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 01:25
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.