NYSE:GDOT

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


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

8.9%

GDOT

2.9%

US Consumer Finance

3.0%

US Market


1 Year Return

85.1%

GDOT

-25.7%

US Consumer Finance

15.8%

US Market

Return vs Industry: GDOT exceeded the US Consumer Finance industry which returned -25.7% over the past year.

Return vs Market: GDOT exceeded the US Market which returned 15.4% over the past year.


Shareholder returns

GDOTIndustryMarket
7 Day8.9%2.9%3.0%
30 Day9.4%4.5%6.0%
90 Day75.2%13.6%16.4%
1 Year85.1%85.1%-24.0%-25.7%18.4%15.8%
3 Year23.0%23.0%5.5%0.01%44.8%35.4%
5 Year198.8%198.8%7.4%-1.3%75.7%56.7%

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?

55.76x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GDOT ($55.19) is trading above our estimate of fair value ($41.97)

Significantly Below Fair Value: GDOT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GDOT is poor value based on its PE Ratio (55.8x) compared to the US Consumer Finance industry average (8.3x).

PE vs Market: GDOT is poor value based on its PE Ratio (55.8x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: GDOT is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: GDOT is overvalued based on its PB Ratio (2.9x) 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?

45.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GDOT's forecast earnings growth (45.2% per year) is above the savings rate (2.2%).

Earnings vs Market: GDOT's earnings (45.2% per year) are forecast to grow faster than the US market (22.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GDOT's revenue (5.1% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: GDOT's revenue (5.1% 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 (11.4%).


Next Steps

Past Performance

How has Green Dot performed over the past 5 years?

20.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GDOT has high quality earnings.

Growing Profit Margin: GDOT's current net profit margins (4.4%) are lower than last year (10.7%).


Past Earnings Growth Analysis

Earnings Trend: GDOT's earnings have grown significantly by 20.2% 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 (-56.3%) over the past year, making it difficult to compare to the Consumer Finance industry average (-38.6%).


Return on Equity

High ROE: GDOT's Return on Equity (5.1%) is considered low.


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


Financial Institutions Analysis

Asset Level: GDOT's Assets to Equity ratio (3.3x) is low.

Allowance for Bad Loans: GDOT has a sufficient allowance for bad loans (238%).

Low Risk Liabilities: 85% of GDOT's liabilities are made up of primarily low risk sources of funding.

Loan Level: GDOT has an appropriate level of Loans to Assets ratio (1%).

Low Risk Deposits: GDOT's Loans to Deposits ratio (1%) is appropriate.

Level of Bad Loans: GDOT has a high level of bad loans (7.9%).


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

0.6yrs

Average management tenure


CEO

Dan Henry (54 yo)

0.42

Tenure

Mr. Daniel R. Henry, also known as Dan, serves as Chief Executive Officer, President and Director at Green Dot Corporation since March 25, 2020. He has been Chairman and Director at PaySign, Inc., (formerl ...


Leadership Team

NamePositionTenureCompensationOwnership
Steven Streit
Founder & Chief Innovation Officer21.58yrsUS$6.05mno data
Daniel Henry
CEO, President & Director0.42yrno datano data
Jess Unruh
Interim CFO & Chief Accounting Officer0.58yrno data0.054%
$ 1.6m
Dara Dierks
Investor Relationsno datano datano data
John Ricci
General Counsel & Secretary16.17yrsUS$1.62m0.011%
$ 318.9k
Jason Bibelheimer
Chief Human Resources Officer2.92yrsno data0.0018%
$ 52.9k
Seth Ross
Chief of Enterprise Partnerships0.67yrno datano data
Daniel Eckert
Executive VP & Chief Product0.25yrno datano data
Philip Lerma
Senior VP & Chief Risk Officer0.25yrno datano data
Brandon Thompson
Executive Vice President of Retail0.17yrno datano data
Erick Gerencher
Chief Executive Officer at Green Dot Bank1.33yrsno data0.11%
$ 3.2m
Michelle Blaya
Vice President of Communications & Communitiesno datano datano data

0.6yrs

Average Tenure

49yo

Average Age

Experienced Management: GDOT's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Daniel Henry
CEO, President & Director0.42yrno datano data
George Shaheen
Independent Director6.92yrsUS$446.96k0.053%
$ 1.6m
Ellen Richey
Independent Director0.33yrno data0.0018%
$ 52.9k
J. Brewster
Independent Director4.33yrsUS$469.96k0.12%
$ 3.4m
William Jacobs
Independent Chairman of Board4.17yrsUS$489.96k0.12%
$ 3.4m
Kenneth Aldrich
Independent Director19.58yrsUS$204.98k0.24%
$ 6.9m
Saturnino Fanlo
Independent Director4.25yrsUS$414.96k0.042%
$ 1.2m
Jeffrey Osher
Independent Director0.42yrno data0.0020%
$ 57.9k
Rajeev Date
Independent Director4.33yrsUS$219.98k0.016%
$ 476.2k
Glinda Bridgforth Hodges
Independent Director5.67yrsUS$427.68k0.017%
$ 487.4k

4.3yrs

Average Tenure

70yo

Average Age

Experienced Board: GDOT's board of directors are considered experienced (4.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: GDOT 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$2.941b
  • Shares outstanding: 53.30m
  • 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

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 of ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/07 00:30
End of Day Share Price2020/08/06 00:00
Earnings2020/06/30
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.